C-5_CMC_WxR_JandA.pdf

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

FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLY13 Sep 2017

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action 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 and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Funding level for this acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: AFLCMC/WLSK, C-5 Program Office

Purchase Request / Local ID Number: FA8625-18-R-6810

Program / Project (and PE, if applicable): C-5M Core Mission Computer/Weather Radar (CMC/WxR) Honeywell Upgrade Modification Program (HUMP)

Program Type (PEO or Other Contracting): PEO Program

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): $90M J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

02 Apr 2018

Program Manager Jennifer Pechie Ohlson

AFLCMC/WLSP / DSN: 986-7992

Signature

Date

02 Apr 2018

Contracting Officer Michelle S. Pickel

AFLCMC/WLSK / DSN: 986-9540

Signature

Date

03 Apr 2018

Local Legal Reviewer Edward Fisher

AFMCLO/JANS / DSN: 674-7113

Signature

Date

06 Apr 2018

System Program Manager Kevin L. Sellers, Colonel, USAF

AFLCMC/WLS / DSN: 472-1201

Signature

Date

09 Apr 2018

Chief of the Contracting Office (COCO) Polly A. McCall

AFLCMC/WLK / DSN: 986-9476

Signature

Date

11 Apr 2018

Competition Advocate David D. Hall

AFLCMC/PK / DSN: 785-3741

Signature

OHLSON.JENNIFER.PEC

HIE.1239995876

Digitally signed by

OHLSON.JENNIFER.PECHIE.1239995876

Date: 2018.04.02 14:22:47 -04'00'

PICKEL.MICHELLE.S.108

0097855

Digitally signed by

PICKEL.MICHELLE.S.1080097855

Date: 2018.04.02 15:18:36 -04'00'

FISHER.EDWARD.S.1473

555260

Digitally signed by

FISHER.EDWARD.S.1473555260

Date: 2018.04.03 11:21:24 -04'00'

SELLERS.KEVIN.L.11226

86554

Digitally signed by

SELLERS.KEVIN.L.1122686554

Date: 2018.04.06 15:41:51 -04'00'

MCCALL.POLLY.A.1230

121520

Digitally signed by

MCCALL.POLLY.A.1230121520

Date: 2018.04.09 14:49:45 -04'00'

HALL.DAVID.D.1230210

Digitally signed by

HALL.DAVID.D.1230210949

Date: 2018.04.11 12:31:10 -04'00'

FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLY13 Sep 2017

APPROVAL (AFFARS 5306.304(a) )

Date Lynda T. Rutledge AF Program Executive Officer Mobility Aircraft

Signature

RUTLEDGE.LYNDA.T.1

230045891

Digitally signed by

RUTLEDGE.LYNDA.T.1230045891

Date: 2018.04.16 11:54:49 -04'00'

FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLY13 Sep 2017

I. Contracting Activity.

This J&A requests authority for Other Than Full and Open Competition (OTF&OC) as a Class J&A to support requirements of Air Force Life Cycle Management Center (AFLCMC), Mobility Directorate, C-5 Galaxy Division (AFLCMC/WLSP). The contracting organization for this requirement is AFLCMC/WLSK. The purchase request supporting this contract action is FA8625-18-R-6810.

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

The C-5 Program Office requests authority to acquire supplies, services and material identified in this document using OTF&OC prescribed by 10 USC 2304(c)(1) and FAR 6.302-1(a)(2)(ii), Only One Responsible Source and No Other Supplies and Services Will Satisfy Agency Requirements. The supplies and services are deemed to be available only from the Original Equipment Manufacturer (OEM), Honeywell International (HON), for the Versatile Integrated Avionics / Avionics Interface Unit (VIA/AIU) components within the C-5M Core Mission Computer (CMC). Any other source would substantially duplicate cost to the Government (estimated $833M) that is not expected to be recovered through competition, and results in an unacceptable five-to-eight-year delay to meeting Air Mobility Command (AMC) requirements, culminating in the grounding of the C-5M and critically impacting the Department of Defense's (DoD) Strategic Airlift capability.

