MOP Warhead Production IDIQ J&A_Redacted_Posted.pdf

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

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 8

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! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

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

Contracting Activity: Direct Attack Contracting Division, AFLCMC/EBDK, Eglin AFB, FL

Purchase Request / Local ID Number: N/A

Program / Project (and PE, if applicable): Massive Ordnance Penetrator Production

Program Type (PEO or Other Contracting): PEO, ACAT IC

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): $90,000,000.00 J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date Requiring Activity - EBDP/MOP Program Office

Signature

Date

22 Apr 2019

Contracting Branch Chief, Contracting Officer

10 May 2019

Chief, Direct Attack Contracts

Date Division Chief, Direct Attack

28 May 2019

Staff Judge Advocate

30 May 2019

Chief of the Contracting Office (COCO)

07 Jun 2019

Competition Advocate

March 2018 FOR OFFICIAL USE ONLY Page 2 of 8

Date

11 Jun 2019

Senior Contracting Official (SCCO)

APPROVAL (AFFARS 5306.304(a) )

Date

03 Jul 2019

AF Program Executive Officer for Weapons Brig Gen Anthony W. Genatempo

AFLCMC/EB, 850-882-5422

March 2018 FOR OFFICIAL USE ONLY Page 3 of 8

I. Contracting Activity.

The Direct Attack Contracting Division, AFLCMC/EBDK, 207 Foster Dr, Building 15130, Eglin AFB, FL 32542 is the contracting activity supporting this Class Justification for Other Than Full and Open Competition.

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

This is a Class Justification and Approval (J&A) document for a new Indefinite Delivery/Indefinite Quantity (IDIQ) contract(s), each with a five (5) year ordering period and a contract ceiling of $90,000,000. This contract action is intended to result in multiple-award IDIQ contracts that will support the production of up to an estimated BLU-127 Massive Ordnance Penetrator (MOP) Warhead Cases, aft components, and shipping equipment to support production and test requirements. The anticipated orders under these IDIQ contracts will use Fixed Price type contracts.

The Government cannot predetermine the precise quantities of components required for production of MOP warhead cases beyond the warhead cases, aft components and shipping equipment. The exact times and/or exact quantities of future deliveries will not be known at the time of contract award. It is inadvisable for the Government to commit itself for more than the minimum quantity.

This action will be issued as a Multiple Award Contract (MAC) IDIQ to qualified vendors for the production of MOP warhead cases and support articles.

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

The MOP weapon system capability emerged in response to a classified Joint Urgent Operational Need (JUON) to defeat Hard and/or Deeply Buried Targets (HDBTs). The MOP is a guided penetrating weapon developed specifically for this purpose and is the only weapon that can meet this need. A authorized the procurement of MOP weapon systems. The MOP weapon system is currently designated as an ACAT IC program

No other weapon system has been identified that can meet this requirement other than the MOP weapon system.

The intention of the Program Office is to utilize this J&A to solicit directly to qualified vendors for BLU-127 warhead cases and support articles, which aligns with the MOP Production IDIQ Acquisition Plan signed by the Weapons PEO on 12 September 2018. Under the contemplated IDIQ contract(s), qualified production vendors will be responsible for manufacturing, finishing, and delivering BLU-127 warhead cases and associated components. Qualified vendors of BLU-127 warhead cases have been identified, in previous contracts (FA8681-09-C-0280, FA8681-15-C-0050, and FA8681-18-C-0038) and will also include any new vendors as determined by the MOP Warhead Case Vendor Qualification delivery order (FA8681-17-F-1041). This effort is for the production and delivery of BLU-127 assets and support articles to fulfill Government inventory requirements. The anticipated Period of Performance of this effort is a five (5) year ordering period from award of the IDIQ contract. The estimated ceiling value of this effort is $90.0M, funded with Air Force (AF)

March 2018 FOR OFFICIAL USE ONLY Page 4 of 8

Budget Plan (BP) 3011 appropriations to increase inventory and 3600 appropriations to procure test assets. The delivery of the total initial order ( ) will be divided among the qualified vendors of MOP warhead cases and is expected to occur in FY 2021.

