JA_Raytheon_24Apr17_finalsigned_Redacted(1).pdf

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

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I. Contracting Activity.

The contracting organization responsible for this Justification and Approval for Other Than Full and Open Competition is the Air Force Life Cycle Management Center, Mobility Directorate, C-130 Hercules Division, Wright- Patterson Air Force Base (WPAFB), Ohio.

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

This will be a Class J&A for the procurement of Identification Friend or Foe (IFF) AN/APX-119 Digital Transponders and Digital Control Panels (DCP) from Raytheon required to meet the Federal Aviation Administration (FAA) January 2020 Automatic Dependent Surveillance-Broadcast (ADS-B) Out mandate for C-130 aircraft. This Class J&A will result in multiple contract actions, executed in a phased approach, supporting both the C-130J and C-130H ADS-B Out solution for production, spares, and support. The APX-119 is currently having a Diminishing Manufacturing Sources (DMS) issue requiring action prior to the purchase of the C-130 APX-119 requirement. It is anticipated an Undefinitized Contract Action (UCA) will be the first action under this J&A for the procurement of DMS Non-Recurring Engineering (NRE). It will be definitized as a cost-plus fixed-fee (CPFF) contract with an estimated cost of $6M. It is planned to be awarded May 2017 and will span 18 months for completion.

This J&A also provides scope for the procurement of additional APX-119s and DCPs. These contracts, to include the DMS NRE, will be production funded. The total period of performance of all contract phases is expected to be less than 33 months after the initial UCA issuance for the DMS NRE effort. The DMS NRE effort will be followed by two firm fixed price (FFP) contracts, one for the DCPs, and one for the APX-119s. These two actions are estimated at $85.6M with projected award dates of September 2017 and December 2017 respectively. Final deliveries for this class J&A will occur no later than 28 February 2020.

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

The APX-119 is used as the air traffic control radar beacon and IFF systems. Under the contemplated contract actions, Raytheon will provide the following in support of the C-130 ADS-B Out Program:

(1) DMS NRE required in support of the redesign and certification of a faceplate to integrate a new field-programmable gate array into the APX-119 (4079100-0522). This will be procured on a CPFF basis.

(2) APX-119s and DCPs are required in support of the C-130J and C-130H ADS-B Out solution. These items will be procured on a FFP basis with deliveries starting 1 December 2018 and finishing by 28 February 2020.

(a) IFF APX-119 Transponder QTY: 322 Part Number: 4079100-0522

(b) IFF APX-119 Transponder QTY: 305 Part Number: 4079100-0530

(c) IFF APX-119 Transponder Digital Control Panel (DCP) QTY: 290 Part Number: 4087561-0502

The total ceiling for this class J&A is $91,637,000.00.

This justification will cross fiscal years for production, spares, and support. There are no feasible actions which enable competition in the scope of this J&A. If another transponder were to be considered via competition that would result in non-standard designs for the C-130 fleet. Additionally, the time to integrate another transponder would fail to meet the FAA ADS-B Out mandate.

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), Only One Responsible Source.

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

Based on recent market research, the C-130H Avionics Modernization Program (AMP) office identified the Raytheon APX-119 IFF Transponder, Part No. 4079100-0530, and Raytheon DCP, Part No. 4087561-0502, as capable components in the ADS-B Out and Mode S Enhanced Surveillance (EHS) solution for the Increment 1 Source Selection. The C-130J Program Branch also identified, during block upgrade design, the Raytheon APX-119 IFF Transponder, Part No. 4079100-0522, as a capable component for C-130J ADS-B Out solution. Based on recent market research the T-38A/B program determined Raytheon is the only vendor capable of providing the APX-119 units and DCPs because they are the Original Equipment Manufacturer (OEM). Raytheon owns the data rights to the APX-119s and the rights to the software needed to produce the APX-119 transponders Part No. 4079100-0530 and Part No. 4079100-0522, as well as the DCP Part No. 4087561-0502. Additionally, the Department of Defense has been in the process to establish a contract vehicle for communications, navigation, surveillance/air traffic management (CNS/ATM) requirements, including transponders. Due to delays in contract execution, this vehicle is no longer a viable option to support the C-130 platform in time to meet the FAA mandate. Furthermore, the Raytheon APX-119 equipment and items have passed a Performance Assessment and are Government certified to meet the FAA standard for use in military aircraft and meet schedule requirements. As detailed herein, the only responsible source to provide APX-119 units and DCPs is the Raytheon Corporation.

