WCMD Engineering Support (JA)Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

CONFIDENTIAL UNCLASSIFIED \ FOR OFFICIAL USE ONLY

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Funding is USAF CAM O&M 3400.

IV. Statutory authority permitting other than full and open competition.

10 U.S.C. 2304(c) (1) as implemented by Federal Acquisition Regulation (FAR) 6.301-1 (a)(2)(iii) and FAR 6.302-1

V. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above (applicability of authority).

Lockheed Martin is the OEM of the WCMD weapon system. Every year the USAF has requested to purchase data rights as part of the market research and Lockheed Martin has declined. The USAF cannot complete this requirement organically or competitively without this additional data. In 2019 Lockheed Martin notified the USAF that they would no longer provide weapon system services due to political pressures. At that time, the USAF requested again to purchase data rights and equipment and Lockheed Martin declined. Lockheed Martin has since elected to grant a fully paid-up, perpetual, irrevocable, nontransferable, sub-licensable, non-exclusive license to use Lockheed Martin Technical Data and software to Smart Munitions Engineering Services (SMES) who has recruited and now employs the specially trained WCMD engineering personnel. The sustainment requirement is for highly specialized equipment/services. The complex technical nature of the WCMD guided tail kit and subcomponents impedes other sources from providing the required aircraft integration, mission planning, flight test, and software/hardware support efforts. The Area Attack Program Office believes that award to any other source, other than Lockheed Martin's successor, would result in an unacceptable delay and a substantial duplication of cost in fulfilling the Air Force's requirement. Currently, Air Combatant Command (ACC) has no plans or funding to acquire new tail kits, however, the SPO is tasked to support the WCMD guided tail kits that are currently in the field. Any break in service to sustain and support this weapon system would severely compromise the war-fighter mission and the SPO's ability to fix issues across eight (8) different airframe platforms.

Awarding to any other company would result in an unacceptable delay in fulfilling the agency requirement for annual weapon system sustainment. Any other company would need many years to duplicate the intellectual software and experience base that Lockheed Martin had built over 16 years and has passed to SMES. Reverse engineering would involve much more than the Government providing an existing tail kit to a different contractor for their analysis, reproduction, and sustainment service. It would require a contractor to build an entirely new tail kit - to include production line facilitation, establishing a trained workforce, integrating their tail kit on eight different air platforms, developing new telemetry (TM) kits to support the new tail kit, plus developing simulators and depot test equipment to support the new tail kit. Based on the history of previous contracting actions, it took 16 years to produce and integrate the existing WCMD guided tail kits. If another company was available it would take three to four years to reverse engineer WCMD tail/equipment, obtain expertise, get Lockheed Martin intellectual property or reverse engineer the intellectual property, and get set up to support the WCMD engineering services. The program office is tasked to provide annual sustainment support for the WCMD guided tail kits that are currently in the field. Any break in this service compromises the ability to fix issues and support the war-fighter mission.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under

FAR 5.202 applies.

A. Sources Sought Synopsis: A Sources Sought Synopsis (SSS) announcement (FA8213-21-RWCMD) was posted through BetaSAM from 27 Jan 2021 through 27 Feb 2021. The Sources Sought Synopsis informed potential contractors of an opportunity to provide detailed technical support for WCMD guided tail kit systems in the Air Force Inventory. SMES was the only response to the Sources Sought Synopsis and was determined to be capable of providing the services described in Section III above.

B. Synopses of Proposed Contract actions: This acquisition will be synopsized in the BetaSAM as a notice of contract action IAW FAR 5.201. If other sources express interest as a result of this synopsis or other actions, they will be listed in the official file.

C. Other Actions: None D. Qualifying country Sources: None

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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 or pricing data IAW FAR Subpart 15.403, 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 the 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, in accordance with FAR Part 10, was conducted by Sources Sought Synopsis of the proposed acquisition, advising industry of the pending acquisition and requesting inquiries from interested parties.

B. Additional market research was conducted between February and March 2021 regarding available sources for technical support of the WCMD system - no other sources were found to exist. The program engineer queried Government and commercial databases, reviewed literature published by manufacturers, distributors and queried the following internet sites;

(http://www.imart.org, http://nssn.org, http:// www.ihserc.com).

C. To date, no relevant capable suppliers have been identified, or expressed interest, through extensive market research attempts. Historically a Basic Ordering Agreement between USAF and Lockheed Martin has been utilized, the final ordering period to accomplish the services described in Section III was September 2020. SMES has acquired engineers from Lockheed Martin with specific experience to continue the work Lockheed Martin no longer supports. After accomplishing a review of the industry sources, it was determined there were no alternate sources available to fill the Government's needs. No commercial or non-developmental items or services can meet this requirement.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

None

X. List of any sources that expressed, in writing, an interest in the acquisition.

Smart Munitions Expert Solutions, Inc 202 E. Drinker Street Dunmore, PA 18512 Mike Princic, COO

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 have sufficient data in order to promote future competition. To facilitate future competition the Government will continue to try to purchase at a minimum government purpose license rights from the contractor. The Government will also post sources sought synopses on Federal Business Opportunities throughout the life of this future contract.

XII. Certification by the Contracting Officer.

The contracting officer’s signature on the Coordination and Approval Document (CAD) evidences that he has determined this document to be both accurate and complete to the best of his knowledge and belief (FAR 6.303-2(b)(12)).

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XIII. Certification by the technical/requirements personnel.

As evidenced by their signatures on the CAD, 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)).