FD20201900586_Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

Defense Logistics Agency DLA Aviation at Ogden 6051 Gum Lane, Bldg. 1225 Hill AFB, UT 84056-5825 Contracting Officer: Shea L. Korth Email: shea.korth@us.af.mil Phone Number:

PR Number: FD2020-19-00586

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

A. Upon approval to use other than full and open competitive procedures, DLA Aviation at Ogden will issue a new contract to procure two different radar receivers and one power supply to be used by the United States Air Force. The contract will be awarded to the following source:

Lockheed Martin Corporation (CAGE 03538)

B. Contract Type & Structure: This contract will be a five-year Indefinite Delivery Indefinite Quantity (IDIQ) type contract utilizing a Firm Fixed Pricing arrangement. The estimated award date is 31 August 2020 with performance and delivery expected through 30 August 2025.

C. Type J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED MEETING THE

AGENCY’S NEEDS

A. Narrative Description: The items to be procured are two radar receivers and a power supply that are utilized in the Atmospheric Early Warning System (AEWS). The below table represents the items and estimated quantities to be ordered during the duration of this contract:

B. Total estimated cost: . This estimate is based on USAF mission requirements as computed by the D200 Requirements Determination System. This action will use USAF funds.

NSN Part Number Noun Minimum Quantity

Maximum Quantity

Estimated Unit Price

Total Estimated Maximum Cost

5840-01-360-0379QX 77E300277G001 Radar Receiver 17 EA 100 EA $ $ 5840-01-407-6587QX 77C725831G001 Radar Receiver 1 EA 20 EA $ $ 6130-01-466-0637QX 7280430G002 Power Supply 5 EA 15 EA $ $

Total Estimated Maximum Cost $

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 2304 (c)(1) as implemented by FAR 6.302-1, Only One or a Limited Number of Responsible 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 (APPLICABILITY OF AUTHORITY)

A. The above authority was selected because the requirement is for the manufacture of highly specialized components whose designs are currently limited to Lockheed Martin. Per the 415th SCMS/GUMBB Engineer, these items are considered highly specialized because they require unique, specific technical data and expertise to manufacture and test. If the wrong materials, processes or geometry are used in the manufacture of these components, they could be ineffective, unreliable or both. Therefore, this acquisition will be for the procurement of highly specialized assets.

B. The Air Force does not control the design or the data required to manufacture these items.

The 415th SCMS/GUMBB Engineer contacted Lockheed Martin (LM) on 23 July 2020 regarding the data rights for these items. LM responded the same day stating that they are not willing to sell or provide the Government with the data rights.

C. The 415th SCMS/GUMBB Engineer has determined that reverse engineering/duplicate costs to develop a qualification package and encourage competition are estimated to exceed $870k for the Radar Receivers under NSNs 5840-01-360-0379 and 5840-01-407-6587 and $550k for the power supply under NSN 6130-01-466-0637. An award to any other source than Lockheed Martin would result in a substantial duplication of costs to the Government, which is not expected to be recovered through competition over the expected lifecycle. The parameters for these items are limited to the Original Equipment Manufacturer (OEM) with the designs, data and drawings created at Lockheed Martin’s own expense. Since the data required to manufacture these items is limited to Lockheed Martin, interested vendors would have to be willing to invest the time, funding and manpower required to reverse engineer these items at their own expense.

D. Accordingly, Lockheed Martin is the only firm capable of providing the supplies described in

Section III above without the Government incurring substantial duplication of cost that is not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements. Based on the preceding information, the AMC/AMCS code assigned to these NSNs is “3R”.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

A. Combined Request for Information/Synopsis: A combined Request for Information/Synopsis document (#SPRHA5-19-R-7000) was posted to the Federal Business Opportunities website (www.fbo.gov) advising industry of the pending acquisition and soliciting inquiries from interested parties. This document was posted on 7 November 2018 and closed 26 November 2018. No responses were received from industry.

B. Other actions: None

C. Qualifying Country Sources: None

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The overall cost of this acquisition will be fair and reasonable to the Government. In accordance with FAR 15.403-4, the contractor will be required to provide certified cost and pricing data to be used in supporting the Government’s evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types and quantities of material, other direct costs, and direct and indirect rates will be negotiated by the Government based on recommendations from the Defense Contract Audit Agency (DCAA) and expert technical personnel supporting the program. The contract price will be negotiated in accordance with the procedures in FAR Part 15. Based on the foregoing, the Contracting Officer hereby determines the anticipated cost to the Government will be fair and reasonable.

VIII. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS

OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED

A. As described in Section VI above, market research was conducted by posting a Combined

Request for Information/Synopsis advising industry of the pending acquisition and soliciting inquiries from interested parties.

B. Additionally, the Government’s Integrated Product Team (IPT) consisting of the Logistics

Management Specialist, the Item Manager, the Equipment Specialist and the Engineer performed the following methods of market research:

Contacted Lockheed Martin to request a Rough Order of Magnitude (ROM) for this data rights for these items.

Performed a search of the following internet sites using the NSNs, part numbers and nouns for these items:

- Thomas™ (https://www.thomasnet.com)

- Google (www.google.com)

These searches was conducted by the 415th SCMS/GUMBB Engineer, on 22 July 2020 and they did not identify any commercial products or any additional sources of manufacture for this item

Reviewed the procurement history for these items which revealed that Lockheed Martin has been the only manufacturer of these items.

C. Based on the market research conducted, there is a high level of confidence that there are no additional sources currently capable of satisfying the agency’s need nor are there any commercial or non-developmental items that can be modified to meet the Government’s requirements.

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

None.

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 does not currently have sufficient data or rights to the data that can be provided to allow for competition of this requirement. Throughout the period of this contract, the Government will continue to pursue the purchase of data rights.

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(a)(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(b)).