JA_Redacted.pdf

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

NEGOTIATION SENSITIVE

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APPROVAL ( DAFFARS 5306.304(a))

Date

31 Mar 2024

Joseph A. Fountain, SES, DAF Director of Contracting

AFSC/PK, DSN 339-3900

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I. Agency and Contracting Activity.

Purchase Request (PR) Number: FD2030-23-01100

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

This class Justification and Approval (J&A) authorizes the use of other than full and open competition procedures to obtain a new, non-commercial, Firm-Fixed-Price, requirements-type contract. This is not a bridge action. The contemplated contract is for repair services of the B-2 LNAD, National Stock Number (NSN) 5996-01-516-3950FW, Part Number (P/N) 01-01705-001, and RFSU, NSN 5895-01-562-3494FW, P/N 01-01704-002, with BAE (British Aerospace Systems IESI Inc.), Commercial and Government Entity (CAGE) code 63760. In accordance with (IAW) Federal Acquisition Regulation (FAR) Part 16, a one-year basic ordering period and four one-year ordering periods are considered appropriate for this acquisition. A class J&A is appropriate due to the inclusion of FAR 52.217-8, Option to Extend Services. The six month extension of services allowed under FAR 52.217-8, will be for the same work in the basic contract and will therefore be in-scope work.

Additionally, a class J&A is appropriate based on the expectation that there will be multiple task/delivery orders generated from the basic contract. Because the task/delivery orders will be authorized by the basic contract, the orders will be for in-scope work. The total estimated value of this contemplated contract is $28,024,769.30 with an estimated award date of Dec 2024, and an estimated Period of Performance of Dec 2024 - Jun 2030.

Previous Contract Number: FA8119-16-D-0016, Raytheon Company Dollar Value: $59,619,414.00 Award Date: 01 OCT 2016 Completion Date: 30 SEPT 2021 Basis of Award: Sole-Source

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

The dollar values listed below are based on proposed repair costs from the contractor. BAE has provided a detailed quote of repair costs for the the first three years of the proposed contract; the last 2 years of repair costs have been estimated based on the costs proposed by BAE. The anticipated contract will not include separately priced Contract Line Item Numbers (CLINs) for Intellectual Property (IP) or IP Rights. The preceding IP rights strategy is consistent with the Acquisition Strategy as approved by the appropriate authority. Under the contemplated contract, BAE Systems will provide the following repair services of the B-2 LNAD and RFSU:

Contract Summary Year Estimated Dollars Basic Year $6,278,476.60 Option 1 $5,205,974.40 Option 2 $5,243,196.20 Option 3 $5,283,896.20 Option 4 $5,324,596.20 Six-month (6 Mo) Option $688,629.70 Total $28,024,769.30

PR Line Item 0001 Repair (Major) of NSN: 5895-01-562-3494FW P/N: 01-01704-002 Noun: RFSU

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Item Function: LNAD Type of Appropriation: 97X4930 Total estimated dollars for PR Line Item 0004: $2,739,650.00

Year Period of Performance BEQ Basic Dec 2024 - Dec 2025 5 Option 1 Dec 2025 - Dec 2026 5 Option 2 Dec 2026 - Dec 2027 5 Option 3 Dec 2027 - Dec 2028 5 Option 4 Dec 2028 - Dec 2029 5 6 Mo Option Dec 2029 - Jun 2030 2

PR Line Item 0005 Repair (Minor) of NSN: 5996-01-516-3950FW P/N: 01-01705-001 Noun: LNAD

Item Function: LNAD Type of Appropriation: 97X4930 Total estimated dollars for PR Line Item 0005: $1,250,540.00

Year Period of Performance BEQ Basic Dec 2024 - Dec 2025 5 Option 1 Dec 2025 - Dec 2026 5 Option 2 Dec 2026 - Dec 2027 5 Option 3 Dec 2027 - Dec 2028 5 Option 4 Dec 2028 - Dec 2029 5 6 Mo Option Dec 2029 - Jun 2030 2

PR Line Item 0006 No Fault Found (NFF) of NSN: 5996-01-516-3950FW P/N: 01-01705-001 Noun: LNAD

Item Function: LNAD

Total estimated dollars for PR Line Item 0006: $259,100.00

Year Period of Performance BEQ Basic Dec 2024 - Dec 2025 2 Option 1 Dec 2025 - Dec 2026 2 Option 2 Dec 2026 - Dec 2027 2 Option 3 Dec 2027 - Dec 2028 2 Option 4 Dec 2028 - Dec 2029 2 6 Mo Option Dec 2029 - Jun 2030 1

PR Line Item 0007 Material Lay-in: To Be Negotiated (TBN)

Total estimated dollars for PR Line Item 0007: $1,013,292.00

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Year Period of Performance BEQ Basic Dec 2024 - Dec 2029 1 LOT

PR Line Item 0008 Over and Above (OA) : To Be Negotiated (TBN) Type of Appropriation: 97X4930 Total estimated dollars for PR Line Item 0008: $2,547,706.30

Year Period of Performance BEQ Basic Dec 2024 - Dec 2025 1 LOT Option 1 Dec 2025 - Dec 2026 1 LOT Option 2 Dec 2026 - Dec 2027 1 LOT Option 3 Dec 2027 - Dec 2028 1 LOT Option 4 Dec 2028 - Dec 2029 1 LOT 6 Mo Option Dec 2029 - Jun 2030 1 LOT

