FOE_Approval_Redacted_Redacted.pdf

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Justification for an Exception to Fair Opportunity

Is this a brand name product justification? D Yes i:gj No If yes, please provide the following information.

Brand Name Product Title:

N/A

Bra(ld Name Product Description:

N/A

1. Contracting Activity: AFLCMC/PZJ

2. Purchase Request: TBD

3. Program Name (and Program Element, if applicable): Small Glide Munition

4. Estimated Cost/Price of the Order (including options): $13,000,000.00

5. Type Program (see AFFARS 5302.101 for definitions): D PEO Program ~ Other Contracting

6. Fair Opportunity Exception: FAR 16.505(b)(2)(i), subparagraph 0(A) ~ (B) 0(C) 0(D) 0(E)

7. Type Determination: D Class ~ Individual

Date Program Manager Signature

07 Jan 2016

Date Contracting Officer

Date Local Legal Reviewer

0'

Date Competition Advocate Signature

2.Fcb lb [

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(1) Contracting Activity:

The contracting activity for this Fair Opportunity Exception is the Air Force Life Cycle Management Center (AFLCMC), Eglin Operating Location Rapid Acquisition Cell AFLCMC/PZJ, Eglin AFB 32542.

(2) Nature and/or description of the action being approved:

This is for a new order for the procurement of highly specialized Small Glide Munitions (SGMs), equipment, and support for integration, flight test, training, and combat evaluation for the United States Special Operations Command (USSOCOM) and other Services that procure missiles through SOCOM Det-1 , Eglin AFB. This contract will be awarded to Dynetics, 1002 Explorer

Blvd, Huntsville, AL 35806-2806. Anticipated contract types are Firm-Fixed-Price (FFP) for munitions and equipment and Cost

Plus-Fixed-Fee (CPFF) for system support. The contract period of performance will be two years with award expected in March

2016. This will be placed under the existing Agile Acquisition Indefinite Delivery Indefinite Quantity Cotnract, FA8656-15-

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Is this a brand name product justification? D Yes IZI No If yes, please provide the following information.

Brand Name Product Title:

N/A

Brand Name Product Description:

N/A

1. Contracting Activity: AFLCMC/ PZJ

2. Purchase Request: TBD

3. Program Name (and Program Element, if applicable): Small Glide Munition

4. Estimated Cost/Price of the Order (including options): $13,000,000.00

5. Type Program (see AF FARS 5302.101 for definitions): D PEO Program [gJ Other Contra cting

6. Fair Opport•Jnity Exception: FAR 16.505(b)(2)(i), subparagraph 0 (A ) IZI (B ) 0(C) 0(D) 0 (E)

7. Type Determination: D Class [gJ Individual

'00'

Signature

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(1) Contracting Activity:

The contracting activity for this Fair Opportunity Exception is the Air Force Life Cycle Management Center (AFLCMC), Eglin Operating Location Rapid Acqu isition Cell AFLCMC/ PZJ, Eglin AFB 32542.

(2) Nature and/or description of the action being approved:

This is for a new order for the procurement of highly specialized Small Glide Munitions (SGMs), equipment, and support for integration, flight test, training, and combat evaluation for the United States Special Operations Command (USSOCOM) and other services that procure missiles through SOCOM Det-1 , Egl in AFB. This contract will be awarded to Dynetics, 1002 Explorer

Blvd, Huntsville, AL 35806-2806. Anticipated contract types are Firm-Fixed-Price (FFP) for munitions and equipment and Cost

Plus-Fixed-Fee (CPFF) for system support. The contract period of performance will be two years with award expected in March

2016. This will be placed under the existing Agile Acquisition Indefinite Delivery Indefinite Quantity Contract, FA8656-15-

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D-027S.

(3) Description of the supplies/services required to meet the agency's needs:

USSOCOM requires a glide munition to complement the currently employed powered missile in the USSOCOM Standoff Precision Guided Munition (SOPGM) architecture, to address aspects of the 360 degree employment zone not covered by the powered munition, reduce launch signature, and support engagement scenarios for which attack azimuth and impact angle must be precisely controlled. Specific requirements include are:

- SO lb class glide munition employable from the SOPGM Common Launch Tube (CL T)

- compatible with internal and external and roll-on, roll-off employment from fixed and rotor aircraft

- high lethality with low collateral damage

- munition must be at least Technology Readiness level 8 (flight qualified by demonstration) and at least Integration

Readiness Level 4 (prototype/demonstrator subjected to representative flight environments in the USSOCOM SOPGM architecture of employment from CL T using the Battle Management System (BMS) in use on AC-130W or other Special Operations Platforms)

