LM_SEWS_I_JA_24_Mar_17_FINAL_SIGNED_Redacted.pdf

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

FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLYUpdated: 15 Mar 16

I. Contracting Activity.

The contracting activity is the Air Force Life Cycle Management Center (AFLCMC), Directorate of Contracting for Strategic Warning and Surveillance Systems Division (HBQ), Hanscom AFB, MA 01731-5000.

The Contracting Officer is Ms. Andrea Pitt, NH-03; telephone DSN 834-3493, Peterson AFB, CO 80914. This action is identified as "Justification for Other Than Full and Open Competition."

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

This in an individual Justification and Approval (J&A) for a contract modification to extend the Shared Early Warning System (SEWS) ordering period for contract FA8707-12-D-0003 with Lockheed Martin (9970 Federal Dr, Colorado Springs, CO, 80921; CAGE Code 7LW38) for a total of six (6) months. The current ordering period ends 31 March 2017 with current sustainment service Task Orders ending 30 September 2017. As of February 2017, $57,208,404 has been obligated against the current SEWS contract vehicle. The current SEWS contract ceiling of $78,258,000. The six (6) month ordering period extension will not require an increase to the aforementioned IDIQ ceiling amount. The purpose of extending the ordering period for the current SEWS contract is due to the Program Office being notified by SAF/IA of the addition of up to three (3) new Foreign Military Sales (FMS) cases/partners (herein referred to E4, E5, E6) which could require services under the current SEWS contract vehicle before SEWS II is awarded. Extending the ordering period is required to allow the Program Office to execute new Task Orders/Delivery Orders for new country support.

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

The current SEWS contract is a single award IDIQ contract with Lockheed Martin with a contract ceiling of $78,258,000. This contract includes five (5) years of US sustainment, research and test and equipment refresh for all US sites. It also includes continued FMS case support with the flexibility to add up to ten (10) new customers (FMS and non-FMS) over the five (5) year ordering period. No new customers (FMS or non-FMS) were added during the current ordering period. Upon modification execution, the new ordering period will end 30 September 2017. In accordance with the basic SEWS contract clause F031, Ordering Periods (Mar 2010), (b) “Individual orders may be issued during the ordering period. The period of performance for each individual order issued will be specified within the individual order and may extend beyond the expiration date of the ordering period of this contract for an additional twelve (12) months maximum.”

Lockheed Martin provides the following services in sustainment of the SEWS program: Operations, Maintenance, and Support (OM&S), and sustainment to the SEWS Program under Air Force Space Command (AFSPC) responsibility, System support is required for Depot and Organization-level maintenance, design, modification, modernization, integration, sustainment, logistics, configuration management (CM), systems engineering, Cybersecurity, familiarization training, 24-hour system troubleshooting, emergency maintenance, and external interface sustainment. Product support provides export control and releasibility planning, equipment acquisition and installation, software configuration and CM.

IV. Statutory authority permitting Other than Full and Open Competition.

10 U.S.C. 2304(c)(1) and as implemented by FAR 6.302-1, only one responsible source and no other

FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLYUpdated: 15 Mar 16 supplies or services will satisfy agency requirements, as required by FAR 6.303-2(b)(4); specifically, FAR 6.302-1(a)(2)(iii)(B), the services are deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in unacceptable delay in fulfilling the agency's mission.

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 incumbent contractor, Lockheed Martin, has provided OM&S and sustainment services to the SEWS ACAT III Program for nearly 15 years. The competitively bid current SEWS IDIQ contract (FA8707-12- D-0003) was awarded to Lockheed Martin in April 2012 with the ordering period ending on 31 March 2017.

All current sustainment service task orders end 30 September 2017. From 2002-2012, SEWS received support from Lockheed Martin through the Integrated Space Command & Control (ISC2) contract.

Lockheed Martin already has the highly specialized skills required and the qualified personnel in-place to sustain SEWS and provide support to new FMS partners, as needed.

Lockheed Martin possesses the highly specialized qualifications required to support the SEWS program. All Lockheed Martin incumbent personnel possess the necessary security clearances and foreign travel visas required to ensure worldwide OM&S and sustainment support

No other contractor would be able to obtain these qualifications in the required time needed to ensure no gap in service.

The SEWS 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 requirements. Should new contractor personnel be required to obtain required security clearances and travel visas, It is estimated that it would take 6-9 months to obtain the qualifications to successfully support the SEWS Program Office by providing vital missile warning data to foreign partners.

As the incumbent, Lockheed Martin is the only contractor that can provide the services required before the SEWS II competition is completed. The 31 March 2017 end of the current ordering period provides insufficient time to award new sole source task orders to the incumbent to provide services for new FMS partners.

Waiting for SEWS II to be awarded would cause unacceptable delays in fulfilling the agency's requirements because the agency would be unable to meet the need date of its FMS partner(s) which would leave such partner(s) unacceptably vulnerable to missile attack. SEWS has responded to Air Force Security Assistance Center (AFSAC) specifically for E5 and the Letter of Offer and Acceptance (LOA) has been sent to the country for signature, with expected return date of April 2017. The Government has received Letters of Request (LORs) for E4 and E6. A site survey for any of the new countries could be required as early as May 2017 which is before the anticipated SEWS II award date.

Accordingly, Lockheed Martin is the only firm capable of providing the supplies and services described in Section III above without the US Air Force experiencing unacceptable delays in fulfilling its requirements.

Furthermore, Lockheed Martin, through the SEWS contract vehicle, is the only contractor that can provide the services required by the new FMS partners before the SEWS II competition is completed.

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

A Notice of Contract Action (NOCA) was posted to FedBizOpps on 10 March 2017 with responses due 17 March 2017. No responses were received which indicates that Lockheed Martin is the only contractor that can ensure continued services for the SEWS Program Office until SEWS II is awarded.

FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLYUpdated: 15 Mar 16

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

The Contracting Officer intends to issue a bilateral, no-cost modification, extending the current SEWS contract ordering period. As of February 2017, $57,208,404 has been obligated against the current SEWS contract vehicle. The six (6) month ordering period extension will not require an increase to the aforementioned IDIQ ceiling amount.

If new task/delivery orders are issued, the Contracting Officer will determine fair and reasonableness based on comparison of proposed prices to historical prices paid for the same or similar items and/or comparison of proposed prices with independent Government estimates.

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

A Notice of Contract Action (NOCA) was posted to FedBizOpps on 10 March 2017 with responses due 17 March 2017. No responses were received which indicates that Lockheed Martin is the only contractor that can ensure continued services for the SEWS Program Office until SEWS II is awarded.

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

This effort allows for continued services to be provide by Lockheed Martin to the SEWS Program Office to ensure there is no gap in providing critical missile warning data to COCOMS and foreign partners.

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

As stated above in Section VI, the Government has effective and sufficient competition for SEWS II.

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 currently engaged in the Source Selection for the SEWS follow-on contract which was conducted as a Small Business set-aside. The SEWS II RFP was released on 22 September 2016 and proposals were received on 23 November 2016. Anticipated award date is 1 July 2017.

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 signature above, I certify that any supporting data contained herein, which is my responsibility, is both accurate and complete.