KC135ASESJARedacted.pdf

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

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 9

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to all J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: AFLCMC/WKK

Purchase Request / Local ID Number: 19-002

Program / Project (and PE, if applicable): C/KC-135 Avionics Sustaining Engineering Support (ASES)

Program Type (PEO or Other Contracting): PEO

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): $ J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

27 Sep 2019

Program Manager

AFLCMC/WKDMB /

Signature

Date

08 Oct 2019

Contracting Officer

AFLCMC/WKK /

Date

19 Nov 2019

Local Legal Reviewer

72 ABW/JAQ /

Date

14 Nov 2019

Chief of the Contracting Office (COCO)

AFLCMC/PZK /

Date

20 Dec 2019

Competition Advocate

AFSC/PZC /

Date

28 Jan 2020

KC-135 System Program Manager

AFLCMC/WKD /

Date

30 Jan 2020

PEO / Commander (Requirements Cognizance)

AFLCMC/WK /

March 2018 FOR OFFICIAL USE ONLY Page 2 of 9

Date

17 Mar 2020

APPROVAL (AFFARS 5306.304(a) )

Date

March 2018 FOR OFFICIAL USE ONLY Page 3 of 9

I. Contracting Activity.

Contracting Office: Department of the Air Force

AFLCMC/WKDK

3001 Staff Drive Tinker Air Force Base, OK 73145-3021

Purchase Request #: Not Applicable

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

A. The purpose of this class J&A is to increase the ceiling amount from $ by $ to $ on existing contract, FA8105-16-D-0001. This contract supports the C/KC-135 Avionics Sustaining Engineering Support (ASES) program. The existing contract was awarded as a non-commercial, Indefinite Delivery Indefinite Quantity contract.

B. The current ASES effort was awarded to Rockwell Collins, Inc. (CAGE 84T51, formerly CAGE 13499) on 03 April 2016 and expires on 02 April 2023. Due to unforeseen events, there has been an increase in requirements under the current contract primarily attributed to unexpected fleet modifications, research development test and evaluation, technical orders, and Foreign Military Sales.

These increased requirements have depleted the contract ceiling more quickly than expected and were not included in the original contract estimates.

C. The System Program Office has determined the current contract ceiling amount is insufficient to support current and future requirements for the remainder of this contract. Failure to increase the contract ceiling amount will result in the grounding of the C/KC-135 fleet, which has a direct impact on the Air Force's ability to meet mission requirements. The C/KC-135 Avionics Sustaining Engineering Services includes: avionics system engineering support, detailed design engineering, technical analyses, system integration, software operational flight program updates, generation of software code, drawings and technical order development, ground and flight test support, and mishap investigation support.

D. The current contract was awarded sole source based on only one responsible source and no other supplies or services will satisfy agency requirements. The proposed contract ceiling increase of $ is based on the number of aircraft configurations, the number of regulatory and statutory requirements being imposed, the number of system and parts obsolescence issues that are known/anticipated, and the escalating costs of software and hardware development and sustainment. Estimated date of award is 07 May 2020.

E. Rockwell Collins, Inc. shall remain the contractor for future ordering periods. The estimated value of the increase is addressed in Section III. This increase shall include a variety of specific avionics related integration, sustainment, and support efforts. The contract types that will be used on the C/ KC-135 Avionics Sustaining Engineering Services acquisition are Firm Fixed Price (FFP), Cost Plus Fixed Fee (CPFF), and Time and Materials (T&M). Time and Materials shall only be utilized when it is not possible to estimate the extent or duration of the work or to anticipate costs with a reasonable degree of confidence. There is no anticipated increase in T&M dollars as described in the Determination and Findings.

F. This increase is for the remaining three options and 6 month extension of services (52.217-8) for ordering periods 03 April 2020 through 02 October 2023. The existing contract is currently on option year three. The period of performances for Basic, Options and 6 month Option to Extend are as follows:

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Basic: 03 April 2016 - 02 April 2017

Option 1: 03 April 2017 - 02 April 2018

Option 2: 03 April 2018 - 02 April 2019

Option 3: 03 April 2019 - 02 April 2020

Option 4: 03 April 2020 - 02 April 2021

Option 5: 03 April 2021 - 02 April 2022

Option 6: 03 April 2022 - 02 April 2023

Option to Extend Services: 03 April 2023 - 02 October 2023

G. The engineering services included in this increase support the C/KC-135 weapon system. These services provide for sustainment of the C/KC-135 fleet flown by eight major commands, located at 36 locations and during operations worldwide. Assistance is also required at Programmed Depot Maintenance (PDM) facilities.

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

A. Under this Avionics Sustaining Engineering Services increase, Rockwell Collins, Inc. shall continue to provide recurring and nonrecurring avionics engineering services for the C/KC-135.

These engineering support activities include avionics system engineering support, detailed design engineering, technical analyses, avionics system integration, software operational flight program updates support, drawing and technical order development, ground and flight test support and mishap investigation. Wherever possible, all deliverables resulting from these efforts will be provided with unlimited data rights to allow greater flexibility in future engineering activities.

