SPRBL115D0017 Addedum 3.pdf

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

Addendum 3 to Justification and Approval for Other than Full and Open Competition (SPRBL1-15-D-0017)

1. Contracting Activity:

This Justification and Approval for Other than Full and Open Competition (J&A) Addendum 3 supports requirements generated by the Army, Air Force, Marine Corps, Navy, Defense Logistics Agency (DLA), and Foreign Military Sales (FMS). The contracting activity for this requirement is DLA Land at Aberdeen, Aberdeen Proving Ground, MD.

2. Description of the Action Being Approved:

Contract SPRBL1-15-D-0017 was awarded on September 28, 2015, to Raytheon Company, 350 Lowell Street, Andover, Massachusetts 01810, as a large business under Contractor and Government Entity (CAGE) code 05716, on a firm-fixed-price basis for the three (3) year base followed by a three (3) year price redeterminable option period.

The contract originally anticipated performance by the following Raytheon CAGE codes:

05716; 15090; 37695; 96214; 072E5; 2M191; 3B150; 4U884; 7Y193; 00724; 06845;

49956; 54X10; 5D744; 4D494; K0268 and 9F358. The contract contains Defense Logistics Acquisition Directive (DLAD) 52.216-9006, Addition/Deletion of Items, to allow for the addition of supply items and their associated services within the contract scope. The contract scope will permit procurement of any supplies and services identified as sole-sourced to a Raytheon-owned CAGE code in support of DoD weapon system requirements using an evolutionary acquisition approach with iterative contract modifications throughout the life of the contract to add on sole source requirements as they are identified.

The original Justification and Approval (J&A), approved on July 23, 2014, supported an Indefinite-Delivery Indefinite-Quantity (IDIQ) contract on a sole-source basis for the acquisition of Depot Level Repairable (DLR) and consumable spare parts associated with 176 specific Raytheon-manufactured systems and/or system components. The J&A scope included an attachment, titled the “Add-On Process,” detailing the procedure for adding items covered by an attached list of platforms, systems, and subsystems for which Raytheon is the sole-source Original Equipment Manufacturer (OEM).

J&A Addendum 1 was approved on June 29, 2016, for a scope increase to contract SPRBL1-15-D-0017. This scope increase broadened DLA’s long-term strategic sourcing contract with Raytheon to encompass repairs, engineering services, and associated data that are sole-sourced to Raytheon. J&A Addendum 1 also authorized an increase in the base contract period from three (3) years to six (6) years, resulting in a nine (9) year contract. Additionally, the Government identified more systems for which Raytheon is

Justification and Approval Addendum 3

SPRBL1-15-D-0017

Under the contract, work to be performed will be for supplies and services that are verified as sole-sourced to Raytheon for systems or platforms identified on Attachment 1 “List of Raytheon Sole-Source Systems.” Supplies are for the production of new spare parts required to sustain Raytheon systems. Services are for the maintenance, repair, engineering, training, PBL, or other services related to sustaining Raytheon systems.

Services that can only be performed by Raytheon will be added to the contract. Add-on projects may be fixed-price, cost-reimbursement, or incentive type actions. As stated above, Raytheon sole-source systems that are not listed under the contract, but are deemed sole-sourced to Raytheon during the contractual add-on process, may be supported under this contract scope.

4. Statutory Authority for Other than Full and Open Competition:

Use of Other than Full and Open Competition is authorized by 10 U.S.C. 2304(c)(1) and Federal Acquisition Regulation (FAR) 6.302-1, as there is only one responsible source and no other supplies or services will satisfy agency requirements. The acquisition of current and future add-on projects is restricted to the prime contractor, Raytheon, for requirements in which they are verified to be the only source having the capability to furnish the required support.

5. Demonstration of the Contractor’s Unique Qualifications or Rationale for use of the Cited Statutory Authority:

Raytheon is the sole source verified to provide the required items and services for the reasons stated in the original J&A and J&A Addendums 1 and 2, which remain applicable. This J&A Addendum 3 supports on-ramping projects which relate to sole-source Raytheon systems, platforms, and subsystems for which only Raytheon can provide the necessary support. On-ramp projects will be verified as sole-sourced to Raytheon via the contractual add-on procedures prior to solicitation. The Government will evaluate all future add-ons, identifying each part/item/service and the system to which it belongs, and will verify through market research that the item is sole-sourced.

