FALCO_fair_opportunity_exception_BAE_26Nov24 CCA signed.pdf

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

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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: AFLCMC/EBDA

Purchase Request / Local ID Number:

Program Name (and Program Element, if applicable): AGR-20F (FALCO)

Estimated Cost/Price of the Order (including options): $1.6M

Type Program (see DAFFARS 5302.101 for definitions): PEO Program Operational Enterprise

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

Fair Opportunity Exception: FAR 16.505(b)(2)(i) (Check the applicable subparagraph below.)

(A) (B) (C) (D) (E) (F) (G) Check this box to display the FAR 6.302 exceptions.

Click here for instructions to complete the boxes below.

(1) Contracting Activity:

The Air Force Materiel Command, Air Force Life Cycle Management Center, Attack Division (AFLCMC/EBD), Eglin AFB, FL 32542-6807 is the contracting activity for the Fair Opportunity Exception (FOE).

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

The AGR-20F Fixed Air Launched, Unmanned Aircraft System (UAS) Ordnance (FALCO) is designated an Urgent Operational Need (UON) and fulfills the United States Air Force (USAF) requirement for an effective and cost-efficient air-to-air weapon system. The worldwide proliferation of low-cost UAS platforms continues to pose a real-world, significant challenge to United States (US) interests and is an asymmetrical threat on the modern battlefield. At least 75 countries are acquiring, operating, or have UAS development programs. These weapons are relatively easy to manufacture and deploy, difficult to detect, and carry significant payload in the form of weapons or embedded warheads. They are asymmetrical in that their low cost makes it prohibitive to defeat many of them using expensive dedicated air defense systems. Defending against small and low-cost aerial threats, such as unmanned aerial systems, is expensive. Current Radio Frequency (RF)-guided air-to-air weapons commonly cost $1M each. The legacy Advanced Precision Kill Weapons System (APKWS) is already qualified on a variety of fixed wing platforms.

At $35K per unit, its cost is significantly less than current guided air-to-air weapons. The AGR-20F enabled the APKWS to be modified for use in air-to-air engagements to defeat Group 3 UAS. The AGR-20F quantity currently fielded is 1,080 units, and due to the severity of real-world threats, HAF AF/A5RC has increased the Inventory Objective (IO) to 4,774 units to ensure this solution is available to meet current air-to-air engagements. This is an individual FOE to convert 3,694 government furnished WGU-59/B guidance sections to True Pulse Logic Algorithm (WGU-59B/B) for an anticipated total value of $1.6M. This will be a Firm Fixed Price contract type on a sole-source basis to BAE Systems Information and Electronic Systems Integration, Inc. 65 Spit Brook Road Nashua New Hampshire 03060. This work will be accomplished utilizing the competitively awarded Eglin Wide Agile Acquisition Contract (EWAAC). The work will be required to occur as an urgent operational need beginning NLT 1QFY25. The Period of Performance for this effort is 12 months. Currently there is funding for the first 474 guidance sections and funding for the remaining 3,220 guidance sections will be received within weeks of initial contract award to ensure the urgent operational need requirements are met. The two CLINs on the effort are as follows:

CLIN 0001 - Conversion of 474 WGU-59B guidance sections to True Pulse Logic Algorithm WGU-59B/B

CLIN 1001 - Priced Option for conversion of 3,220 WGU-59/B guidance sections to True Pulse Logic Algorithm WGU-59B/B v 18 Jan 2024 CONTROLLED UNCLASSIFIED INFORMATION Page 2 of 5v 18 Jan 2024 CONTROLLED UNCLASSIFIED INFORMATION Page 2 of 5

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

This effort is the final step to ensuring the AGR-20F are fielded as determined by the inventory objective increase determined by HAF AF/A5RC. The AGR-20F modification of the existing APKWS for air-to-air engagement against Group 3 UAS involves converting the WGU-59/B guidance sections to BAE Systems True Pulse Logic Algorithm. Utilizing the Rapid Acquisition Authority (RAA) Procurement Funding will enable BAE Systems to begin the real world quick reaction mission need for an initial CLIN 0001 quantity. Option CLIN 1001 quantity will be exercised upon availability of follow-on funding expected NLT 3 weeks after initial contract award.

