JA_FD206016_00053_Redacted.pdf

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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 the: Air Force Sustainment Center (AFSC), 638 Supply

Chain Management Group (SCMG), 411 th

Supply Chain Management Squadron

(SCMS)/GULB. The contracting authority for this requirement is DLA, AWB. The purchase request number supporting this contracting action is FD2060-16-00053.

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

Due to the circumstances described herein, the activity requests authority to acquire the APQ-

180 V( 1) Strike Radar Analog Digital Converter LRU Circuit Card Assemblies (CCAs) A8 -

NSN 5998-01-528-3314SO (PN 5129350-5) and A7 - NSN 5998-01-462-9093SO (PN 5144070-

15) listed in this document using Other Than Full and Open Competition due to the contractor unwillingness to sell the data required for the buy. This will be a one time buy with an estimated delivery time of 4-6 months from date of receipt.

This sole source requirement will be purchased from the following company:

Raytheon Company

6125 East 21 st Street

Indianapolis, IN 46219-2058

CAGE: 072E5

Large Business

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

AGENCY’S NEEDS

This requirement is to acquire the APQ-180 V(1) Strike Radar Analog Digital Converter LRU

Circuit Card Assemblies (CCAs) A8 - NSN 5998-01-528-3314SO (PN 5129350-5) and A7 -

NSN 5998-01-462-9093SO (PN 5144070-15). The APQ-180 Strike Radar is used by the

SOCOM command Special Operations Force (SOF) AC-130U Gunship as navigation and weapons targeting system. The V(1) Configuration Circuit Card Assemblies (CCA) are also used by the APG-70 on the F-15E and are under the configuration control of Raytheon

Corporation. The Government was not able to purchase the full and complete technical data package or the rights to the data for these items when they entered the Government inventory due to Raytheon proprietary information. There have been no relevant changes to the marketplace since initial acquisition with sustaining support efforts.

The quantity required is 6 each of 5998-01-462-9093 with a unit price of and 8 each of the 5998-01-528-3314 at a cost of for a total of

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AMC: 3; Acquire, for the second or subsequent time, directly from the actual manufacturer.

AMSC: R; The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part.

The estimated cost for this purchase is the ROM received from Raytheon. Delivery shall be 4-6 months from receipt of order. This buy will be done using CSAG funds (consolidated sustainment activity group).

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 THE AUTHORITY

CITED ABOVE

There are no out year requirements projected from D200 so this is a one time buy to replace condemnations that have occurred over the life of these assets. Reengineering costs are extremely prohibitive based on this being a one time buy.

The agency’s minimum needs can only be satisfied by the unique supplies or services available only from Raytheon, which possesses unique demonstrated as follows:

This acquisition is for a qualified replacement Analog Data Converter (ADC) LRU29 CCA A7

& A8 applicable to the AC-130U Gunship Mission Design Series (MDS) aircraft APQ180 Strike

Radar.

The AC130U unique ADC LRU29 CCA A7 proprietary functions execute Next Higher

Assembly (NHA) bus Form, Fit, Function, and Interface (F3I) with data distribution. The F-15E

Weapon Fire Control circuitry design is modified for SOF Gunship peculiar Air/Ground percussion targeting via proprietary six and eleven Bit Analog Converter (6BAC/11BAC) controllers with Pulse Compression Code (PCCG) and Programmable Clock Generators (PCG), supported by dedicated Built in Test (BIT) with JTAG (Joint Test Action Group) access. These functions define ADC Bus Interface in parallel, seven serial logic, managed by sequential interface output (I/O) Random Access Memory (RAM) gate array holding registers and

Programmable Event Generators (PEG) with combinational logic, test, and modal clock distribution.

The Program Office believes that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition as well as in unacceptable delays in fulfilling the Air Force’s requirements. The Government does not own data or the rights to use the data needed to procure these items from additional

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sources. To reengineer the Circuit Cards would result in the reengineering of the system that the cards are used in resulting in significant rise in total costs.

Awarding to any other source would require a clean-sheet redesign or reverse engineering project to develop a build-to-print technical and manufacturing data package which would essentially duplicate the existing drawings owned by Raytheon. Based on the Air Force’s engineering staff’s experience with similar projects, such an effort would expose the Air Force to unnecessary cost risk, schedule risk, and technical risks associated with any new design effort with an unqualified source. Based on previous engineering estimates completed by WIUEA

Engineers, project data and contract efforts, and similar projects/programs it would take approximately three to four years and no less than for another vendor to complete the redesign or reverse engineering effort, deliver a technical data package and qualification reports, and provide First Article assets. This estimate assumes the new vendor possesses the required

Federal Aviation Administration (FAA) special tools and FAA special test equipment; without this equipment, the estimated cost would be higher. Accordingly, Raytheon is the only firm capable of providing the supplies and services described in Section III above without the U.S.

Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition.

The estimate by the engineer for redesign is based on the following information:

Operational Test & Evaluation (OT&E):

The predominance of the estimate is contingent upon the proprietary HAP (Hughes Assembler

Programmer) assembly micro-code interface with dialogue and synchronized input/output coherent with the NHA(next higher assembly) (LRU29 ADC). To prove the A7 & A8 CCA with the functions above requires not only the CCA ITA TPS verification, but also the LRU

AIS/EEETS verification, CCA and LRU F3I qualification, and Flight Test Evaluation (OT&E) for fire control IV&V with Infrared Detection Set (IDS) harmonization.

