FD20201800100_REDACTED.pdf

FD2020-18-00100

action will use 4930 CSAGS working capital funds.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND

OPEN COMPETITION

10 USC 2304 (c)(1), as implemented by FAR 6.302-1, Only One Responsible Source or Limited Sources and No Other Supplies or Services will Satisfy Agency Requirements.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE USE

OF AUTHORITY CITED ABOVE

A. The above authority was selected, as the government does not possess specific qualification data, necessary drawings, or knowledge that will allow the government to procure this requirement from additional sources. Only LM has the unique knowledge, capabilities, expertise, drawings, test procedures, specs, and experience performing this requirement. The WTF is a critical part of the NCTS and LM is the only qualified source to manufacture the WTF because they originally designed, manufactured, and qualified the part as a requirement of the NCTS for the Intercontinental Ballistic Missile (ICBM) Weapon System.

B. The 414 SCMS/GUMBA Logistics Manager contacted Lockheed Martin on 22 June 2018 regarding data rights status of NSN: 4935015639178AH / Part Number:

C005541-02. Diana E. Martinez responded on 28 June 2018 that they are not willing to sell/license or provide the government use rights to this data and is not willing to entertain the idea of providing a cost to the government to buy proprietary data.

Accordingly, Lockheed Martin owns the technical data sufficient to manufacture this component and is unwilling to sell or give its permission to the government to use such data for a competitive procurement.

C. The 414 SCMS/GUMBA Engineer has determined that reverse engineering costs to develop a qualification package and encourage competition are estimated to exceed $ and will require a minimum of 15 years to complete. Based on this cost, it would take 156.9 years to break even.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

A. Sources Sought Synopsis: A combined Request for Information/Sources Sought Synopsis (RFI/SSS) document (SPRHA2-18-R-0100) was posted to the Federal Business Opportunities website at www.fbo.gov advising industry of the pending acquisition and soliciting inquiries from interested parties. This document was posted on 21 June 2018 and closed on 5 July 2018. No response from industry was received by the contracting office.

B. This requirement will be synopsized in FedBizOpps, as a notice of contract action IAW FAR 5.201. If other sources express interest as a result of this synopsis or other action, they will be listed in the official contract file.

C. Other actions: None

D. Qualifying Country Sources: None

VII. DETERMINATION BY THE CONTRACTING OFFICER 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 this acquisition will be fair and reasonable. The Contracting Officer will comply with the procedures and criteria contained in Federal Acquisition Regulation (FAR) under Part 30 - Cost Accounting Standards, Part 31 - Contract Cost Principles and Procedures, Subparts 15.4 - Contract Pricing; to include technical evaluations and audits, as appropriate. 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 Contracting Office will obtain certified cost and pricing data IAW FAR Subpart 15.403. The final step is to include the Price Negotiation Memorandum (PNM).

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

VIII. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS

NOT CONDUCTED:

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. In addition, the 414 SCMS/GUMB Integrated Product Team conducted market research which yielded the following results:

June 21, 2018: A request for data was sent to Lockheed Martin by Hill AFB Logistics Manager Clint Anderson. On June 28, 2018 Diana E. Martinez of LM – Space, Mission Solutions responded that LM confirms that the rights to the drawings are proprietary and, therefore, would not sell/license the data rights at this time.

June 21, 2018: Publication of a formal request for information. A combined Request for Information/Sources Sought Synopsis (RFI/SSS) document (SPRHA2-18-R-0100) was posted to the Federal Business Opportunities website at www.fbo.gov advising industry of the pending acquisition and soliciting inquiries from interested parties. This document was posted on 21 June 2018 and closed on 5 July 2018. No response from industry was received by the contracting office.

June 2018: Review of Government and/or commercial databases for relevant information.

Identify database(s) and when reviewed. Google, IHS Haystack, AVCOM, LIMS-EV, JEDMICS 19 June 2018. RMC/RMSC yields R4/D which means: “data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. No viable, authorized manufacturing sources were identified.

July 2018: Contact with knowledgeable persons in Government and industry regarding the commercial nature of this requirement and standard industry practices in this area of supply/services. Discussions within the 414th SCMS and Systems Directorate Integrated Product Teams were held on multiple occasions throughout May and June 2018. Due to incomplete data and limited data rights, it was determined that Lockheed Martin is the only potential source.

July 2018: Review of recent market research results for similar or identical supplies/services. Reviewed previous market research completed by former Engineer Ben Harris 20 June 2018. No additional sources capable of meeting the government’s needs were identified.

Based on the results of the above research, it is determined that this requirement cannot be met by commercial items, commercial items with customary or minor modifications, or non-developmental items. Further, a reevaluation has been made in accordance with FAR 10.002(b), and the Government requirement cannot be modified in a way that will allow a commercial item to meet the need.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL

AND OPEN COMPETITION

None

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED 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

The Air Force regularly inquires the manufacturers in regards to sharing or selling the proprietary data rights for use in free and open solicitations. Furthermore, the Air Force regularly performs analysis to determine the feasibility and cost effectiveness of reverse engineering the proprietary technology.

XII. CONTRACTING OFFICER’S CERTIFICATION

The Contracting Officer’s signature on the Coordination and Approval Document evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief (FAR 6.303-2(b)(12)).

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidenced by their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete (FAR 6.303-2(c)).