MOP_Sustainment_IDIQ_JA_redac

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

FOR OFFICIAL USE ONLY

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I. Contracting Activity.

The Direct Attack Contracting Division, AFLCMC/EBDK, 207 Foster Dr, Building 15130, Eglin AFB, FL 32542 is the contracting activity supporting this Class Justification for Other Than Full and Open Competition.

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

This is an Individual Justification and Approval (J&A) document for a modification to a current Indefinite Delivery/Indefinite Quantity (IDIQ) contract, FA8681-18-D-0007, with a one (1) year ordering period and a contract ceiling of $4,800,000. This modification will increase the current $4,800,000 ceiling to $26,407,000 and extend the current one (1) year ordering period to five (5) years. This modification will provide continued Contractor Logistics Support (CLS) sustainment of GBU-57 Massive Ordnance Penetrator (MOP) weapon system components, to include KMU-612 tail kits, GBU-57 E/B fuzes, Warhead Case Wings, Carriage and Release Equipment (CARE) and other support equipment as necessary. The anticipated orders under this modification will use a combination of Firm Fixed Price and Cost Plus Fixed Fee contracts.

The Government cannot predetermine the precise quantities of spare components or service requirements required for sustainment of the MOP weapon system beyond the initial anticipated order.

The exact times and/or exact quantities of future deliveries will not be known at the time of contract award. It is inadvisable for the Government to commit itself for more than the minimum quantity.

This action will be issued as a modification to an existing sole source contract to The Boeing Company, 6200 JS McDonnell Blvd, Saint Louis, MO 63134-1939.

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

The MOP weapon system capability was in response to a classified Joint Urgent Operational Need (JUON) to defeat Hard and/or Deeply Buried Targets (HDBTs). The MOP is a 30,000lb GPS guided penetrating weapon developed specifically for this purpose and is the only weapon that can meet this need. A classified FY18 Program Decision Memorandum (PDM) authorized the continued sustainment of MOP weapon systems.

Under the contemplated modification to the existing IDIQ contract, Boeing will continue to provide the following supplies and services in support of all MOP hardware, software, and support equipment:

material management; inventory control point (stock/store/issue); parts replenishment; configuration and data management; quality assurance; packaging, handling, storage and transportation; depot maintenance (repair/overhaul/remanufacture); sustaining and systems engineering; engineering technical support; software engineering support; system integration; diminishing manufacturing sources and material shortages (DMSMS) and obsolescence. Under repair analysis and repairs, Boeing will support the receipt, inspection, and troubleshooting of MOP weapon system hardware (including trainer assets) and recommend problem solution(s), and provide necessary repairs. Boeing will deliver Engineering Technical Support by providing help desk services and resources for the general support and resolution of MOP system issues, to include but not limited to, system component redesign, aircraft integration, and test support associated with weapon system sustainment. The anticipated period of performance for this modification will add an additional four (4) years from the end of the current one (1) year ordering period. The new total ordering period will be five (5) years.

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The new estimated ceiling value of this effort will change from $4.8M to $26.407M, a $21.607M increase, funded with Air Force (AF) Budget Plan (BP) 3400 (O&M such as Sustainment) and 3011 (Production and Production Support) appropriations.

There are no feasible actions that could develop future competition within the extended four (4) year ordering period of the contemplated modification to the existing IDIQ contract. Therefore, it is reasonable to seek approval for more than one Fiscal Year's requirement.

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)(ii)(B) - Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements without unacceptable delays in fulfilling agency requirements, required by FAR 6.303-2(b)(4).

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

Subsection 1 The Air Force's minimum needs can only be satisfied by the supplies and services available from The Boeing Company, 6200 JS McDonnell Blvd, Saint Louis, MO 63134-1939. The MOP weapon system is currently designated as an ACAT IC program and fulfills the need for a capability to defeat specific Hard and/or Deeply Buried Targets (HDBTs). Boeing is the original equipment manufacturer (OEM) and integrator for the MOP weapon system since development began. Boeing possesses integral knowledge of the guidance algorithms, guidance and navigation integration, as well as all hardware components including fuzes and fuze integration. Additionally, as the OEM of the MOP weapon system, Boeing is most qualified to perform expedited integration activities using previously developed proprietary processes to perform manufacturing tasks.

