Approved Redacted JA.pdf

FOR OFFICIAL USE ONLY

Justification and Approval (J&A) for Other Than Full and Open Competition

I NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action I I must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review I I and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official. I I I L----------------------------------------------------------------------------------

Is this a new or amended J&A Document? [gJ New D Amended { Prior to Award Only! ) Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan?

Funding level for this acquisition: D � $700K D > $700K and � $13.SM

Contracting Activity: AFLCM C/WIUKB

Purchase Request/ Local ID Number: FD2060-19-30175

D Yes [gj No

0 > $ 13.SM and �$93M □ > $93M p / p . t ( d PE 'f r bl ) SMFCD repair , Interim Contractor Support (ICS), initial spares, and engineering rogram roJec an ' 1 app ica e :

services of the HH-60G SMFCD

Program Type (PEO or Other Contracting): PEO

Authority: 6.302-1 - 10 USC 2304{c){1 ), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): $18M

COOR DINATION {AFFARS 5306.304(a))

Date Program Manager

12 Sep 2019

Date

12 Sep 2019

Date

12 Sep 2019

Date e

13 Sep 2019

APPROVAL (AFFARS 5306.304(a))

Date EMILY L. JAY, SES

Director of Contracting

AFSC/PK-R

Signature

J&A Type: D Class 0 Individual

Signature

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I. Contracting Activity.

This Justification and Approval is to request authority for Other Than Full and Open Competition supports requirements generated for the Air Force Life Cycle Management Center (AFLCMC), Intelligence, Surveillance, Reconnaissance (ISR) and Special Operations Forces (SOF), Rotary Wing Branch. The contracting authority for this requirement is AFLCMC/WIUKB. The purchase request number supporting this contracting action is FD2060-19-30175.

II. Nature and/or description of the action being processed.

Due to the circumstances described herein, the activity requests authority to acquire support services listed in this document using Other Than Full and Open Competition (OTF&OC) as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This action will result in the award of a new Indefinite Delivery Indefinite Quantity (IDIQ) contract which will consist of Cost Plus Fixed Fee (CPFF), Firm Fixed Price (FFP), and Cost Reimbursement/No Fee (CR/NF) contract line item numbers (CLINS). The contract will consist of a one (1) year basic ordering period and four (4) additional annual ordering periods. The projected award date is April 2020. The validity period of the IDIQ is projected to be April 2020 through March 2025.

This sole source requirement will be purchased from the following company:

Raytheon Intelligence, Information, and Services (Raytheon) 6125 East 21st Street Indianapolis, IN 46219-2058

CAGE: 072E5

Large Business

III. Description of supplies/services required to meet agency needs.

This requirement is to provide repairs, interim contractor support (ICS), initial spares, and engineering services for Smart Multi-Function Color Displays (SMFCD) contained in the fleet of HH-60G Pave Hawk helicopters used by the United States Air Force (USAF), Air Force Reserve Command (AFRC), and Air National Guard (ANG). The HH-60G Pave Hawk helicopter is a variant of the Army's UH-60 Black Hawk with a primary mission purpose of Personnel Recovery (PR) with a primary emphasis on Combat Search and Rescue (CSAR). The SMFCD is a modified item suitable for the rotary aircraft environment, to include temperature extremes, humidity, vibration, and shock mounting as well as potential Electromagnetic Interference/Electromagnetic Compatibility concerns and effects on aircraft electrical loads per MIL-STD-461, MIL-STD 464, and MIL-STD-810 and/or DO-160. The SMFCD exhibits navigation/tactical inputs (i.e., MATT, IBR, LARS V12, Quick Draw, and SADL) for enhanced situational awareness and reduce aircrew workload.

The SMFCD IDIQ will facilitate the development of all support requirements including SMFCD system repairs, contractor support, initial spares, and engineering services which will require an advanced capability in aircraft technology, engineering design as well as a thorough understanding of the HH-60G electrical, structural, environmental and loading factors to maintain airworthiness.

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• X003: Repair - Power Panel Assembly (CPFF)

• X004: Repair - Ethernet Switch Assembly (CPFF)

• X005: Spares (FFP)

• X006: Data Deliverable (NSP)

• X007: Travel (CRNF)

The following represents the services required to meet the mission needs for the USAF, AFRC, and ANG. The SMFCD contract will provide flexibility to meet the warfighter's immediate and future needs.

• Engineering Services o Provide engineering support to load Operational Flight Program (OFP) to USB devices.

o Maintain configuration and make changes as applicable to the current OFP as required for the HH-60G SMFCD.

• Interim Contractor Support (ICS) o Provide Continental United States (CONUS) and Outside Continental United States

(OCONUS) on-call technical and material support for the SMFCD system 8 hours a day, 5 days a week.

o Support OCONUS, if required, to the specified location within five (5) calendar days to support technical and material requests.

o Provide qualified technicians, as needed, to support CONUS technical and material requests during the ICS period of performance.