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

IAW FAR 10.002(b)(2) the Contracting Officer reviewed market research performed previously for this program. The team learned about a contract at the Air Force Research Lab (AFRL) held with BAE Systems for software that could be utilized for the existing UON based on its development level. To fulfill the initial UON (the currently fielded 1,080 units), EBDA utilized the existing contract with AFRL. With the recent increase to the inventory objective, BAE Systems is the only company with the relevant capability to upgrade the software required for the AGR-20F Weapon System without unacceptable delay. BAE systems has been the sole developer of the software algorithm since implementation of an air-to-air counter Unmanned Aerial System since development began under the initial 12 month UON effort. BAE systems has provided quick reaction required by both AFCENT and USAFE commands. Moreover, the current quick reaction for increased quantity is facilitated by established professional relationships with AFLCMC/EB, Air Force Research Lab (AFRL), AFCENT and USAFE Command and the F-16 Program Office carried over from the initial development effort that BAE systems software algorithm has critically provided. BAE systems is the only source able to deliver the highly specialized software to fulfill this urgent requirement.

(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 negotiated price/cost is fair and reasonable: (1) accomplishing a price analysis by comparing proposed prices to recent contract actions for like items; (2) accomplishing a cost analysis by comparing proposed individual cost elements to recent contract actions for like items; (3) using rates set forth in the current Forward Pricing Rate Agreement (FPRA) and/or Forward Pricing Rate Recommendation (FPRR); (4) analysis by DCMA/DCAA; (5) technical evaluation from the Program Manager that evaluates the proposed labor mix, hours, materials, travel, and shipping for reasonableness; (6) using the Weighted Guidelines tool to assist in determining the appropriate profit/fee; and (7) in accordance with the Truthful Cost and Pricing Data statute 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. The Contracting Officer will comply with the procedures and criteria contained in FAR Part 30 - Cost Accounting Standards, Part 31 - Contract Cost Principles and Procedures, and Subpart 15.4 - Contract Pricing. The Price Negotiation Memorandum (PNM) for each DO will detail the cost/price analysis as well as document how the price was determined to be fair and reasonable. Upon completion of negotiations, the PNM will disclose the final justification for the determination of price reasonableness.

(6) Other facts supporting the justification:

All facts have been documented in the above sections. There are no additional facts to be reported in this section.

(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:

Competition is limited by the factors and conditions stated in previous sections. Based on the urgent operational need, BAE Systems is the only vendor capable of producing the requirements within the current quick reaction required by both AFCENT and USAFE commands to meet the increased inventory objective. The AGR-20F program office will continue to perform market research and investigate any possible competition opportunities. Moreover, the Government will continue to examine the opportunities to procure data packages from the original equipment manufacturer (OEM) for technologies developed in the v 18 Jan 2024 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 5v 18 Jan 2024 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 5 future, and to challenge non-conforming or unjustified markings on data the Government currently receives.

(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.

(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.

REMOVING ROWS: CAUTION (click here first) NOTE: The text in the signature blocks below is editable, including the title.

Date Branch Chief

Diana L. Chancey

AFLCMC/EBDA/(312)872-1240

Signature

X

Date Contracting Officer

Laura M. Luttrell

AFLCMC/EBDA/(850)882-2092

Signature

X

Date

05 Dec 2024

Legal Reviewer Isaac J. Nehus

AFTC/JAQ/(850)882-8281

Signature

X

Date

09 Dec 2024

Policy Reviewer Sarah J. McElhenny

AFLCMC/PZCA/(850)882-4711

Signature

X

Date

09 Dec 2024

Competition Advocate Gregory L. Parry AFLCMC/PZC Eglin-OL/(850)883-7284

Signature

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Instructions for Completing the Template IAW FAR 16.505(b)(2)(ii)(B)

(2) State whether the action is a new order or a modification to an existing order. Identify the basic multiple award contract number and the order number for the current action. Also identify the type of the order/line items on the order (e.g., Firm Fixed price, Cost Plus Fixed Fee, etc.).

(3) Specifically describe the supplies/services to be acquired including the price/cost and quantity of each item in the order and the total estimated value of the order. For services, state whether services are performance-based, and if not, provide rationale for not being performance based. State the delivery/performance schedule/period for the items under the order. Explain how the requirement/order fits under the scope of the basic multiple award contracts.