The effort to qualify MOP warhead case vendors was based on fair opportunity competitive procedures to bolster the industrial base in the production of BLU-127 warhead cases resulted in, delivery order FA8681-17-F-1041 awarded under the Agile Acquisition IDIQ basic contract (FA8656-15-D-0273). Under this delivery order, capable vendors were given the opportunity to qualify for the production of MOP warhead cases with

. In total, one (1) delivery order was awarded to the Prime Contractor of the effort, Applied Research Associates (ARA) to manage three (3) vendors, Ellwood National Forge (ENF), Superior Forge & Steel (SFS) Corporation, and . Through the course of the effort, two (2) vendors, ENF and SFS, presented capabilities to meet the full requirements established by the Government. These vendors have proceeded into the final phase of the contract to produce full scale assets, all of which are projected to be delivered at the end of June 2019. The third vendor, This qualification effort, alone, constituted almost two years of development and testing. As such, along with the rationale presented in Section V, Subsection 2, there are no feasible actions, presently, that could further develop future competition within the five (5) year ordering period of the contemplated IDIQ contract. Therefore, it is reasonable to seek approval for more than one Fiscal Year's requirement.

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)(B) - Only One Responsible Source or a limited number of responsible sources, and No Other Supplies or Services Will Satisfy Agency Requirements without unacceptable delays in fulfilling 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 The Air Force's minimum needs can only be satisfied by the supplies and services available from ENF, One Front Street, Irvine, PA 16329, and SFS Corporation, 1820 McClain Rd, Lima, OH 45804. The MOP warhead production will be manufactured with steel.

ENF is the Original Equipment Manufacturer (OEM) and integrator for BLU-127 warhead cases and aft components since the weapon program began. ENF possesses integral knowledge of the BLU-127 metallurgic property requirements, machining and handling operations, and specific finishing needs, all of which are unique and currently unrepresented by any like ordnance. ENF possesses proprietary specialized tooling equipment and manufacturing processes to meet the requirements outlined in the Government owned Technical Data Package (TDP). The data and expertise derived from the development of the MOP weapon system under contracts FA8681-09-C-0280 and FA8681-15-C-0050 is integral to the production of the components of the weapon system. ENF and vendors identified

March 2018 FOR OFFICIAL USE ONLY Page 5 of 8 under delivery order FA8681-17-F-1041 are the only known sources possessing the facilities, qualifications, and data essential to having the potential to satisfy the performance necessary for this effort. ENF is currently performing as a sub-tier contractor, under sole source contract FA8681-18- C-0038, to The Boeing Company, for production of GBU-57 MOP weapon systems, awarded 08 February 2018. All components that have been produced under development contracts, FA8681-09- C-0280 and FA8681-15-C-0050, have been created by ENF, as a sub-tier contractor, which have successfully demonstrated their abilities to accurately meet Government requirements in the production of BLU-127 warhead cases. ENF is qualified in the production of BLU-127 under the current steel and under delivery order FA8681-17-F-1041 is currently on track for the qualification of

SFS, under delivery order FA8681-17-F-1041, has displayed high levels of understanding and developed proprietary process capabilities and equipment to meet the requirements necessary for the production of BLU-127 warheads. SFS is currently on track for the qualification of the current

This will be a new acquisition based on the current, and past, production efforts of MOP warhead cases and support equipment, utilizing existing performance history and/or any additional vendor qualifications, all to be managed by the MOP System Program Office (SPO).

Subsection 2 Award to any other source would result in unacceptable delays in fulfilling Government requirements.

As demonstrated in the Warhead Case Vendor Qualification contract, FA8681-17-F-1041, and through the historical progression of the MOP program, additional vendor qualifications are estimated to take a minimum of 60 months to meet this requirement. The Government assessment of this 60 month minimum would incorporate sourcing funding for a new development effort (24 months), generate acquisition planning documents, plan/conduct a source selection, and award a contract (12 months). From here the vendor would have to perform a Manufacturing Readiness Review (MRR) to prove their capability of meeting a Government requirement of Manufacturing Readiness Level (MRL) 8, which represents the needed knowledge/processes to progress from warhead development into a production capacity (3 months). Upon successful completion of an MRR, the vendor would then be required to build an initial asset (9 months), pass a First Article Inspection (FAI) and generate test results/ certifications (3 months). Upon successful completion of all of these tasks, the vendor would then still have to produce the first production assets (9 months).