• Repair o Provide classified storage and repair space in a closed area approved and assessed annually by Defense Security Service (DSS).

o Perform depot level repair to include test, teardown, evaluation, and replacement of failed components and/or modules and return to the Original Equipment Manufacturer (OEM) specifications in serviceable condition.

This requirement is for the repair of three components required for the HH-60G SMFCD. The components are as listed below:

Display Unit

NSN: 7025-01-675-6190

PN: 846HN01000

RMC: R4/R

Power Panel Assembly

NSN: 1680-01-675-7179

PN: 846HN2100

RMC: R4/D

Ethernet Switch Assembly

NSN: 5895-01-675-6555

PN: 846HN4095

RMC: R4/R

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These NSN's were screened and assigned Repair Method Code (RMC)/ Repair Method Suffix Code (RMSC) of R3/R and R3/D, Repair for the first time, directly from the actual manufacturer. RMSC D indicated if the data needed to complete contract repair is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of repair for a competitive solicitation. Also, RMSC R indicates the Government does not own the data or the rights to the data needed to repair of these parts from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the parts. This code is used when the Government did not initially purchase the data and/or rights. Additional analysis is provided in Section V below.

• Spares o Manufacture and provide equipment to the specifications needed for HH-60G platform with a 15 month lead time.

• Technical Data o Maintain system level drawings, and developing new drawings, for aircraft integration using standard drafting programs such as AutoCAD, SolidWorks or equivalent modeling programs o Provide Air Force Technical Order (TO) changes to the Government.

o Maintain TOs using a Government specified version of Adobe Frame Maker.

IV. Statutory authority permitting other than full and open competition.

10 U.S.C. 2304(c) (1), as implemented by FAR 6.302-1 , Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

This agency's requirements can only be satisfied by the unique supplies, services, and capabilities available from Raytheon. The HH-60G helicopter requires a readable and intuitive integrated display suite and control capability to increase operational effectiveness while providing efficient management of all situational awareness of the pilots during both day and night tactical operations.

Previously, Pilot Display Units (PDU) (NSN: 7025-01-435-1579, PN: 3897003-11) were installed early into the introduction of the MH/HH-60G in the United States Air Force (USAF) inventory. Due to changes in mission requirements as well as obsolescence issues, a PDU replacement effort called the Multi-Function Color Display (MFCD) program was accomplished in June 2010. In parallel with the Air Force MFCD development and test phase, the Air Reserve Component (AR C) began pursuing the SMFCD program as a temporary solution until the permanent system was fielded. The temporary solution was deemed successful. As a result, delivery order 0353 against IDIQ contract H94003-04- D-0006 was awarded to design, develop, and integrate SMFCDs for providing the display and control of Situational Awareness Data Link (SADL) based Situational Awareness (SA), Lightweight Airborne Recovery System (LARS) integration, moving map, and legacy Forward Looking Infra-Red (FLIR) functionality into all USAF, AFRC, and ANG HH-60G helicopters. The MFCD program was plagued with hardware, software, and moving map difficulties which led to an unsatisfactory product and termination of the MFCD program in November 2014.

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Current ICS and repair capability is provided by Raytheon under H94003-04-D-0006-0353 which expires on 30 June 2020 and cannot be extended to cover the period of performance required for this effort. The Depot Source of Repair (DSOR) plan was submitted in June 2018; the annotated POP is needed to allow time for the DSOR coordination /approval process and stand up a long term contract.

Currently, the SMFCDs are the primary components critical to the overall functionality of the HH-60G Pave Hawk helicopter fleet. Past experiences with other displays reveal that it is difficult to meet the hardware, software, and moving map complexities while maintaining the military environmental requirements. The SMFCD consists of hardware, software, and interfaces that receive input designed to improve the performance of microelectronics based communications and the display system by providing a complete picture of the battlefield to conduct day and night combat search and rescue operations into hostile environments to recover downed aircrew or other distressed personnel.

As such, the repair integration of this equipment will require knowledge of military aircraft environmental conditions and may require military-unique equipment to ensure proper integration into the aircraft.

Raytheon is the OEM for the SMFCD system and specifically designed the display for use in the HH-60G Pave Hawk helicopter. Raytheon is the only contractor that has complete design qualification and can provide the unique engineering integration services and highly specialized ICS necessary to provide deliverables without a break in production. As the OEM, Raytheon has spent the last 14 years developing this system and can provide product and services that cannot be obtained through training or purchased from another contractor. The repair and ICS sustainment of the SMFCD system is required to ensure availability of the assets necessary to support mission requirements of the HH-60G Pave Hawk fleet. As a result, this instant acquisition is necessary for the continued performance of this highly specialized system.