PR Line Item 0009 Repair Management To Be Negotiated (TBN) Type of appropriation: 97X4930 Total estimated dollars for PR Line Item 0009: $16,500,000.00

Year Period of Performance BEQ Basic Dec 2024 - Dec 2025 1 LOT Option 1 Dec 2025 - Dec 2026 1 LOT Option 2 Dec 2026 - Dec 2027 1 LOT Option 3 Dec 2027 - Dec 2028 1 LOT Option 4 Dec 2028 - Dec 2029 1 LOT

PR Line Item 0010 Data: Data, Not Separately Priced (NSP), IAW Commercial Asset Visibility Air Force (CAV AF) Reporting Requirements and Contract Data Requirements List (CDRLs) DD FORM 1423 Type of Appropriation: 97X4930 Total estimated dollars for PR Line Item 0010: $0.00

This J & A covers all contract actions including options, task orders and delivery orders for all Line Items detailed in the table above. Due to the circumstances described below in Sections IV, V, and IX, there are no immediate actions that could be taken to develop competition. Therefore, it is considered appropriate to seek approval for more than one year of requirements. If other qualified or approved sources become known during the life of this contract, full and open competition will be considered and utilized to the maximum extent practicable.

IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above.

This anticipated contract will be for the repair of the B-2 LNAD, NSN 5996-01-516-3950FW, P/N 01-01705-001, and RFSU, NSN 5895-01-562-3494FW, P/N 01-01704-002. These items are being repaired directly from the Original Equipment Manufacturer (OEM), BAE Systems. Due to the complexity and criticality of this component, market research revealed there is only one qualified source, BAE Systems. These B-2 items are critical application items and functions within the nuclear transmission process, as defined in the Aviation and Critical Safety Item

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V. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under

FAR 5.202 applies.

A Sources Sought Synopsis (SSS) was posted to sam.gov under solicitation number FD20302301100_SSS, 7 Mar 2023, with a closing date of 22 Mar 2023, in an effort to solicit interested sources. The SSS received zero responses and to date, no Source Approval Request (SAR) packages have been submitted for consideration. Government defined pre-award QRs of potential sources apply to these items, although potential sources will be required to obtain the necessary data independently or otherwise provide proof demonstrating capability via the SAR process.

All SAR package submissions submitted prior to contract award will be evaluated in a timely manner to ensure the highest level of competition possible.

The Government does not have the data needed to adequately define the repair process in order to develop a competitive procurement package. Interested vendors would need to submit a SAR package for consideration/ approval. See Section X for company information.

This requirement will be synopsized on sam.gov as a notice of proposed contract action IAW FAR 5.201 with an expected publication date of 31 DEC 2024. Consideration shall be given to potential sources, prior to award.

VI. 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 Defense Contract Management Agency (DCMA) to 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.

VII. 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 10.001(a)(2), was conducted by the Multi-Functional Team consisting of the Logistics Management Specialist, Engineer, Production Management Specialist, and Procuring Contracting Officer. This research included searches of Internet sites; Google secure components, the Thomas Register, Haystack, Dynamic Small Business Search (DSBS), System for Award Management (SAM), and Federal Procurement Data System (FPDS) were queried for potential sources. Searches included part number, nomenclature, and like items. This market research, which began on 7 Mar 2023 and concluded on 23 Mar 2023 and has revealed that there are currently no other sources with the ability to repair these assets. Other sources provide similar repair services but none have been identified as being approved to meet the requirement described in Section III. Further these requirements can neither be modified nor satisfied with commercial or modified commercial items. The B-2 LNAD & RFSU are used in military applications and no commercial or non-developmental substitutes are available. There are no applicable industry standards, regulations, trade journals, or process guides that apply to the repair of the LNAD & RFSU.

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

The Government realizes that it has unlimited rights to form, fit, and function data (including source qualification data) as well as data related to operation, maintenance, installation, and training. However, such rights are insufficient to satisfy the current need. Access to repair data is necessary to accomplish the tasks. Efforts by the government to acquire a license from the OEM have been unsuccessful. The most recent attempt by the government to acquire the data or rights to the data occurred during a telecom on 20 Aug 2020, when the Government asked BAE if they would consider selling the data and BAE declined to provide a ROM for the sale/licensing of proprietary data.

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

BAE Systems Controls Inc. CAGE: 63760

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4250 Airport Expy Fort Wayne, IN 46809-9643

See Section V for more details.

X. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

As a result of continued refusal by the Sole Source contractor to provide or license data as well as the unacceptable delay of developing additional sources per Sections 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. The Government will continue to synopsize future requirements IAW FAR 5.201, rescreen the item, and attempt to acquire the data necessary to qualify additional sources. Two years prior to contract expiration the 424th SCMS will engage with BAE requesting the sale/licensing of proprietary data, rescreen the items and monitor the market place by posting a sources sought notice to www.sam.gov.

Per Defense Federal Acquisition Regulations (DFARS) Procedures, Guidance and Information (PGI) 206.304(a)(S-70), as indicated by signature on the Coordination and Approval Document, the previous Justification and Approval has been reviewed and the Approval Authority determines that all stated actions to remove barriers to competition were attempted without success.

XI. Certification by the Contracting Officer.

As evidenced by my signature above, I certify that this justification is accurate and complete to the best of my knowledge and belief.

XII. Certification by the technical/requirements personnel.

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