This contract action may result in the award of one or more contracts to satisfy the requirements herein. Specifically, the requirement to manage and resolve Diminishing Manufacturing Sources and Material Shortages (DMSMS) issues relevant to the VIA/AIU and CMC may result in more than one contract action. Due to the nature of the C-5M CMC's technology, suppliers are rapidly transitioning to new products to remain competitive in their market place and ceasing to produce components required to field and sustain the C-5M CMC configuration. The foreseeable future of the VIA/AIU Line Replaceable Unit (LRU) will be faced with more Diminishing Manufacturing Sources (DMS) changes/challenges as the system continues to age, creating multiple opportunities to implement future updates due to obsolescence in support of the CMC. Near term requirements identified include the potential to reverse engineer the Input/Output Module (IOM) card due to DMS. Other System Replaceable Units (SRUs) and LRUs could follow suit. As part of this effort, HON will be responsible for DMSMS management; DMSMS tracking and reporting; identifying new form, fit, function replacement components; conducting validation and verification testing when required; and providing airworthiness data to support Military Flight Release (MRF) and Military Type Certificate (MTC) updates as needed. Following implementation of the HUMP components, Contractor Logistics Support/Interim Contract Support (CLS/ICS) of the VIA/AIU may be required to sustain the C-5M flight readiness.

The efforts required will be predominantly Firm Fixed Price (FFP) and non-commercial in nature however portions of the scope of work may be deemed commercial pending a determination of commerciality. The remaining elements related to this effort will contain elements of Cost Plus Fixed Fee (CPFF), and Cost Reimbursement No Fee (CRNF) Contract Line Item Numbers (CLINs). The contract delivery period is up to 60 months (April 2018 through Mar 2023).

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This effort will be sole source to:

Honeywell International Inc.

9201 San Mateo Blvd NE Albuquerque, NM 87113-2227

CAGE: 07187

Large Business

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

The C-5M CMC is composed of two LRUs: the VIA and AIU. Within the VIA there are two Core Processing Module II (CPM II) cards and within the AIU there is one CPM II card--upon successful upgrade of all CPM cards, the CMC will be upgraded to the -905 configuration required of this program. The Government will transfer stored, unserviceable VIA/AIU units as Government Furnished Property (GFP) to HON to return the units to serviceable condition. During the process of returning the units to serviceable condition, HON will replace the end-of-life Static Random Access Memory (SRAM) chips on the Input/Output Module (IOM) Circuit Card Assembly (CCA), inspect and replace, as needed, the Advanced Micro Devices (AMD) micro-controller chips, and conduct repairs to the VIA/AIU units. HON will deliver-in-place serviceable VIA/AIU units ready for the CPM II upgrade. In addition, in order for HON to prepare for production of the upgraded CPM II VIA/ AIU units, HON will procure new, and refurbish existing, peculiar support/test equipment required to meet the production installation schedule necessary for the CMC/WxR Program. Once HON has equipment necessary to achieve desired production rates, HON will upgrade the serviceable VIA/AIU units with CPM II CCAs and complete acceptance test procedures to deliver upgraded and functional units. HON will be responsible for storing units until receiving further direction from the Inventory Control Point (ICP). Units must be delivered to support aircraft installation starting Sep 2019 and ending in Oct 2023; late deliveries will result in delays to installation and directly impact fleet aircraft availability.

The CMC upgrade is a key component to the overall CMC/WxR aircraft modification/installation kit.

All contracts issued within the scope of this J&A will supply the CMC components, while two separate contracts will provide the remaining WxR components and final kit assembly for delivery to the installation facility. The combination of efforts will provide the supplies and services necessary to support modification and upgrade of components within the C-5M CMC. The following is a breakdown of the scope of this J&A required for the CMC component portion of the overall effort:

Return to serviceable condition (Receipt/inspect/repair/replace SRAM/replace AMD/store units); Over and Above; VIA/AIU Upgrade CPM II (-905 Configuration); Upgrade of Spares, Systems Integration Lab (SIL) units, and AMST units; Production Support Equipment; Production Support Bench;

Program Management/Systems Engineering; Studies and Surveys; Validation/Verification and Test for the replacement of components subject to Diminishing Manufacturing Sources; Airworthiness Data as required to support MFR and MTC updates; Future CLS/ICS; Travel; and Data.