(Note: The Contracting Officer must ensure that the order is issued within the period of performance and within the maximum value of the contract).

(4) Include the appropriate exception from FAR 16.505 (b)(2) and the supporting rationale. FAR16.505(b)(1)(i) requires the Contracting Officer to provide each awardee under a multiple award contract, a fair opportunity to be considered for each order exceeding $3,000 unless a statutory exception applies. The specific exception that precludes the fair opportunity process for this acquisition is FAR 16.505(b)(2)(i)(__) [Insert A,B, C, D, or E]. If a brand name product description is being justified, use this section to explain why the particular brand name, product, or feature is essential to the Government's requirements and why other companies' similar products/services do not meet, or cannot be modified to meet, the agency's needs.

FAR 16.505(b)(2)(i)(A): “The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays”. When using this exception provide a detailed justification with supporting documentation that explains the exact urgency of the requirement and the mission impact if awarded to any other contractor. The user/customer typically provides this supporting information. Recommend attaching supporting documentation to the back of the document. General statements of urgency are not acceptable.

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”. When using this exception provide a detailed justification, with supporting documentation, as evidence of the “unique or highly specialized” nature of the procurement. The user/customer typically provides this supporting information.

Supporting documentation may be attached to the back of the document. General statements are not acceptable.

FAR 16.505(b)(2)(i)(C): “The order must be issued on a sole-source basis in the interest of economy and efficiency as a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order”. When using this exception provide information on the previously competed order under this contract and detail the economies and efficiencies that will be obtained by going sole source for the follow-on order. The user/customer typically provides this supporting information.

General statements are not acceptable.

FAR 16.505(b)(2)(i)(D): “It is necessary to place an order to satisfy a minimum guarantee.”

FAR 16.505(b)(2)(i)(E): “For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source.”

Discuss the market research that was conducted by the user/technical team/contracting officer among the supplies/services of all awardees that resulted in the conclusion that a fair opportunity exception applied. The narrative in this section should provide a high level of confidence that the requirements of FAR 16.505(b)(1) and DFARS 216.505-70 could not be met. If no market research was conducted, state so and provide the rationale. If any other awardee expressed interest in fulfilling the requirement, but was not considered a potential source, explain why that awardee cannot provide the required supplies/perform the service.

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If the use of a brand name purchase description is being justified, the market research should include an analysis of any industry proposed alternative products or approaches to meeting the requirements. Additionally, the Government's efforts to identify as many potential sources as practicable offering the required brand name item(s) should be addressed.

(5) This paragraph needs to be tailored based on the types of CLINs in the order and the pricing arrangements on the basic multiple award contract. If the contract did not establish the price for the supply or service, the Contracting Officer must establish prices for each order IAW FAR 15.4. The paragraph needs to describe the steps that will ensure that the prices/estimated cost of the order will be fair and reasonable. For example, even if firm-fixed prices were obtained under adequate price competition in the award of the multiple award contract, the Contracting Officer still needs to consider market conditions and other factors that may have changed since contract award and explain the basis in the determination that prices/costs are fair and reasonable prior to award of the order.

(6) Provide any other facts supporting the use of exceptions to the fair opportunity process.

(7) Include a statement of the actions, if any, to be to be taken to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made. If no actions are planned, so state and provide reasons.

https://usaf.dps.mil/sites/AFCC/KnowledgeCenter/templates_admin/aqc-front.jpg https://usaf.dps.mil/sites/AFCC/KnowledgeCenter/templates_admin/aqc-back.jpg Justification for an Exception to Fair Opportunity or to Use Brand-Name Restriction v 18 Jan 2024 Page of Is this a brand-name justification?

Please provide the product title and description. [ FAR16.505(a)(4)(i) ] Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan?

Type Program (see DAFFARS 5302.101 for definitions):

Type of D etermination:

Fair Opportunity Exception: FAR 16.505(b)(2)(i) (Check the applicable subparagraph below.)

(1) Contracting Activity:

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

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

(4) Justification for restricting consideration to a brand-name item:

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

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

(6) Other facts supporting the justification:

(7) Actions the agency may take to remove or overcome any barriers to decreasing the use of brand-name items before any subsequent acquisition of the supplies or services:

(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:

(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.