- munition must already be approved for live flight test on US National Ranges through one of the military service safety boards

- modular warhead that can be removed and replaced without modification to other munition components in non-factory environments

- lethal against people, in any position and moving, in the open and in vehicles (fixed, maneuvering, speeds up to 70 mph, non-armored)

- operator selected fuze mode, air burst or contact, both with delay capability; employable 360 degrees from launch platform flight path with full engagement coverage underneath platform

- employable using the SOPGM BMS from any carriage orientation; guidance using GPS/INS with Semi-Active Laser (SAL) seeker; accuracy within five (S) meters without SAL and one (1) meter with SAL demonstrated in flight test

- attack angles up to 90 degrees (+/-S degrees); employable up to 3SK feet mean sea level (MSL); range greater than 20 nm +/- 90 degrees of release azimuth and greater than 1 S nm +/- 180 degrees of release azimuth against stationary targets from 30K feet above ground level (AGL) at 1 SO Knots indicated airspeed (KIA)

- employable against targets moving up to 70 mph at azimuths +/- 180 degrees from platform flight path from release altitudes of at least 1 OK feet AGL

- time to target less than 60 sec out to 4 nm and 2SK feet AGL; munition to be delivered in CLT with no field assembly or maintenance required

- Captive Air Training Munitions (CATMs) that electronically replicate munition function through release to support Operational Program Software (OFP) and BMS interoperability validation, and to support training

- munition must have Built-in-Test (Bin to confirm munition is employment ready, BIT must be executable using hand carried field test set and through the BMS

- hand carried field test set that executes munition BIT and loads software updates

- initial production deliveries required by August 2016 to support munition performance characterization, tactics, techniques, and procedures (TTP) generation, unit training, and combat evaluation.

- complete fielding and deployment by April 2017

- ability to add way points and/or selectable attack azimuth to flight software to enhance employment flexibility

- The Government will not pay for production facilitation or munition design changes necessary to meet capability specified in this document The SGM is the only munition that meets these requirements. The combat need is immediate. The only other currently available munition, was removed from service on USSOCOM aircraft due to failure to achieve reliability, lethality performance, and high cost to redesign to meet mission requirements. Dynetics successfully demonstrated the SGM's precision in engagements against fixed and moving targets and has Air Force Non-nuclear Munitions Safety Board (NNMSB) approval for live fire flight test from SOPGM architecture equipped platforms. A contract is required no later than March 2016 to meet the August 2016 date for first production deliveries. USSOCOM issued an Acquisition Decision Memorandum (ADM) 10 Aug 201 S to "expeditiously complete development, integration, test, and fielding a SGM capability for the AC-130W, AC-130J, and other Special Operations Forces (SOF) platforms to meet SOPGM requirements for single shot lethality." Under the contemplated contract, Dynetics will provide the following: (1) SGMs (buy to budget, for test, training, and combat evaluation; (2) SGM support equipment including but not limited to CATMs, test sets, and training tools

; (3) support for integration, test, TPP development, training, combat evaluation, and initial fielding Total

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estimate S 13M.

This effort will be funded via multiple appropriations:

$8M ROTE

$SM Procurement Total funding $13M

The primary funding source is Research, Development Test and Evalution. Funds used for integration, test, and fielding support and procurement of munitions for flight test, training, and performance validation. Procurement will be used for combat evaluations munitions and support equipment for inital fielding. Operations & Maintence (O&M) may be used for support of combat evaluation.

(4) Identification of the exception to fair opportunity and the supporting rationale:

This justification is for an exception that precludes the fair opportunity process for an acquisition and is IAW FAR 16.SOS(b)(2)(i)

(B). This action is within the ordering period of the basic contract, is within the contract ceiling, and falls under the basic contract scope throughout the statement of work, specifically it as detailed below:

Paragraph:

3.1 Demonstration/Studies (3.1.2, 3.1.4, 3.1.1 O)

3.2 Design and Engineering Development (3.2.1, 3.2.3, 3.2.4, 3.2.5, 3.2.7)

3.3 Testing (3.3.1, 3.3.2, 3.3.4, 3.3.8, 3.3.9, 3.3.11, 3.3.13, 3.3.16)

3.5 Fabrication (3.5.3, 3.5.4, 3.5.5, 3.5.6, 3.5.7, 3.5.8

3.6 Logistics (3.6.1, 3.6.2, 3.6.3, 3.6.7, 3.6.8, 3.6.13)

Dynetics conducted demonstration flights under a Cooperative Research and Development Agreement (CRADA) with USSOCOM in 2014. The SGM was employed from the SOPGM architecture roll on, roll off system and precisely engaged fixed and moving targets. SGMs were previously procured under contract FA8656-15-C-0309, under the authority of 10 USC 2373, Procurement for experimental purposes.

