JA WCMD TM Kit_Redacted.pdf

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

FOR OFFICIAL USE ONLY

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I. Agency and Contracting Activity.

Department of the Air Force AFLCMC/EBHKA, Precision Guided Munitions Contracting Section Bldg 1233 6072 Fir Ave Hill Air Force Base, UT 84056 Contracting Officer: Kellee D. Grose

DSN: 777-4245

PR Number: FD2020-20-50139

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

A. Upon approval to use other than full and open competitive procedures, the United States Air Force will issue a new Basic Order of Agreement (BOA) production contract for Wind Corrected Munitions Dispenser (WCMD) Production Telemetry Kits, referred to as WCMD Telemetry Kit. The WCMD Telemetry Kit is an integrated telemetry and instrumentation package that attaches to the aft end of an operational WCMD-variant guided tail kit weapon and is used to gather in-flight data regarding the operation of the weapon from release to dispense. There will be no Foreign Military Sales (FMS) or North Atlantic Treaty Organization (NATO) projects performed on this contract. No commercial use for this contract.

B. The contract action will be awarded to the following qualified contractor:

L3Harris Technologies 1515 Grundy's Lane Bristol, PA 19007 CAGE Code: 63516

C. Contract Type and Structure: A new, five-year Firm Fixed Price (FFP) Basic Ordering of Agreement (BOA) production contract for WCMD Telemetry Kit. The estimated award date for the (BOA) and first delivery order is SEP 20. The period of performance (PoP) will be an ordering period from SEP 20 to SEP 25, with expected delivery through SEP 26. Each delivery order will have a 12-month PoP. Previous contract (FA8213-17-G-0001) Sole Source - Awarded SEP 17 under a 5 year Basic Ordering Agreement with Period of Performance SEP 17 - SEP 22, but cut short through an amendment due to Lockheed Martin wanting to out of the WCMD Munition Support.

D. Total Estimated Value: $4,009,000.00

E. Type J&A: Individual

III. Description of supplies/services required to meet agency needs (including the estimated value).

This contract is for the production of WCMD Telemetry Kit; using 3011 funds. The WCMD Telemetry Kit is an integrated telemetry and instrumentation package that attaches to the aft end of an operational WCMD-variant weapon and is used to gather in-flight data regarding the operation of the weapon from release to dispense. The WCMD Telemetry Kit are necessary to support Weapon System Evaluation Program (WSEP) and Aging & Surveillance flight testing, and are key to determine inventory health and warfighter readiness. The estimated award date for the BOA and first delivery order is SEP 20. The period of performance (PoP) will be an ordering period from SEP 20 to SEP 25, with expected delivery through SEP 26. Each delivery order will have a 12-month period of performance (PoP).

CLIN: Item #: 0001 WCMD Telemetry Kits

Considered deliverables:

Statement Of Work (SOW) Integrated Program Management Report (IPMR)

Each year the ordering quantity will vary based on the budget. Forecasted ordering below:

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Order Year 1 - = 38 TM Kits (3011 Funds & 3600 Funds w/A-10 Program) Order Year 2 - = 11 TM Kits (3011 Funds only) Order Year 3 - = 11 TM Kits (3011 Funds only) Order Year 4 - = 11 TM Kits (3011 Funds only) Order Year 5 - = 11 TM Kits (3011 Funds only)

Rationale for 5 year BOA versus 1 year contract to competition: Program Office seeks the 5 year BOA to maintain continued support for WCMD Telemetry Kits to maintain WCMD guided tail kit munition stockpile per HAF/A5 OPLAN 2026. This BOA allows for that and through this agreement it also allows for interruption to re-compete if other qualified vendors become available and identify they would like to contract with the USG. The Program Office as well the USG would prefer to find an alternative Small Business that can perform this function at a significant lower nominal rate and maintain highly technical expertise, however, based on past history and our recent market research we do not see such opportunity within the industrial base. We are seeking approval for more than one FY funding as this effort has a five year ordering period.

IV. Statutory authority permitting other than full and open competition.

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, required by FAR 6.302-1(a)(2)(ii).

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

A. The above authority was selected because this requirement is for highly specialized equipment. The WCMD Telemetry Kit and all required data were designed, developed, and currently produced by L3Harris Technologies. The complex technical nature of the WCMD Telemetry Kit and subcomponents provides the program the required development, aircraft integration, mission planning, flight test and software/hardware support efforts. Currently, L3Harris Technologies is the currently the only known qualified vendor capable of providing the supplies described in Section III. Therefore, this acquisition will be a follow-on contract for the continued production of highly specialized equipment.

B. The Area Attack Program Office believes that award to any other source would result in substantial duplication of cost to the government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Air Force's requirement. Duplication costs are estimated based on WCMD contract and production history. Increased competition would require reverse engineering of the WCMD guided tail kit and subcomponents, and building/developing new special test equipment (with associated procedures) needed to maintain the function system integrity and ultra-precision quality of the WCMD guided tail kit. Reverse engineering would require a contractor to build an entirely new tail kit, to include production line, facilitation, and establishing a trained workforce integrating the WCMD Telemetry Kit on eight different aircraft platforms. The delay associated with pursuing greater competition would result in delays of 12-18 months based on WCMD contract and production history. Delays result from duplicated software/hardware development on new telemetry kits that work with new tail kit, developing new simulators and new depot test equipment. The program office is only tasked with providing telemetry kits for the WCMD guided tail kits; therefore, the additional cost and delays of competition for a new WCMD guided tail kit and WCMD Telemetry Kit would not be recovered. The unacceptable delay to the Program would impact the aging and surveillance of the weapon stockpile and mission readiness to support the warfighter.

