JA W58RGZ-15-G-0006 DO W58RGZ19F0045- REDACTED (for posting).pdf

Control No.: CCAM-J&A23-1432

JUSTIFICATION REVIEW DOCUMENT

FAR PART 6 JUSTIFICATION AND APPROVAL FOR OTHER

THAN FULL AND OPEN COMPETITION

Program/Equipment: Army Contracting Command-Redstone Arsenal (ACC-RSA)/ Apache Attack Helicopter Project Management Office (Apache PMO) requests approval to award the definitization for the Undefinitized Contract Action (UCA), W58RGZ-15-G- 0006 Basic Ordering Agreement, Delivery Order W58RGZ-19-F-0045, in support of the AH64 Longbow Crew Trainers Virtual and Hardware Enhancements.

Authority: 10 U.S.C. 3204( )( ), as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(iii)(A), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount:

Prepared by

Acquisition Analyst

Contracting Officer

Contracting Officer l

Technical Representative

Technical

Requirements Representative

Assistant Product Manager

Distribution Statement A Approved for Public Release (053-23)

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Deputy Project Manager, Apache Attack Helicopter:

Signature: __ _ Date: ________________________

Legal Counsel:

Signature: _ Date: ________________________

Department of Army FAR PART 6 Justification and Approval (J&A) for Other Than Full and Open Competition for

AH64 Longbow Crew Trainers Virtual and Hardware Enhancements

1. Contracting Activity: The Department of the Army Contracting Command- Redstone (ACC-RSA), CCAM-AP-A, Building 5307 Martin Road, Redstone Arsenal, Alabama 35898-5000.

2. Description of Action:

a. The purpose of this J&A is to gain approval to use other than full and open competition procedures to definitize the sole source Delivery Order (DO) 0005 (W58RGZ- 19-F-0045) requested by the Apache Project Manager’s Office (PMO), Logistics Division, Training and Training Devices Branch, for Longbow Crew Trainer (LCT) Virtual and Hardware Enhancements. This definitization will be awarded under the Basic Ordering Agreement (BOA) W58RGZ-15-G-0006, Delivery Order 0005 with The Boeing Company, Training and Professional Services and Government Entity (CAGE) Code OPXV4, 6200 J S McDonnell Boulevard, Saint Louis MO 63134.

The original J&A, AAHPMO-18-015, for this effort was approved on 11 February 2019 by the Principal Assistant Responsible for Contracting. The original J&A period of performance was approved for 24 months and an estimated amount. The primary contract type for this delivery order and subsequent definitization is Firm-Fixed-Price. This requirement is funded with Fiscal Year (FY) 2018-2022 Aircraft Procurement Army (APA) funding.

The original UCA award was signed on 21 May 2019 for a Not-to-Exceed (NTE) price of and an estimated 35 months of performance. Based on both Contractor and Government delays, this effort has continued and is now in the 44th month of performance. Negotiations concluded on the effort on 15 December 2022 with an agreed upon FFP of and a total period of performance of .

Period of performance end date is .

This J&A is only for the difference from the original J&A AAHPMO-18-015 approved for 24 months at an estimated dollar value of , to the final negotiated period of performance and total negotiated price of , with a delta of and 40 months. This J&A covers the additional scope addressed below.

In addition, this action’s risk has been designated as low. Contract W58RGZ-15-G-0006, DO 0005 (W58RGZ-19-F-0045), allows for LCT Virtual and Hardware Enhancements. Failure to definitize this effort will result in failure to maintain concurrency and sustain aviator readiness, therefore, placing the safety and proficiency of the war fighter in jeopardy. Delay in the definitization of this contract will result in loss of aviator proficiency in all facets of flight skills, adversely impacting readiness and placing at risk the human and Material AH-64D and AH-64E national assets.

3. Description of Supplies/services: ACC-RSA requires definitization to acquire services for the upgrade and fielding of AH-64D and AH64E aircraft concurrency and functional technical enhancements for the Generation (Gen) 4 and Generation (Gen) 5 AH-64 LCT flight simulator. The contractor is required to perform IAW the Statement of Work to implement, integrate, test, upgrade, and field to the LCT Gen 4 and Gen 5 fleet, both AH-64D and AH-64E aircraft concurrency enhancements, functional hardware and software technology improvements, and Department of Defense (DOD) directed CyberSecurity controls and mitigation of obsolete operating systems. This acquisition has a total negotiated value of and a period of performance of sixty-four (64) months.

