Redacted_SNC_IDIQ_JA.pdf

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

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.

Choose the funding level for this J&A Document:

< $650K > $650K and < $12.5M > $12.5M and < $85.5M > $85.5M

Contracting Activity: AFLCMC/PZJ

Purchase Request / Local ID Number: N/A

Program / Project (and PE, if applicable): Standoff Precision Guided Munitions (SOPGM) and Precision Strike System Components (PSSC)

Program Type (PEO or Other Contracting): Other Contracting

Authority (include full title): 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1

Estimated Contract Cost (including options): $12,500,000.00 J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

18 Jun 2015

Contracting Officer

Jonathan B. Cansdale

AFLCMC/PZJ / 850-882-0184

Signature

Date

19 Jun 2015

Project Lead / Program Mgr / Requiring Activity

Capt Gregory Sullivan USSOCOM/Det-1 / 850-883-3515

Signature

Date

19 Jun 2015

Local Legal Reviewer

Paul Luthy

96 TW/JAQ / 850-882-8266

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

29 Jun 2015

Competition Advocate

Audrea Feist AFLCMC/PK-OL Eglin / 850-882-0150

Signature

CANSDALE.JONATHAN.B

ARTON.1272164998

Digitally signed by CANSDALE.JONATHAN.BARTON.1272164998 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=CANSDALE.JONATHAN.BARTON.1272164998 Date: 2015.06.18 07:26:33 -05'00'

SULLIVAN.GREGORY.D.12

70116791

Digitally signed by SULLIVAN.GREGORY.D.1270116791 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=SULLIVAN.GREGORY.D.1270116791 Date: 2015.06.19 07:20:15 -05'00'

LUTHY.PAUL.A.10424529

Digitally signed by LUTHY.PAUL.A.1042452900 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=LUTHY.PAUL.A.1042452900 Date: 2015.06.19 10:02:13 -05'00'

FEIST.AUDREA.JEANETTE.1

068996470

Digitally signed by FEIST.AUDREA.JEANETTE.1068996470 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=FEIST.AUDREA.JEANETTE.1068996470 Date: 2015.06.29 09:14:36 -05'00'

I. Contracting Activity.

The contracting activity for this Class Justification and Approval (J&A) for Other Than Full and Open Competition is the Air Force Life Cycle Management Center (AFLCMC), Eglin Operating Location, Rapid Acquisition Cell (RAC), AFLCMC/PZJ, Eglin AFB, FL 32542.

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

This Class J&A is for the procurement of highly specialized precision strike capability including sensors, mission command and control, and the hardware and software to safely employ munitions, guns, and other payloads and services associated with delivering these products, using a new Indefinite Delivery Indefinite Quantity (IDIQ) contract for the United States Special Operations Command (USSOCOM) and Army, Marine, Navy, and Air Force units procuring through USSOCOM Det-1. This IDIQ contract will be awarded to Sierra Nevada Corporation (SNC), 444 Salomon Circle, Sparks, NV, 89434-9651. The estimated value of the basic IDIQ is $12.5 million and the IDIQ ordering period will be two (2) years to align with AC-130J/W aircraft integration schedule. The anticipated contract types are: Fixed-Price (FP) for products and cost reimbursable for shipping and travel. The specific periods of performance will be annotated on the individual delivery/task orders. The contract duration is sufficient to balance the efficiencies gained by establishing an IDIQ against the resources rather than processing actions individually. The initial contract award is anticipated to be October 2015.

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

Under the contemplated contract, SNC will provide the following supplies for PSSC to include but not limited to: Standoff Precision Guided Munitions (SOPGM) Cargo Doors (total estimated quantity - 6), Sensor Conversion Units (SCUs) (total estimated quantity - 6), Harvest Hawk Mission Operator Pallets (HH MOPs) (total estimated quantity - 2), AC-130J/W Cargo Door Retrofit (total estimated quantity - 2), Part Task Trainer (PTT) (total estimated quantity - 1), as well as option CLIN(s) for a reprocurement package for SOPGM Cargo Doors. The total estimated quantities of the supplies listed above are an estimate and the actual quantities of the supplies purchased may be more or less depending on the needs of the customer. This effort is anticipated to be funded via multiple appropriations: procurement (products and equipment for procurement funded activities) and Research Development Test and Evaluation (RDT&E) (products and equipment for RDT&E funded activities). The minimum and maximum order values will be $35,000.00 and $12,500,000.00 respectively.

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).

Subsection 1: Under multiple contracts with various suppliers, including SNC, USSOCOM integrated and deployed a highly specialized precision strike capability on AC-130W aircraft. They continue to expand the capability of the AC-130W and are adding the capability to AC-130J aircraft as the platforms are produced. The highly specialized precision strike capability includes sensors, mission command and control, and the hardware and software to safely employ munitions, guns, and other payloads and the services associated with delivering these products. SNC is meeting Section III above under the current IDIQ Contract FA8677-12-D-0089. Therefore, this acquisition will be a follow-on contract for the continued purchase of the highly specialized equipment.

Subsection 2: SNC has extensive experience with integrating precision strike and mission command and control capability on large and small aircraft. Applying this experience, SNC designed, built, and installed the products in Section III on mobility platforms enabling USSOCOM to deploy additional AC-130s in 24 months to meet a Combat Mission Need Statement for Precision Strike Packages. They were subsequently selected by the USMC to outfit their Harvest Hawk aircraft, and are now delivering precision strike capability for the newest Special Operations platform, the AC-130J. SNC's products are certified by Government safety and airworthiness authorities and their combat effectiveness is well established with operational forces. The SNC products are interoperable with hardware and software components provided by a myriad of other contractors within a complex command and control architecture that is critical to combat crews successfully providing intelligence, surveillance, and reconnaissance (ISR) and close air support. No other contractor has comparable products, experience, and expertise.

