JA Engineering Services Follow On Contract_CA Signed Redacted Final.pdf

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

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 3 of 7

I. Contracting Activity.

United States Air Force

AFNWC/PZNT

7330 Sentry Blvd, Bldg 469 Post C6 Tinker AFB, OK 73145-8901

(405) 739-8833

DSN 339-8823

PR Number: FD2030-19-30182 Solicitation Number: FA8128-20-D-XXXX

II. Nature and/or description of the action being processed.

This individual J&A authorizes the use of Other Than Full and Open Competition procedures to obtain a new, sole source Indefinite Delivery Indefinite Quantity (IDIQ) contract utilizing cost and fixed price contract types. The contemplated contract is to maintain sustainment engineering support services for the ALCM INE, National Stock Number (NSN) 1420-01-163-8424NT, in accordance with Performance Work Statement (PWS) dated 18 May 2020. The Original Equipment Manufacturer (OEM) is Northrop Grumman Systems Corporation (NGSC) Commercial and Government Entity (CAGE) code 06481. This acquisition is noncommercial and is NOT a bridge action. The estimated value of this acquisition is $7,000,000 with an estimated award date of 1 December 2020 and a period of performance of December 2020 to November 2027; 7 one-year ordering periods.

Current Contract Number: FA8128-17-D-0004

Award Date: 30 September 2017

Completion Date: 30 September 2020

Basis of Award: Sole Source

III. Description of supplies/services required to meet agency needs.

This contracting effort is a service. Under the contemplated contract, NGSC shall provide recurring engineering services throughout the performance period along with providing nonrecurring engineering services as required to maintain component integrity under the ALCM INE Sustainment Program. Recurring Engineering support activities include establishing and maintaining an aging surveillance program, monthly status reports, Contract Funds Status Report, obsolescence/diminishing manufacturing and material shortage analysis and reports, technical inquiries, Test Equipment Maintenance, CDRL deliverables, Product Quality Deficiency, update AFTO 95/data plate replacement, receiving/harvesting/storing Reference Measuring Unit and Computer (RMUC) circuit cards that are compatible with INE circuit cards. The nonrecurring engineering support activities include, but are not limited to, Engineering Studies and Analysis, INE field troubleshooting support, Test Related Deficiencies, Circuit Card Assembly (CCA) Failure Analysis, Air Launched Munitions Analysis Group (ALMAG) support, Prototypes/Engineering Models, and Test Procedure/Plan development and support, Product Quality Deficiency.

Services will be funded on an as needed basis for emerging requirements. This requirement will utilize 3400 (Operations and Maintenance), 3020 (Modifications), and 3600 (Research and Development) appropriations. The estimated spending profile for each ordering period is as follows:

March 2018 FOR OFFICIAL USE ONLY Page 5 of 7 requirements.

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)(iii)

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

This acquisition is for engineering services in support of sustainment of the ALCM INE, which is used to guide the missile to target and predetermined or variable set geographical coordinates. INE engineering services are highly specialized services due to the complexity of INE, technical engineering experience, extensive knowledge of the specialized test equipment, and access to the technical data and drawings. NGSC is currently the only source able to provide the technical engineering and engineering support required for analyzing the sustainability and supportability of the ALCM INE to support the Air Force's minimum need. Therefore, this acquisition is for continued performance of highly specialized services for continued supportability and sustainability of the INE program.

The INE is a unique item which was specifically built for the ALCM. The INE components do not have dual use applications in other current weapon systems and contains technologies that are no longer used. The device's configuration and its functionality experience is rare in today's industry. The INE's precise manufacturing processes and component material requirements are not open knowledge.

The INE, including its Circuit Cards and gimbal gyroscope, were originally designed by Litton Industries with proprietary technology. Litton Industries was acquired by Northrop Grumman Corporation in 2001 and was retitled NGSC while retaining CAGE Code 06481. On 18 Jul 19 the Contracting Officer requested to license or purchase the engineering drawings and data rights to the INE to which Northrop Grumman declined. The USAF will continue to approach NGSC about obtaining rights to data for competitive sourcing. If NGSC makes the data available to the Government, the Government will work with interested vendors to determine engineering capabilities for future requirements. NGSC is the only known contractor that possesses the experience, specialized test equipment and technical data necessary to provide engineering services to support the INE.

The ALCM Systems Program Office has determined award to any other soucre would result in unacceptable delays in fulfilling the USAF requirement. Since Northrop Grumman is unwilling to share or sell the technical data to either the government or other contractors, the entire data package would have to be reverse engineered by a capable company. This would require a feasibility study contract to be awarded to identify the scope of effort and to gauge the viability of the recreation of no longer commonly used or available technology. The INE is a closed system and the Air Force has no Technical Orders to identify all parts and configurations. All of the INE software is also proprietary to Northrop Grumman. A comparison with similar re-engineering efforts as well as the required duplication of an ASIL would require redesign and re-qualification. A Program Office rough order of magnitude estimated the cost to design and duplicate this capability to be over for the new test hardware, software development and re-hosting, and qualification of both the new hardware and software. It is estimated that the time to establish this capability with a new

March 2018 FOR OFFICIAL USE ONLY Page 6 of 7 source would be in excess of three years. This delay to attempt the redesign is unacceptable as it would result in a lapse of support for this critical weapon system. Due to the afore mentioned, the ability to provide equitable level of problem resolution and engineering support can only be attained with the comprehensive knowledge of the data derived from the original developer and manufacturer. If Northrop Grumman is not awarded this contract there will be an inability to maintain the ALCM's INE resulting in the system being unsupportable and non-mission capable as early as Dec 2020. This delay would negatively impact the strategic mission of the ALCM.

Accordingly, the AFNWC/NDM believes that award to any other source would result in unacceptable delays in fulfilling the USAF requirements supporting worldwide command operations.

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

a) A Sources Sought Synopsis was posted on 2 July 2019, FA8128_ES_ALCM_INE, Air Launch Cruise Missile (ALCM) Inertial Navigation Element (INE) Engineering Services with a response date of 2 August 2019. Northrop Grumman was the only response to the Sources Sought Synopsis.

b) This requirement will be synopsized in https://beta.sam.gov as a notice of proposed contract action IAW FAR 5.201.

c) Other Actions-None

d) Qualifying Country Sources-None

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 the AFNWC/NDM and the Defense Contract Management Agency (DCMA) will 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 and completed on 6 May 2020. The sources of information used in the establishment of the Market Research included the following: historical acquisition information for the INE repair, Internet searches concluding February 2019 (Dynamics Small Business Search, Haystack, Google), requests for information to the OEM, site visit to the OEM, and inquiries to the OEM regarding any subcontractors which may have been previously qualified by the OEM.

Based on the market research, the OEM, NGSC, was found to be the only known source available to fulfill the

March 2018 FOR OFFICIAL USE ONLY Page 7 of 7 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.

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

Northrop Grumman Systems Corporation, Cage Code: 06481 21240 Burbank Blvd Woodland Hills, CA 91367-6675 Phone: (818)715-2782

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, NGSC, to provide or license data as well as the unacceptable delays of developing additional sources per Section V and IX, there are no known additional actions which can be taken to remove barriers to competition and therefore, specific actions and milestones cannot be established.

Per PGI 206.304(a)(S-70), as indicated by signature on the Coordination and Approval document, the previous J&A has been reviewed and the Approval Authority determines that all stated actions to remove barriers to competition have been accomplished.

XII. Certification by the Contracting Officer.

The contracting officer's signature on the Coordination and Approval document evidences that she has determined this document to be both accurate and complete to the best of her 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 FAR 6.303-2(c).