Raytheon APX-119s and DCP satisfy the program office requirements and avoids substantial duplication of cost and unacceptable delays in fulfilling the agency's requirements that would result if a competition was pursued. While other commercial transponders exist, using a different transponder, other than the ones identified in the acquisition strategies, would lead to several limiting factors in the execution of the government's mission. First, if another transponder were to be used in the ADS-B Out and Mode S EHS solutions, extensive time, effort, and cost would be expended to accomplish Performance Assessment and Government Certification of a different transponder on C-130 aircraft. In similar programs, certifications have taken approximately 10-12 months. Second, if the AMP office were to change its acquisition strategy at this point to allow for other commercial transponders, it would be forced to terminate the C-130H AMP ADS-B Out & Mode S EHS contract. The AMP office would then need to go through the process to have a new acquisition strategy approved, write a new RFP and all associated documents (SOW, Spec, CDRLs, Etc.), re-solicit proposals, and conduct a second initial evaluation that would lead to a minimum of 12 months schedule impact to the program and result in missing the FAA January 2020 mandate. Finally, the C-130J's current block upgrade program completed its Critical Design Review and was based on a -0522 transponder. Acquiring a different transponder would cause substantial duplication of work and cost as the -0522 transponder has already been qualified under the block upgrade program.

Accordingly, implementing any transponder or DCP other than Raytheon's would result in substantial duplication of costs, which could not be recovered through competition. The design for ADS-B Out solution is based on the $190M block upgrade development program for the C-130J and to utilize any other transponder configuration would result in a design change for this program and unnecessary duplication of costs. Also, implementing another transponder will result unacceptable delays in fulfilling the USG requirements. The government determined that the acquisitions must be awarded in FY17 to allow sufficient time to develop, test, and certify the DMS solution in order to execute the installation schedule. A schedule delay would prevent the Air Force from meeting the FAA mandate for ADS-B Out modification of aircraft by 1 January 2020. This would lead to a reduction of airspace access and locations of the C-130 fleet of 400+ aircraft which would significantly degrade AF missions world-wide.

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

This requirement will be synopsized IAW FAR 5.201 on the Federal Business Opportunities web page citing conditions which preclude Full and Open Competition (F&OC). Sources expressing an interest as a result of the synopsis will be investigated for their capabilities to perform on this and/or future requirements.

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

The prices associated with this effort will be determined to be fair and reasonable to the Government by the following methods:

(1) Cost analysis will be conducted in accordance with FAR 15.404-1(c). Certified cost or pricing data will be required for both actions.

(2) Price analysis will be conducted in accordance with FAR 15.404-1(b) to ensure offered prices are fair and reasonable.

(3) Program Office Estimates as well as prices obtained in previous purchases will be used.

(4) Program Office will perform technical evaluations to ensure negotiated hours are fair and reasonable for the effort and items required.

(5) Audits on recent purchases will be used to ensure material and subcontractors prices are fair and reasonable.

The above steps will ensure that the Government will receive a fair and reasonable price.

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

Market research utilized for this effort was conducted by the C-130H AMP office to determine which suppliers could provide a capable solution to ADS-B Out and the Block Upgrade Program. The C-130H AMP office sent out a Request for Information (RFI) on 22 May 2015 and held Industry Days with potential offerors from 27-29 July 2015.