This effort is to satisfy the DOD and Headquarters Department of the Army (HQDA) requirement to maintain concurrency of the primary training device to the fielded aircraft and those enhancements incorporated on the aircraft. The proposed acquisition is limited to The Boeing Company, Training and Professional Services CAGE Code OPXV4, 6200 J S McDonnell Boulevard, Saint Louis, Missouri 63134- 1939.

Authority Cited: The statutory authority permitting other than full and open competition for this acquisition is 10 U.S.C. 3204( )( ) as implemented by FAR 6.302- 1(a)(2)(iii)(A), entitled “Only One Responsible Source, and No Other Supplies or Services Will Satisfy Agency Requirements, substantial duplication of cost to the Government that is not expected to be recovered through competition.”

Reason for Authority Cited:

The Boeing Company, Training and Professional Services CAGE Code OPXV4, 6200 J S McDonnell Blvd, Saint Louis, Missouri 63134-1939 is the designer, developer, and Original Equipment Manufacturer (OEM), for the AH-64 LCT system and is the only contractor capable of providing supplies and services necessary for the Apache AH-64 LCT Engineering services, Technical support, and material for the following reasons:

b. As the OEM, of the LCT device, The Boeing Company Saint Louis possesses the personnel, facilities, special test equipment, and exclusive OEM corporate and expert knowledge to manufacture and perform analysis and special tests required to fulfill the proposed contract requirements. The Boeing Company Saint Louis maintains the exclusive engineering knowledge, design, development, manufacturing, technical expertise, and test history associated with the LCT fleet configurations. Based on the widespread fielding of the LCT and the current production of the AH-64 Apache, they are the most capable contractor for implementing the LCT upgrade efforts. Upgrades of the LCT requires intimate knowledge of the aircraft interfaces and how weapon and navigation systems are mechanized, calibrated and operationally used. In addition, the consistent investment in expertise in maintaining concurrency with the AH-64D and AH-64E aircraft has established The Boeing Company is the only contractor with the in-depth knowledge and capability necessary to maintain configuration control, develop and field the expected and required fidelity.

c. Currently, there is no available technical data rights package (TDP) for Apache LCTs to provide to other sources for competition. Boeing has asserted the Government has limited rights to the technical data for the manufacture and sustainment of the Apache LCT, based on their independent research and development investments. Without significant technical data and knowledge inherent in the role of the design authority/OEM, such as the design and assembly technical data, the specification will lack the detail required to compete future technical insertions. Although other training device manufacturers may have a wide range and depth of engineering skills at their disposal, there is currently no other training device manufacturer who has developed and fielded a concurrent and accredited Apache helicopter flight simulator that is fully integrated with all the aircraft subsystems and meets DOD performance requirements. Other contractors would not possess the personnel knowledgeable of the AH-64 aircraft and weapons systems, subsystems, and ability to integrate, modify or upgrade the aircraft Operational Flight Program (OFP). The Boeing Company has the hands-on knowledge of cost drivers, design, engineering, test data, specification, test equipment, facilities, and special tools that affect development and post fielding life cycle costs. In addition, as the sole source manufacturer of the AH-64 helicopter, The Boeing Company is the only manufacturer familiar with the specific requirements peculiar to the successful operation of the LCT training devices. Also, The Boeing Company is the designer, developer, manufacturer and design control activity for the Apache for the Training Device Suite (TDS). While a comparable equipment manufacturer may possess like-skilled personnel, there is currently no other company in industry who has built an LCT to its current configuration and performance requirements.

d. It is not anticipated that the LCT enhancement effort will be competed in the future. Technical data packages (TDP) suitable for full and open competition are not available within the Government for this procurement. The acquisition strategy never contemplated procuring a complete TDP due to the prohibitive cost of the aircraft and LCT software load, which has been updated and fielded at a pace of one (1) OFP change almost every 18 months, which renders the previous fielded software obsolete. The Apache PMO requested from the OEM, The Boeing Company, a Rough Order of Magnitude (ROM) for the AH-64D TDP in 2005 and again in 2009 in which the OEM response of for the first request and for the second, of which represented the TDP for AH-64E unique parts.

