JA-signed-signed.20_April_2016__FD20201600467_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 PR Number: FD2020-16-00467

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 eleven (11) Remote Control Unit(s) (RCU), used for the Stores System Tester (SST) program by the US Air Force. Contract will be awarded to BAE Systems, 65 Spit Brook Rd., Nashua, NH 03060-6909 (CAGE 94117).

B. Contract Type & Structure: A spares contract to procure a total quantity of eleven units with a Firm-Fixed-Pricing arrangement will be issued. The estimated award date is 1 May 2016 with delivery through 1 May 2017.

C. Type J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED MEETING THE

AGENCY’S NEEDS:

A. The Power Supply (PS) of the Modular Mission Computer (MMC) provides the various DC voltage conversion for the MMC unit. There are two uses in the MMC. There are composite modules containing multiple circuit card assemblies (CCAs), and each CCA is bonded to sides of a substrate. A connecter of the module connects each of the PS module circuitry to the MMC back plane.

NSN NOUN QUANTITY UNIT OF ISSUE UNIT PRICE TOTAL

PRICE

4920-01-555-5319WF RCU 1 EACH

TOTAL

B. Total estimated cost is: This estimate is based on D200A computation.

The contracting action will use CSAG-S 3400 funds.

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 has “Limited Rights” and in order to be competitive the government must have “Unlimited Rights”. The government will periodically request the data and rights to data to manufacture this asset.

B. The above authority was selected because this contract is for replenishment spares of the RCU for the SST Test Program Sets (TPS) which is unique and highly specialized equipment. The SST provides comprehensive fault detection and isolation of the Stores Management System (SMS) at both the Intermediate Level (I-Level) and Organizational Level (O- Level). The TPS allow connection of the SST Instrument Unit (IU) to the aircraft or Alternate Mission Equipment (AME). The SST IU performs operational and fault isolation tests for the SMS, AME, weapons stations, right/left inlet hardpoints, and gun system. These tests can isolate a malfunction to a defective Shop Replaceable Unit (SRU).

The SST IU will supplement the Built- In-Test (BIT) in fault isolation of malfunction to aircraft wiring, AME and controls external to SMS Line Replacement Units (LRU).

C. It is not technically or economically feasible to contract with any source other than BAE Systems. In the market research, it was determined that no other company has the level of data required or the permission to use prime contractor-owned data for service and support , special test equipment, or expertise necessary to ensure the end item is fully functional and meets the requirement set forth by the F-16 community. BAE submitted a budgetary estimate for the data rights for the SST to the Government on 20 Feb 2012. The estimated price to provide Hill AFB with SST data to support development, production, repair, and sustainment efforts is Since this estimate is more than 1 year old, the SST program manager asked BAE if the Data Rights Challenge letter mentioned above is still valid. BAE confirmed via email on the 1 December 2015 that the letter is in fact still valid.

D. A search of the JEDMICS drawing repository and the IPT's collection of drawings for the RCU was conducted and it was determined that the government does not possess the data necessary for procurement and no other company has the data, special test equipment, or expertise necessary to ensure the end item is fully functional and meets the requirement set forth by the F-16 community.

E. An effort to qualify a new RCU for the SST has been awarded to BAE Systems on a sole source contract (FA8251-14-D-0001) for and will be completed May 2016.

Once the new RCU effort is complete, both RCUs, new and old, will be able to operate the SST. Since the government possesses limited data rights for the SST and thus the RCU, interested vendors would be required to invest their time, funding, and manpower resources to reverse engineer and/or design a new RCU. Accordingly, BAE Systems is the only firm capable of providing the services described in Section III above without the US Air Force experiencing a substantial duplication of cost that could not be expected to be recovered through competition in fulfilling its requirements.

F. Accordingly, BAE is the only firm 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 (#SPRHA4-16-R-00467) 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 15 January 2016 and closed 1 February 2016. No responses were received from industry.

B. Other actions: The SST Integrated Product Team (IPT) has continued conducting market research by doing Internet searches, reviewing past history, researching published price lists, evaluating product literature, reviewing manufacturer catalogs, and attending trade shows such as the IEEE AUTOTEST Conference. The SST and its components are not commercial items and due to their specific functionality and capabilities, no specific alternatives have been identified. The SST incorporates nuclear interface design that is based on the legacy SERD 75501. This interface was designed, fielded, and sustained under previous sole source contracts (#FA8212-04-D-0014 and FA8251-10-D-0005) with BAE Systems and now the current contract FA8251-14-D-0001; of which, an effort to qualify a new suitable substitute RCU is on contract and will be completed May 2016. Although some functionality features are available from another source, no similar type product that provides comparable capabilities has been identified. Therefore, based on the limited valid pool of vendors qualified to provide full product development, production, and sustainment to include the relevant risks that were considered as part of the source selection activities include technical capability, data rights, capacity, delivery schedule, quality, and price; no additional sources of SST sustainment capabilities were identified during the SST IPT's ongoing market research.

C. Qualifying Country Sources: 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 was conducted by posting a Combined Request for Information/Synopsis advising industry of the pending acquisition and soliciting inquiries from interested parties.

B. Market research has been conducted on 15 June 2015 by USAF pursuant to FAR Part 10.001(a) (2) (v) provided the following results. BAE Systems currently produces the RCU and is under contract to qualify and produce a new RCU for the SST which is expected to complete May 2016. This item is Acquisition Method Coded (AMC) 3 which means the item has been screened and found to be procured from the actual manufacturer or vendor, including a prime contractor who is the actual manufacturer. The Acquisition Method Suffix Code (AMSC) R was assigned and reflects the Government does not own the data or the rights to the data needed to purchase this part from additional sources. This code is used when the Government did not initially purchase the data and/or rights.

C. Based on these efforts it has been confirmed that BAE Systems is the only source with the technical knowledge, capability, special tooling and data to fil the Government’s requirement.

D. No commercial items or non-developmental items (NDI) are available that could be modified so that they will satisfy the agency’s needs. The requirement(s) cannot be modified to permit the use of existing commercial items and/or services or NDIs.

E. Market research concluded that BAE Systems is the only company capable of satisfying the government’s requirements.

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:

None.

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:

The Government does not currently have sufficient data or rights to the data that can be provided to allow for competition of this requirement. Throughout the period of this contract, the Government will continue to pursue the purchase of data rights.

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)).