(10) Approving Official's determination that FAR16.505(a)(4)(i) applies to the order:

As evidenced by my signature below, I hereby determine that the use of brand-name restriction applies.

(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.

NOTE: The text in the signature blocks below is editable, including the title.

Instructions for Completing the Template IAW FAR 16.505(b)(2)(ii)(B)

(2) State whether the action is a new order or a modification to an existing order. Identify the basic multiple award contract number and the order number for the current action. Also identify the type of the order/line items on the order (e.g., Firm Fixed price, Cost Plus Fixed Fee, etc.).

(3) Specifically describe the supplies/services to be acquired including the price/cost and quantity of each item in the order and the total estimated value of the order. For services, state whether services are performance-based, and if not, provide rationale for not being performance based. State the delivery/performance schedule/period for the items under the order. Explain how the requirement/order fits under the scope of the basic multiple award contracts. (Note: The Contracting Officer must ensure that the order is issued within the period of performance and within the maximum value of the contract).

(4) Include the appropriate exception from FAR 16.505 (b)(2) and the supporting rationale. FAR16.505(b)(1)(i) requires the Contracting Officer to provide each awardee under a multiple award contract, a fair opportunity to be considered for each order exceeding $3,000 unless a statutory exception applies. The specific exception that precludes the fair opportunity process for this acquisition is FAR 16.505(b)(2)(i)(__) [Insert A,B, C, D, or E]. If a brand name product description is being justified, use this section to explain why the particular brand name, product, or feature is essential to the Government's requirements and why other companies' similar products/services do not meet, or cannot be modified to meet, the agency's needs.

FAR 16.505(b)(2)(i)(A): “The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays”. When using this exception provide a detailed justification with supporting documentation that explains the exact urgency of the requirement and the mission impact if awarded to any other contractor. The user/customer typically provides this supporting information. Recommend attaching supporting documentation to the back of the document. General statements of urgency are not acceptable.

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”. When using this exception provide a detailed justification, with supporting documentation, as evidence of the “unique or highly specialized” nature of the procurement. The user/customer typically provides this supporting information. Supporting documentation may be attached to the back of the document. General statements are not acceptable.

FAR 16.505(b)(2)(i)(C): “The order must be issued on a sole-source basis in the interest of economy and efficiency as a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order”. When using this exception provide information on the previously competed order under this contract and detail the economies and efficiencies that will be obtained by going sole source for the follow-on order. The user/customer typically provides this supporting information. General statements are not acceptable.

FAR 16.505(b)(2)(i)(D): “It is necessary to place an order to satisfy a minimum guarantee.”

FAR 16.505(b)(2)(i)(E): “For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source.”

Discuss the market research that was conducted by the user/technical team/contracting officer among the supplies/services of all awardees that resulted in the conclusion that a fair opportunity exception applied. The narrative in this section should provide a high level of confidence that the requirements of FAR 16.505(b)(1) and DFARS 216.505-70 could not be met. If no market research was conducted, state so and provide the rationale. If any other awardee expressed interest in fulfilling the requirement, but was not considered a potential source, explain why that awardee cannot provide the required supplies/perform the service.

If the use of a brand name purchase description is being justified, the market research should include an analysis of any industry proposed alternative products or approaches to meeting the requirements. Additionally, the Government's efforts to identify as many potential sources as practicable offering the required brand name item(s) should be addressed.

(5) This paragraph needs to be tailored based on the types of CLINs in the order and the pricing arrangements on the basic multiple award contract. If the contract did not establish the price for the supply or service, the Contracting Officer must establish prices for each order IAW FAR 15.4. The paragraph needs to describe the steps that will ensure that the prices/estimated cost of the order will be fair and reasonable. For example, even if firm-fixed prices were obtained under adequate price competition in the award of the multiple award contract, the Contracting Officer still needs to consider market conditions and other factors that may have changed since contract award and explain the basis in the determination that prices/costs are fair and reasonable prior to award of the order.

(6) Provide any other facts supporting the use of exceptions to the fair opportunity process.

(7) Include a statement of the actions, if any, to be to be taken to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made. If no actions are planned, so state and provide reasons.

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