The Apache PMO determined it was not in the best interest of the Government to pursue purchasing AH- 64D TDP. The prices of the ROMs from The Boeing Company were uneconomical as the value of the entire Apache PMO budget in FY13 barely exceeded . Given the rapidity of the aircraft OFP hardware and software refinements, the TDP becomes functionally obsolete and will not be purchased either in entirety or in part. It is not anticipated that the upgrading and fielding of AH-64D and AH64E aircraft concurrency and functional technical enhancements for the Gen 4 and Gen 5 AH-64 LCT flight simulator will be competed in the future. A ROM was requested as part of the Multi-Year negotiations in December 2017, but the contractor refused to entertain the idea of supplying a ROM or even total dollar amount for the requested TDP. Due to the United States Government (USG) being unable to procure the necessary data, it is technically infeasible for another supplier to perform these highly specialized LCT engineering services, technical support, and material orders without risking significant delays and without the USG assuming tremendous risk as to the validity of the available data. If definitization is delayed, safety and field issue responses will be delayed impacting cost, schedule, performance, and the overall mission.

e. The fielded USG fleet of 34 LCT, and the 13 Foreign Military Sales LCT, exists in 8 grouped USG LCT configurations because of the extended procurement, development, delivery, upgrade, and refurbishment contracts established since 1998. The USG LCT AH-64D and AH-64E flight simulator procurement, development, and fielding program was completed in the production contracts: Multi-Year (MY) I, MYII, LCT 24, Extended Block II (EBII), and LCT 33-36. The USG LCT AH-64D and AH-64E system design, development, integration, upgrades and refurbishment programs have been completed in the MYI, MYII, LCT 24, EBII, System Development and Demonstration (SDD), Low Rate Initial Production, and Full Rate Production (FRP) Lot 3/4, FRP Lot 5/6, and MY FRP Lots 7/8/9/10/11 contract actions.

f. Apache PMO has contracted for what is believed the last “New-Build” LCT for the USG with the existing USG LCT fleet either in or programmed for the AH-64E refurbishment effort through 2024 to maintain parity with the AH-64E aircraft modernization program. The hardware and software configurations impacting these challenges are as follows:

i. Developing an alternative source for incorporating aircraft OFP enhancements, designing, developing, and integrating LCT compliant modeling and technological improvements while sustaining the LCT accreditation, maintaining the configuration library of all the material and software and updating and qualifying the Operator and Maintainer documents that have been fielded in the 47 LCT is a prohibitive cost and effort. The Government estimate to generate an alternate source for the LCT unique software would exceed seven (7) years and (see subparagraph iv below). This is challenging because the LCT software, required to incorporate the aircraft OFP, becomes a more complex effort than the aircraft to create and maintain a high-fidelity virtual environment. The aircraft OFP assimilates input from onboard sensors of the real-world environment and renders an output to aircraft display, avionics, navigation, sensors, weapons, and flight computer systems. The LCT must develop the complete virtual environment and model the aircraft components that feed appropriate correlated data to the flight model and OFP, render consistent, qualified, appropriate output from the OFP and flight computer and process that data in software models of aircraft components matching how the design basis aircraft fidelity will fly and function in those environmental parameters with the weapons and equipment installed on that aircraft.

ii. Failing to maintain DOD and HQDA concurrency requirements perils the LCT accreditation, which if lost, would require all training that was conducted in the flight simulator to be completed in the aircraft, or waved by appropriate Command authority. For the 22 Table of Organization and Equipment attack helicopter battalions, loss of LCT flight time today would require the annual consumption of 23,760 aircraft hours equivalent to at the current rate of for AH-64D for sustainment training.

For AH-64D aircraft, Instructor Pilot, and Maintenance Pilot qualification, U.S. Army Aviation Center of Excellence (USAACE) programs requires 18,262 LCT hours, equivalent to at .

Waving the simulator or aircraft training will result in loss of aviator proficiency in all facets of flight skills adversely impacting readiness and placing at risk the human and material AH-64D and AH-64E national assets. Loss of use of the LCT for USAACE aircraft qualification will increase reliance on the aircraft fleet and reduce flying hour resources, thereby resulting in significant reduction of aviators in residence for aircraft, Instructor Pilot and Maintenance Pilot qualification courses. This adversely impacts the Army’s ability to replace aviators departing Army service.

iii. Each individual LCT comprises of at least 102 to 110 Electrical and 331 to 344 Mechanical specific and proprietary drawings supporting that unique configuration established by the device hardware and software. As the LCTs have been contracted for over multiple contract vehicles and years, evolving aircraft components and commercial hardware matured the USG LCT fleet into 8 different configurations.

