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SOURCE SELECTION INFORMATION -See FAR 3.104

PANRN0132

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

FOR

GENERAL ATOMICS

ENGINEERING AND TECHNICAL ASSISTANCE SERVICES

1. Contracting Activity: Army Contracting Command-Redstone, CCAM-RDD, Redstone Arsenal, AL 35898-5000.

2. Description of Action: The U.S. Army Aviation and Missile Research, Development and Engineering Center (AMRDEC), proposes to acquire via a new cost-plus-fixed-fee, Indefinite-Delivery, Indefinite-Quantity type contract, engineering and technical services to support the . This acquisition will utilize fiscal years 2011-2015, Research, Development, Test and Evaluation, Procurement, Operation and Maintenance, Industry and Foreign Military Sales (FMS) funds. FMS funded technical effort under the proposed contract may involve a combination of source and non-source directed tasks.

3. Description of Supplies/Services: The effort is to support technology integration allow demonstration of enhanced or improved systems performance

4. Authority Cited: The statutory authority permitting the use of other than full and open competition is 10 U.S.C. 2304(c)(l) as implemented by Federal Acquisition Regulation (FAR) 6.302-1, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements."

5. Reason for Authority Cited:

a. The proposed contractor, General Atomics , is the only source with the technical knowledge and expertise required to accomplish the required technology integration efforts

PANRN0125

b. The Government does not possess the technical data or the technical proficiency to perform technology integration with the contractor's proprietary . The contractor is the sole source of proprietary technical data for considered necessary to rapidly accomplish the required integration, test, modification, demonstration and operational exercise of innovative technologies, technical processes and/or procedures that will enhance and improve

. The Government as part of its acquisition strategy did not acquire technical data sufficient to allow competitive acquisition of the required engineering and technical services.

The costs to procure additional rights in technical data are not included in this estimate and are discussed below. Many of the data rights for various areas of the are asserted by the contractor as limited or restricted. The Government has not previously procured a technical data package (TDP) for the , therefore, limiting the Government's ability to compete the engineering service requirement. Successful performance of the engineering service requirement will require access to the technical drawings, manufacturing notes and processes and software coding.

. Some of the drawings and manufacturing processes in use for the were exclusively developed by General Atomics

. A TDP was not procured and, therefore, that data is unavailable to the Army for the . Many of the source codes used in the algorithms have also been identified as limited or restricted. Data assertions from General Atomics and their subcontractors were reviewed by the Government in FY 2005 and again in FY 2009 and FY 2010. Items in the data assertions list asserted by the contractor as currently containing Government purpose license rights have been negotiated to convert to unlimited data rights in September 2016. The formally requested a price from General Atomics in May 2010 for delivery of a complete TDP and purchase of all data rights.

The Government has completed an initial review of this response and completed a contract change in May 2011 for General Atomics to deliver a copy of the TDP in current contractor format with any restricted markings included for further Government review. This submittal (in current contractor format) is approximately 80 percent complete with the balance to be provided in April2012. This submission is currently in review by technical personnel. Although the drawings containing Government purpose license rights will convert to unlimited rights in September 2016, it will still leave some drawings, software and manufacturing processes asserted and marked as restricted or limited. will continue to review these assertions, challenge any markings to the maximum extent, and continue to explore the potential for competition, as applicable, using the unlimited rights drawings when they become available. Notwithstanding the sole source authority, efforts will be exerted to identify services, components, and other items that may be purchased competitively by the prime contractor from other sources.

New sources of supply are required periodically due to obsolescence and will be reviewed for possible purchase competitively by the prime contractor from other sources. All of the above efforts are focused on the technical data for the and do not address cost or time required to acquire technical data for other products to General Atomics

. No other type of service can satisfy the Government's need because no other type of service will provide the required engineering and technical knowledge, expertise technical data required to accomplish technology integration

6. Efforts to Obtain Competition: Because of the reasons set forth in paragraph 5, above, no efforts will be made to obtain competition in this acquisition. This action was published in Competition Advocate's Shopping List 4 November 2010, and revised on 5 January 2011, 28 July 2011, and 30 November 2011. This action will be publishe in the FedBizOpps on or about 15 June 2012.

7. Actions to Increase Competition: The unique combination of knowledge, expertise and access to technical data required to perform the integration, test, modification, demonstration and operational exercise of technology into the cannot be adequately defined within existing resource constraints to allow competitive competition. Although it is anticipated that the will have future funded requirements to perform technology integration efforts into the series, this will be for the purpose of demonstrating and using the resultant improved and enhanced capabilities. There is no technical source that has a requirement for or is willing to fund the development of the requisite technical documentation required to accomplish the instant technical integration on a competitive basis. At the conclusion of the 48-month period of performance for the proposed instant effort, the Government will evaluate the requirement for follow-on technology integration engineering and technical assistance services.

