REDACTED_FOE_Oman_and_Indonesia_FMS_F-16_13Sep12.docx

FAIR OPPORTUNITY EXCEPTION (FOE) DETERMINATION AND APPROVAL

I. Contracting Activity

The Contracting Activity for this acquisition is the United States Air Force, Air Force Materiel Command, Headquarters Electronic Systems Center, Airspace Mission Planning Division, Hanscom AFB, MA. The Procuring Contracting Officer (PCO) is XXXXXXXXXX, ESC/HBMK, DSN XXXXXXX. This document is a FOE Determination and Approval, to develop for Foreign Military Sales (FMS) release to Oman, a version of Joint Mission Planning System (JMPS) v1.3.x software for the Oman Block 50 F-16 and to develop for FMS release to Indonesia, a version of JMPS v1.3.x for the Indonesia Block 25 F-16.

II. Nature and/or Description of the Action Being Processed

This FOE Determination and Approval is for a modification to incorporate the efforts identified in a request for proposal under MPEC II Contract FA8720-10-D-0005 Delivery Order 0002. These efforts are to develop for FMS release to Oman, a version of JMPS v1.3.x for the Oman Block 50 F-16 and to develop for FMS release to Indonesia, a version of JMPS v1.3.x for the Indonesia Block 25 F-16. Upon approval of this FOE, the Request for Proposal (RFP) will be issued to incorporate the effort under the FMS F-16 Delivery Order 0002. Ten (10) CLINs will be added to Delivery Order 0002 as follows: two Cost Plus Fixed Fee (CPFF) CLINs for the Unique Planning Component (UPC) efforts, two Cost CLINs for the Other Direct Costs (ODCs) of the UPC efforts, two CPFF CLINs for the Mission Planning Environment (MPE) Integration & Test efforts, two Cost CLINs for the ODCs of the MPE Integration & Test, and two Not Separately Priced (NSP) CLINs for Data.

III. Description of the Supplies/Services Required to Meet the Agency’s Needs

The estimated cost for this effort is $5,562,000 and the Period of Performance will be from Contract Award to August 2014. The Oman Block 50 F-16 and Indonesia Block 25 F-16 efforts will include the following:

a. Development, integration, test and delivery of FMS F-16 JMPS UPC software for each country.

b. Integration and test of UPC with the JMPS Framework (FW) and other JMPS components delivery of the MPE software for each country.

c. Support to resolve issues found during Government test phases of the UPC/MPE for each country.

d. Provide final release of MPE for distribution to the Software Support Facility (SSF) at Hill AFB for each country.

e. Provide support to the Government until system is fielded (or the end of period of performance) for each country.

f. Support bi-weekly FMS telecons run by ESC/HBMJ during the effort’s period of performance for each country.

g. Travel and labor for support of Mission Planning Enterprise Meetings occurring during the period of performance not covered under FMS F-16 Delivery Order 0002 for each country.

The requirements indentified above for the Oman and Indonesia efforts are the same requirements being performed for both Egypt and Korea under FMS F-16 Delivery Order 0002 and thus would fit under the scope of the MPEC II contract.

IV. Authority Permitting a Fair Opportunity Exception

FAR 16.505(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)(C), “The order must be issued on a sole-source basis in the interest of economy and efficiency because it is 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.”

V. Demonstration of the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above to Provide the Required Supply/Service (Applicability of Authority)

Lockheed Martin Mission Systems and Sensors (LM MS2) was awarded the FMS F-16 UPC Development and MPE Integration Delivery Order under the MPEC II contract on 22 July 2011. A competitive RFP was issued to the five MPEC II contractors and LM MS2 was selected under a sole source contract award resulting from a single proposal submission. The purpose of the FMS F-16 DO is to provide releasable JMPS software to foreign nations in conjunction with the delivery of new FMS F-16 platforms or Operational Flight Program (OFP) upgrades to existing F-16s in accordance with an agreed upon FMS Letter of Acceptance (LOA) between the U.S. Government and the foreign customer. At the time of solicitation, there were a number of anticipated FMS F-16 LOAs, including the Oman Block 50 F-16 and Indonesia Block 25 F-16, which could not be included in the RFP since the LOAs for these efforts had not yet been signed. The Program Office Estimate for the total cost of this Delivery Order was $26.7M.