Each of these configurations require unique and specific accommodation to incorporate the hardware or software enhancements developed for and fielded in the aircraft within available hardware and software technologies. The manifestation of this library is not only essential for Non-Recurring design and development activities, but is crucial in monitoring and addressing functional and supportability obsolescence within the LCT fleet. Unlike the aircraft, each LCT has had to address unique hardware and computational drivers to ensure the product retains the required fidelity to match design basis aircraft, provoke positive training and sustainment of tactical skills for the United States (US) Army attack helicopter pilot, and to retain accreditation to remain relevant. This requires intimate knowledge of the existing configuration and state of the fielded LCT and the most effective hardware and software design possible to incorporate OFP and technological improvement drawings and proprietary drawings. To retain accreditation the LCT OEM develops, incorporates and modifies the Software to create an updated reliable, predictable and repeatable compiled software load which is now 747,000 Software Lines Of Code (SLOC) within the Instructor Operating Station (I/OS) and 1,147,858 SLOC within the host computer operating system to enable functionality within the aircraft OFP, a separate module of 1,989,228 aircraft SLOC that is re-hosted for application within the LCT. To date, the LCT OEM has performed OFP re-host and integration 27 times successfully within the contracted cost, schedule, performance, and delivery objectives.

iv. The LCT OEM development effort includes the integration, calibration, tuning and refinement of state-of-the-art Image Generators (IG) with unique expertise in the development and replication within the

LCT simulation of AH-64 aircraft concurrent flight and weapons sensors that include modernized Pilots and Co-Pilot Gunner’s Infrared and electro optics sensors. The IGs and databases within the LCT are unique in that no other aircraft or material developer has the requirement or challenge of incorporating flight and weapons sensors within an accredited flight simulator.

v. To independently develop operational Instructor Operator Station and Host computer software, an alternate vendor will be required to generate at least 8 different software configurations with an initial baseline of 1 Gen 4 and 1 Gen 5 Host operational load from which to leverage all other LCT loads. The initial Gen 5 load is compiled of 3,137,086 SLOC for the I/OS, Host computers and the re-hosted OFP.

The Software engineering development hours to regenerate and qualify this load are estimated to take no less than 6 to 7 years and will require at least 156,829 hours, equivalent to , to develop the un-compiled code. Using the effort contracted at W58RGZ-15-C-0043, SDD V6, the software engineering development hours are 39% of the total effort. Incorporating Program and Configuration management, Hardware and Electrical management, documentation, drawings, Hardware/Software integration, tuning, development and Government requalification testing would result in a program cost of .

vi. As outlined above the Government estimate to generate an alternate source for the LCT unique software would exceed seven (7) years and cost more than . The time required to provide an alternative source would cause delays and negatively impact qualification and sustainment training and the fielding training capability of aircraft enhancements for warfighters. The cost and impact to develop an alternate source for the LCT flight simulator could not be expected to be recovered with competition and development.

vii. There are no alternative contractors available as Boeing owns and is unwilling to sell the TDP required for the LCT enhancements. Award to another source is not feasible. Failure to approve this J&A and award this effort will result in failure to maintain concurrency and sustain aviator readiness, therefore, placing the safety of the war fighter in jeopardy. This would require all training that was conducted in the flight simulator to be completed in the aircraft. Waiving the simulator or aircraft training will result in loss of aviator proficiency in all facets of flight skills, adversely impacting readiness and placing at risk the human and material AH-64D and AH- 64E national assets. Loss of use of the LCT for aircraft hours will result in significant reduction of aviators in residence for aircraft, Instructor Pilot and Maintenance Pilot qualification courses, adversely impacting the Army’s ability to replace aviators departing Army service.

viii. This J&A is only for the difference from the original J&A AAHPMO-18-015 approved for 24 months at an estimated dollar value of , to the final negotiated period of performance and total negotiated price of , with a delta of and This J&A covers the additional scope addressed above.

