SPE4AX16D9473_Redacted Amen 3.pdf

FOR OFFICIAL USE ONLY

Source Selection Information – See FAR 2.101 & 3.104

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

MEMORANDUM FOR THE RECORD

SUBJECT: Amendment #3 to the Class Justification and Approval (J&A) for Other than Full and Open Competition, Contract SPE4AX16D9473.

Defense Logistics Agency (DLA) Aviation currently acquires sole source consumable and depot level repairable parts manufactured by Lockheed Martin under the Captains of Industry (COI), Long Term Contract SPE4AX16D9473.

1. Statutory Authority: 10 U.S.C. 2304(c)(1). Regulatory Authority: FAR 6.302-1, Only One

Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

This Amendment relies upon the statutory and regulatory authority cited in the original J&A and the purchase is sole source for the reasons stated therein. Lockheed Martin, the Original Equipment Manufacturer (OEM) is the only qualified source capable of repairing unique depot level repair (DLR) items that it manufactures. Lockheed Martin is the only company with the data, test equipment, experienced technicians, and software capable to test, repair and overhaul its unique DLR items. The DLR items manufactured by Lockheed Martin contain embedded software that is critical to the operation of the devices, and is owned and controlled only by the OEM.

This amendment expands the scope of the COI contract with Lockheed Martin to support any sole source item requirement, ancillary support, or service that DLA and/or the Military Services may be required to procure on a sole source basis. The support may include holistic support and logistics management services, including but not limited to wholesale supply and logistics support, inventory management, maintenance planning, configuration management, repair development and execution, repair of DLR items for Service customers, engine offload and overhaul, and sustainment engineering associated with a Lockheed Martin aircraft, system, and / or end item. It may also include additive manufacturing solutions, depot repair and maintenance, depot- level support, material management, engineering support and sustainment elements, packaging, storage, transportation, reliability improvements, and field engineering support. The all-encompassing goal will be to improve material availability for supported platforms. The acquisition will be conducted using Other Than Full and Open Competition as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

2. Additionally, due to the complexity of original manufactured parts, it is economically unfeasible to contract for outside repair sources other than Lockheed Martin. As the OEM, Lockheed Martin has the infrastructure to support overhaul and repair efforts, as well as the technical knowledge and experience to test and repair original manufactured parts and material. Lockheed Martin has a highly skilled and trained staff with extensive knowledge of the product, both from an engineering design / development, materials, manufacturing expertise and test development / capabilities. Lockheed Martin has designed and built very

FOR OFFICIAL USE ONLY

Source Selection Information – See FAR 2.101 & 3.104 complex test equipment to test and repair its OEM parts, and no commercial systems with similar capability from alternate suppliers exist to test and repair specific assets. Also, the data needed to develop organic or competitive repair cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical, description of the material for a competitive solicitation. The OEM has been contacted and is unwilling to provide data that can be used to overhaul / repair certain DLR items. There is insufficient time and resources to justify the development and qualification of a repair source other than the OEM. The contractor must be able to perform overhaul operations (teardown, cleaning, intermediate level testing, reassembly, and end item testing) for Lockheed Martin OEM parts that are military unique products and require specialized capabilities. There are currently no other equivalent repair services available within the commercial marketplace for certain Lockheed Martin DLRs and it is the only repair source for these items. Limited market research was performed, and it concluded that the expansion of the scope of the COI does not impact the industrial base, therefore no plan to mitigate impact is necessary.

3. For all traditional sole source requirements fulfilled by subsumable contracts under this umbrella, DLA will utilize Lockheed Martin’s Comprehensive Subcontracting Plan approved annually by the Defense Contract Management Agency (DCMA). As applicable, all other subsumable parts contracts or holistic weapon system contracts awarded under this umbrella will require an approved DD2579 to address any small business concerns, including but not limited to bundling or consolidation.

4. The J&A value threshold of does not need to be increased to modify the scope of this COI contract. The original J&A value included an estimated dollar figure for future Depot Level Repair (DLR) requirements. Therefore, the expanded scope within this amendment does not drive a value threshold increase. Any costs associated with this requirement will be analyzed and determined fair and reasonable in accordance with FAR 15.404-1.