Redacted JA for SAM_PAC-3 Recertification and Repairs Taiwan.pdf

DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited

Control Number: LTB-J&A22-0983 unacceptable delays in fulfilling the agency's requirements."

(b) The Federal Acquisition Streamlining Act of 1994 mandated performance specifications, commercial standards, and manufacturing best practices be used for defense systems instead of military specifications, standards and level three TDPs.

This allowed contractors to maintain control of the drawings, which limited the U.S.

Government's technical data rights. The U.S. Government and LMMFC entered into a Special License Rights Agreement (SLRA) in December 1999, re-negotiated in December 2013 with further revisions incorporated in February 2014 pursuant to the Defense Federal Acquisition Regulation Supplement (DFARS) 227.7103-5(d), Government Rights. The agreement provides the U.S. Government unlimited rights to any technical data relating to an item, component, or process, as well as any computer software, developed exclusively at the U.S. Government’s expense after December 2013, provided that technical data and computer software can be segregated from technical data and computer software existing prior to December 2013. These rights do not provide the U.S. Government the ability to compete this requirement. The 2013 SLRA does allow the U.S. Government to use all technical data and computer software included in the TDP for sustainment and depot maintenance purposes.

(c) Any documentation submitted by LMMFC with less than unlimited rights require an assertion by the contractor to justify the restriction. The U.S. Government reviews these assertions and challenges the assertions pursuant to DFARS 252.227- 7019, “Validation of Asserted Restrictions-Computer Software (Sep 2016),” and DFARS 252.227-7037, “Validation of Restrictive Markings on Technical Data (Sep 2016),” if it is determined that the U.S. Government funded the development of a new item or the modification of the design of an existing item in part or in whole.

(d) The U.S. Government has been able to reduce the restrictive intellectual property markings by approximately 66 percent, which increases the possibility of future opportunities within the organic industrial base. Nonetheless, a substantial number of the documents included in the current TDP reflect restrictive intellectual property markings critical for PAC-3 Missile Support Center (P3MSC) requirements.

This severely limits the U.S. Government's ability to utilize full and open competition at this time. Furthermore, the U.S. Government has incurred a substantial investment, summarized in the table below, in developing manufacturing processes and procedures, special tooling, special test equipment, special inspection equipment, and fixtures, which are located at LMMFC facilities. Any effort to develop another source would result in a major program cost increase, insurmountable delays in the program schedule, as well as severely impact the system’s readiness posture and prevent the Partner Nation from performing the intended mission. Duplication of costs to the U.S.

Government, would not be cost effective and could not be accomplished without a major impact to the program, and will not be recovered through competition.

to provide Small Business concerns the opportunity to compete for and participate in the performance of contracts awarded by Federal agencies. This contract will incorporate the Comprehensive Small Business Subcontracting Plan that is approved each year to ensure that small business goals established and approved are met annually. All applicable FAR and DFARS clauses pertaining to subcontracting will be included in the solicitation and any resultant contracts.

7. Action to Increase Competition: No competition is expected based upon both the result of the RFI/SSS and the lack of a TDP that allows for full and open competition.

The SHIELD PO will evaluate future PAC-3 Missile Recertification and Repair requirements to determine whether competition would be economically feasible and in the best interest of the U.S. Government. As new requirements are identified, SHIELD will continue to review requirements for possible competitive procurement opportunities.

For reasons cited in paragraph 5, and considering the success of LMMFC in performing the described requirement, no alternate qualified source can provide the TDPs, hardware, specialized production facilities, and equipment necessary to accomplish PAC-3 Missile Recertification and Repair requirements. Any duplication of effort would result in an increase in overall program costs not reasonably expected to be recovered through competition. In cases where competition is feasible, LMMFC will be required to deliver those portions of the TDP, which do not contain restrictive markings to support breakout and repair part procurement actions through full and open competitive procedures, in accordance with (IAW) DFARS 227.7103, Noncommercial items or processes. Competition at the subcontract level by LMMFC, and component breakout competition by the U.S. Government is the best strategy to foster competition on this program. LMMFC is encouraged to compete subcontracts when it is reasonable to expect that competition is feasible.

8. Market Research: IAW, FAR Part 10, Market Research, was conducted by SHIELD Logistics Management Specialists, Missile and Security Branch and Fielding and Deployment Branch, and General Engineer, Product Assurance Directorate for this acquisition . The Contracting Officer signed the Market Research Report/Commerciality Determination .

(a) Market research consisted of the following techniques:

i. Review of Government and/or commercial databases for relevant information was conducted, to include www.marketresearch.com and the Dun & Bradstreet website (www.dnb.com) .

ii. Personal knowledge of individuals familiar with this type of service, to include technical subject matter experts and the Director of SHIELD Logistics.

This is a follow on effort, and a previous J&A was approved . The Government did not receive any competition from the previous Sources Sought and does not possess a TDP with the necessary technical and data rights required for full open competition. Future P3MSC requirements will be evaluated to determine whether competition would be economically feasible and in the best interest of the Government.