Final_Redacted-SWIFT-D_fair_opportunity_exception_justification.pdf

Justification for an Exception to Fair Opportunity or to Use Brand-Name Restriction

FOR OFFICIAL USE ONLY

November 2018 FOR OFFICIAL USE ONLY Page 1 of 5

Is this a brand-name justification? Yes No

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

Contracting Activity: AFNWC/PZN

Purchase Request / Local ID Number: FA9422-19-F-5005

Program Name (and Program Element, if applicable): - Digital Services -D)

Estimated Cost/Price of the Order (including options): $1,409,000

Type Program (see AFFARS 5302.101 for definitions): PEO Program Other Contracting

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

Type of D etermination: Individual Class Expires: [ click and select ]

Click here for instructions to complete the boxes below.

(1) Contracting Activity:

United States Air Force AFNWC Contracting Directorate (AFNWC/PK) Nuclear Support Contracting Division (AFNWC/PZN) 1551 Wyoming Blvd. SE Kirtland AFB, NM 87117 Contracting Officer: Anthony Kaiser

DSN: 263-7666

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

Air Force plans to negotiate and award a new services contract for the Interface Tester- Digital ( -D) test support and equipment needed to certify the Aircraft Monitor and Control (AMAC) systems on aircraft. These AMAC tests are required to certify the aircraft to utilize the System 2 systems. Upon approval, this services contract is anticipated to be awarded to:

Torch Technologies, Inc.

4090 Memorial Parkway S Huntsville AL 35802-1382 CAGE Code: 3CBV3

Contract Type and Structure: In order to meet program testing schedules, an Undefinitized Contract Action (UCA) will be awarded using contract number FA9422-19-F-5005 in January 2019. The contractor is required to acquire six (6) -D prototype systems and two Software Development Kit (SDK) -D prototype systems, receive them, conduct integration, and complete testing by March 2019. The UCA will be definitized within 180 calendar days. The program will utilize a cost-plus-fixed-fee (CPFF) pricing structure. Services to be performed require checkout, assembly, and testing of six

-D prototype systems and two SDK -D prototype systems required for AMAC testing on aircraft integration lab and on test aircraft. The estimated dollar value for these services is $1,409,000. The basic contract for FY19 requires $525,800 of O&M (3400) funding and Option year 1 requires $883,200 of either O&M (3400) or RDT&E (3600).

November 2018 FOR OFFICIAL USE ONLY Page 2 of 5

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

A. -D services will test critical interface required for certification of new System 2 . This acquisition is anticipated to be a one-time procurement action to buy -D assemblies and conduct interface testing.

B. The Government's total estimated value for -D Services is $1,409,000; consisting of the basic period of $207,400 labor, $300,000 in material and $18,400 in travel. For Option 1, the there is a cost of $414,800 for labor, $450,000 in material and $18,400 in travel. The basic period effort is comprised of the following costs: six (6) -D and two (2) SDK -D prototype unit material costs and circuit card assembly fabrication costs; integration, assembly, and checkout testing of the -D and SDK -D prototype units; final verification testing of the -D prototype units in the air systems integration labs and on test aircraft; Systems Engineering/Program Management.

Option 1 effort is comprised of the following costs: twelve (12) -D systems material costs and circuit card assembly fabrication costs; integration, assembly, and checkout testing of the -D units; final verification testing of the -D systems in the air systems integration labs and on test aircraft; Systems Engineering/Program Management. The estimated award date is January 2019. During the base period, the vendor will acquire, assemble, integrate, and checkout six (6)

-D prototype units and two (2) SDK -D prototype units by March 2019. Final verification testing of the -D prototypes in the air systems integration labs and on test aircraft will be complete by April 2019. Contingent upon the success of base period prototype completion, Option 1 may be exercised. If exercised, the vendor will acquire, assemble, integrate, and checkout twelve (12) -D systems by October 2019. Final verification testing of the -D prototypes in the air systems integration labs and on test aircraft will be complete by December 2019.