The estimated acquisition cost is $90M based on data from the EMD Phase, previous repair estimates from the C-5 Contractor Logistics Support (CLS) contracts, and Subject Matter Expert (SME) estimates. This dollar value also takes into account the unknown quantity DMSMS issues that are likely to arise as well as follow on CLS/ICS support after the CMC/WxR is implemented into the C-5M fleet. The expected delivery period is up to 60 months after contract award (projected Apr 2018

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- Mar 2023), including options. Funding for this effort will include Operations and Maintenance (O&M) 3400 (FY18-FY22) appropriations used to return the units to serviceable condition; Research, Development, Test and Evaluation (RDT&E) 3600 (FY17) appropriations to develop support equipment needed to transition to production; and Procurement 3010 (FY17-FY21) appropriations to upgrade the CMC units, produce support test equipment, and upgrade VIA/AIU spares. In order to comply with full-funding rules, kit components will be procured with FY18-FY21 3010 appropriations, in the following quantities: 3010 FY18, nine-shipsets; 3010 FY19, 20-shipsets; 3010 FY20, 18-shipsets; 3010 FY21, three-shipsets. VIA/AIUs used as spares will be upgraded using 3010 FY17/FY18 funding as needed. Funding for CLS/ICS will be based on determination of need beginning No Later Than FY23.

Approval for more than one fiscal year is needed in order to upgrade the C-5M fleet to the CMC/WxR configuration. The CMC/WxR modification kits will be procured over four years, and installed on the remaining 50 aircraft starting 4th Quarter FY19 with final installation completing 1st Quarter FY24.

The CMC/WxR Program is a key predecessor to the Communication, Navigation, and Surveillance / Air Traffic Management (CNS/ATM) Program, which may only install on aircraft that previously had CMC/WxR installed, or must be installed concurrently with CMC/WxR.

Based on the above, use of any other source would substantially duplicate cost to the Government (estimated $833M) that is not expected to be recovered through competition, and result in an unacceptable five-to-eight-year delay to meeting AMC requirements for both the CMC/WxR and CNS/ATM Programs and culminating in the grounding of the C-5M fleet. Any impact to the operations of the C-5 aircraft will critically impact the DoD's Strategic Airlift capability.

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

10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1(a)(2)(ii), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, required by FAR 6.303-2(b)(4).

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

Subsection 1

HON has designed the C-5M CMC and conducted integration efforts with all other aircraft subsystems reliant on the functionality and operation of the CMC. No other source has a CMC that is a form, fit, and function replacement.

HON, as a subcontractor to Lockheed Martin, Aeronautics (LMA), originally designed the C-5M CMC during the Avionics Modernization Program (AMP) under P/N CP8527501-903 (VIA)/ CP8527470-903 (AIU). Through a series of progressive upgrades and modifications, including the Reliability Enhancement & Re-engining Program (RERP) (CP8527501-904 (VIA)/CP8527470-904 (AIU)) configuration, HON also developed the current CMC/WxR CPM II baseline configuration (P/N CP8527501-905 (VIA)/CP8527470-905 (AIU)). The establishment of the CPM II baseline configuration (-905), was also used as the functional baseline used in the CNS/ATM EMD design and development work. Therefore, the C-5M CMC is a highly specialized system developed through a series of upgrades and modifications that based upon HON's ownership of data rights and drawings, cannot be produced by another company without substantial duplication of cost and unacceptable delays to the CMC/WxR and CNS/ATM Programs.

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The C-5M CMC/WxR Program was designed by modifying HON Commercial Product CP8527501-903 and CP8527470-903 LRUs with a New CPM II Printed Board Assembly (PBA). This CPM II PBA contains a Complex Programmable Logic Device (CPLD) and a Printed Board (PB) that are both based on commercial designs. Additionally, minor modifications were made to the CPLD and PB Designs for the USAF C-5M CMC/WxR Program. HON owns the data rights and drawings.

The USAF has not acquired the data to provide to a third party in order to source new suppliers. The agency's minimum needs can only be satisfied by the supplies and repair services available from Honeywell's unique capabilities, specialized test equipment, and intellectual property used in designing and upgrading the VIA/AIU LRUs from the AMP (P/N-903) and RERP (P/N -904) CPM cards to the (-905).

Subsection 2

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 USAF requirements.

