Tab 1_JA CDU 20240919_AQ Signed - Redacted.pdf

This is a Justification and Approval (J&A) document for a sole-source acquisition by the United States Air Force for F-16 Center Display Unit (CDU) production and support. The contracting activity is AFLCMC/WAMK, with an estimated contract value exceeding $100 million. The award is being made to Vertex Modernization and Sustainment LLC (CAGE Code 96AJ0) under the authority of 10 USC 3204(a)(1) for Only One Responsible Source. The estimated award date is December 2024. The contract will be a five-year Indefinite Delivery/Indefinite Quantity (IDIQ) with a single five-year option (10 years total) covering supply and services including non-recurring engineering (NRE), CDU kits, Windows licenses, spares support, firmware and software support, hardware support, CDU Line Replaceable Unit (LRU) repairs, over and above repairs, Board Computers, Cyber LRUs, travel, and data deliverables.

The justification identifies four primary reasons for sole-source award to Vertex: (1) awarding to any other source would result in unacceptable 8-10 year delays due to contractor stand-up, testing, and qualification timelines, particularly to meet Joint Environmental Operations Network (JEON) Full Operational Capability requirements by Fiscal Year 2028; (2) Vertex possesses sole ownership of necessary intellectual property (IP) and data rights for CDU manufacturing and support, including design files and technical documentation that the OEM refused to provide to competitors; (3) Vertex is the only company capable of providing required support to over 350 fielded F-16 aircraft already equipped with CDUs, including critical safety-of-flight system expertise and specialized Operating Flight Program (OFP) software; and (4) duplicating costs for prototype testing, qualification, and integration would be substantial and unrecoverable through competition. The document indicates that five separate sources sought synopsis documents have been issued since 2011 with no viable responses from alternative contractors. Pricing will utilize Cost-Plus-Fixed-Fee arrangements with Cost Reimbursement No Fee (travel) and Not Separately Priced (data) options.