Any changes to the BLU-127 warhead case, aft and support components, or changes in manufacturers in the ordering period would result in the Government not being able to meet the requirements of the PDM, thus limiting the Government's ability to meet its Operational requirements.

Subsection 3 Accordingly, ENF and SFS are the only vendors that have displayed the potential capability of providing the supplies described in Section III, without the Government experiencing unacceptable delays in fulfilling its inventory requirements.

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

A sources sought synopsis, MOP Production, was posted on FedBizOpps on 21 March 2018 to

March 2018 FOR OFFICIAL USE ONLY Page 6 of 8 determine if there were any potential offerors that could provide any or all of the components for the GBU-57 MOP weapon system, to include the KMU-612 tail-kits, GBU-57 E/B fuzes, and Carriage and Release Equipment (CARE). Interested vendors were asked to demonstrate their capability to provide any or all of the components of the weapon system identified in the notice. The sources sought was issued in order to collect supporting data and documentation on which to support or alter the Government's proposed acquisition strategy for production of GBU-57 MOP weapon system components.

No responses were received in response to this sources sought notice.

Additional details of the efforts to solicit as many potential sources as practicable for MOP Production can be found above in Section III of this J&A, which refers to the Warhead Case Vendor Qualification contract FA8681-17-F-1041.

IAW FAR 5.203(a), a notice of proposed contract action will be posted to FedBizOpps for at least 15 days prior to release of the solicitation to notify industry of the Government's intent to solicit and negotiate with limited sources under the authority of FAR 6.302. The Government will evaluate any responses received to determine whether respondents could meet requirements of this acquisition.

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

The Contracting Officer will ensure the final negotiated price of orders are fair and reasonable based upon:

(1) Performing a cost/price analysis IAW FAR 15.404, to include obtaining and analyzing actual costs previously incurred;

(2) Accomplishing a cost analysis using rates set forth in the current Forward Pricing Rate Agreement (FPRA) and/or Forward Pricing Rate Recommendation (FPRR);

(3) Obtaining a DCAA/DCMA audit of the Contractor's proposed costs, to include any subcontractors' proposals;

(4) Performing a technical evaluation from the Engineering Team 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) Upon conclusion of negotiations, obtaining a Certificate of Current Cost or Pricing Data from the Contractor in accordance with the Truth in Negotiations Act and FAR 15.403-4.

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

In order to solicit offers from as many offerors as possible, the Contracting Officer considered techniques for conducting market research IAW FAR 10.002(b)(2). First, the Contracting Officer reviewed market research performed previously for the MOP program. The research showed that ENF, and those still involved in the qualification effort (FA8681-17-F-1041), were the only companies with the relevant capability to fulfill this requirement. The MOP Team (Contracting

March 2018 FOR OFFICIAL USE ONLY Page 7 of 8

Officer, Program Manager, and Lead Engineer) also consulted with knowledgeable individuals from the Government, AFRL and AFLCMC/XR personnel to determine if there was any potential for additional source participation. No additional sources that could meet the full requirement, without unacceptable delays, were identified.

As described in Section VI above, 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. Finally, the Government consulted with other weapons programs with similar contracts to research any potential innovative practices. To date, no additional sources have been identified. As a result of the market research described above, the Government has a high level of confidence that ENF and SFS are the only sources with the required capability to meet this requirement.

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

See Section V above.

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.

The Government owns the TDP for the production of BLU-127 warhead cases, aft components and shipping articles. This allows the Government the versatility to seek to qualify additional vendors for the production of BLU-127 warhead cases, aft and support components. However, as outlined in Sections III and V, there are no feasible actions that could adequately develop future competition within the five (5) year ordering period of the contemplated IDIQ contract. Therefore, it is reasonable to seek approval for more than one Fiscal Year's requirement.

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.

March 2018 FOR OFFICIAL USE ONLY Page 8 of 8