Boeing possesses unique/highly specialized capabilities based on the current Joint Direct Attack Munitions (JDAM) guidance kit technology. The MOP program originated as a technical demonstration utilizing fielded capabilities that together could provide a warfighter capability in an accelerated timetable. This approach, while accelerating the delivery schedule, came with its own set of challenges. For the majority of the MOP weapon system components, technical data packages were not available. As a primary example, a technical data package was not purchased as part of the original JDAM guidance kit Engineering Manufacturing Development contract.

Since the beginning of the MOP Weapons Program, Boeing has managed and maintained professional support on the MOP program to customers within AFLCMC/EB, AFRL, DTRA, and the B-2 Program Office. Boeing possesses proprietary specialized test equipment, utilizing proprietary software to repair the MOP weapon system and they own proprietary rights to the system guidance software. The integration and development of the MOP occurred over the last nine (9) years with the expenditures of approximately $900M. Boeing has been the sole prime contractor for the MOP weapon system, initiating the first baseline weapon in 2009, and pushing MOP through four (4) Enhanced Threat Response (ETR) modifications from 2012 to 2017. Any other contractor would be required to begin the MOP integration effort from the technology development phase and meet the same interoperability standards that Boeing has established with both the Aircraft System Program Office (SPO) and the Fuze vendors, with the MOP Weapon System, to ensure sufficient capability to sustain all variants of MOP weapons that currently exist in the field. The data and expertise derived from the development and subsequent series of ETR modifications of the MOP weapon system under contracts FA8681-09-

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C-0280 and FA8681-15-C-0050 is integral to the sustainment of the components of the weapon system. Boeing is the only known source possessing the facilities, qualifications, and data essential to the satisfactory performance of this effort.

Boeing is currently performing under sole source contracts FA8681-18-C-0038 for production and FA8681-18-D-0007 for sustainment of GBU-57 MOP weapon systems. All components that have been produced under development contracts, FA8681-09-C-0280 and FA8681-15-C-0050, have been fully integrated by Boeing to ensure proper function and performance of the weapon system.

In 2015, the cost estimate for sustainment called for a three (3) year ordering period and a ceiling of $4,800,000, equating to $1,600,000 per year. These estimates, the Streamlined Acquisition Strategy Summary (SASS) dated 22 Feb 2018 and a J&A dated 22 Feb 2016 were used to justify the current CLS Support contract, though the current CLS contract was not awarded until 19 Jul 2018. The current CLS support contract FA8681-18-D-0007 was awarded with a one (1) year ordering period and a contract ceiling of $4,800,000 utilizing the approved program ceiling and remaining period of performance dates as justified in the approved J&A. The Current IDIQ assumed sustainment coverage which had previously been captured through an Interim Contractor Support (ICS) Contract Line Item Number (CLIN) on the FA8681-15-C-0050 contract.

The Program Office has now refined the requirements needed to sustain the MOP weapon system and has created a more accurate cost estimate of approximately $5,401,750 needed per year, substantiating the requested ceiling increase of $21,607,000 for an additional four (4) year ordering period, which realigns the sustainment efforts for this weapon to its signed Life Cycle Sustainment Plan (LCSP) dated 11 Jul 2018.

Therefore, this acquisition will be a modification to a follow-on contract for the continued sustainment of a major system.

Subsection 2 Award to any other source would result in unacceptable delays in fulfilling the Air Force's requirements. When development of this weapon system began, existing technology from the JDAM weapon system was utilized to reduce development costs and expedite fielding of the weapon. JDAM technology represents a key part of the MOP weapon system capability and is not owned by the Government. A technical data package was not purchased as part of the original JDAM Engineering Manufacturing Development contract during the baseline effort in 2009. It is estimated to take at least 54 months for another source to meet this requirement. The Government would have to procure technical data packages that are not available (24 months), provide the packages as part of a source selection (12 months), and then allow for the learning curve associated with a new vendor to meet this requirement (18 months). If the Government is unable to procure all the technical data packages, a new source would require alternative redesign and/or reverse engineering of critical hardware and software aspects of the MOP weapon system. This would result in additional schedule delays in addition to the estimated 54 months. It should be noted, the approved Acquisition Plans for MOP throughout its development did not contemplate the acquisition of the technical data and this funding was never available to procure the package in the past. Furthermore, no future funding is planned for procuring the data package.