The current Oman Block 50 F-16 and Indonesia Block 25 F-16 efforts have an anticipated value of approximately $5,562,000. To further the interest of economy and efficiency, it is logical to issue this sole source action to LM MS2 because the Oman Block 50 F-16 and Indonesia Block 25 F-16 efforts are a logical follow-on to the F-16 FMS DO as it includes the same type of work that is being accomplished under the F-16 FMS DO. The only critical difference is that Oman’s and Indonesia’s LOAs were not completed in time to allow this work to be included in the F-16 FMS RFP. LM has been responsible for the F-16 efforts of the US Air Force and FMS efforts for various foreign countries since October 2006. Open competition for this effort would significantly delay award and be costly to the Government. The RFP process would take a minimum of sixty days with contractors incurring proposal preparation costs that would be passed on to the Government, with the upgrade effort costs, at time of award. Since LM MS2 is the only contractor currently performing F-16 MPS Development, any potential contractor would need a significant amount of time and labor hours to ramp up to accomplish the work.

It is estimated that an additional six month development time would be required for a new contractor to ramp up and become familiar with the existing codebase. The Government Cost Estimate for the MPEC-II Delivery Order, dated 30 Nov 2010, states that follow on cases under this DO will result in a lower overall cost and shorter periods of performance since the incumbent contractor will be familiar with the codebase utilized in the first two cases (Egypt and Korea). It is projected that the follow on cases for this DO will be similar in scope, using the Morocco M5.2/M5.2+ source code as the baseline for further capability enhancements. The Government Cost Estimate states the first two cases under the DO may cost as much as $5.5 million while follow on cases have a projected cost of $2.8 million once the contractor’s ramp up is complete. If LM MS2 is not awarded the follow on case, the Government may incur an additional cost as high as $5.4 million while that contractor ramps up and becomes familiar with the codebase.

Mission Impact: Two months additional RFP process time plus six months additional development time for contractor ramp up will result in an eight month schedule delay to deliver and install the mission planning software in country. This would result in missing delivery of the software to support the in-country functional flight test by six months, resulting in a corresponding delay in delivery of the full operational capability of the Oman F-16 and Indonesia F-16 system hardware deliveries.

VI. Description of Efforts Made To Ensure Competition Between All Awardees

In accordance with FAR 16.505(a)(1) orders under indefinite-delivery contracts do not have to be synopsized. Paragraph V, above, justifies why competition among all awardees is not possible for this acquisition. ESC/HBMK has migrated current and future sustainment and developmental efforts to the FMS F-16 MPEC II DO which was awarded to LM on 22 July 2011.

VII. Determination by the Contracting Officer That the Anticipated Cost to the Government Will Be Fair and Reasonable

Lockheed Martin will be required to provide certified cost or pricing data due to the value of the effort and their proposed rates will be evaluated and compared with Defense Contract Audit Agency (DCAA) rates. The final contract price will be evaluated and negotiated by the PCO in accordance with FAR Part 15, to ensure the ultimate cost to the Government is fair and reasonable. Additional documentation and award of this Delivery Order will be accomplished in accordance with the MPEC Delivery Order Guide.

VIII. Description of Market Research Conducted Among All Awardees and the Results or a Statement of the Reason Market Research Was Not Conducted

Market Research was not conducted. See Paragraph(s) V and VI above.

IX. Other Facts Supporting the Justification

N/A

X. List of Any Awardee That Expressed Interest in the Acquisition

In accordance with FAR 16.505(a)(1), the PCO does not synopsize orders under indefinite-delivery contracts. However, the following companies are available under the MPEC II contract: Northrop-Grumman Defense Mission Systems, Boeing Corporation, BAE Systems Mission Solutions, DCS Corp., and Lockheed Martin Mission Systems and Sensors (MS2). All of these companies had an opportunity to compete for DO 0002. The final RFP was released to all 5 MPEC II contractors for competition and posted on the Mission Planning Central (MPC) site on 2 March 2011.

XI. Actions the Agency May Take to Remove or Overcome Any Barriers To Increasing Fair Opportunity before Any Subsequent Acquisition for the Supplies or Services

Future support for FMS F-16 will be provided under the current DO 0002 MPEC II contract.

XII. Contracting Officer’s Certification

The Contracting Officer’s signature, on signature page, evidences that he has determined this document to be both accurate and complete to the best of his knowledge and belief.

XIII. Technical/Requirements Personnel’s Certification

As evidenced by their signatures on the signature page, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.