MRO-MROS_JA-Final_Signed_(Redacted).pdf

CONTROLLED UNCLASSIFIED INFORMATION

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

CONTROLLED UNCLASSIFIED INFORMATIONAugust 2023 Page 4 of 9 and reliable asset balances for Programed Depot Maintenance, Engine Overhaul, and Supply Chain readiness for the DAF and over 50 partner nations. Second, 448th managers and mission partners will now have access to a unified platform, which enables better collaboration, communication, and alignment to common goals. AFSC processes such as the Requirement Review/ Depot Determination (R2D2), Strategic Sourcing Programs, and Asset Reconciliations stand to gain the most benefit. Third, MRO-S has the ability to seamlessly integrate with mission-partner systems (e.g. financial, Product Lifecycle Management, Item Catalogs, and Maintenance) which will reduce interfaces and provide a holistic view of AFSC operations. AFSC and its mission partners will see improvements in the identification and resolution of discrepant/counterfeit materials, faster/more accurate technical data reviews and updates to support source approval processes, advanced manufacturing qualifications, and engineering dispositions. All these functions will improve customer support by reducing lead time and rework. Overall, implementing MRO-S gives the AFSC and 448th improved data integrity, operational efficiency, and better decision-making capabilities, ultimately leading to a more agile and responsive supply chain.

Cost & Appropriation. The appropriations to acquire these services include Capital Improvement Program - Maintenance (CIP-M) and Capital Improvement Program - Supply (CIP-S). The total estimated cost/price is

, including for travel and for Other Direct Costs (ODCs). This includes the potential to add the MRO portion of the effort onto the contract in March 2025 instead of the current MRO contract executing an extension (if determined to be in the best interest of the Government). The base year and each option year includes for travel and for ODCs. The Extension of Services (EoS) includes for travel and for ODCs. The total length of the contract is 66 months including four options and a six (6)-month Extension of Services (EoS).

The period of performance through Option 3 will encompass the current development, migration and integration schedule to incorporate MRO-S requirements within MRO. However, given the number of legacy systems being retired or partially replaced and associated development and migration risk that could be realized during execution, an additional option period is required. Option 4 is included to ensure adequate time to accommodate any fluctuations or delays in the schedule, funding, and mitigating risk to the greatest extent possible. This affords the Government the opportunity to reach the goal of transitioning MRO and MRO-S to sustainment through a competitive acquisition following the contract proposed in this J&A. If the risks are not realized, the Government expects to transition to sustainment, through competition, at the end of Option 3. The estimated delay is based on program history and lessons learned on recent and similar SI transitions on the Defense Enterprise Act & Management System (DEAMs), Program and Budget Enterprise System (PBES), and Integrated Logistics System- Supply (ILS-S) efforts.

The anticipated periods of performance and associated cost/price to include labor, travel and ODCs include:

Base: 21 Jan 25 - 20 Jan 26 Option 1: 21 Jan 26 - 20 Jan 27 Option 2: 21 Jan 27 - 20 Jan 28 Option 3: 21 Jan 28 - 20 Jan 29 Option 4: 21 Jan 29 - 20 Jan 30 EoS: 21 Jan 30 - 20 Jul 30

CUN Structure & IP. This acquisition will include a separately priced firm-fixed price (FFP) Contract Line Item Number (CUN) for intellectual property (IP). The Government will have unlimited rights to all data submitted under this contract. All development will be conducted on a DAF managed Cloud system and will be fully funded by the Government. Development will not be conducted on any contractor owned system and no portion of this requirement is funded by the contractor. The contractor will be required to provide all IP generated documents to the Government, to include the attached Contract Data Requirements List (CDRL) submissions. This acquisition will include Defense Federal Acquisition Regulation (DFARS) clauses and provisions to protect and satisfy the programs requirements. See Figure 2, for all priced deliverables and clauses required. All underlying licenses, to include

CONTROLLED UNCLASSIFIED INFORMATIONAugust 2023 Page 7 of 9 a single material MRO/MRO-S solution. Integrating supply into the current MRO solution is no small feat. Oracle EBS provides excellent best practices out of the box (00TB), but there are still configuration decisions that need to be aligned in the integration of these major functional areas. With a single SI, the integrated suite will be delivered by an expert in EBS integration configuration, ensuring a streamlined process.