6. Efforts to Obtain Competition:

a. Effective Competition: The USG does not own the TDP for the Apache AH-64 or its components, effective competition is not anticipated. However, the following competitive techniques were used in identifying possible sources for this effort:

1. Pursuant to the requirement of FAR 5.201, sources sought notice W58RGZ-18-R 0345 was published in the Army Single Face to Industry (ASFI)/Federal Business Opportunities (FBO) on 24 September 2018 with a closing date of 12 October 2018. This publication was an effort to seek alternate sources to procure Apache LCT engineering services, technical support and materials that have historically been procured through The Boeing Company on a sole source basis. As a result of the published Sources Sought notice, there were a total of five vendors that indicated an interest on the FBO website prior to the deadline. Of those five vendors only one, 3DCAD Printer, Inc., submitted the requested capability statement to the Contracting Officer as required by the Sources Sought notice.

That capability statement was reviewed and the USG determined 3DCAD Printer, Inc. would not be able to complete the objectives sought within schedule, cost or at the required fidelity. There were also two inquiries received by email from North Atlantic Industries and Star Lab Corporation. In lieu of technical qualifications to perform this effort, the two companies requested contact information with The Boeing Company for possible subcontracting effort. As requested, The Boeing Company point of contact was provided to the two companies. No changes have occurred since sources sought was published. Upon review and evaluation of the responses and due to the reasons stated in paragraph 5 above, the Government has determined that this effort should be awarded on a sole source basis to The Boeing Company. The original J&A, AAHPMO-18-015, mentioned in paragraph 2 above was posted to FBO on 11 June 2019 in accordance with FAR 6.305.

b. Subcontracting Competition: Competition at the subcontract level by the Boeing Company and component breakout competition by the USG is considered the best strategy to foster competition on this program.

1. Since competition is not available at the prime contractor level due to the lack of a complete TDP, the USG supports competition at the subcontractor level. Pursuant to FAR 52.219-9, Small Business Subcontracting Plan, Boeing is required to develop and submit an individual subcontracting plan to ACC- RSA for review/approval and incorporation into the contract. Per FAR 52.204-10, Boeing is required to perform small business subcontracting reporting via the Government-wide Electronic Subcontracting Reporting System (ESRS) for compliance with their approved plan. To ensure that the contractor obtains competition in subcontracting, the clauses listed below in paragraph 2) will be included in the resulting solicitation and contract. The USG requires the prime contractor to compete to the maximum extent possible, all components, which cannot be fully justified as non-competitive. The Boeing Company utilizes competition via subcontracting via its supplier competition bidder Board Process. The Board Process specifically targets lowering the subsystems and components cost for the Apache 64E production and conducts periodic reassessment of the business case for part/components manufactured in-house including Crestview, New Breed, and Summit Aviation. When costs are lower and both complexity and risk are manageable or specific skills sets are required, Boeing off-loads those components via competitive acquisition. Boeing has a well-established system for the competitive purchase of machined, cast, and assembled parts. Boeing selects suppliers using a best value approach that includes business size, small and disadvantaged business certifications, quality, cost, technical, and program factors. Boeing creates and maintains a subcontracting plan for each contractual effort and periodically reviews it for potential future subcontracting efforts to small, women-owned small business, small disadvantaged business, historically underutilized business zones (HUB Zone), service-disabled veteran owned small business, historically black colleges and universities/minority institutions, Hispanic serving institutions, and tribal council universities.

2. The following FAR and DFARS clauses, along with any other applicable clauses, are included in the resulting contract to ensure that Boeing obtains and utilizes small and large business subcontractors, where appropriate, and facilitates competition in subcontracting:

52.219-8, Utilization of Small Business Concerns 52.219-9, Small Business Subcontracting Plan 52.219-16, Liquidated Damages – Subcontracting Plan 52.219-28, Post-Award Small Business Program Representation

52.244-2, Subcontracts 52.244-5, Competition in Subcontracting 52.244-6, Subcontracts for Commercial Items 252.209-7004, Subcontracting with Firms That Are Owned or Controlled by the Government of a Country that is a State Sponsor of Terrorism 252.244-7000, Subcontracts for Commercial Items

7. Actions to Increase Competition:

a. It is not anticipated that the AH-64E ITE integration effort will be competed in the future due to unavailability of the TDP. The Apache Attack Helicopter Project Manager maintains continuous surveillance of domestic suppliers, foreign suppliers, and cost-effective opportunities for joint developments with other U.S. military or foreign military services. There are no other domestic or foreign commercial or Government sponsored programs which have or are in the process of developing technologies which approach the capability needed to complete the technical and engineering services and material effort in support of the AH64 Apache LCT enhancements.

b. The PMO acquires the appropriate rights to all data paid for by the USG under its contract in accordance with DFARS 252.227-7013/7014. The USG continues to challenge all applicable data rights assertions under applicable contract(s) in accordance with DFARS. All the AH-64 Apache Longbow contracts are subject to the component breakout required by DFARS PGI 217.75, and there is a continuous ongoing effort to break-out components where cost effective and feasible without jeopardizing the AH-64 system reliability.

c. Since the purpose of this J&A is to cover the delta for additional scope (time), there were no additional actions pursued to increase competition. The Government will not receive the full benefit of the overall effort of DO W58RGZ-19-F-0045 without the completion of this definitization.