Award to another source would (1) cause a lapse in sustainment support for the MOP weapon system;

(2) limit the number of weapons the United States has available to support operational needs, and (3)

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Subsection 3 Accordingly, Boeing is the only firm capable of providing the supplies and services described in Section III above without the U.S. Air Force experiencing 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 Sources Sought Synopsis was posted on FedBizOpps in March 2018 to determine if there were any potential offerors that could provide any or all of the capabilities to sustain the GBU-57 MOP weapon system, to include the KMU-612 tail kits, GBU-57 E/B fuzes, and Carriage and Release Equipment (CARE). Interested vendors were asked to demonstrate their capability to provide any or all capabilities to sustain the weapon system identified in the notice. The Sources Sought Synopsis was issued in order to collect supporting data and documentation on which to support or alter the Government's proposed acquisition strategy for sustainment of the GBU-57 MOP weapon system.

No responses were received in response to this Sources Sought Synopsis.

IAW FAR 5.203(a), a Notice of Contract Action (NOCA) was posted to FedBizOpps, on 16 Nov 2018 with a closing date of 04 Dec 2018, to notify industry of the acquisition and to solicit interest from any other capable sources.

No responses were received in response to this NOCA.

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 final negotiated price of orders are fair and reasonable based upon:

(1) Performing a cost/price analysis IAW FAR 15.404, to include obtaining and analyzing actual costs previously incurred; (2) Accomplishing a cost analysis using rates set forth in the current Forward Pricing Rate Agreement (FPRA) and/or Forward Pricing Rate Recommendation (FPRR); (3) Obtaining a DCAA/DCMA audit of the Contractor's proposed costs, to include any subcontractors' proposals; (4) Performing a technical evaluation from the Engineering Team that evaluates the proposed labor mix, hours, materials, travel, and shipping for reasonableness; (5) Using the Weighted Guidelines (WGL) tool to determine the appropriate profit/fee; and (6) Upon conclusion of negotiations, obtaining a Certificate of Current Cost or Pricing Data from the Contractor in accordance with the Truth in Negotiations Act and FAR 15.403-4.

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

In order to solicit offers from as many offerors as possible, the Contracting Officer considered techniques for conducting market research IAW FAR 10.002(b)(2). First, the Contracting Officer reviewed market research performed previously for the MOP program. The research showed that Boeing was found to be the only company with the relevant capability to fulfill this requirement. The MOP Team (Contracting Officer, Program Manager, and Lead Engineer) also consulted with knowledgeable individuals from the Air Force Research Laboratory and AFLCMC/EBZ personnel to determine if there was any potential for additional source participation. No additional sources that

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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. Finally, the Government consulted with other weapons programs with similar contracts to research any potential innovative practices. To date, no additional sources have been identified. As a result of the market research described above, the Government has a high level of confidence that Boeing is the only source with the required capability to meet this requirement.

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

See Section V above.

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

See Section VI above.

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.

During initial development of this weapon system, existing technology from the JDAM weapon system was utilized to reduce development costs and expedite fielding of the weapon. When the original MOP requirement was issued, purchasing a technical data package, to include JDAM guidance subsystems, for the expected production of 20 MOP systems was determined not to be in the best interest of the Government because of the associated cost, which at the time exceeded $370 million at the prime contractor level alone. The Government will continue to challenge nonconforming or unjustified markings on all technical data and computer software delivered that may inappropriately impair potential follow-on competitive acquisition.

There are no feasible actions that could develop future competition within the extended four (4) year ordering period of the contemplated modification to the existing IDIQ contract. This is a non-competitive modification to a previous award for the same supply or service supported by a J&A citing authority at FAR 6.302-1. In the previous J&A, the program office identified conducting market research and investigating any possible competition opportunities. The program office conducted market research, as mentioned in sections VI and VIII above; however due to the proprietary nature of the MOP weapon system competition for sustainment is limited by the factors and conditions stated in Section V.

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 our signatures above, we certify that any supporting data contained herein, which is

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