From these events there were 21 interested vendors, listed in Section X. This pool of vendors was used to determine if there were existing solutions and aircraft components that were available to the Government. The “C-130H AMP Market Research APX-119 EMD Sets” --completed 29 September 2016 and signed on 22 November 2016-- concluded that Raytheon is the only supplier of the APX-119s that meets the requirements for the C-130 platforms.

Market Research was performed by AFLCMC/WLDKA, T-38A/B program, to determine which suppliers could provide APX-119s. A sources sought synopsis was issued on 10 November 2015 requesting contractors to integrate a Commercial-Off-The-Shelf (COTS) GPS receiver circuit card into the Government owned APX-119 transponders and ensure the product has a Type Certification from the FAA. Additionally, the synopsis required the Contractor provide control boxes, personality modules, and mounting trays to the Government. The question asked of industry in the synopsis was related to offeror's ability to perform integration of the GPS receiver circuit card, relative past experience in avionics modification work, experience obtaining FAA Type Certification, obtaining data rights, software modification, and what other engineering data is needed from the Government to accomplish this work. The Government received one response, which was from Raytheon Corporation. This sources sought synopsis was amended on 5 February 2016 which requested additional information about integrating the modified government owned transponders into the aircraft. The Government received responses from Raytheon Company, Stevens Aviation, Calspan Corporation, and KIHOMAC. The screening process for all interested vendors was evaluating the sources sought synopsis responses, phone calls, and one on one meetings to determine if the vendors had the capabilities and the required data rights. It was determined that Stevens Aviation, Calspan Corporation, and KIHOMAC were not technically acceptable. Therefore, Raytheon Company is the only vendor which provided a technically acceptable solution.

Per FAR Part 10, the contracting officer has determined that the market research relied upon for this effort is both appropriate to the circumstances and is current, accurate, and relevant due to programmatic past experience, as well as the complexity and urgency of this acquisition. The market research, as well as the information in Section V, demonstrate that Raytheon is the only vendor capable of providing a capable solution without the Air Force experiencing substantial duplication of cost that is not expected to be recovered through competition or unacceptable delays in fulfilling the agency's requirements.

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

None other than those previously discussed.

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

While there may be other types of transponders available, as previously discussed, they do not meet the needs of the Air Force. The following companies responded to the AMP Increment 1 RFI: Borsight, DM Aero LLC, Field Aerospace, iAccess, R4 Integration, Southeast Aerospace, Support Systems Associated Inc., Sierra Nevada Corp., Astronautics, BAE Systems, Boeing, Cascade, Esterline CMC Electronics, GE Aviation, L3 TCS (Tata Consulting Services), Lockheed Martin Aeronautics, Lockheed Martin MST, Northrop Grumman, Raytheon, Rockwell Collins, Scientific Research Corporation. All of these companies responded to the RFI to integrate ADS-B Out on C-130H.

Only one company proposed to use their own transponder. Therefore, the APX-119 was selected to be included in the design for the C-130H ADS-B solution and selected for the C-130J block upgrade integrated design.

The following companies responded to sources sought synopsis which the T-38A/B program released for APX-119s:

Raytheon, Stevens Aviation, Calspan Corporation, KIHOMAC. It was determined Raytheon is the only company which can provide a technically acceptable APX-119.

Additional RFIs or sources sought synopses specific to this J&A were not posted due to the amount of existing market research substantiating the use of FAR 6.302-1 (reference Sections VIII and X), and a waiver was granted in accordance with DFARS PGI 206.302-1.

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.

The Government will continue to communicate their requirements through the Governmentwide point of entry and conduct adequate market research to determine whether other capable technologies exist. The Government is pursuing data rights adequate to promote competition for this requirement in the future.

XII. Certification by the Contracting Officer.

As evidenced by his signature, the contracting officer has determined this document to be both accurate and complete to the best of his knowledge and belief. (FAR 6.303-2(b)(12))

XIII. Certification by the technical/requirements personnel.

As evidenced by their signatures, the technical and requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete. (FAR 6.303-2(c))