B. The C/KC-135 is scheduled to remain operational until 2046. The contract line items will provide for the services described above. There will be a continuing need for C/KC-135 Avionics Sustaining Engineering Services during this time. Rockwell Collins, Inc. is the original manufacturer and integrator for over 90% of the C/KC-135 avionics, which includes Block 45 (new autopilot, flight director, radio altimeter and engine instrument display), Global Air Traffic Management (GATM) and Pacer Compass, Radar and GPS (CRAG) avionics modifications that provide for a fully integrated avionics solution on C/KC-135 aircraft. The heart of the avionics systems are the dual Integrated Processing Centers (IPCs) that control the functions of all avionics and communications equipment on the aircraft. The IPCs, Multi-Function Displays (MFDs) and Control Display Units (CDUs) were purchased as Commercial Off-the-Shelf (COTS) or Non-developmental equipment missionized to support the C/KC-135 operations, and the software, hardware, and integration documentation for these systems is proprietary to Rockwell Collins, Inc. In order to achieve avionics system integrity for the C/KC-135 aircraft, it is in the best interest of the Government to include the support for all C/ KC-135 Avionics Sustaining Engineering Services under this contract. This enables the Government, responsible for total system operation suitability, safety, and effectiveness, access to the single source with technical knowledge and data for the C/KC-135 avionics/communication systems and its integration.

C. All of the C/KC-135 avionics data required to execute this contract are proprietary to Rockwell Collins, Inc.

D. The estimated funding for the increase under this J&A is shown below. The total for the increase

March 2018 FOR OFFICIAL USE ONLY Page 5 of 9 is $ . Various funding types of appropriations will be used on this contract including:

3400, 3600, 0350, 8242, and 3010. Amounts identified below shall be used to support tasks as referenced in section II. Engineering Services contract staff hours/man hours will be addressed with each Task Order.

Yearly Need Estimate Option 4: $ Option 5: $ Option 6: $ Option to Extend: $ Total: $

E. Due to the circumstances described below in Sections V, IX, XI, there are no immediate actions that could be taken to develop competition. As such, the existing seven-year contract vehicle (a one-year basic contract with six one-year options) is reasonable and appropriate for this effort and is unchanged. 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. 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)(iii), with an application pursuant to FAR 6.302-1(b)(2), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

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

The Air Force's minimum needs can only be satisfied by the highly specialized avionics engineering services previously described in Section III and 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 requirements. These services can only be supplied by Rockwell Collins, Inc. for the following reasons:

i. Rockwell Collins, Inc. is the only qualified source capable of providing total avionic system sustainment for the C/KC-135 avionics suites. The software for the Flight Management System (FMS) and Multi-Function Displays (MFDs) is proprietary to Rockwell Collins, Inc. and as such, Rockwell Collins, Inc. is the only source which has the data, knowledge, and analytical tools to sustain these flight critical systems. Further, the complexity of interfaces, particularly in the area of software and integration, make it imperative that sustainment tasks are awarded to the original developer of the C/KC-135 Pacer CRAG, GATM and CNS/ATM (Block 45) suites, of which Rockwell Collins, Inc. provides 93% of the software and 100% of the integration.

ii. Successful execution of this contract requires unlimited and unrestricted access to avionics related engineering data. The Government did not procure the drawings or software code for the Pacer CRAG or GATM program. Further, the government cannot obtain nor will Rockwell Collins, Inc. release the proprietary rights to Block 45 Line Replaceable Units (LRUs), which are the foundation for avionics for the C/KC-135 following the Block 45 modification.

iii. For other contractors to be successful in reverse engineering the required products in an attempt to provide support would require intrusion into the LRUs. The Government purchased

March 2018 FOR OFFICIAL USE ONLY Page 6 of 9 no rights to the LRU internal drawings or the software coding for any of the systems Operational Flight Programs (OFP). Rockwell Collins, Inc. has stated that the core software programs in the C/KC-135 LRUs were developed by Rockwell Collins, Inc. commercial division on internal funds. This information is vital to the continued success of Rockwell Collins, Inc.

as a commercial provider of Avionics and Communication Systems and they are unwilling to sell any proprietary information regarding said products. Intrusion into the LRUs by other contractors would void the existing warranties (for material or workmanship failures), which provide repair for 10 years after installation. Also, the nature of the equipment provides an Operational, Safety, Suitability & Effectiveness (OSS&E) avionics suite which Rockwell Collins, Inc. maintains through the repair process and verification on the Software Integration Laboratory. Intrusion into the LRUs releases Rockwell Collins, Inc. from ensuring OSS&E is maintained for the system components. The C/KC- 135 avionics suite is a fully digital integrated system where a loss of or malfunctioning LRU propagates failure criteria through the entire avionics suite. Without the proper operational verification of the LRUs, which Rockwell Collins, Inc. retains the sole capability to do, the entire system is compromised.

iv. Rockwell Collins, Inc. uses a KC-135 avionics system Block 40 Software Integration

