Exception_to_Fair_Opportunity_-_HQ072718F1609.pdf

DMEA # 18-08

Justification for Exception to Fair Opportunity for

Advanced Technology Support Program III (ATSP4) 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, HQ0727-16-D-0006 (Raytheon), System Enhanced Capabilities Design, Development and Demonstration (--------). The purpose of this task is to design, develop, test and demonstrate enhanced capabilities for the -------- Advanced Technology System (ATS).

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

The Strategic Capabilities Office (SCO) is examining various options to address the Anti Access / Area Denial (A2/AD) threat, including development of alternative low cost solutions to provide additional capabilities to U.S.

forces. The SCO unmanned systems project will be among those solutions with the effort culminating in an end-to-end demonstration in FY19. The objective of this effort is to develop additional payloads for the -------- ATS, and to integrate and test these payloads to be used in the FY19 end-to-end demonstration.

Raytheon will analyze analyze, design, develop, test and demonstrate the payload elements and their integration into the -------- ATS. Raytheon will perform as Systems Integrator (SI) to oversee transition of the technologies from the conceptual baseline through preliminary design, testing and systems integration phases of the program.

The total estimated value of this effort is , funded with RD&TE, within a 24 month schedule.

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

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.

Raytheon was the performer on OSD/Special Capabilities Office’s (SCO’s) and Naval Research Laboratory’s (NRL’s) ongoing Unmanned Aerial Vehicle (UAV) Swarm task, CET 14-477, H94003-04-D-0006-0317.

Raytheon performed system studies and a preliminary design (conceptual) for the -------- System of Systems, including the air vehicle, launcher, and algorithms for swarm networking and single functions. Mod 11 included tasking to develop initial drafts of the Integrated Master Schedule, Integrated Test & Evaluation Plan (ITEP) and Risk Mitigation Plan (RMP) as part of the System Design Study.

Raytheon developed the preliminary (conceptual) -------- design and technical approach under the CET 14-477 effort, including development of classified Government information that will be needed for -------- development task defined by CET 17-733. The Government owns and controls the --------, --------, -------- UAS design details and preliminary design to be provided as GFI.

Raytheon applied unique and highly specialized skills to the original UAV Swarm effort and -------- UAS development efforts under CET 17-733, and needs to build upon these efforts to make the -------- ATS program successful in the short term; as opposed to bringing a new contractor up-to-speed on the system of systems http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/16.htm#P399_69627 design. A new contractor would need to develop the necessary unique expertise in a short timeframe to enable a successful development program, resulting in a duplication of effort and additional cost to the government, and even highly specialized engineers cannot quickly develop the fully required systems expertise in time to meet the schedule requirements of this task.

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.

VI. Additional Facts Supporting this Justification:

The UAV Swarm work by Raytheon was performed under ATSP3, the predecessor to ATSP4 and on -------- System Conceptual Design, Development and Demonstration, an ATSP4 task order. 18-833 develops new payloads to operate within the concepts developed under SCO & NRL’s UAV Swarm and -------- tasks, where Raytheon used their air vehicle product in developing a design concept and solutions for the launch vehicle, air vehicle, and command and control, swarming functions and other payloads. If not sole source to Raytheon, another contractor would have to quickly develop expertise with Raytheon’s air vehicle; award a sub-contract to use Raytheon’s air vehicle at higher cost to the Government than going directly to Raytheon; or re-develop the same level of specialized UAV Swarm and launch expertise as Raytheon with a different airframe, at the Government’s expense and with a longer period of performance. None of these alternatives are in the best interest of the US Government towards achieving quick and clear success with the high priority special capability mission of --------.

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

The aforementioned UAV Swarm task, CET 14-477, H94003-04-D-0006-0317, was posted for fair opportunity;

providing opportunity for other contractors to be considered for award. The current contractor (Raytheon) was the only contractor to respond.

VIII. CONTRACTING OFFICER CERTIFICATION:

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

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.”