FULLY Redacted GMFC JA_Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

FOR OFFICIAL USE ONLY

March 2020 FOR OFFICIAL USE ONLY Page 6 of 10March 2020 FOR OFFICIAL USE ONLY Page 6 of 10 engineering source documentation. The Boeing Company is the owner of the data rights for the original design and will source their data and subject matter expertise to bring the original design and procedures up to current standards. No other vendor has access to the necessary design data to accomplish the GMFC remanufacture.

Boeing Company owns the proprietary data and has expressed in the past no interest in selling or licensing the data (Letter JJD-17-003588, dated 25 August, 2017). The Air Force issued another request to purchase-license required technical data rights in support future acquisition activity to The Boeing Company on 24 January 2020. The Boeing Company again declined the sell or license rights to the Air Force on dated 18 February 2020 (Letter 20DM0008).

Additionally, we meet with Boeing on a bi-weekly basis to discuss remanfacture plans being conducted under engineering services and Boeing maintains that data rights will not be sold. Diminishing manufacturing sources and material shortages further impede the viability of recreating functioning test equipment for either government or third party use. There is no previous acquisition strategies or contracts awarded to remanufacture the GMFC by AFNWC/ NDMPM. The Air Force Sustainment Center (AFSC) awarded task order (FA8119-17-F-0051) against their Multi- Platform Engineering Service contract to Boeing for engineering study and remanufacture plan. The Boeing Guidance and Repair Company (Cage Code 05HA6) will be a proven GMFC Remanufacture qualified vendor by the completion of the GMFC's Phase IIB Remanufacture Readiness. The Boeing Company (Cage Code 81205) has subcontracted the qualification testing and prototype of this effort to them therefore making them the sole source for this acquisition. This has been validated by the AFNWC/MSD engineering and documented in the Vendor Qualification memorandum signed 28 May 2020.

Therefore, it is considered appropriate to seek approval for more than one fiscal year's requirement. If other qualified or approved sources become known during the life of this contract, full and open competition will be utilized to the maximum extent practicable.

IV. Statutory authority permitting other than full and open competition.

10 U.S.C. 2304 (c)(1) as implemented by FAR 6.302-1(a)(2)(ii)

V. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above (applicability of authority).

This acquisition is for the remanufacture of the ALCM GMFC, which is used to provide missile flight control as determined by the inertial navigation system. This action is a new acquisition with the OEM, The Boeing Company. Remanufacture of the GMFC is highly specialized due to required tooling, test equipment, and complexity of the item. BGRC is the only company which possesses the special tooling, equipment, personnel, and technical data to satisfy the United Sates Air Force minimum need. Therefore, this acquisition is for the continued performance of a highly specialized item.

The GMFC is a unique item which was specifically built for the ALCM. The GMFC components do not have dual use applications in other current weapon systems and contains technologies that are no longer used. The devices configuration and its functionality experience is uncommon in today's industry. The GMFC's precise manufacturing processes and component material requirements are not open knowledge. The GMFC was originally designed by the Boeing Company with proprietary technology. The complexity and unique technology of the GMFC make it unlikely for the data required to assess the GMFC to be duplicated by a third party in a timely, cost effective manner. Additionally, the Government's attempts to repair the GMFC organically and establish a depot level technical order have proven unsuccessful and not up to standards to

March 2020 FOR OFFICIAL USE ONLY Page 7 of 10March 2020 FOR OFFICIAL USE ONLY Page 7 of 10 ensure GMFC reliability through 2030. The Government issued a Request for data rights to The Boeing Company for a cost estimate and willingness of The Boeing Company to sell the required technical data rights to the Government to support future acquisition activity. The Boeing Company has expressed in a contracts letter dated 18 February 2020, that they decline to sell or license the data. The USAF will continue to approach The Boeing Company about obtaining rights to data for competitive sourcing. If The Boeing Company makes the data available to the Government, the Government will work with interested vendors to determine remanufacture capabilities for future requirements. Additionally, we meet with Boeing on a bi-weekly basis to discuss remanfacture plans being conducted under engineering services and Boeing maintains that data rights will not be sold. Diminishing manufacturing sources and material shortages further impede the viability of recreating functioning test equipment for either government or third party use. There is no previous acquisition strategies or contracts awarded to remanufacture the GMFC by AFNWC/NDMPM. The Air Force Sustainment Center (AFSC) awarded task order (FA8119-17-F-0051) against their Multi-Platform Engineering Service contract to Boeing for engineering study and remanufacture plan. The Boeing Guidance and Repair Company (Cage Code 05HA6) will be a proven GMFC Remanufacture qualified vendor by the completion of the GMFC's Phase IIB Remanufacture Readiness. The Boeing Company (Cage Code 81205) has subcontracted the qualification testing and prototype of this effort to them therefore making them the sole source for this acquisition. This has been validated by the AFNWC/MSD engineering and documented in the Vendor Qualification memorandum signed 28 May 2020. The Boeing Company is the only known contractor that possesses the unique molds, manufacturing techniques and processes, functional testing and technical data necessary to remanufacture the items to proper specifications.