There is also a very high risk in assuming a new SI will be able to re-badge incumbent employees or subcontract to the incumbent for a portion of this work. It is common in Government contracts for new Si's to hire and re-badge incumbent contractor employees for the purpose of maintaining continuity and institutional knowledge within a program. Based on the one-on-one industry session, stated they hire employees based on a career-based model versus a project-based model. There is no certainty that key positions would transfer over, and any effort to subcontract to incumbent employees can introduce new layers of complexity in management, communication, accountability, and potential conflicts of interest. Any strategy of re-badging current employees to retain institutional, process, or corporate knowledge of the MRO ERP baseline solution is not a reliable and effective strategy.

Substantial Duplication of Costs

In addition to the unacceptable technical and schedule risks detailed above, the Government anticipates a substantial duplication of costs of following a competitive acquisition awarded to a new SI. The following factors contribute to this unrecoverable cost of competition: IP documentation review, 12 months of source selection, increase in SCRUM team support upon spinning up and transitioning to a new SI, as well as maintaining and integrating legacy systems over this time frame. Based on an Independent Government Cost Estimate (IGCE), maintaining the 11 legacy supply systems in GB4 alone is per year, and the additional labor cost of the average of 10 scrum teams is another . Combined, the costs of a one-year delay, just for the competition, would be . A new SI in a competitive environment could cost the Government an additional in cost. Labor costs for 12 and 24 months are outlined below:

12-Month Delay:

-An average of 10 scrum teams at 12-months,

- Legacy supply systems upkeep at 12-months,

- 12-month delay cost is (in addition to IGCE at ) Total cost

24-Month Delay:

-An average of 10 scrum teams at 24-months,

- Legacy supply systems upkeep at 24-months,

- 24-month delay is (in addition to IGCE at ) Total cost .

Accordingly, is the only firm capable of providing the supplies and services described in Section Ill above without the Government experiencing unacceptable delays and substantial duplication of cost, and increased risk that could not be recovered through competition.

V. 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 Sought (SS)/Request for Information (RFI) - ID FA8770-24-MRO_MRO-S - was posted to System for Award Management (SAM.gov) on 05 April 2024 with final responses due on 26 April 2024.

The Government received and accepted six (6) requests for one-on-one sessions. The one-on-one sessions were conducted via Teams on 15 and 16 April 2024. The respondents were allowed to have five (5) participants on the Teams call. These one-hour sessions yielded a total of 77 questions for clarification of the SS/RFI and Statement of Objectives (SOO). As a result of the questions received, an amendment to the SS/RFI was posted to SAM.gov on 19

CONTROLLED UNCLASSIFIED INFORMATIONAugust 2023 Page 9 of 9

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

N/A

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

See Section V above.

X. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

The Government intends to sustain MRO-S through a competitive acquisition following the contract proposed in this J&A. To that end, the Government will secure all data rights to allow for full and open competition in the sustainment phase. Additionally, the Government will require a subcontracting plan with significant small business opportunities including matchmaking efforts.

IP/Data Rights. The Government has unlimited rights to all data and configuration files for MRO and will have the same for MRO-S. All development will be conducted on a DAF managed Cloud system and will be fully funded by the Government. Development will not be conducted on any contractor owned system and no portion of this requirement is funded by the contractor. The contractor is required to provide all IP generated documents to the Government, to include the attached Contract Data Requirements List (CDRL) submissions. The Government has secured unlimited rights in technical data and documentation under

FA8770-20-F-0008 in accordance with 252.227-7013, Rights in Technical Data--Other Than Commercial Products and Commercial Services. DAF will have unlimited rights in all IP generated as a result of configuration and development, and will include, but not be limited to, items such as release notes, automated test materials, installation and maintenance scripts, configuration setups within the Software Development Kit (SDK), Air Force unique configurations or development, and data dictionary and attribute matrix for interfaces and data load.

Small Business/Matchmaking. A Small Business Subcontracting Plan is required as part of this acquisition and will be reviewed and approved by the cognizant PM and PCO prior to award. Market research demonstrated there is small business interest in various aspects and capabilities of MRO-S. The Government will work closely with the prime to ensure significant space is made for interested and capable subcontractors. This will increase small business participation and the number of companies and personnel able to support all or some of MRO-S when the sustainment requirement is competed. There is small businesses interest and niche capabilities that could be a viable option for inclusion in this effort. The Government will pass along the information on the interested small businesses to the prime and will encourage both the prime and the potential vendors to reach out to each other on subcontracting or partnership possibilities. Opening the door for possible inclusion would allow small business opportunities to gain valuable experience working with the Government, allow for ingenuity, innovative and creative solutions, expand industry participation in the MRO/MRO-S integrated solution, and foster an environment to remove barriers to competition on future acquisitions.

XI. Certification by the Contracting Officer.

As evidenced by my signature above, I certify that this justification is accurate and complete to the best of my knowledge and belief.

XII. 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.