C. The Government requested the cost to purchase government purpose rights to WCMD Telemetry Kit design and processes that support the production of WCMD Telemetry Kit back in JUL 16. Vendor was not willing in selling the data rights to the telemetry kits. Furthermore, the Government attempted to obtain the technical data and special test inspection equipment /procedures for the WCMD guided tail kits and subcomponents in MAR 20 and L3Harris responded "L3Harris has been making this product, and telemetry products for various weapon systems for many, many years. Therefore there is a high level of expertise that we bring to the table. If our TDP was provided to another manufacturer there is obviously no guarantees that they could successfully produce the WCMD Telemetry kit. Also, there are suppliers to L3Harris that provide major sub-assemblies for the WCMD Telemetry Kit, which may not be willing to provide any detailed technical design data (schematics, BOMs, etc) for their designs. That said, if you provide

March 2020 FOR OFFICIAL USE ONLY Page 4 of 5March 2020 FOR OFFICIAL USE ONLY Page 4 of 5 us with a list of TDP items required in an RFQ, I can bring this forward to upper management and we could provide a formal RFQ response." Currently L3Harris Technologies is the only capable company of meeting the requirements described in Section III above without the U.S. Air Force experiencing substantial delay and duplication of cost that could not be expected to be recovered through competition of this legacy system. Ultimately, L3Harris Technologies sub-contractors would not support the selling of their portions of the Telemetry Kit Schematics which would leave the USG in a position without a full TDP.

VI. 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 Sough Synopsis (SSS) - Post Date: 6 Jan 2020; Close Date: 5 Feb 2020. A Sources Sough Synopsis announcement (FA8213-20-RTELK) was posted to beta.sam.gov. The Sources Sought Synopsis informed potential contractors of an opportunity to produce a Telemetry Flight Kit, that will be installed on a WCMD-variant weapon, to provide a weapon information stream to a ground station. See results in Section X.

B. Synopsis of Proposed Contract actions: This acquisition will be synopsized in the beta.sam.gov as a notice of contract item IAW FAR 5.201. If other sources express interest as a result of this synopsis or other actions, they will be listed in the official file.

C. Other Actions: None

D. Qualify Country Sources: None

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

The following steps will be taken to ensure that the anticipated cost of this acquisition will be fair and reasonable: The contracting officer will comply with the procedures and criteria contained in the Federal Acquisition Regulation (FAR) under Part - 30 Cost Accounting Standards, Part 31 - Contract Cost Principles and Procedures, Subparts 15.4 - Contract pricing; to include technical evaluations and audits, as appropriate. Additional steps to ensure price reasonableness will be under the guidance of the Contract Pricing Reference Guides, jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology. The contracting office will obtain certified cost or pricing data IAW FAR Subpart 15.403 if the value of an individual contract exceeds $750,000 unless an exception exists. Detail documentation and justification of price reasonableness will be contained within the contract file at Tab 50.

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

Market research conducted techniques were used via the Internet, Government databases, through RFI's, Government contacts, known vendors of product and or sources, through obtained source lists, and Sources Sought Synopsis via Betasam.gov. There were several companies that expressed interest and capability to develop and build their own version of a Telemetry Kit. The US Government has previously paid the OEM to develop the WCMD Telemetry Kit, however, the Government did not purchase the TDP. It is currently not the Government's requirement to develop an additional Telemetry Kit as that would result in a duplication in costs and a delay in schedule as described in Section V of this justification document.

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

N/A

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

L3Harris Technologies - 1515 Grundy's Lane, Bristol, PA 19007 (Cage Code: 63516) - Has been current provider of WCMD Telemetry Kits to Area Attack Program office and has the expertise, capability, all the required TDP to produce a qualified WCMD Telemetry Kit for the USAF needs.

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CoAspire - 4031 University Drive Suite 408, Fairfax, VA 22030 (Cage Code: 6UKK9) - Does not have any expertise, capability, or TDP, but has expressed interest in gaining the knowledge on how to produce a qualified WCMD Telemetry Kit to then become Competitive in the future for USAF needs. However, they are not capable of meeting the Governments requirements at this time.

Microwave Technologies - 3069 Edison Furlong Rd., Furlong, PA 18925(Cage Code: 1B1B1) - Does have limited expertise within telemetry technology, but currently lacks capability and TDP and also has expressed interest in gaining the knowledge on how to produce a qualified WCMD Telemetry Kit to then become Competitive in the future for USAF needs. However, they are not capable of meeting the Governments requirements at this time.

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.

A. The Government has taken action to provide all other interested vendors in this solicitation a copy of Government specification of telemetry requirement for Wind Corrected Munition Dispenser (WCMD) and the steps how to get their version of WCMD Telemetry Kit certified if they choose to pursue: complete a First Article Test, verify WCMD compatibility, and complete a flight test on either F-15 or F-16. After then they would be qualified to compete their version of the WCMD Telemetry Kit and the Government then would re-compete the Telemetry Kit production contract.

B. To facilitate future competition the Government will continue every two years to pursue purchase of TDP from the current contractor, L3Harris Technologies and their sub-contractors to ensure full TDP for the current WCMD Telemetry Kit design.

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.

XIII. 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.