In order to develop a new source for the VIA/AIU, a complete redesign of the CMC would require compatibility and integration with multiple subsystems on the aircraft. The cost of the original contract for the C-5 AMP EMD program was approximately $926M, of which 90% of the effort involved the design, verification, validation and testing of the VIA/AIU. Based on the cost of the original design, the cost of a new development effort is estimated to be a minimum of $833M (90% of $926M) based on the initial AMP and CMC/WxR EMD development costs. This estimate includes redesign, retrofitting, validation, verification and testing of a new CPM and reintegrating all current C-5M subsystems. The estimated $833M would be a significant duplication of cost to the USAF. For example, major activities associated with designing a form, fit, and function replacement CMC would include: redesign of the VIA/AIU, integration design costs, development testing, integration testing, environmental testing for LRUs, flight testing, operational testing, technical data development, logistics, production of LRUs, development/production support equipment, and maintenance manual development (including Technical Orders). Further, by sourcing a new CMC, it would result in the duplication of costs to update C-5 training systems, including the Weapon System Trainers (WSTs) and Aircraft Maintenance System Trainers (AMSTs). Lastly, the System Integration Laboratories (SILs) would require upgrades at Warner Robins-Air Logistics Complex (WR-ALC), HON, and LMA.

In addition, a schedule slip of five to eight years would be expected, not including production delays, based on estimated time for LRU design and associated Operational Flight Program (OFP) development (five years), SIL design/delivery (three to five years), test, evaluation, and trainer upgrade effort (two years). The CMC VIA/AIU is projected to be replaced in year 2025, therefore pursuing a redesign at this time is not practical and would result in grounding the C-5M fleet due to not meeting key Satellite Communications (SATCOM) Mandates in 2023. These mandates may only be met through timely upgrade of the current CMC configuration and follow-on installation of the CNS/ATM modification kits onto the aircraft.

Subsection 3

Accordingly, HON is the only firm capable of providing the supplies and services described in Section III above without the USAF experiencing substantial duplication of costs that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

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

A C-5 Enterprise Industry Day event was held on 25-26 Jul 17 at the Defense Acquisition University (DAU), Dayton, Ohio. The CMC/WxR team presented a detailed overview of the planned requirements for the production effort. The presentation included an explanation of key components of the CMC and plans to have a sole source contract with HON for the CMC LRUs that the Government would then provide as GFP under a separate competitive acquisition to a contractor who will be the kit assembler of the complete CMC/WxR Production kits. The industry day included a question and answer session during the open forum and also one-on-one interviews with individual companies providing capability briefs and discussions about the ability to meet program requirements.

The C-5 Program Office did not receive a capability brief from any company that could meet program requirements to upgrade the CMC.

A Sources Sought Synopsis (SSS) was also published under Solicitation Number FA8625-18-R-6810 on the Federal Business Opportunities (FedBizOpps) web page as required by FAR 5.201 on 20 Sep

17. The SSS announced the Government's intent to award a sole source contract to HON for the supplies and services to support upgrade of specific CCA within the CMC in order to increase the throughput capacity without replacing the entire CMC for the CMC/WxR Production program.

Sources interested in responding to the synopsis were required to submit a statement of technical capability, addressing the ability to access or possess C-5 and HON source data to include C-5 AMP and C-5 RERP VIA/AIU configuration data; the ability to secure both information and facility at the Secret Level; the ability to have intimate knowledge of the software and hardware of the C-5M CMC/ WxR OFP; and the ability to have access to the intellectual property of the C-5M CMC infrastructure such that the company can repair, modify and upgrade. The C-5 Program Office provided 15 calendar days for submittal of capability briefs from the date of announcement. The only responses received regarding the synopsis requested clarification of the requirement; none provided statements of capability. Therefore, the Government intends to issue a sole source solicitation, no additional synopsis will be issued.

Other Actions.

The original CMC/WxR Production Program solicitation was released on 23 Mar 17 for a full and open competition for production of 50 CMC/WxR kits to supply the C-5M fleet, five (5) WST upgrade kits, and two (2) AMST upgrade kits. The solicitation also requested initial installation of CMC/WxR kits on seven (7) aircraft, delivery of initial spares, and Interim Contractor Support. This solicitation included scope for the HON upgrade of the CMC VIA/AIU LRUs, allowing a contractor to contract directly with HON for the requirements of this program. On 26 May 17, the solicitation was canceled since no proposal was received that adequately addressed all solicitation requirements. In particular, no proposal adequately addressed the HON upgrade of the CMC VIA/AIU LRUs. Upon cancellation of the solicitation, the Program Executive Officer (PEO) for Mobility directed the CMC/WxR Production team to re-evaluate the market, and identify and resolve appropriately the barriers to competition. Based on the updated Market Research, and the lead time of 18-months transition to full production of the CMC upgrade, companies do not have the time and resources to integrate HON as a subcontractor, successfully complete the CMC/WxR Program as scheduled, and upgrade with CNS/ ATM before the SATCOM Mandates are in effect. Therefore, it is in the best interest of the Government to provide the equipment as GFP by contracting directly with HON.