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

FAR 16.505(b)(2)(i)(B): "Only one awardee is capable of providing the supplies or services required at the level at the level of quality required because the supplies or services ordered are unique or highly specialized".

A. The required services are highly specialized and require expertise and experience with testing of the System 2 AMAC requirements per system performance specification and test requirements - SYS2001-05A and SYS2300-01. Torch Technologies, Inc. possesses the unique set of capabilities, experience, and skill set for these required services to produce the -D prototypes and systems, and test the System 2 AMAC requirements. Torch Technologies, Inc. has been under separate contract vehicles for assembling and testing of this type and are immediately employable for this work. Procuring these services from other vendors would require repeating lengthy development of the -D prototype design, testing, and training of contractor employees, introducing unacceptable operational capability delays to fielding air systems/aircraft. Torch Technologies, Inc. personnel have 15+ years of indispensable skill sets and understanding of AMAC testing. Torch Technologies, Inc. employees have worked with the circuitry and test equipment and have a working knowledge of program requirements and existing schedule challenges.

B. Torch Technologies, Inc. designed and developed the -D prototypes from proof-of-concept through final prototype design. Torch Technologies, Inc. created Computer Aided Design (CAD) and Gerber files required for the manufacturing of the final -D prototypes and SDK -D prototypes. Although the design/drawings are government-owned, Torch Technologies, Inc. is uniquely

November 2018 FOR OFFICIAL USE ONLY Page 3 of 5 positioned to integrate, assemble, and test the -D prototypes and operate the prototypes in the air systems integration labs and on test aircraft immediately upon award. Torch

Technologies, Inc. has performed the hands-on work related to the -D development and software code to run the -D testers. Therefore, services to purchase, assemble, integrate, and test this highly specialized equipment is best suited to be accomplished by Torch Technologies, Inc.

C. Award to any other vendor source would result in substantial duplications of costs to the program.

Some examples of costs that would be duplicated are : 1) qualifying another source to conduct the testing, 2) Schedule delays due to the time and expense of a full and open competition, and 3) contract administration costs to oversee Torch Technologies, Inc. current contract and the potential second contract with another vendor. These duplicated costs are not expected to be recovered through competition. Additionally, unacceptable delays to fielding the tested within AFGSC and USAFE would place No other vendor possesses a combination of the required capabilities to provide these integration testing services.

(5) Contracting Officer's determination that the anticipated cost to the Government will be fair and reasonable:

The following steps will be taken to ensure that the anticipated cost of these services will be fair and reasonable. A technical evaluation will be performed by AFNWC/NTS and the Contracting Officer will comply with the procedures and criteria contained in the Federal Acquisition Regulation under Parts 30 - Cost Accounting Standards, Part 31 - Contract Cost Principles and Procedures, and Subpart 15.4 - Contract Pricing. Additional steps to ensure price reasonableness will be under the guidance of the Contract Pricing Reference Guides jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology. The final step is to prepare the Price Negotiation Memorandum (PNM).

This detailed documentation and justification of price reasonableness will be disclosed in the official PNM, to be completed upon completion of negotiations.

(6) Other facts supporting the justification:

Market research activities commenced by reviewing the current Technical Management and Advisory Assistance (TMAS) contract and similar requirements. The Advisory and Assistance portion of this contract is being performed by Torch Technologies, Inc., a Small Business.

In addition, several searches in the Small Business Administration Dynamic Small Business Search (SBA DSBS) were conducted to assess any viable sources who can readily perform the required services. A search in the SBA DSBS under NAICS 541715, Small Business, active status, produced 8,466 profiles matching this criteria. After review of the profiles matching our criteria, none demonstrated the aircraft monitor and control expertise. Below is a summary of the several SBA DSBSs.

