Redacted Exception to Fair Opportunity 18JAN2023_Redacted.pdf

Justification for an Exception to Fair Opportunity or to Use Brand-Name Restriction

CONTROLLED UNCLASSIFIED INFORMATION

16 Jun 2022 CONTROLLED UNCLASSIFIED INFORMATION Page 2 of 5 operate, maintain, and enhance AFSC supply chain management tools, and integrate into the AFSC's enterprise-level processes.

LMI is uniquely qualified to provide technical support for subject services. LMI currently delivers highly specialized RSRA technical support services to AFSC under contract task order FA8100-21-F-0001, awarded 25 November 2021. LMI has detailed knowledge of the highly technical algorithms and program coding needed to sustain and enhance RSRA tools and processes, and has been intimately involved in the deverlopment and enhancement of RSRA tools and related processes for the past 40 years. LMI has developed the Aircraft Sustainability Model (ASM), which is used in the Weapon System Management Information System Sustainability Assessment Module. Therefore, this acquisition is for the continued performance of a highly specialized service. The ASM represents an essential piece of the Government's requirement, as it is the Air Force's standard system calculating contingency spares and is critical component of many of the other tasks identified in the PWS. ASM represents a unique capability that only LMI can provide. The specialized algorithms applied within ASM are the copyrighted, intellectual property of LMI only available to LMI.

(5) Contracting Officer's determination that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer has determined that the anticipated price will be fair and reasonable based on comparison with historical information from the current task order. Price analysis and cost analysis will be used to evaluate the reasonableness of the proposed price. An Independent Government Estimate (IGE) using the current contract labor rates will be used to ensure a fair and reasonable price. Other tools, such as historical information contained within the contract office, review of other contracting prices for similar work and comparison with the IGE will also be used in determining a fair and reasonable price. the Government will assess the proposed number of labor hours and mix of labor categories based upon their historical execution of this task, and our understanding of the future analysis requirements. Upon performing these analysis, the Contracting Officer will make a determination that the price is fair and reasonable prior to award.

(6) Other facts supporting the justification:

Market research for the task order indicated that LMI does not sell ASM to third parties, nor does LMI offer for sale the source code, which would allow the potential for either the AF, or a third party contractor to perform the service requirements. If requirement is not delivered the AF will be losing the capabilities to manage all aspects of inventory to the Office of the Secretary of Defense to include Materiel Management Review (MMR), Comprehensive Inventory Management Improvement Program (CIMIP) and Readiness Base Leveling (RBL) the impact would be catastrophic to the annual budget by the billions.

(7) Actions the agency may take to remove or overcome any barriers to increasing fair opportunity before any subsequent acquisition for the supplies or services:

AFSC/LZ is actively considering removing the ASM from future AFSC supply chain management tools which would allow an alternate calculating modeling tool to promote competition for the follow-on task order. Market research is currently being discussed, which includes a forthcoming RFI addressing the possibility of using an alternate modeling tool.

(8) Program Manager's certification that supporting data is accurate and complete:

As evidenced by my signature below, I certify that any supporting data contained herein, which is my responsibility, is both accurate and complete.

(9) Contracting Officer's certification that the justification is accurate and complete:

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

(10) Approving Official's determination that one of the circumstances in FAR 16.505(b)(2)(i) applies to the order.

As evidenced by my signature below, I hereby determine that the fair opportunity exception checked on page 1 applies.

16 Jun 2022 CONTROLLED UNCLASSIFIED INFORMATION Page 4 of 5

Instructions for Completing the Template IAW FAR 16.505(b)(2)(ii)(B)

(2) State whether the action is a new order or a modification to an existing order. Identify the basic multiple award contract number and the order number for the current action. Also identify the type of the order/line items on the order (e.g., Firm Fixed price, Cost Plus Fixed Fee, etc.).

(3) Specifically describe the supplies/services to be acquired including the price/cost and quantity of each item in the order and the total estimated value of the order. For services, state whether services are performance-based, and if not, provide rationale for not being performance based. State the delivery/performance schedule/period for the items under the order. Explain how the requirement/order fits under the scope of the basic multiple award contracts.

(Note: The Contracting Officer must ensure that the order is issued within the period of performance and within the maximum value of the contract).

(4) Include the appropriate exception from FAR 16.505 (b)(2) and the supporting rationale. FAR16.505(b)(1)(i) requires the Contracting Officer to provide each awardee under a multiple award contract, a fair opportunity to be considered for each order exceeding $3,000 unless a statutory exception applies. The specific exception that precludes the fair opportunity process for this acquisition is FAR 16.505(b)(2)(i)(__) [Insert A,B, C, D, or E]. If a brand name product description is being justified, use this section to explain why the particular brand name, product, or feature is essential to the Government's requirements and why other companies' similar products/services do not meet, or cannot be modified to meet, the agency's needs.

FAR 16.505(b)(2)(i)(A): “The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays”. When using this exception provide a detailed justification with supporting documentation that explains the exact urgency of the requirement and the mission impact if awarded to any other contractor. The user/customer typically provides this supporting information. Recommend attaching supporting documentation to the back of the document. General statements of urgency are not acceptable.

FAR 16.505(b)(2)(i)(B): “Only one awardee is capable of providing the supplies or services required at the level at the level of quality required because the supplies or services ordered are unique or highly specialized”. When using this exception provide a detailed justification, with supporting documentation, as evidence of the “unique or highly specialized” nature of the procurement. The user/customer typically provides this supporting information.

Supporting documentation may be attached to the back of the document. General statements are not acceptable.

FAR 16.505(b)(2)(i)(C): “The order must be issued on a sole-source basis in the interest of economy and efficiency as a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order”. When using this exception provide information on the previously competed order under this contract and detail the economies and efficiencies that will be obtained by going sole source for the follow-on order. The user/customer typically provides this supporting information.

General statements are not acceptable.

FAR 16.505(b)(2)(i)(D): “It is necessary to place an order to satisfy a minimum guarantee.”

FAR 16.505(b)(2)(i)(E): “For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source.”

Discuss the market research that was conducted by the user/technical team/contracting officer among the supplies/services of all awardees that resulted in the conclusion that a fair opportunity exception applied. The narrative in this section should provide a high level of confidence that the requirements of FAR 16.505(b)(1) and DFARS 216.505-70 could not be met. If no market research was conducted, state so and provide the rationale. If any other awardee expressed interest in fulfilling the requirement, but was not considered a potential source, explain why that awardee cannot provide the required supplies/perform the service.

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If the use of a brand name purchase description is being justified, the market research should include an analysis of any industry proposed alternative products or approaches to meeting the requirements. Additionally, the Government's efforts to identify as many potential sources as practicable offering the required brand name item(s) should be addressed.

(5) This paragraph needs to be tailored based on the types of CLINs in the order and the pricing arrangements on the basic multiple award contract. If the contract did not establish the price for the supply or service, the Contracting Officer must establish prices for each order IAW FAR 15.4. The paragraph needs to describe the steps that will ensure that the prices/estimated cost of the order will be fair and reasonable. For example, even if firm-fixed prices were obtained under adequate price competition in the award of the multiple award contract, the Contracting Officer still needs to consider market conditions and other factors that may have changed since contract award and explain the basis in the determination that prices/costs are fair and reasonable prior to award of the order.

(6) Provide any other facts supporting the use of exceptions to the fair opportunity process.

(7) Include a statement of the actions, if any, to be to be taken to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made. If no actions are planned, so state and provide reasons.