Laboratory (SIL) to develop and test avionics system, at a private investment of over $20M in 2001 dollars. The $20M estimate is based on obtaining necessary hardware, along with integrating and testing the validated design, associated wiring that replicates the KC-135 aircraft, and the chassis buildup to house the entire avionics platform. A new SIL was developed and built by Rockwell Collins, Inc. for the Block 45 Avionics Upgrade. This effort is an asset utilized for providing engineering support for the new avionics suite. For another contractor to replicate both SILs (Blocks 40 and 45) in 2015 dollars would be over $150M, and take, at least, the three years Rockwell Collins, Inc. needed to complete each SIL. This would add extensive time delays to providing engineering support to both the current and future avionics system. The Block 45 avionics suite estimate is based on government engineering experience for purchase of obtaining necessary data and completion of two SILs to meet the KC-135 mission requirements.

v. Rockwell Collins was competitively selected to upgrade the KC-135 avionics to Block 45. The

Block 45 upgrade program estimated value is $ and to date the Air Force has invested approximately 9 years in aircraft modifications.

vi. Therefore, this acquisition is for continued performance of a highly specialized service.

Accordingly, Rockwell Collins, Inc. is the only firm capable of providing the services described in this section without the U.S. Air Force experiencing duplication of cost and unacceptable delays in fulfilling its requirements.

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

A. In an effort to enhance competition for this effort, AFLCMC/WKDK sent a letter on 10 April 2019 to Rockwell Collins, Inc. requesting the right to purchase the required technical/proprietary data for future C/KC-135 avionics acquisitions. The letter also inquired as to Rockwell Collins, Inc.

willingness to enter into third party licensing agreements. Third party licensing agreements would allow for the use of all data required to effectively sustain the C/KC-135 fleet. In May 2019, Rockwell Collins, Inc. formally responded to the Government's letter stating they are not willing to sell C/KC-135 avionics proprietary data or allow other contractors access to the data through third party licensing agreements.

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B. A Sources Sought Synopsis was published on FedBizOpps on 27 November 2018 and ended on 27 December 2018. The synopsis was titled KC-135 Avionics Sustaining Engineering Services.

There were five responses received. Establishing competition for avionics sustaining engineering would require development of in-depth engineering knowledge that is proprietary to Rockwell Collins, Inc. Development includes generation of software code, engineering drawings and technical manuals which is expected to have a high degree of schedule and engineering risk. The results of the responses confirmed that Rockwell Collins, Inc. is the only qualified source based on their access to the specific C/KC-135 OEM proprietary data and engineering expertise required to perform the work. Rockwell Collins, Inc. has stated they will not sell, provide or allow access to the data.

C. The government contacted The Boeing Company regarding their interest in this effort. Boeing stated that they [The Boeing Company] could not satisfy the requirements without the required data to the KC-135 avionics flight deck. Boeing indicated they would need to subcontract to Rockwell Collins, Inc. Rockwell has indicated it is not interested in working as the subcontractor on this effort.

The government believes this introduces unnecessary added pass-through cost and risk to the schedule.

D. Therefore, only the original equipment manufacturer, Rockwell Collins, Inc., possesses the data necessary to accomplish C/KC-135 sustainment and support. In accordance with FAR 5.201, a "Notice of Contract Action" will be synopsized to alert large and small business to potential subcontracting opportunities. The expected date of publication is 21 April 2020.

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 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.

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

In accordance with FAR 10.001(a)(2), market research has revealed that this is not a commercial services acquisition. In accordance with 10.001(a)(3)(ii), it has been determined that the requirements contemplated in this acquisition cannot be restated to permit use of commercial services. As described in Section VI above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.

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. Efforts by the government to acquire a license from the OEM have been unsuccessful.

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

Rockwell Collins, Inc.

400 Collins Rd. NE Cedar Rapids, IA 52498 Cage Code: 84T51

The Boeing Company 6001 South Air Depot Blvd Oklahoma City, OK 73135 Cage Code: 1N929

L2 Consulting Services 2100 East Highway 290 Dripping Springs, TX, 78620 Cage Code: 4JRP3

Southwest Research 2701 Liberty Parkway Suite 302 Midwest City, OK 73110 Cage Code: 26401

Support Systems Associates 709 S. Harbor City Boulevard, Suite 350 Melbourne, FL 32901-1936 Cage Code: 60877

3D Printer Technology 1000 Parkwood Circle Suite 900 Atlanta, GA 30339 Cage Code: Unknown

See Section VI for more detail.

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 is not aware of any source other than Rockwell Collins, Inc. that possesses the historical knowledge, design and production data, experience, expertise and facilities to provide this support. As a result of continued refusal by the sole source contractor to provide or license data as well as the duplication of cost of developing additional sources and unacceptable delays 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 DFARS 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.

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XII. Certification by the Contracting Officer.

The contracting officer's signature on the Coordination and Approval Document evidences that they have determined this document to be both accurate and complete to the best of their 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).