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

The overall cost will be fair and reasonable to the Government. In accordance with FAR 15.403-4, the contractor will be required to submit certified cost or pricing data to be used in supporting the Government's evaluation of the proposed cost. The proposed skill mix of labor, labor hours, type and quantities of material, other direct cost, and direct/indirect rates will be negotiated by the Government based on recommendation from the Defense Contract Audit Agency (DCAA) and/or Defense Contract Management Agency (DCMA), and expert technical personnel supporting the program. The final contract price will be negotiated in accordance with procedures in FAR Part 15 to ensure that prices to the Government are fair and reasonable. In circumstances that may not require certified cost or pricing data, the Government will obtain other than cost or pricing data in accordance with FAR 52.215-20, from other sources than the offeror, including prior Government contracts, catalog or market pricing, a review of services normally charged, and evaluation of recent prices paid for the same or similar products in order to make a determination of fair and reasonable price.

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

AFLCMC/WLSAC (Robins) conducted a market research report completed 19 Apr 16 in accordance with FAR Part 10.001 and 10.002. AFLCMC/WLSAC received approval for OTF&OC to issue a sole source contract to HON IAW 10 U.S.C 2304(c)(1) as implemented by FAR 6.302-1 for the acquisition of C-5 Honeywell Software and Engineering Support (HSES). The effort provides hardware/software support for the development of software baselines for future modification programs, investigation and correction of HON owned software partitions, formal qualification testing, and Diminishing Manufacturing Sources/Obsolescence support. Specifically, the HSES contract supports the hardware and software associated with the C-5M CMC, including the VIA/AIU. However, the production of these items would need its own separate contract to implement production of future requirements. The inclusion of this additional scope to implement production, follow on CLS/ICS, and resolution to DMSMS issues remain covered by the previously completed market research report.

AFLCMC/WLS personnel remain abreast of industry capabilities through continuous monitoring of trade publications, online data sources, similar contracts, and technical interchange meetings and seminars. The techniques employed in the market research included a SSS to industry to assess capable contractors; review of recent similar efforts (e.g. Software Modernization, Computer Software Upgrade Phase 2 (CSU02); survey of OEM facilities/labs; review of large and small businesses in the aviation industry; and review of organic capabilities and contacts within both industry and the Government.

Commercial Opportunities: There are no other commercial opportunities outside of a direct contract with HON to provide the services and or supplies required by the Government.

The market research concluded HON is the only vendor capable of meeting the requirements of this effort.

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

The C-5 AMP contract was originally started and developed in 1998 as a Total Integrated System Performance Responsibility (TISPR) competitive contract, based on the philosophy of utilizing commercial software technology. Existing commercial avionics software systems were to be used to upgrade the C-5. Since the original contracts were not developed for the Government to retain

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FOR OFFICIAL USE ONLY13 Sep 2017 ownership or unlimited usage of the technical data, the Government does not possess the rights to any data that would allow for competitive sourcing of these services. Level III product drawings, formal acceptance test plans and procedures, software, software design documentation, development environments, software toolsets, and full system/subsystems specifications were not procured. The technical data required under the scope of this effort is proprietary to HON for the production and sustainment of the C-5 aircraft.

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

See Section VI above.

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

In order to improve opportunities for competition for the CMC/WxR Production Program as a whole, providing HON components as GFP will remove a barrier to competition and allow more companies to propose to the new competitive solicitation that will integrate the parts required for the CMC/WxR kits.

Any effort to transition the VIA/AIU components to a competitive environment would require re-engineering all items from the bottom-up and ensure the Government has unlimited or government purpose rights to the technical data and software. Based upon the estimated procurement costs in excess of $833M, the transition to competition is cost prohibitive. (refer to Section V).

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.