The search was narrowed down by adding keywords to the search criteria. The above search criteria was entered with keyword Engineering which produced 2,110 profiles matching this criteria. The search was narrowed down further by entering the above search criteria with keyword which produced 8 profiles matching this criteria. In analyzing the Capabilities Narrative from each profile, the majority provided services in power plant operations such as safety, power, compliance, safeguards and security, facility operations, and hazardous waste management, and materials control and accountability. These profiles do not have any demonstrated experience/expertise with the required services.

Another search was entered in the SBA DSBS using the above search criteria with keywords: ;

aircraft monitor and control; ; and Certification; which produced 0 profiles matching this criteria.

November 2018 FOR OFFICIAL USE ONLY Page 4 of 5

The keyword produced six profiles. The first profile, Total Reliant Consulting, LLC, provides services in systems sustainment, maintenance and logistics, aircraft armament, contracting, logistics and acquisition support, and cyber assurance. The second profile, Maine Secure Composites, LLC, provides services in developing a secure composite ISO shipping container that can detect intrusions, on any of its six sides, is lighter than steel containers, non-corrosive, and works interchangeably with steel containers. The third profile, Gomez Research Associates, Inc., provides services in research and development for strategic and tactical defense systems in the areas of , radar and optical sensor requirements analysis, environmental sensing and mitigation, and large scale simulation development. The fourth profile, JRC Integrated Systems, Inc., provides services in program management, systems engineering, research and development, financial management, strategic communications, , integrated test plan, foreign military sales, in integration, cyber training, and facilities management. The fifth profile, Blue Lynx Resource, LLC, provides services in test and evaluation programs (DoD/DOE/DHS Focused), supporting engineering/technical areas, business and process development, program start up and management, logistics, system engineering, integration, and evaluation, government asset management, and program management. The final profile, Telic Corporation, provides services in engineering, manufacturing and demilitarization, chemical weapons, , ordnance, pyrotechnics, explosives, decoy flares, and photons. In reviewing the above six profiles, .

The keyword Certification produced one profile, Solute, which provides services in program management, systems engineering, knowledge management, business process engineering, information assurance, and software engineering.

Also, they provides services in SOA, wargaming, requirements, collaborative tools, system engineering integration, six sigma, change management, process improvement, use case modeling, process mapping, knowledge management, R&D, C4ISR, DMAIC, DODAF, MILS, CDS, UML, CONOPS, MFOQA, aviation safety, certification agent, software architect, and software engineering. This profile does not have any demonstrated experience/expertise .

We have examined several existing contracts to determine if this work can be accomplished within the scope of work. In addition to the TMAS contract, OASIS SB, DS-TAT, and JHU/APL UARC contracts have also been reviewed and none could readily perform the required services.

In addition to Torch Technologies, Inc. possessing unique set of capabilities, experience, and skill set for required services, there is diminished operational utility to the if the -D testing is not completed on time. There is limited opportunities to test at the operational test ranges; if

-D testing is delayed, range time will need to be rescheduled, causing unacceptable delays to the certification of the System 2 .

(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:

The Government plans to do a full and open competition for the procurement of sustainment -D testers once Option 1 is completed.

(8) Program Manager's certification that supporting data is accurate and complete:

As evidenced by my signature below, I certify that any supporting data contained herein, which is my responsibility, is both accurate and complete.

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

As evidenced by my signature below, I certify that the justification is accurate and complete to the best of my knowledge and belief.

November 2018 FOR OFFICIAL USE ONLY Page 5 of 5

(10) Approving Official's determination that one of the circumstances in FAR 16.505(b)(2)(i) applies to the order.

As evidenced by my signature below, I hereby determine that the fair opportunity exception checked on page 1 applies.

Date

03 Jan 2019

Project Lead / Program Mgr / Requiring Activity

AFNWC/NTS/

Signature

Date Contracting Officer Anthony W. Kaiser

AFNWC/PZN/

Signature

Date

08 Jan 2019

Attorney-Advisor

AFNWC/JA

Signature

Date

Competition Advocate

AFNWC/PZ

Date

Approval Authority

AFNWC/PZ/

KAISER.ANTHONY.W.