JustificationRedactedFD20302001262.pdf

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FD20302001262 1

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

United States Air Force

AFSC/PZA

3001 Staff Drive Tinker AFB, OK 73145

Purchase Request (PR): FD2030-20-01262

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

This individual Justification and Approval (J&A) authorizes the use of other than full and open competition procedures to obtain a new follow-on, firm-fixed price requirements-type contract for the repair of B-52 Multi Function Color Display (MFCD). The contemplated contract is for a repair service from Raytheon Company, Indianapolis, Indiana. Cage Code 072E5. A requirements type contract with a 1-year basic ordering period and four 1-year option periods is considered to be appropriate for this acquisition. This repair service is considered noncommercial and is not a bridge action. The estimated total value of this award is $9,428,312.00 with an estimated award date of Nov 2021.

Previous Contract Numbers: FA8117-17-D-0002 Date of Award: 15 Nov 2016 Completion Date: 14 Nov 2021 Basic Award: Sole Source

III. DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET AGENCY NEEDS

Under the contemplated contract, Raytheon Company will provide the following services for repair of the B-52 MFCD.

CONTRACT SUMMARY

ESTIMATED DATES ESTIMATED DOLLARS

BASIC 11/15/2021 - 11/14/2022 $

OPTION I 11/15/2022-11/15/2023 $

OPTION II 11/15/2023-11/14/2024 $

OPTION III 11/15/2024-11/14/2025 $

OPTION IV 11/15/2025-11/14/2026 $

OVER AND ABOVE ) 11/15/2021-11/14/2026 $

EXPEDITE FEE ( ) 11/15/2021-11/14/2026 $

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CLIN #0001: Repair

NSN: 6610-01-632-3364

P/N: 761HN0100

Noun: Multi Function Color Display Application: B-52 Item Description and Function: The MFCD displays targeting data from the targeting pod.

Yr Qty Unit Price Estimated Dollars

Basic 50 $ $

Option I 50 $ $

Option II 50 $ $

Option III 50 $ $

Option IV 50 $ $

Type of appropriation: 97X4930 Total Line Item 0001 PR Dollars:

CLIN #0002: No Fault Found

NSN: 6610-01-632-3364

P/N: 761HN0100

Noun: Multi Function Color Display (MFCD) Application: B-52 Item Description and Function: The MFCD displays targeting data from the targeting pod.

Funds for NFF will be de-obligated down from the repair line item as needed by re-alignment modification. This will effectively be a reduction in cost for each occurrence. Estimation is unnecessary.

CLIN #0003: OVER AND ABOVE (O&A) TO BE NEGOTIATED (TBN)

NSN: 6610-01-632-3364

P/N: 761HN0100

Noun: Multi Function Color Display (MFCD).

Application: B-52

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O&A is to be negotiated (TBN) and is estimated by using of the total estimated repair dollars. O&A costs are estimated at .

Type of appropriation: 97X4930

CLIN #0004 SURGE EXPEDITE FEE TO BE NEGOTIATED (TBN)

NSN: 6610-01-632-3364

P/N: 761HN0100

Noun: Multi Function Color Display (MFCD) Application: B-52

An increment of is included in the dollar estimate to address any impact on (funds, quantity, services, period of performance etc.) which may arise due to any possible surge requirements associated with this acquisition. Expedite Fee is to be negotiated (TBN) and is estimated by using of the total estimated repair dollars. Expedite Fee costs are estimated at Type of appropriation: 97X4930

CLIN #0005 DATA

Not separately priced (NSP) Data IAW DD 1423 Contract Data Requirements List (CDRL).

TOTAL PR DOLLARS:

Due to the circumstances described below in Sections V, IX and XI, there are no immediate actions that could be taken to develop competition. Therefore, it is considered appropriate to seek approval for more than one fiscal year’s requirement. If other qualified or approved sources become known during the life of this contract, full and open competition will be utilized to the maximum extent practicable.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 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)

Raytheon Company (OEM) is the only known contractor that has the data, parts, expertise, tools and test equipment necessary to repair above mentioned items from Section III.

Although the Government realizes that it has unlimited usage rights to form, fit and function data as well as data related to operation, maintenance, installation, and training; such rights are insufficient for purposes of meeting the Government’s needs. The repair data and acceptance test criteria needed to foster competition for repair is not available to the Government and it is not possible to draft adequate specifications for this repair effort.

