Redacted_FOE_-_FLIR.pdf

APPENDIXB

FAIR OPPORTUNITY EXCEPTION (FOE) DETERMINATION AND APPROVAL

Coutrac:tiog Adivity: AFLCMCIWIKAB Purchase Request/Loul ldentifieation Number:

Program Name: ~UA&Q22A.fm~ Estimated Cost/Price of the Order:

Type Program: PEO Authority: FAR l6.S05(b)(2lfiilfB) Type Determiaation: Individual

Program Manager:

Contracting Officer:

Local Legal Reviewer.

Competition Advocate:

Approval Authority

/7Jc:t'rr') DateSigned

!?f7~Jy Date 1gned

. l~i10..

Date Signed

,.;:2d /V"V 1 2..

Date Signed

FAIR OPPORTUNITY EXCEPTION (FOE) JUSTU'ICATION

I. Contracting Activity

The contracting activity for this action is Robins Air Force Base, GA. The contracting officer is

AFLC

This is an Exception to Fair Opportunity.

Purchase Request Number: FD2.060-12-32723

II. Nature and/or Description of the Action Being Processed Due to the specialized nature of this required contractor technicahupport,>request the following be acquired using Other Than Full and Open Competition procedures'to obtain an upgrade to the AN/AAQ-29 system. This is an upgrade to the existing AN/AAQ-1.9A Forward Looking Infra Red (FLIR). This contract will be a firm fixed price effort purchased using F2 AST multiple award contract.

a. Source(s): Raytheon Technical Services Company, LLC 6125 E. 21st Street Indianapolis IN 46219

CAGE: 072E5

b. Modification

c. In support of HH-600 aircraft

d. Type of Requirement: Air Combat Command

III. Description of the Supplies/Services Required To Meet the Agency's Needs

a. The AN/AAQ-29 FLIR System consists of hardware an.d so:ftwar~modificationsto the 120 system electronic units (SEU) in the inventory. Software lfpgrades will include the addition of Narrow Field of View (NFOV), E-Zoom, Free:ze F:t:ame~ Local Area Contrast Enhancement (LACE), Manual Gain/Leve], Enable Caritel Calibration~ Enable Initiated Built-in Test (IBIT) and Auto Tracking. The enhancements will improve operator's navigation, surveillance, and target acquisition capability during night, low illumination, and adverse conditions. Hardware modifications include a new Digital Video Signal Processor, Digital Symbol Generator and the addition of the DVI-D and SMPTE-292 ports on the SEU endosure. These advanced capability upgrades will unlock/add the NFOV, Freeze Frame, Auto Tracker, Cancel Calibration, E-Zoom, LACE, Enable Analog Position and Enable lBIT. This effort will involve the replacement of the Digital Video Signal Processor, an update to the data processor, a modification to the motherboard, and additional digital video outputs to support both DVI-D and SMPTE-292. This effort will not affect the existing FLIR wiring. Raytheon will perform non-recurring engiheering, Trial In~tall, and Kit Proof. Raytheon will deliver 10 units per month beginning 18 months after receipt of order for a required total of120 units.

b. Type of Order: Firm Fixed Price CFFP) for the following:.

• 2 ea Low Rate Initial-Production Units (SEUs) for Trial Install/Kit Proof

• Trial Installation/Kit Proof kits, Trial Installation/Kit Proof labor

• 118 ea Production SEUs; Raytheon to ship to locations provided by the gove-rnment

• Non-Recurring Engineering, Engineering Data, Technical Data, and Software

Development

• Low Rate Initial Production (LRIP) Testing and Flight Test support

• Purchase does not include installation--all units will be instafled at unit level

c. Each kit is comprised of one AN/ AAQ-29A SEU.

d. The total estimated cost of this acquisition is This procurement effort will be funded with FYll 3010 funds. This cost estimate is based upon historical data and inflationary indices.

IV. Authority Permitting a Fair Opportunity Exception

FAR 16.505(b )(l)(i) requires the contracting officer to provide each awardee, under a multiple award contract, a fair opportunity to be considered for each order exceeding $3,000 unless a statutory exception applies. The specific exception that precludes the fair opportunity process for this acquisition is FAR 16.505(b )(2)(ii)(B).