Subsection 3: The USSOCOM Precision Strike Program Office believes Sierra Nevada Corporation is the only firm capable of providing the supplies in Section III above without experiencing unacceptable delays in fulfilling warfighting requirements. Another contractor delivering the SNC products will have to produce first articles, integrate them into the aircraft precision strike package, and conduct ground and flight tests to obtain safety and airworthiness certification. This will take 24 months, exceed $20M in costs, and the Government will have to retain SNC during this period to stay on track with fielding AC-130J aircraft to replace aircraft being phased out. Additionally, the Government will have to provide an operationally configured AC-130J and associated crew for 9 months to support the equipment installation, integration, and ground and flight test. The only means to validate the performance and interoperability of the new supplier's products is to install them in a fully operational aircraft and conduct ground and flight tests, including live fire of the various weapons on board the aircraft, across the broad range of aircraft employment and mission scenarios. With projected operations tempo over the 2 years for this J&A, there are insufficient aircraft and crews to support a parallel effort to conduct the flight tests to validate an alternate contractor's first articles and obtain safety and airworthiness certification. The alternative is to install the new contractor's first build articles on a new AC-130J and have the same team that conducts acceptance test on each new aircraft do the first article tests on the new supplier's products. Assembling a different team that conducts acceptance test will cost additional money as well as require additional time to train. This will interrupt deliveries to the operational unit for 9 months. If any issues arise the timeline will stretch out. The AC-130J deliveries are tied to retirement of AC-130H and AC-130U aircraft. Interjecting any delay in AC-130J deliveries to the warfighter will impact this phase out, increase Government cost (estimate over $1.2M per month plus the cost to retain older aircraft) and reduce combat readiness and responsiveness by continuing to operate the less capable, less reliable, more costly to maintain legacy AC-130 aircraft.

Subsection 4: Accordingly, Sierra Nevada Corporation is the only firm capable of providing the supplies described in Section III above without USSOCOM experiencing unacceptable delays in fulfilling its requirements.

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

AFLCMC/PZJ posted an initial Sources Sought (8656-MH1) on 23 June 2014 with a response deadline of 23 July 2014. The sources sought solicited interested and qualified sources to procure and support PSSC.

The components identified in the posting are: Internal carriage and employment of munitions and other payloads from Common Launch Tubes (CLTs) through C-130 cargo doors and paratroop doors, mission operation pallets for integrated command, control, and effective employment of ISR sensors, standoff precision guided munitions (internal and external carriage), and guns. The Sources Sought also requested a summary of experience with various companies and Government organizations that solicited products must be interoperable with.

The responses to the sources sought include the incumbent (SNC), Boeing, Exelis Electronic Systems, and FLIR Systems. Boeing Inquired about tech data; Government responded that top level specification data can be provided. Boeing responded in a follow up email and phone conversation that they did not feel their organization would be competitive. Exelis Electronic Systems responded with information on their BRU-57A ejector rack for smart munitions. This product is not part of this Sources Sought and there is a version of the BRU-57 already in the US inventory. The Sources Sought requested interested parties to provide their experience working with various contractors that provides components as well as provide products that are interoperable with products delivered by other contractors and Government organizations.

One of the contractors listed is L3-WESCAM, who is a competitor to FLIR for sensors. FLIR questioned why they were not included as a supplier of sensors. They were not included because Precision Strike does not currently use any FLIR products, hence there is no requirement for interoperability with their products.

Once FLIR received this feedback from the Government (Precision Strike does not use their products), they showed no further interest.

Since a substantial amount of time had passed since the initial Sources Sought had been posted and there were a few minor updates to the original Sources Sought, AFLCMC/PZJ posted a second Sources Sought (8656-MH2) on 18 November 2014 with a response deadline of 5 January 2015. The only respondent to the Sources Sought was the incumbent (SNC).

In addition, for this IDIQ contract, in accordance with FAR 5.201(b)(1), a notice of intent to award a sole source contract action synopsis was posted from 26 January 2015 to 10 February 2015 on FedBizOpps. No responses were received from the notice of intent to award a sole source contract.

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

The Contracting Officer will ensure that the negotiated price is fair and reasonable to the Government.

Steps taken to ensure the final contract price is fair and reasonable will include: (1) Accomplishing a price analysis by comparing proposed prices to recent contract actions for like items; (2) Request actuals (3) Using rates set forth in the current Provisional Billing Rates for cost analysis purposes; (4) Getting a technical evaluation from the Program Manager that evaluates the proposed labor mix, hours, materials, travel, and shipping for reasonableness; (5) Using the Weighted Guidelines (WGL) tool to determine the appropriate profit/fee; and (6) In accordance with the Truth in Negotiations Act (TINA) and FAR 15.403-4, upon conclusion of negotiations, the Contracting Officer will obtain a Certificate of Current Cost or Pricing Data from the Contractor.

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

Market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. The market research conducted by the Program Office and two sources sought releases indicate there is no other supplier with comparable products and the knowledge and expertise to provide the requirements as evidenced in Section V. above.

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

None. See Sections IV, V, VI, and VIII.

X. List of sources, if any, that expressed 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.

The Government will provide top level drawing specifications for the products being procured to interested suppliers. Included in this J&A is an option for a reprocurement package for the cargo doors that the Government may exercise if the funds are available and there is a need for the data. If the platform becomes available and if the funds are available to purchase the option for the reprocurement package for the cargo doors, then the Government will consider competition in the future. The Government will continue to monitor industry to look for products that are compatible and interoperable with the SOPGM/ PSSC architecture.

XII. Certification by the Contracting Officer.

As evidenced by his/her signature, the contracting officer has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by their signatures, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.