FD20302001262 4

Raytheon Company possesses unique equipment and capabilities (such as test equipment, acceptance test software, theory of operation/architecture, assembly/disassembly procedures, material provisioning and selection criteria, fault diagnostics, shop practices, replacement parts, trained personnel, etc.) derived from knowledge and expertise gained during previous production and repair of these items.

Raytheon Company is the only certified source that has the equipment/tooling, repair data and personnel to satisfy the Air Force’s minimum need. This repair process is highly specialized because it uses unique test equipment, test software and test procedures designed specifically to troubleshoot and repair the MFCD. Therefore, this acquisition will be a follow-on contract for the continued performance of a highly specialized service.

Raytheon Company replied to the government’s request for data on 27 May 2020, but were unable to provide a Rough Order of Magnitude (ROM) for pricing of the data.

If another company were to submit a Source Approval Request (SAR) package, obtain the data and show the ability to obtain obsolete parts for repair, it is anticipated the Government would experience unacceptable delays in fulfilling agency requirements.

The 422 Supply Chain Management Squadron (SCMS) believes that award to any other source would result in unacceptable delays, estimated to be three years or more for the SAR approval process and start fulfilling the Air Force’s requirements. These items are critical application items. Development of additional sources to produce these parts is not feasible within allowable timeframes. Delays in repair have the potential of disrupting the availability of the B-52 weapon system, thereby leaving the Air Force unable to meet critical mission requirements and hampering the Air Force’s ability to execute its global mission.

Accordingly, Raytheon is the only firm capable of providing the services described in Section III above without the Air Force experiencing unacceptable delays in fulfilling it’s requirements.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS PRACTICABLE

In accordance with FAR 5.201, this requirement shall be synopsized and the request for proposal posted in www.beta.sam.gov website.

A Sources Sought Synopsis (SSS) was posted 6 Oct 2020 under the reference number FA8117-20-SS-0017-01, with a close date of 13 Oct 2020. The SSS included the NSN, part numbers, and best estimated quantity (BEQ) for this acquisition requesting information, pursuant to FAR 10, in support of market research to identify potential sources for the repair of the NSNs listed. The Government received no response to the synopsis.

Currently, no additional sources have submitted Source Approval Request (SAR) packages to the Small Business Office. Raytheon continues to be the only approved source based on the most current Contract Repair Screening Analysis Worksheet.

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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 15.4, the contractor will be required to provide Certified Cost or Pricing Data and/or Other Than Certified Cost or Pricing Data to support the Government’s evaluation of the proposed cost. A detailed cost analysis and/or price analysis will be performed on the proposed skill mix of labor, labor hours, types and quantities of material and other direct and indirect rates, and will be negotiated by the Government based on recommendations from the Defense Contract Management Agency

(DCMA) and expert technical personnel supporting the program. 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

Market research, IAW FAR 10, was conducted by a multi-functional team consisting of the Item Manager, Equipment Specialist, Logistics Officer, and Engineer. The conducted research consisted of a review of Parts Manufacturer Approvals (PMA), HAYSTACK, and web search on subject P/Ns that did not reveal any additional sources of repair. In addition, a Sources Sought Synopsis was issued 6 Mar 2020, with no responses received.

Regardless of the type of contract used, the following is required: Government Source Inspection (GSI), Configuration Control (Class I and Class II Change approval), and in-plant DCMA contract administration. Due to the complexity and criticality of the item, only preapproved sources can meet USAF requirements. The item is currently included on the 848th Master JQR listing which defines the Government pre-award qualification requirements. This qualifiation requirement listing is synopsiszed periodically as required and provides a notice/instructions to industry of the process in order to become a qualified source.

IX. 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 production level drawings (or repair data, as applicable)] is necessary to accomplish the tasks for this acquisition. 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 on 24 April 2020 when the Logistics Officer sent the OEM a letter requesting

FD20302001262 6

rights to technical, maintenance and manufacturing data. The OEM responded on 27 May 2020 stating Raytheon was unable to provide the ROM for the data.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE

ACQUISITION

Raytheon Company Cage 072E5

6125 E 21st St Indianapolis, IN. 46219-2001

Phone: 310-647-9438

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 Raytheon 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.

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 he/she has determined this document to be both accurate and complete to the best of his/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).