Under an Advanced Concept Technology Demonstration, USSOCOM established the SOPGM architecture for integrating weapons onto Special Operation Forces platforms. The SOPGM architecture sets functional and physical interfaces, making it possible to incorporate contractor-developed munitions. To date, four munitions are compatible with these interfaces, Raytheon Missile Systems' Griffin missile (powered), Northrup Grumman's Viper Strike (glide munition), Textron's G-CLAW, and Dynetics' SGM. USSOCOM fielded the Griffin and and subsequently phased the out of the inventory due to failure to achieve reliability, lethality performance, and high cost to redesign to meet mission requirements. The G-CLAW is 1-2 years behind the SGM in maturity and recently experienced failures in its first flight test with a seeker. The warhead does not conform to low collateral damage and the range is well short of the requirement. Major redesign is required to achieve a glide ratio that will enable the range requirement to be reached. No other glide munitions currently under development met all the requirements and are 2-3 years behind SGM in maturity. At this time, there is no viable alternative to the SGM.

Dynetics and their suppliers invested to date in corporate funds developing the SGM. Dynetics conducted successful demonstration flights under a Cooperative Research and Development Agreement (CRADA) with USSOCOM in late 2014.

to adapt an existing safe and arm device for use in the SGM and conduct analyses and tests to validate safety features, and conduct tests to characterize warhead performance. USSOCOM has also purchased a limited number (17) of SGMs to conduct additional flight demonstrations to validate performance parameters. In accordance with USSOCOM Directive 70-1 and the USSOCOM Acquisition Decision Memorandum, this SGM effort is an Abbreviated Acquisition Commodity Procurement Project. This contract is projected for award in March 2016 to address the ADM requirement to "expeditiously complete development, integration, test, and fielding a Small Glide Munition (SGM) capability for the AC-130W, AC-130J, and other Special Operations Forces (SOF) platforms to meet SOPGM requirements for single shot lethality." Deliveries and services under this contract will support TPP development, training, combat evaluation, and initial combat deployment.

The National Security Strategy (NSS) dated February 2015, states that the U.S. has mobilized and leads a global effot to degrade and ultimately defeat Islamic State of Iraq Levant ((SIL) and U.S. support will continue in Iraq as it seeks to free itself from

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sectarian contlict and the scourge ot extremists. 1 ne N::>::> lists the s1gnit1cant security consequences associated with weak or failing states amongst the top strategic risks to U.S. interests and denotes the struggle for power underway among and within many states of the Middle East and North Africa as one of five recent transitions to the security landscape since the latest NSS in 2010. The President notes that the U.S. is leading over 60 partners in a global campaign to degrade and ultimately defeat the ISIL in Iraq/Syria, including by working to disrupt the flow of foreign fighters to those countries. The NSS goes on to state "we employed our unique military capabilities to arrest ISIL's advance and to degrade their capabilities in both Iraq and Syria." Our support is tied to the [Iraqi] government's willingness to govern effectively and to ensure ISIL cannot sustain a safe haven on Iraqi territory.

This contract will deliver highly specialized equipment that compliments the capability currently fielded on various Special Operations' Forces platforms. It adds the ability to engage aspects of the 360 degree employment zone not covered by the powered munition, shoot without creating a launch signature, and support engagement scenarios where attack azimuth and impact angle must be precisely controlled. Therefore, this acquisition will be a follow-on contract for the continued production of highly specialized equipment.

SGMs are the only weapon that can meet USSOCOM's combat deployment requirements, and Dynetics is the only company that is qualified to produce SGMs. Dynetics designed, fabricated, and successfully delivered similar products under extremely aggressive timelines and has extensive experience in meeting the requirements of Department ofTransportation {DOD. Federal Aviation Administration (FAA), military service safety boards, and Operational Safety, Suitability and Effectiveness (OSS&E) authorities for Department of Defense (DoD).

USSOCOM, Det 1 believes that award to any other source would result in unacceptable delays in fulfilling USSOCOM requirements.

