JA_BLU-111_Final_Redacted.pdf

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

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 5 of 7 schedule to reach the target MRL and assessed the risks to schedule and performance due to the nature of the Urgent and Compelling need to deliver these warhead assemblies to the field. This action resulted in a determination that all three vendors had a sufficient MRL and were authorized to begin production.

The program office conducted MRAs to assess the current vendors that have previously built prototypes and delivered BLU-111 ECP warhead assemblies to ensure they have the capability to produce a quality product at a rate that will meet an aggressive delivery schedule. These vendors are the only acceptable vendors at this time that are capable of working with , a key component of the BLU-111 ECP warhead assemblies. The three vendors that have built and delivered warhead assemblies are the only ones who can meet the technical requirements, schedule and quality due to their familiarity with material and the challenges that it brings.

To achieve the immediate urgent need, the sources for the solicitation were limited to three vendors who built and delivered prototype warhead assemblies, their experience with Steel and their Manufacturing Readiness Assessments and levels.

If the USG is not able to obtain these warhead assemblies by the required need date, the warfighter will be unable to successfully prosecute critical targets which will endanger our airmen and potentially increase loss of life.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

For this particular action, only three sources are capable of fulfilling the replacement BLU-111 ECP warhead assemblies requirement.

One avenue the Program Office is exploring to further increase the industry base is a separate source selection to meet the Air Force Inventory Objective needs and expand the industry base to small business. A sources sought was released in Jun of 2020 to conduct market research. Three small business from the sources sought, were identified as having the capability to produce the warhead assembly.

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 final price of the contracting actions awarded under this Unusual and Compelling Urgency J&A shall be fair and reasonable to the Government in strict accordance with guidance contained in the Federal Acquisition Regulation and its respective supplements. A competitive pricing approach will be taken by AFLCMC/EBDK to determine prices are fair and reasonable. If after receipt of proposals, it is determined there is insufficient data available to determine price reasonableness and no exceptions in FAR 15.403-1 apply, the offeror shall be required to submit additional data, or certified cost and pricing data in accordance with FAR 15.403-4(b) in the format consistent with FAR 15.408 Table 15-2 and shall complete and submit the DFARS clause 252.215-7009 Proposal Adequacy Checklist.

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

Market research in accordance with FAR Part 10 was conducted via several methods; (1) assessed current and previous government vendors who showed manufacturing capability for programs of record (BLU-129, BLU-136, BLU-137, etc.),

(2) The USG team worked through the WDA team under the DOTC initiative and collected market data from an industry day held in an effort to procure rapid prototypes, (3) the USG subject matter experts conducted independent market research via telephone calls and site visits with Steel producers, Machine shops, Heat-Treatment Facilities, Forging Houses and Shroud Producers (4) Assessed vendor quality and schedule performance through the rapid prototyping phase of the program.

The WDA held an Industry Day on 21 January 2019 which was open to all interested parties. Seventeen industry

March 2018 FOR OFFICIAL USE ONLY Page 6 of 7 vendors participated. The WDA's rationale in determining the unacceptability in respondents included the evaluation on the proposed schedule, ability to meet the schedule, and the understanding of the work required to do so. The seventeen potential sources were then down-selected to three companies to whom the USG awarded UCAs. A fourth vendor ( did not qualify for the UCA because they only had experience with the warhead case. In order to meet the requirement and field the initial UON quantity of warhead assemblies by only three vendors were considered for the initial production.

Market research conducted in the summer/fall of 2020, and ongoing market research, confirms that there are other sources capable of producing, machining, and meeting material property specifications for the follow-on non-UON BLU-111 ECP warhead assemblies, however, only the vendors currently on contract are fully qualified to produce the replacement BLU-111 ECP warhead assemblies to meet the required schedule and rate to fulfill the UON quantity requirement.

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

Due to the urgency of this need, ACC requires delivery of all UON assets as soon as possible. Awarding a contract modification in utilizing this class J&A under FAR 6.302-2 allows for continuous delivery of UON assets until the UON requirement is complete. A production break would require a new First Article Inspection and re-qualification of production lines. The program office expects one contractor to finish delivery of the current production and complete the activities covered in this J&A by A contract modification to one vendor is the most expedient way to ensure delivery to the operator, a full and open competition will delay final delivery of the UON quantity for 12+ months.

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

Through Market Research and Industry Day with the WDA, the following vendors expressed their interest in this acquisition: GD-OTS, NGIS and MTM.

Based on the market research conducted in the summer/fall of 2020 and ongoing market research, expressed interest in the follow-on production for the non-UON requirement.

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.

In parallel of this initial procurement of the BLU-111 ECP warhead assembly, the program office will continue to conduct characterization testing to identify the warhead systems full performance envelope, correct identified deficiencies and conduct manufacturing studies to implement production in the future. The USG will continue to refine the TDP as well as qualifying additional vendors to maximize future competition.

The Program Office is also preparing for a separate source selection to meet the Air Force Inventory Objective needs and expand the industry base to small business. A sources sought was released in Jun of 2020 to conduct market research. From the sources sought, XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

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XIII. Certification by the technical/requirements personnel.

As evidenced by my signature above, I certify that any supporting data contained herein, which is my responsibility, is both accurate and complete.