The ALCM System Program Office (SPO) has determined that award to any other source would result in unacceptable delays in fulfilling this USAF requirement. A form-fit-function replacement of the GMFC is not acceptable as it has been established that the ALCM's electronic system test set (ESTS) cannot support different component configurations. Instead, an engineering services contract would have to be established in order to reverse engineer the individual electronic and electromechanical components of the GMFC and to recreate the elaborate testing and calibration capabilities necessary to verify the device's functionality. In addition, any new vendor would require to be certified as a qualified source and all device components would require Nuclear Surety compliance certification. The USAF currently does not have funding available to accomplish these additional efforts. Even if additional funding would be available and a suitable vendor had been identified, it would take the USAF over 48 months until this capability is contracted for, delivered, validated and verified. This delay would negatively impact the strategic mission of the ALCM.

Nuclear Surety Certification of the device must remain intact. Nuclear Surety can only be confirmed by the previously established testing parameters. Testing can only be achieved by utilizing purpose built test equipment. Boeing is in possession of the component specific functioning test equipment.

Accordingly, AFNWC/MSD believes that award to any other source would result in unacceptable delays in fulfilling the Air Force's requirements supporting worldwide command operations.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under

FAR 5.202 applies.

A Sources Sought Synopsis was issued on http://www.fbo.gov dated 2 September 2019 FA8128-19-SSS- ALCM-GMFC, to determine if industry is capable of providing the engineering expertise, required facilities/ infrstructure, test equipment, and special tooling to remanufacture the GMFC.

Interested businesses: The Boeing Company (BGRC) Cage Code: 05HA6

MEANSEngineering, Inc (MEI), Cage Code: 1VM69

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This requirement will be synopsized in sam.beta.gov as a notice of proposed contract action IAW

FAR 5.201. Estimated synopsis publication date is 8 FEB 21.

After evaluation it was determined, that due to a lack of required technical data and the need to qualify the GMFC within the overall Air Launch Cruise Missile. MEANS Engineering did not have the technical expertise, experienced engineering support, or a complete technical data package needed to remanufacture the GMFC.

No other actions required.

There are no qualifying country sources.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer will ensure that the items described herein are negotiated at a fair and reasonable price to the Government. IAW FAR as supplemented, the contractor will be required to submit Certified Cost or Pricing Data and/or Other Than Certified Cost or Pricing Data. A detailed cost analysis and price analysis will be performed. The Contracting Officer will request a technical evaluation from Defense Contract Management Agency (DCMA) to aid in the evaluation of the contractor's proposal. The Contracting Officer will seek audit assistance from the Defense Contract Audit Agency (DCAA) if necessary.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

In accordance with FAR 10.001 (a) (2), Market Research was conducted by a multi-functional team consisting of the AFNWC Program Manager, Engineer and Contracting Officer starting 2 Sep 19 and completing on 11 June 2020. The sources of information used in the establishment of the Market Research included the following: historical acquisition for the GMFC repair completed organically at Hill AFB, internet searches (Dynamic Small Business Search, Haystack, Google) to determine if data sources were available for re-engineering. A Sources Sought Synopsis on was posted on 2 Sep 19 on the FEDBIZOPPS site, and had two respondents, MEANS Engineering and Boeing. Additionally, a Request for Information was sent to the OEM in Jan 2020 (Boeing).

Based on the Market Research, the OEM, The Boeing Company, was found to be the only known source available to fulfill the anticipated contract. Further, the market research revealed that there is not a commercial process available to meet this requirement.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

No further information.

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X. List of any sources that expressed, in writing, an interest in the acquisition.

1. The Boeing Company, 801 Irving Wick Dr West NB01 Heath, OH 43056, CAGE Code 05HA6

2. Means Engineering, Inc, 5927 Geiger Court Carlsbad, CA 92008-7305, CAGE Code 1VM69

Many months were spent trying to dig up the needed technical data; this collection proved quite difficult because unlike many of the ALCM LRUs, the GMFC was made completely by the OEM, Boeing. As such, a single, envelope drawing was split into many, decades-old drawings. Through the course of this research, we were unable to find many pieces of that technical data. This forced us into a position where, to complete remanufacture successfully, some technical data would have to be created and integrated into not only the existing technical data for the GMFC but also the requirements of the Navigation/Guidance subsystem and ALCM itself. This integration requires the expertise of the ALCM OEM, Boeing, and I believe this was our main justification.

In addition, remanufacture of ALCM LRUs have historically encountered many issues into and through the remanufacture phase, which you currently see with the Rotary Switch. This need for competent, experienced engineering support (and technicians) along with the incomplete technical data package meant that a company besides the OEM, Boeing, would not be able to effectively remanufacture the GMFC.

See Section VI for more detail.

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.

As a result of continued refusal by the Sole Source contractor, The Boeing Company, to provide or license data as well as the unacceptable delays of developing additional sources per Section V, there are no known additional actions which can be taken to remove barriers to competition and therefore, specific actions and milestones cannot be established.

XII. Certification by the Contracting Officer.

The Contracting Officer's signature on the Coordination and Approval Document evidences that he has determined this document to be both accurate and complete to the best of his knowledge and belief.

XIII. Certification by the technical/requirements personnel.

By their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified as accurate and complete all supporting data, which is their responsibility, contained herein IAW 6.303-2(c)

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