Only projects for which Raytheon is determined to be the only company possessing the requisite engineering expertise, data rights, configuration management, tooling, and/or management knowledge will be added. This process also ensures that complex weapon systems remain reliable and safe. Raytheon is the only known source possessing the requisite engineering expertise, configuration management, tooling, and management knowledge to provide the items and services.

If any item or service belonging to a system, platform, or subsystem is determined to be competitively available, it will not be awarded under this contract vehicle. If any item or service is determined to be competitively available after contract award, it may be deleted from the contract and competitively re-solicited.

6. Market Research/Efforts to Obtain Competition (10 U.S.C. 2304(f)(3)(D)):

Relative to the September 28, 2015, award of contract SPRBL1-15-D-0117, a special notice, in the form of a market survey, was posted on the Federal Business Opportunities

(FedBizOpps) web page on March 25, 2014. This market survey outlined a brief scope of work, including information about the possibility of adding future phases. The survey listed questions regarding potential sources’ abilities to satisfy the requrement. No vendors responded. In accordance with FAR 5.201, the proposed action was synopsized in FedBizOpps on April 4, 2014. A synopsis posting a draft Request For Proposal (RFP) was issued through FedBizOpps on April 24, 2014. Raytheon was the only contractor to respond. The J&A was made available for public inspection via FedBizOpps after award, in accordance with FAR 6.305.

Relative to J&A Addendum 1, a Sources Sought Announcement (SSA) outlining the proposed scope expansion including the addition of three (3) base contract years and repair and engineering services was publicized on FedBizOpps on May 25, 2016.

Raytheon was the only contractor to respond. A synopsis was posted on June 8, 2016, summarizing the anticipated contract modification. This J&A Addendum was made available for public inspection via FedBizOpps after contract modification.

Relative to J&A Addendum 2, a notice outlining the ceiling increase was publicized to FedBizOpps on February 6, 2018. No responses to this posting were received. Of special interest, a synopsis to add the Patriot PBL requirements was posted to FedBizOpps on February 1, 2018. This synopsis closed on February 16, 2018. Raytheon was the only contractor to express interest. An SSA was posted on July 19, 2018, describing the addition of performance based logistics, maintenance, training, and training kit services as well as the additional systems to be added to the corporate contract to assess whether any vendors now possess the necessary capabilities. No responses were received. J&A Addendum 2 was made available for public inspection via FedBizOpps after contract modification.

Relative to this J&A Addendum 3, a notice outlining the scope and ceiling increase to was publicized to beta.SAM.gov on May 18, 2020. A synopsis of the action was also posted on June 9, 2020. Raytheon was the only contractor to express interest. J&A Addendum 3 will be made available for public inspection via beta.SAM.gov after contract modification.

A synopsis will be posted to validate and verify that each future add-on project is sole-sourced to Raytheon prior to soliciting for the supply or service.

7. Price/Cost Considerations (10 U.S.C. 2304(f)(3)(C)):

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A Addendum 3 will be fair and reasonable. Certified cost and pricing data will be obtained as required and used to negotiate prices. For those parts requiring certified cost and pricing data, an audit will be performed by Defense Contract Management Agency (DCMA) and the Defense Contract Auditing Agency (DCAA) as necessary. For each add-on project to this contract, detailed documentation and justification of price reasonableness will be prepared and disclosed in an official price negotiation memorandum prepared upon the completion of negotiations.

8. Interested Sources (10 U.S.C. 2304(f)(3)(E)):

Raytheon is the only known source possessing the requisite engineering expertise, configuration management, tooling, and management knowledge to provide the items and services. To date, no other sources have written to express an interest in providing these supplies or services. The notices required by FAR 5.201 have been published.

9. Actions Being Taken to Overcome Barriers to Future Competition (10 U.S.C.

2304(f)(3)(F):

In accordance with the add-on process, all items and services will be synopsized prior to incorporation into the contract in order to investigate the possibility of competition. The Contracting Officer and Competition Advocate will review all proposed additions to verify that all requirements are sole source.

10. Other Facts: N/A

ATTACHMENTS:

1. List of Raytheon Sole Source Systems/Sub-Systems/Platforms