8. Market Research: In accordance with FAR Part 10, market research was conducted by the USG in April 2017 through August 2018 and documented in Market Research Report/Commerciality Determination (MRR/CD) #182132 and approved by the Competition Advocate on 30 August 2018. The following techniques were used:

a. Personal knowledge in procuring these types of supplies/services. Contact with knowledgeable persons in Government and/or industry regarding the commercial nature of this requirement and/or standard industry practices. Beginning in April 2018 through August 2018 knowledgeable persons in Government were contacted including PEO STRI Simulation, Training and Instrumentation, Customer Support Group (CSG) Chief, Apache Logistics Division, Apache Acquisition Branch Chief, and Apache Development and Modernization Product Manager. Research conducted was unsuccessful in identifying an alternative contractor that would immediately and fully meet the requirements to perform the enhancements on the LCTs. In addition, the Apache attack helicopter PMO technical personnel perform ongoing monitoring of the marketplace. The monitoring consists of surveillance of the marketplace through regular review of current technical literature and participation in technical meetings and conferences, both with industry and other Government technical agencies.

b. Review of USG and commercial databases for relevant information: The USG personnel with the Apache PM reviewed the following databases: Goggle, Yahoo, MSN and Defense New in April 2018 through August 2018. This review did not reveal any other contractor capable of providing the support required for enhancements of the LCTs.

c. Review of catalogs and other available product literature was conducted, including attendance and review of generally available literature by Apache personnel at technical conferences such as the Army Aviation Association of America (AAAA) 2018 Army Aviation Summit in April 2018, annual American Helicopter Society Symposium February 2017, and AAA in November 2016. Review was also conducted of Government and technical literature such as AAAA Journal published monthly. These reviews did not reveal any other available source.

The market research concluded that no other products or services were available that could meet the Government’s requirement for the LCT enhancements. The market research also revealed that there are no equivalent commercial sources, therefore, FAR Part 12, “Acquisition of Commercial Items” procedures will not be utilized for this acquisition.

d. Since this J&A is written for the purpose of covering the delta time definitized under DO W58RGZ- 19-F-0045, additional market research is not appropriate. A waiver to the requirement of DFARS PGI 206.302-1 was signed by the Senior Contracting Official on 11 March 2023.

9. Interested Sources: As stated in Section 6a, a sources sought was published in the ASFI/FBO on 24 September 2018 and modified on 27 September 2018. Five vendors responded to the sources sought and two emails inquires. The 3DCAD Printer, Inc., capability statement was reviewed and the USG determined that the vendor would not be able to complete the objectives sought within schedule, cost or at the required fidelity. In the event a potential source expresses interest in writing, they will receive due consideration as required by law and regulations. Market research did not identify any other alternate sources, other than The Boeing Company. The Boeing Company is the only USG-approved source for the support of this effort.

10. Other Factors:

a. Procurement History. The following contracts (sole source, using the same Authority as addressed in paragraph 4 above), were awarded to Boeing as the prime contractor for development, production/spares, enhancements/upgrades, and testing of the USG LCTs. Note: The below amounts reflect the value for the LCT portion of the contract only.

Contract Number Contractor Description Amount Award Date

W58RGZ-16-C-0023 The Boeing Company Production/Upgrade, Multi- Year FRP Lot 7, 8, 9, 10, 11 $105.9M 21 Mar 2016

W58RGZ-15-G-0006 The Boeing Company Production/Upgrade D0 0001, 0002 and 0003

$19.6M 15 Jun 2017 – 1 Jun 2018

W58RGZ-14-C-0018 The Boeing Company Production/Upgrade, FRP Lot 5/6 $15M April 2014

W58RGZ-13-C-0086 The Boeing Company Production/Upgrade, LCT 33, 34, 35, 36 $51.3M Sep 2013

