FD20201500138_Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY:

Defense Logistics Agency DLA Aviation Ogden 6051 Gum Lane Bldg 1225 Hill AFB UT 84056-5825 Contracting Officer: Nate Gomm Phone Number: 801-586-3966 PR Number: FD2020-15-00138

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED:

A. Upon approval to use other than full and open competitive procedures, DLA Aviation Ogden will issue a new contract to procure seven Radio Chassis Electrical for the F-16 Aircraft, used by Foreign Military Sales (FMS) customer Turkey, Iraq, and Chile to Raytheon Company 2501 W University DR McKinney TX 75071-2813 CAGE 96214 or Lockheed Martin Corporation 1 Lockheed BLVD Fort Worth TX 76108-3619 CAGE 81755.

B. Contract Type & Structure: A spares contract to procure a total quantity of seven units with an anticipated Firm-Fixed-Pricing arrangement will be issued. The estimated award date is 30 September 2015 with performance and delivery expected through July 2017.

C. Type J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED MEETING THE

AGENCY’S NEEDS:

A. The Modular Mission Computer (MMC) Chassis is considered as a Line Replaceable Module.

This one plus 16 others work together and make up the F-16 Modular Mission Computer Line Replaceable Unit (LRU). The MMC LRU provides 1553/Weapon control, along with analog/digital and power for the Fire Control Computer/Store Management System/Heads Down/UP Systems for the F-16 Aircraft.

NSN Name Qty Price/Unit Ext. Price 5975-01-388-0807WF Radio Chassis

Electrical

Total

B. Total estimated cost is: . This estimate is based on DO43A unit cost. This action is using appropriated funds 47SH to meet FMS mission requirements.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

10 USC 2304 (c) (1) as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF AUTHORITY CITED

ABOVE (APPLICABILITY OF AUTHORITY):

A. The above authority was selected because the government does not own the data rights to the data needed to purchase this part from additional sources.

B. Raytheon developed the MMC starting in 1992 and has been retrofitting fleetwide under Mid-Life Update/ Common Configuration Implementation Program (MLU/CCIP), with MMC LRMs. This module is an intergal part of the MMC. The operational flight program is developed by Lockheed Martin. Therefore, an AMC/AMSC code of 1R has been assigned to this NSN.

C. We have set up a limited organic repair capabilities for about half of the modules used in the MMC LRU. This part is not used in the USAF F-16 configuration, today.

D. The FMS countries acquiring these items are not interested in and will not fund reenginerring efforts by a new vendor. Any effort to reengineer this part would have technical risks associated with it. Additionally, The 416 SCMS/GUEAA Engineer determined that reverse engineering cost to develop a qualification package and encourage competition are estimated at $4,443,648.00. This cost was computed using estimates for lab analysis, parts destroyed, drawing proofs, special testing, technical order revision and logistics.

E. Accordingly, Raytheon and Lockheed Martin are the only firms capable of providing the supplies and services described in Section III above without the government experiencing substantial duplication of cost that could not be expected to be recovered through competition.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE:

A. Combined Request for Information/Synopsis: A combined Request for Information/Synopsis document (#SPRHA5-15-R-00138) was posted to the Federal Business Opportunities website (www.fbo.gov) advising industry of the pending acquisition and soliciting inquiries from interested parties. This document was posted 08 January 2015 and closed 23 January 2015. No responses were received from industry.

B. Other actions: None

C. Qualifying Country Source: None

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE:

The following steps will be taken to ensure that the anticipated cost of this acquisition will be fair and reasonable. The Contracting Officer will comply with the procedures and criteria contained in Federal Acquisition Regulation (FAR) under Part 30 - Cost Accounting Standards, Part 31 - Contract Cost Principles and Procedures, Subparts 15.4 - Contract Pricing; to include technical evaluations and audits, as appropriate. Additional steps to ensure price reasonableness will be under the guidance of the Contract Pricing Reference Guides, jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology. The Contracting Office will obtain certified cost and pricing data IAW FAR Subpart 15.403, when required. The final step is to include the Price Negotiation Memorandum (PNM). This detailed documentation and justification of price reasonableness will be disclosed in the official PNM, to be prepared upon completion of negotiations.

VIII. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS,

OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED:

A. As described in section VI above, market research, in accordance with FAR Part10, Market research was conducted by a Combined Request for Information/Synopsis advising industry of the pending acquisition and soliciting inquiries from interented parties. In addition Lane Wilson, Engineer, conducted market research on July 20, 2014. Market research consisted of

1) Request for information (RFIs) 2) Request for proposal (RFPs) 3) Commerce Buisness Daily Reviews (CDB Reviews).

B. The results of the market research concluded that with limited proprietary documents and lack of system/component configuration Raytheon/Lockheed are the only sources capable of supporting all of the MMC units in the multination F-16 aircraft. Raytheon is the only vendor currently producing these items and are the only vendor that have the re-manufacturing capacity for the MMC line replaceable modules (LRMs) today.

C. No other commercial items or non-developmental items that can be modified exist.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION:

None

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE

ACQUISITION:

See Section VI above

XI. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING

SUBSEQUENT ACQUISITIONS FOR THE SUPPLIES OR SERVICES REQUIRED:

None

XII. CONTRACTING OFFICER’S CERTIFICATION:

The Contracting Officer’s signature on the Coordination and Approval Document evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief (FAR 6.303-2(a)(12)).

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION:

As evidenced by their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete (FAR 6.303-2(b)).