On the other hand, a technical data package (TDP) that included integration data, operational/ maintenance manuals, and control specification documents was delivered under H94003-04- D-0006-0353 (the permanent SMFCD solution). Raytheon granted Government purpose rights for the software; however, there is no data that defines the performance and manufacturing characteristics of the product that will permit repair from other sources. Raytheon owns all the technical rights to produce the displays and developed the software specific to the displays. Raytheon is the only contractor that completely possesses the hardware and firmware proprietary data needed to accomplish the required services for the SMFCDs. Raytheon has patents on two internal components that were developed exclusively at private expense. No other contractor has the current configuration data necessary to repair the displays. Any other source would require a developmental effort to produce a display capable of meeting the Government's requirement. As such, the Government sent an inquiry to Raytheon in 2016 and August 2018 to purchase TDP and/or unlimited rights sufficient for a competitive procurement; however, Raytheon declined to sell the TDP and/or unlimited rights on the components.

Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Air Force's requirements. Competition at the prime contractor level is not possible based on the limiting factor of proprietary data constraints that would preclude competition. It is uneconomical to reverse engineer the proprietary components. The Government could not recoup the additional investment given that the aircraft is beginning to “sunset” in 2021 and inventory will continue to decline until phased out in

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2035. A reverse engineering assessment determined re-engineering this system and its subcomponents to develop a complete and adequate TDP would not be economically feasible. This decision was based on analysis, develop/design prototype, qualification testing, and technical data. A “like” system was evaluated to estimate reverse engineering costs. The historical cost of similar development efforts such as the Datalinks program is a “like” system with similar complexity. Based on the similarity, a reverse engineering effort based on development cost, configuration, and software development for the SMFCD system is estimated to cost and a to reverse engineer the required product/data.

Additionally, Raytheon already has an established classified (accredited by DSS) and an unclassified repair line and lab setup at their facility. Based on the historical costs of the CH-53's currently established repair line and labs, it is estimated that it would take an additional and an additional to establish a repair line at another facility. As such, it is not economical to establish these facilities with another contractor because it will lead to an unacceptable delay of a in the time to repair items and would negatively impact the mission of the HH-60G fleet. In order for another contractor to perform this work, an additional depot would have to be established which means that contractors would have limited capability and expertise to perform the unique nature of the work and perform the specialized ICS. As such, Raytheon would still be required to provide services because of their proprietary rights to the TDP. Lastly, the program does not have a proper spares posture to support a repair delay based on the spares posture and an demand for these items. A delay of this nature would substantially impact the fleet as it would be grounded without the SMFCD system.

Accordingly, Raytheon is the only firm capable of providing the requirements described in Section III above without the U.S. Air Force experiencing substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the USAF requirements.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

A Request for Information (RFI) synopsis was posted to Federal Business Opportunities (FedBizOpps) on June 30, 2019 with response date of July 31, 2019 under solicitation number FA8552-20-SMFCD.

The RFI requested responses for interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this effort. Raytheon was the only responding vendor.

The requirement will be synopsized in FedBizOpps in accordance with FAR 5.201. Any source who expresses an interest as a result of the synopsis will be identified to the prime contractor as a potential subcontracting possibility.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The overall cost of this acquisition will be fair and reasonable to the Government. In accordance with FAR 15.403-3, the contractor will be required to provide certified cost or pricing data to support the Government's evaluation of the proposed cost. The proposed cost will be negotiated by the

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Government based on recommendations from the Defense Contracting Management Agency (DCMA), and expert technical expertise personnel supporting the program. The cost will be negotiated in accordance with the procedures in FAR Part 15 ensuring the ultimate cost to the Government is fair and reasonable.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

Market Research was conducted in accordance with FAR 10.001 and 10.002. The market research was completed on 03 September 2019. Market research techniques used are as follows:

As described in Section VI, a RFI was posted to FedBizOpps advising industry of the pending acquisition and soliciting inquiries from interested vendors. The RFI was posted on June 30, 2019 under solicitation number FA8552-20-SMFCD with response date of July 31, 2019. Raytheon was the only contractor that responded.

Queries were conducted using the Dynamic Small Business Search (DSBS) registry using NAICs code 334511. This resulted in 5 large businesses and 12 small businesses that were evaluated to determine if they would be capable of performing the required work. Of these, a total of companies exist with the expertise to meet the following requirements as indicated by the DSBD: perform repairs on multi-function color display system level repairs, limited ICS, engineering and programmatic services.

Those companies were and .

These efforts require an advanced capability in aircraft technology, engineering design as well as a thorough understanding of the HH-60G electrical, structural, environmental and loading factors. The small companies mentioned above, those especially catering to the defense market, have endeavored to invest in this type of technology and none of these small businesses have access to Raytheon's SMFCD proprietary data. As a result of the Government not owning the data, these companies were deemed not capable of performing the tasks required by the Government.

The SMFCD does not fit the definition of a commercial item as defined in FAR Part 2.101. This item is defined as military unique and is not customarily used by the general public or by non- Governmental entities. The Government requires parts that meet an exact form, fit, and function as determined by the specific mission. There are no other vendors with the technical expertise and access to Raytheon's proprietary data (structural/component data, drawings, qualification data, and analysis techniques). The market research concluded that Raytheon is the only vendor capable of fulfilling the Government's requirement.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

None.

X. List of any sources that expressed, in writing, an interest in the acquisition.

See Section VI above