Fair_Opportunity_Exception_Justification_Redacted.pdf

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

[ For Official Use Only ]

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Is this a brand-name justification? Yes No

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

Purchase Request: TBD

Program Name (and Program Element, if applicable):

Estimated Cost/Price of the Order (including options): $7,500,000.00

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 here for instructions to complete the boxes below.

(1) Contracting Activity:

The Direct Attack Contracting Division, AFLCMC/EBDK, Eglin AFB, FL 32542 is the contracting activity supporting this Class Fair Opportunity Exception.

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

The is in response to to defeat additional through the development, test and integration of a . This is a

Individual Fair Opportunity Exception document to support an order for the development, test and integration of the resident within the current configured (MOP) weapon system. An order will be placed under the existing Agile Acquisition Indefinite Delivery Indefinite Quantity (IDIQ) contract, FA8656-15-D-0262, with The Boeing Company, 6200 JS McDonnell Blvd, Saint Louis, MO 63134-1939. The anticipated order will use Fixed Price and Cost type contract line items. The total estimated cumulative value of the order covered under this exception is $7.5M, funded with Research and Development Test & Evaluation (RDT&E) 3600 appropriations. The total estimated Period of Performance for the effort .

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

The purpose of the order is to: support all development, test and integration required for the to ensure a basic capability is fielded. This first phase will field the basic capability as quickly as possible to meet the schedule requirement of the . Boeing will subcontract , for integration and test support. Boeing will provide applicable hardware, test support and software modifications to integrate into the and as necessary to meet the operational requirement.

As it relates to the basic Agile Acquisition IDIQ, this effort is related to the armament mission and involves engineering activities for the modification and testing of an existing weapon system. This action is within the ordering period of the basic contract, is within the total contract ceiling, and falls under the basic contract scope throughout the statement of work, specifically as detailed below:

Basic IDIQ Statement of Work Paragraphs:

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

Federal Acquisition Regulation (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 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".

Boeing is determined to be the only contractor capable of successfully meeting the requirements of this acquisition. The Government does not own the , any other source will result in unacceptable schedule delays to meet the .

The development, test and integration of the MOP has occurred over the with the expenditures of approximately . Boeing has been the sole prime contractor for the MOP Weapon System, initiating the first baseline weapon and pushing MOP through . Any other contractor would be required to begin the MOP integration effort from the technology development phase thus potentially causing, at a minimum, a

Given the fact that Boeing is the original designer, they are uniquely qualified to enhance the performance of the system to meet the requirement to provide a to the warfighter.

The Government will leverage competition to the maximum extent practicable for the overall . A source qualification effort is on contract to increase the industrial base and introduce a lower-cost suitable warhead material via of the Rapid Acquisition Cell Agile Acquisition IDIQ contract. These vendors will compete to build the warheads that will be used in test for this .

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

The Contracting Officer will ensure that 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.

(6) Other facts supporting the justification:

See section (4).

(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:

See section (4).

(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.

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(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.

(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.