8. Market Research: The market research was performed in accordance with FAR Part

10. Extensive market research was performed involving the Redstone Scientific Information Center (RSIC), Competition Advocate's Shopping List (CASL), the Internet, and coordination with technical experts with the following results:

a. The Aviation and Missile Research, Development and Engineering Center (AMRDEC) RSIC was requested on 13 September 2011 to support market research through their access to the Defense Technical Information Center and its 2,205,055 entity Technical Reports database, the 320,616 entity Research Summaries database, and the 175,247 entity Independent Research and Development database. The RSIC research identified no other Government or industry sources capable of performing the required engineering and technical services.

b. The requirement for General Atomics engineering and technical assistance services was publically advertised initially on 4 November 201005 and then revised 5 January 2011, 28 July 2011 and 30 November 2011. There have been no inquires or responses from industry

. In accordance with Market Research Report/Commerciality Determination control number, MRR-CD#120235, for this requirement and approved 5 December 11, the basic clauses and provisions prescribed in FAR Part 12 will not meet the needs of this requirement, and will not be utilized.

c. The requirement for General Atomics engineering and technical assistance services was coordinated with the Deputy PM, , on 19 January 2011 and again on 4 October 2011, verifying that there is no other industry source with the requisite technical documentation, knowledge and expertise capable of performing engineering and technical services. This fact was also verified by the Technical Lead, and the Special Project Lead on 4 October 2011.

d. An Internet search was performed using the following search queries and results:

(1). Search query, "alternative sources for general atomics engineering services" provided no matching documents on 04 October 11.

(2). Search query, "general atomics engineering services" provided no matching documents on 04 October 11.

9. Interested Sources: To date, no other sources have expressed an interest in writing.

Notices required by FAR 5.201 will be published in the FedBizOpps on or around 15 June 2012, and any proposals received will be considered.

10. Other Facts/Other Factors:

a. Procurement history - There is no procurement history for the type of required General Atomics engineering and technical assistance services in support of customer requirements, as this is a new action.

b. Unusual patterns revealed through the procurement history- None

c. Acquisition Data Availability - A statement of work supporting competitive acquisition for the proposed effort has not been developed due to insufficient technical data. This data is considered necessary to provide contractors with adequate technical documentation in a competitive acquisition in order that they may accurately review and propose the effort. As discussed in paragraph 5.b., above, the Government does not possess the technical data or technical proficiency to perform the required technology integration with the contractor's proprietary systems. The Government as part of its acquisition strategy did not acquire technical data sufficient to allow competitive acquisition of the required engineering and technical services.

In addition, and a decision to acquire the TDP is pending with the . No customer funding is adequate or available to fund acquisition of a TDP to support the proposed contract effort. All of the above efforts are focused on the technical data for the and do not address cost or time required to acquire technical data for other that are proprietary products to General Atomics such as the . No other type of service can satisfy the Government's need because no other type of service will provide the required engineering and technical knowledge, expertise technical data required to accomplish technology integration

. Due to the expansive range of complex technical issues associated with technology integration and their potential military applications, the development of the final contract statement of work will be initiated through a draft statement of work using Alpha-contracting techniques to derive the final contract form.

d. Extent of competition anticipated at the subcontractor level- Not available. FAR 52.244-2, Subcontract (Cost-Reimbursable and Letter Contracts)- Alternate I, will be included in the resultant contract. The contractor will be encouraged to compete subcontracting opportunities wherever feasible.

11. Technical/Requirements Certification: I certify that the supporting data under my cognizance which are included in the J &A are accurate and complete to the best of my knowledge and belief.

Name: Date: /V ~ dc;J;}._

Title: , Signature:

12. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. This determination is based on independent Government estimates of the work needed and reviewing comparable cost and pricing data. To assure that all costs are fair and reasonable, a cost breakdown will be required from the contractor and an in-depth cost analysis will be performed as an additional step. This contract action will use the rates for which the Government will obtain certified cost or pricing data.

13. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name:

Pfn2 APR 1 2 Date: _____________ _

Title: ___________ _

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of labor hours during a 48-month contract period of performance to support technology integration into the to allow demonstration of enhanced or improved performance, particularly as it pertains to near term tactical and operational employment of this technology to meet requirements as part of the . The basis of this procurement is on an other than full and open competition basis with General Atomics , in pursuant to the authority of 10 U.S.C. 2304(c)(1 ), as implemented by FAR 6.302-1, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements", subject to availability of funds and provided that the services and property herein described have otherwise been authorized for acquisition.