The conceptual $2.5M NRE estimate is based on a technical merit of similarity with comparables that would minimize, in the final analysis, collateral percussion targeting, against an already heighted SOF awareness with executive visibilities and accountability. Not addressed is the sustainment economic and logistical consequences of a new vendor introduced into the

AC130U/F-15E OEM vendor sourcing. This includes a considerable provisioning effort and loss of technical field support of these two CCAs. The scheduling will exceed the scope of this acquisition contract.

(RE) A7 HAP NRE (Development/Test/ Verification) - Basis Similarity =

(RE) A8 HAP NRE - Basis Similarity =

(RE) LRU29 HAP with NHA I/O - Basis Comparable =

Manufacturing: Prototype Production w/ Tooling - Basis Similarity =

OTE/FTE: Qualification: –LRU29 w/A7 & A8 embedded (Basis Comparable) =

Flight Test – Fire Control & Navigation Modes w/ Beacon Verify =

(6 flights + Radar Ground B.S. IV&V) Basis Similarity Radar Flt Tests

Conceptual NRE Total Estimate:

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Not Accountable:

New Provisioning requirements -

Scheduling: RQMTs/Data (6) + Contracting (12) + NRE (24) + Fielding (12) ~ 54 mo

Government Level of Effort Manpower Exceeds 1000 hrs for all skills.

In the past, the Government attempted to buy these cards from Raytheon and the contractor stated that due to obsolescence and old technology they were no longer available for production.

Raytheon was not interested in selling the data to the Government at any cost. After contacting

Raytheon in Indianapolis this in June of this year by, 2015, by email Raytheon investigated and decided that they could indeed be made and they were willing to make the Circuit Cards.

Currently there are 3 Backorder on these items but more are expected due to only 1 each spare that was procured. This does not include any additional requirements that may develop in this time frame. This is a mission essential critical item and the flight crew cannot perform its mission without a serviceable component. Therefore, the Government would also incur unacceptable delays in meeting the requirements.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

This requirement will be synopsized on the Federal Business Opportunities (FedBizOpps) web page as required by FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis.

Although Raytheon Company, CAGE 072E5 is currently the only company with the data or rights to the data required to provide these assets, a Request For Information (RFI) was posted on the Federal Business Opportunities web site on 28 July 2015 and closed on 11 Aug 2015 to further survey the market for any potential capable provider for these assets. Results from the

RFI did not produce any responses.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The overall cost of this acquisition will be fair and reasonable to the Government. In accordance with FAR 15.403-4, the contractor will be required to provide certified cost or pricing data to be used in supporting the Government’s evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types and quantities of material, other direct costs, and direct and indirect rates will be negotiated by the Government based on recommendations from the Defense

Contract Management Agency (DCMA) and expert technical personnel supporting the program.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED

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The only time that these two Circuit Card Assemblies were purchased was during the original provisioning. At the time of provisioning it was determined that the data was not economical to purchase. The Government does not own the data or the data rights and Raytheon is the Original

Equipment Manufacturer (OEM) and has no interest in selling the data or rights to the

Government at this time. Obsolescence issues are now occurring with the entire APQ-180 system making it extremely difficult to reengineer or involve other contractors that have not been qualified. This is a highly specialized major system used on the C-130U Gunship and a necessary asset for continuing the required missions of this weapon system.

Although Raytheon Company, CAGE 072E5 is currently the only company with the data or rights to the data required to provide these assets, a Request For Information (RFI) was posted on the Federal Business Opportunities web site on 28 July 2015 and closed on 11 Aug 2015 to further survey the market for any potential capable provider for these assets. Results from the

RFI did not produce any responses.

In addition to the RFI addressed above, market research was conducted on 9 Oct 2015, as outlined by FAR 10.002 using the following methods: reviewing industry reports, trends and product developments; discussions with industry representatives; internet searches; and knowledge possessed by each Engineering Staff.

Some of the sites used were:

http://dsbs.sba.gov/dsbs/ www.google.com https://tosune5.robins.af.mil/ Haystack

Hub Zone

Others applicable

Each one of these vendors’ web-based product line or product history was reviewed to determine if the part(s) under consideration were being repaired or built by that vendor and if that vendor had information concerning associate contract agreements with Raytheon to share or acquire the proprietary data for the specific part(s) under consideration.

No small business and no small disadvantage business opportunities can be met concerning this acquisition.

A search was made of IHS for Procurement History. The following was identified:

For the Strike Radar Analog Digital Converter LRU Circuit Card Assemblies (CCAs) A8 - NSN

5998-01-528-3314SO (PN 5129350-5) the procurement history shows six repair contracts all with Raytheon from May 2015 back to Dec 2010.

The procurement history for the A7 - NSN 5998-01-462-9093S0 (PN 5144070-15), 153-040047-

01, shows only a repair contract to Raytheon in Dec 2010 for 1 each.

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

OPEN COMPETITION

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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

At this time, with no out year requirements being projected by the system it is not feasible to reverse engineer these items or pursue the data purchase. This is a one-time buy.

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(b)(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(c)).