V. Demonstration of the Contractor's Unique Qualifications or Nature of the Acquisition that Requires the Use of the Authority Cited Above To Provide the Required Supply/Service (Applicability of Authority)

PerF AR 16.505(b )(2)(ii)(B) "Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized." The Air Force's minimum needs can only·be satisfied by the above capabilities demonstrated as follows:

a. The specific nature and extent of this acquisition is to upgrade the current AN/AAQ-29A FLIR System with digital video with software upgrades. HQ Air Combat Command (ACC) is the lead command of 7 Major Commands (MAJCOM) which operate the HH-60G helicopter to perform Personnel Rescue missions in hostile, wartime environments. The HH-600 is operated in civilian peacetime and real-world emergency relief environments such as Disaster Response and Medical evacuations. The proposed contract will be awarded using other than full and open competitive procedures pursuant to the authority ofF AR 16.505(b )(2)(ii)(B). Raytheon retains proprietary data rigJ:lts for the ANI AAQ-29A FLIR System. The market research concluded that Raytheon, the Original Equipment Manufacturer (OEM) on the systerq, is the only source capable of providing both software upgrades and digital video to the AN/AAQ-29A System.

Additionally, Raytheon already possesses the data, tools, and experience necessary to manufacture the assets. Raytheon is the designer, developer, and sole mant;lfacturer of the ANI AAQ-29A FUR and retains the patents andproprietary technical data rights to the system. As a result, they are the o~y source capable of satisfy\ng this requirement.

b. The AN/ AAQ-29A FL.LR System is currently supported by Raytheon under Contractor Logistics Support (CLS) contract H92241-08-D-0007, dated 16Dec 09. Currently, there are no immediate plans to activate government depot maintenance capability by any of the agencies to support the system.

VI. Description of Efforts Made To Ensure Competition Between All Awardees

In accordance with FAR 16.505(a)(1), orders under indefinite-delivery contracts do not have to be synopsized. Paragraph V, above, justifies why competition among all. awardees is not possible for this acquisition.

VII. Determination by the Contracting Officer that the Anticipated Cost to the Government Will Be Fair and Reasonable

Cost analysis will be performed by AFLCMC/WIKAB's contracting officer utilizing cost proposal and technical evaluations. The cost proposal submitted on a FFP basis fo.r the resultant delivery order under Raytheon's F2 AST contract will utilize FFP rates set forth in the Rate Tables attached to the basic contract. These rates were determined fair and reasonable through adequate price competition on the F2 AST Program. Raytheon .may propose rates that are lower than the rates in the Rate Tables and the lower rates will be incorporated in the delivery order as an attachment or a note in the schedule for billing purposes.

Vlll. Description of Market Research Conducted Among All Awardees and the Results or a Statement of the Reason Market Research Was Not Conduded

In-depth market research was accomplished in accordance with FAR Part 10.002 procedures to find an appropriate modification to upgrade the existing system. Thomas Register, Googlc; and Haystack were other internet tools used during market research. Additional market research was accomplished by contacting subject matter experts in the government regarding the marketplace's ability to meet this requirement. Current knowledge of the marketplace resulted in the determination that Raytheon is the only source that can provide supplies without a redesign of existing wiring and structure on the HH-60G helicopter. The extensive effort and ~sociated cost for development of electrical and structural changes required to accommodate Full and Open Competition does not support the current FLIR program budget or schedule requirements.

Furthermore, theAN/AAQ-29A System does not meet commercial specifications. The system was designed specifically for the military market.

IX. Other Facts Supporting the Justification

This sole source contractor (Raytheon) is the original OEM of the AN/AAQ-29A and retains.

proprietary data rights to the system.

X. List of Any Awardee that Expressed Interest in the Acquisition

See Section VI above.

XI. Actions the Agency May Take to Remove or Overcome Any Barriers To Increasing Fair Opportunity Before Anv Subsequent Acquisition for the Supplies or Services

This is a one-time buy of the hardware and software required to upgradethe FLIR System with Digital Video and so.ftware enhancements. The Air Force previously procured Raytheon AN/ AAQ-16B and AN/ AAQ-29A FLIR Systems for the HH-60G helicopters and chose CLS as the means to sustain the FLIR System. Therefore, technical data" support equipment, and replacement parts were not procured or stock listed to maintain the system_ Procurement of another system or use of a different vendor is economically unacceptable due to substantial duplication of cost to the government. Based on 573 ACSS/GFLB Budgetary Cost Information, utilizing a different vendor for this effort would increase procurement cost approximatelY ...

and extends delivery a minimum of 3 to 4 years.

Xll. Contracting Officer's Certification

The contracting officer's signature on the signature page evidence~ that he has determined this document to be both accurate and complete to the best of his knowledge and belief.

XIII. Technical/Requ:irements Personnel's Certification

As evidenced by their signatures on the signature page, the technical and/or requirements.

personnel have certified that any supporting data contained. herein, which is their responsibility, :is both accurate and complete.