ForceX JA SPRRA224R0043_Redacted.pdf

DEFENSE LOGISTICS AGENCY

AVIATION

8000 JEFFERSON DAVIS HIGHWAY

RICHMOND, VIRGINIA 23297-5002

CLASS JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated for PEO Missiles and Space (PEOMS) Tactical Aviation and Ground Munitions (TAGM) Advanced Technology Integration (ATI) Program Office and other services and commands supported by Defense Logistics Agency. The contracting authority for this requirement is Defense Logistics Agency – Aviation, Huntsville, Alabama, DLA-AH. The PEOMS TAGM office and DLA-Aviation Huntsville contracting division identified the need for long-term coverage for field and program support, software licenses, material, Non-recurring Engineering (NRE), and required travel support for software development that are sole-sourced to L3 Harris ForceX, CAGE 3XJB9. The Purchase Request Order Numbers (PRON) supporting this contracting action are forthcoming and will be initiated at the delivery order level.

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

Due to the circumstances described herein, this activity requests authority to acquire part numbers deemed sole sourced to ForceX, 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.” This action will result in the award of a new firm-fixed price, 6-year Indefinite Delivery Requirements (IDR) type contract, with a maximum value of . This sole-source requirement will be negotiated with the following company:

L3 Harris ForceX, Inc 2208 Charlotte Avenue Nashville, TN 37203

CAGE: 3XJB9

Large Business

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

The Government proposes an award on a 6-year IDR contract for field support, software licenses, material, NRE, and required travel in support of TAGM ATI programs. The requirements will be defined in the Statement of Work for “Field Support”, which includes both Technical and Program Support, with associated data deliverables. This contract will include options to purchase software licenses and support for quick reaction events. Any software developed as delta from the contractor developed software will be given “Government Purpose Rights”. This requirement will also require the purchase of material, travel, and NRE.

testing. The first 26 prototypes that include the ForceX software are now in initial delivery.

Due to the extremely compressed timeline, it is in the government’s best interest to issue a sole source contract to ForceX, as they have the proprietary processes and the existing software capability for these custom prototypes that simply does not currently exist in the marketplace without substantial duplication of NRE. In addition, the software developed by ForceX for the initial ATI prototypes has already passed several rounds of government testing. If the government was to compete this effort, all software would require re-testing which would not only duplicate costs but would also cause the ATI-D program to miss their critical milestones on the program schedule. Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition or unacceptable delays in fulfilling the requirement.

Requirements that are presented to DLA from the by PEOMS TAGM ATI Program Office will not be assigned an Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC). Requirements that are presented from the TAGM program office may not have an associated Technical Data Package (TDP) or an assigned AMC/AMSC.

The US Government does not own the tools nor the test equipment to manufacture these parts.

In addition to situations where ForceX is the only approved source for the software, there are situations when ForceX is one of a small group of approved sources, or there is no technical data package associated with a part. In these situations, if through market research and/or customer certification, the contracting officer determines other approved sources will not participate and/or only ForceX can provide the part/service, the intent is to use this IDR. In order to satisfy the requirements of 10 U.S.C. §3204(a)(1) in that situation, the following procedure will apply.

For requirements with a TDP that indicates a limited competitive procurement, or the item does not have a TDP, the contracting activity shall conduct market research and document the following:

o A Memorandum of Determination shall be completed. The Memorandum shall describe the following (not all-inclusive and if applicable):

Procurement history

Sources sought posting and responses

Responses of Requests for Information (RFI) from approved sources

Requiring activity technical representative evaluation

Contracting Officer determination of applicability for only one responsive and responsible source

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

This requirement will be synopsized, and a solicitation shall be published on System for Award Management (SAM.gov) as required by FAR 5.201. To obtain maximum competition, the synopsis and solicitation will encourage firms that can provide the field support, software licenses, material, NRE, and required travel support for the software development to seek source approval to compete for future solicitations by going through the source approval process of the procuring activity.

In addition to a synopsis and solicitation being posted, a Sources Sought was published on March 06, 2024. No responses were received. If new parts are proposed to be added to the contract, an additional sources sought and synopsis shall be posted.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE

The Contracting Officer has determined the anticipated cost to the Government of the supplies covered by this J&A will be fair and reasonable. DLA will use appropriate cost and price analysis to evaluate proposed prices. ForceX will be required to provide certified cost or pricing data for items acquired using FAR 15 procedures. The Government's negotiation objective will be developed using local technical analysis, negotiated direct and indirect rates, and profit using the Weighted Guidelines Method. As necessary, a fully compliant audit may be performed and DCMA/DCAA assistance will be requested. Detailed documentation and justification of price reasonableness will be disclosed in the official price negotiation memorandum, as required, to be prepared upon completion of negotiations. Bringing all ForceX’s requirements together increases DLA's leverage with the contractor. DLA believes this leverage will result in significant savings over existing disparate support strategies.

The six-year term of the contract will incentivize continued investments in reliability improvements, obsolescence management, process improvements, and more efficient depot operations over the contract period by ForceX. Inherent in the six-year contract structure is an incentive to continue to improve reliability and drive down cost, which not only better serves the Department of Defense and other Federal Government customers, but results in better stewardship of taxpayer dollars.

This contract will be negotiated assuming decreased costs associated with improved reliability and availability through the potential six-year performance period of the contract. Based on the foregoing, the Contracting Officer shall determine that the anticipated cost to the Government, be fair and reasonable prior to contract award.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR STATEMENT OF THE REASONS MARKET RESEARCH

WAS NOT CONDUCTED

Market research, as defined in FAR 10.001 was conducted. A review of the class population confirmed that the initial items to be solicited are all considered as sole source to ForceX.

Technical certifications either via TDP or Memorandum of Determination, as listed in Section V, will be required for every item before negotiations commence with ForceX to add the items to a contract.

The initial Sources Sought was issued on March 06, 2024, and closed on March 08, 2024. No responses were received.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN

FULL AND OPEN COMPETITION

As stated in the previous sections, a Sources Sought was posted on March 06, 2024. Technical certifications either via TDP or Memorandum of Determination, as listed in Section V, will be required for every item before negotiations commence with ForceX to add the items to a contract.

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

No responses were received.

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

Due to the complex nature of this work, there is no opportunity at this time to remove barriers to competition at the prime contractor level. The Contracting Officer will continue to synopsize items that may be added to the contract to investigate the possibility of competition.

However, parts that have previously been synopsized will not be synopsized again throughout the length of the contract. The Competition Advocate will review the requirements to verify that all requirements can be completed by ForceX. As stated above, ForceX, a large business, is the OEM and only known source with the capability of contract for field support, software licenses, material, NRE, and required travel in support of TAGM ATI programs.

Future requirements, other than those in the original population, will nevertheless be advertised in the SAM.gov to ensure that potential alternate sources are aware of the requirement and can identify interest in support for these items. The contract will include provisions stating that the Government reserves the right to remove any items that become competitive after award.

Firms are encouraged to seek Source Approval Process through the documentation and associated website to potentially become an approved source. No new sources have been approved at this time; however, this is a continuous method of identifying potential new sources of supply.

XII. CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on the Coordination and Approval Document evidence that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

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.