Dynetics is the only contractor capable of providing the SGMs and equipment described in Section Ill above within the timeline required. USSOCOM needs to address shortfalls in the currently fielded capability as soon as possible to maximize effectiveness of close air support and armed over-watch in on-going conflicts and to be positioned to engage in future contingency operations demanding low collateral damage while engaging enemy forces in urban and other confined scenarios. SGM is the only 50 lb. class glide munition employable in a CL T that meets the requirements summarized in Section Ill.

munitions currently in development that are within the required weight class and have the potential to be integrated with the CL T include G-Claw, Hammer, Hatchet, Raser, Saber, Pyros, and FAST LIGHT. The estimated timeline to complete redesign to meet requirements outlines in Section 3 is 18-24 months, assuming the contractors are willing to make the investment. It will take an additional 1-2 years to integrate with platform Battle Management System, flight test, transition to production, complete aircraft airworthiness safety certification for combat operations, generate technical orders, obtain final hazard classification, conduct sufficient test and training to establish reliability and validate employment tactics. USSOCOM conducted a guided flight demo with G-Claw in 2014. As configured in 2014 the G-Claw is an area weapon with a large warhead. In that configuration it is not acceptable for collateral damage and does not have sufficient guidance accuracy to meet USSOCOM requirements for single shot kill in close air support scenarios. The G-Claw contractor subsequently added a SAL seeker and conducted a flight demonstration in October 2015. The G-Claw experienced flight failures. Additionally, its limited glide ratio precludes it from reaching the range requirements and drives undesirable aircraft maneuvers to maintain laser designation.

Airframe redesign and associated flight control redesign is necessary to address this shortfall. The contractor is not currently pursuing a redesign. If the contractor did elect to pursue a redesign, the projected timeline is 24-30 months to reach the same level of maturity SGM is at today. The Israeli FAST LIGHT munition has not been integrated into the Common Launch Tube and Battle Management System and addition of a SAL seeker, while an option, is not yet demonstrated. This puts it 12-18 months further from operational deployment than SGM. The Hammer, Hatchet, Raser, Saber, and Pyros are well behind SGM in maturity, not yet integrated into the CLT, and do not meet the lethality and range requirements.

The small glide munition will provide SOF engaged in armed overwatch the ability to engage targets within a 360 degree employment zone, including areas not covered by currently feilding munition, shoot without creating launch signature, and support engagement scenarios where attack azimuth and impact angle must be precisely controlled. The increase in engagement flexibility will allow the SOF to engage targets in scenarios where current munitions are ineffective, enhancing their ability to support ground forces maneuvers and save lives.

Accordingly, Dynetics is the only firm capable of providing the supplies and seNices described above without USSOCOM experiencing unacceptable delays in fulfilling its requirements.

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(S) 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) Using rates set forth in the current {FPRA, FPRR) Provisional Billing Rates for cost analysis purposes; (3) Getting a technical evaluation from the Program Manager that evaluates the proposed labor mix, hours, materials, travel, and shipping for reasonableness and realism; (4) Using the Weighted Guidelines {WGL) tool to determine the appropriate profit/fee; and (5) 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.

(6) Other facts supporting the justification:

None.

(7) Actions the agency may take to remove or overcome any barriers to increasing fair opportunity before any subsequent acquisition for the supplies or services:

A sources sought was posted on 19 November 2015 and was subsequently deleted and reposted on the 23 November 2015 to FedBizOpps. This original sources sought was posted under the incorrect classification and NAICS code, no capabilities statements were received during this posting. The revised sources sought posed on 23 November requested interested parties to identify their interest and capability by submitting a capabilities package for the Government's evaluation. Dynetics, Raytheon, and Textron Systems submitted a capabilities statement. SOCOM conducted a review of each of these capabilities statements and found that only Dynetics could meet the requirement.

Market research included an assessment of the development status of glide munitions compatible with the CLT. The results, summarized in Section (4), indicate there is no other glide munition that meets the requirements. USSOCOM has and will continue to monitor industry and Government munition development activities and will pursue competition when a viable competitor matures to a combat ready status.

The Government is promoting competition by providing interested contractors the SOPGM architecture interface requirements and maintaining a "carry-on" SOPGM carriage, release, and battle management capability to support flight demonstration of non-development items on commercial or military aircraft. Market research indicates there are several commercial businesses pursuing munition concepts with the potential for integration into the SOPGM architecture. The Government will continually monitor the progress of these investments. When one or more of these companies demonstrates a product that meets the

SOPGM architecture requirements, has the required performance capabilities/characteristics, and is combat ready, the

Government will pursue competition for follow-on purchases. The current conditions indicate that competition can be realized in 24-36 months.

(8) Contracting Officer's certification that the justification is accurate and complete:

The Contracting Officer's signature on the signature page provides evidence that he/she certifies that the justification is accurate and complete to the best of his/her knowledge and belief.

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