W58RGZ-12-C-0055 The Boeing Company Production/Refurbishment, FRP Lot 3/4 $26.9M June 2012

W58RGZ-09-C-0161 The Boeing Company Production/Refurbishment, Limited Rate Production Lots $34.4M July 2009

W58RGZ-06-C-0093 The Boeing Company Production/Fielding, Extended Block II, LCT 25, 26, 27, 28, 29, 30, & 32 $176.4M March 2006

W58RGZ-05-C-0205 The Boeing Company Production/Fielding, LCT 24 $23.8M Dec 2005

W58RGZ-05-C-0001 The Boeing Company Production, LCT 31 $34.4M June 2005

DAAH-23-00-C-0001 The Boeing Company MY 2, LCT 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, & 23 $279.4M March 2000

DAAJ09-95-C-A001 The Boeing Company

MY 1, LCT 1, 2, 3, 4, 5, 6, 7, 8, 9, &

the Longbow Collective Training System

$278.9M Dec 1994

1. The above contracts were solicited/awarded pursuant to authority permitting other than full and open completion in 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2).

2. Authorization to award the preceding contracts on a sole source basis to The Boeing Company was based on The Boeing Company as the sole manufacturer of the LCT device and maintains the exclusive engineering knowledge, design, development, manufacturing, technical expertise, and test history associated with the LCT fleet configurations. No significant changes to the circumstances justifying the previous sole source actions have occurred.

3. Paragraph 7 of the previous justification, "Actions to Increase Competition", stated: "The AAH Project Manager maintains continuous surveillance of domestic suppliers, foreign suppliers, and cost-effective opportunities for joint developments with other U.S. military or foreign military services. There are no other known domestic or foreign commercial or Government sponsored programs which have or are in the process of developing the production capability services for the AH-64 under this effort.

Therefore, no action will be taken to overcome barriers to competition for future procurement actions. The Government does not own and does not intend to acquire technical data and data rights required to perform the support services incidental to LCT enhancements. It would not be cost effective to pursue acquisition of such proprietary data. Any additional source would require access to that data and would, therefore, require negotiating an arrangement with Boeing, which is not considered feasible. Since essential data is held by Boeing, the Government does not have the ability to develop a performance specification that would permit another source to compete. It is not anticipated that the production, integration, and assembly of the various subsystems of the Apache will be competed in the future.

However, there is a continuous effort to break out the additional major system components as well as new subsystem enhancements. The PMO acquires the appropriate rights to all data paid for by the Government under its contracts, in accordance with DFARS 252.217-7013/7014. Boeing will be encouraged to subcontract with small business and small disadvantaged business concerns, as well as labor surplus concerns, and to restrict subcontracting competition to small disadvantaged businesses.

Through Boeing's self-funded initiatives to increase competition, Boeing has started to offload some of the aircraft teardown and preparation process. To further implement these economic programs, applicable FAR and DFARS clauses will be included in all program requests for proposals.”

4. There are no unusual patterns based in the history of this requirement.

5. There have been no significant changes to the competitive environment since the approval of the previous sole source justification. Boeing is currently the only proven source to meet the current cost and schedule constraints of the Apache Program Office.

b. Other Facts: There are no other factors to present that have not been previously stated.

11. Technical 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.

NAME:

TITLE: (Acting) Assistant Product Manager SIGNATURE:

12. 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.

NAME:

TITLE: Assistant Product Manager SIGNATURE:

13. Fair And Reasonable Price Determination:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. This determination is based on the use of techniques that include Price and Cost Analysis, Field Pricing support, Technical Evaluation, and Business Clearance Memorandum, and will include Certified Cost or Pricing Data, as required IAW FAR 15.403-4.

NAME:

TITLE: Contracting Officer SIGNATURE:

14. Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

NAME:

TITLE: Contracting Officer SIGNATURE:

APPROVAL

Based on the foregoing justification, I hereby approve the definitization of the resources necessary for the Longbow Crew Trainer Virtual and Hardware Enhancements, Period of Performance 64 months, from The Boeing Company, on an other than full and open competition basis, pursuant to the authority of 10 U.S.C ( )(1), as implemented by FAR 6.302- (a)(2)(ii)(A) entitled “Only One Responsible Source, and No Other Supplies or Services Will Satisfy Agency Requirements.” Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition.

The total dollar amount for this definitization requirement is . This approval is subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Date:

Command Advocate for Competition Army Contracting Command - Redstone