(FOUO)FOE_Justification_Boeing-LSDB_Redacted.pdf

Justification for an Exception to Fair Opportunity

FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLY

To execute the demonstration, the contractor shall:

- Modify the Operational Flight Plan (OFP) of a LSDB so that it will be compatible for release from the F-16 (Block 40/50 and backward compatible with Block 30 aircraft).

- Provide drawings, range safety plans/reports, test plan (ground and flight)

- Provide engineering level of effort support (technical, ground test and flight test)

- Update technical data/hazard classification

- Perform interface electromagnetic interference/electromagnetic compatibility tests

- Perform test data management

This effort is related to the armament mission and involves engineering activities for the modification of an existing system. 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 as detailed below:

3.1 Demonstration/Studies (3.1, 3.1.10)

3.2 Design and Engineering Development (3.2, 3.2.2, 3.2.7, 3.2.8)

3.3 Testing (3.3, 3.3.3, 3.3.4 - 3.3.10, 3.3.16)

3.4 Hardware/Software Modification

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

FAR 16.505(b)(1)(i) requires the Contracting Officer to provide each awardee under a multiple award contract fair opportunity to be considered for each order exceeding $3,500 unless a statutory exception applies. The specific exception that precludes the fair opportunity process for this acquisition is FAR 16.505(b)(2)(i)(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.

As the designer, developer, manufacture of the LSDB weapon system, Boeing is the sole owner of both Technical Data Packages (TDPs) and is the only qualified producer and supporter of these systems and related equipment. Additionally, Boeing developed the laser kit and integrated it into the SDB I weapon using corporate internal research and development funding;

therefore this aspect of the LSDB weapon is proprietary to Boeing. Only Boeing possess the requisite knowledge, experience, technical data, facilities and special tooling/support equipment to successfully produce, test, integrate and support the LSDB weapon system and to test and integrate the SDB I weapon system.

XZW believes that award to any other source would result in unacceptable delays in fulfilling Air SAF/AQR CAS requirements. In order for another contractor to be able to produce and demonstrate an LSDB, the Government would have to purchase and furnish the LSDB TDP. A LSDB TDP will cost approximately $118,000,000. Should the Government purchase this TDP, a minimum of 1 to 1.5 years would be required to negotiate and award a contract and to receive the TDPs. Once the TDPs were provided to the other contractor, the contractor would need approximately 3 to 5 years to produce and qualify the various hardware items.

This timeline includes completing the required safety and airworthiness qualifications. After the company has successfully proven its capability to produce the items, approximately another year would be required before deliveries could begin. Based on this timeline, a delay of 5 to 7 years would occur if award was made to a source other than Boeing. This timeframe does not meet XZW's requirement to support immediate and on-going close air support.

Accordingly, the Boeing Company is the only company capable of providing supplies and services described above without XZW experiencing unacceptable delays in fulfilling its requirements.

Justification for an Exception to Fair Opportunity

FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLY

(5) Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer will ensure 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) Technical evaluation from the Program Manager that evaluates the proposed labor mix, hours, materials, travel, and shipping for reasonableness and realism; (4) Weighted Guidelines (WGL) tool to determine the appropriate profit/fee.

(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:

There are no actions planned to remove or overcome any barriers to competition for subsequent acquisitions for these supplies and services under the AA IDIQ. Market research proved that Boeing is the sole manufacturer of the LSDB, which is the only GOTS item suitable for this demonstration. As such, Boeing is the only proprietor who has the expertise and background to effectively and efficiently support the efforts to support a demonstration of employment of a LSDB from an F-16.

(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.

(9) Certification of technical/requirements personnel that supporting data is accurate and complete:

As evidenced by his/her signature on the signature page, the Program Manager certifies that any supporting data contained herein, which is his/her responsibility, is both accurate and complete.

(10) Determination by the approving official that one of the circumstances in FAR 16.505(b)(2)(i) applies to the order

As evidenced by my signature on the signature page, I hereby determine that the fair opportunity exception checked in block 6 (Page 1) applies.