CET_15-537_Exception_to_Fair_Opportunity_JA.pdf

Justification for Exception to Fair Opportunity for

Advanced Technology Support Program III (ATSP3) Indefinite Delivery / Indefinite Quantity (ID/IQ) Task Order Contract

I. Agency and Contracting Activity: Office of Secretary of Defense, Defense Microelectronics Activity (DMEA)/ MEEB Contracting Office Justification for an Exception to Fair Opportunity in accordance with 16.505(b)(2).

II. Nature and/or Description of the Action Being Approved:

This is a new task order under the basic IDIQ contract, H94003-04-D-0001 (Lockheed Martin) to upgrade the MC-130J Special Mission Processor (SMP) and procure a limited quantity of these upgraded SMPs.

Upgrading the MC-130J SMP improves performance and resolves obsolescence and vanishing vendor issues.

This project further procures a Low Rate Initial Production (LRIP) which will be used to integrate three separate MC-130J-related projects as well as provide three spare shipsets, in support of these three integration efforts.

Cost Plus Fixed Fee (CPFF) will be used to develop the upgrade while Firm Fixed Price (FFP) will be used for the Low Rate Initial Production (LRIP) effort. The estimated program value is $10,824,000 which will be funded using FY13/FY14 0300 APPN (MFP-11). These funds are available until completely expended.

The purpose of the basic ATSP3 contract is to develop solutions for the reliability, maintainability, obsolescence, availability, supportability, manufacturability, capability, and performance needs or deficiencies of items that range in complexity from discrete electronics through integrated circuits, circuit boards, modules, assemblies, subsystems, systems, and systems of systems. ATSP3 engineering approaches included advanced technology engineering and advanced hardware and software engineering.

III. Description of the Supplies/Services Required To Meet the Agency’s Needs (including the total estimated value, including options, if any):

The purpose of this SMP Upgrade and LRIP is to develop, test, and produce SMP LRUs. The estimated value of this task is $10,824,000. The estimated period of performance is (24) twenty-four months after receipt of order

(MARO).

IV. Identification of the Exception to Fair Opportunity (Authority Cited):

FAR 16.505(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)__.

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.

V. FAIR AND REASONABLE COST DETERMINATION:

"I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable." Actions to insure reasonableness of the price will be accomplished using procedures and criteria contained in FAR 15.4. Cost and pricing data will be requested. Detailed documentation and justification of price reasonableness will be set forth in the Price Negotiation Memorandum.

NAME: _____________________________ DATE: _________________________

TITLE: Contracting Officer SIGNATURE: __________________

VI. Additional Fact Supporting this Justification:

The SMP is part of a Lockheed Martin Mission Systems and Training, Owego, NY family of processors. It was tailored specifically for the MC-130J under the C-130J Block Upgrade Improvement Contract. This tailoring involved software and hardware modifications required to interface with the Lockheed Martin proprietary Mission Computer hardware and software. The requirement for this integration further complicates the effort and adds to the infeasibility of competing SMP development and production.

Lockheed Martin, Owego NY, is the original equipment manufacturer, current source of repair for the equipment and holder of all data and processes necessary for the effort. The data/documentation and processes are proprietary. This contractor has declined to sell system data rights, making competition impracticable. No other supplier (contractor) is capable (nor would be capable) of providing the specialized background, expertise, or services required at the level and quality necessary to meet the requirements without incurring substantial duplication of cost and unacceptable schedule delays.

VII. Actions to Remove or Overcome Any Barriers that Led to this Exception to Fair Opportunity.

Since Lockheed Martin maintains the rights to several elements of the technical data, including those of related programs and systems, little can be done to remove the existing barriers to competition.

VIII. CONTRACTING OFFICER CERTIFICATION:

"I certify that this J&A is accurate and complete to the best of my knowledge and belief."

NAME: _____________________________ DATE: _________________________

TITLE: Contracting Officer SIGNATURE: ___________________

IX. TECHNICAL or REQUIREMENTS CERTIFICATION:

“I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.”

NAME: Richard Jones_________________ DATE: 23 January 2015 ___________

TITLE: Engineer_____________________ SIGNATURE:

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