Award of Common Sensor Payload Production and System Support Indefinite-Delivery/Indefinite Quantity (IDIQ) Contract

**This notice is being published manually as it did not flow through automatically through the contract writing system (PADDS) due to a system error immediately after award.**

This IDIQ contract was awarded on a Sole Source basis with firm-fixed-price and cost-plus-fixed-fee type contract line item numbers.

As described in FAR 6.302-1(a)(2)(ii)(A) and FAR 6.302-1(a)(2(iii)(A), supplies and services may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely 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.

Supplies and services are deemed to be available only from the original source for the continued development, production, and sustainment of the CSP system. An award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Due to the unique and highly technical nature of the product and the unique processes required for the precision optics, alignments, and hardware/software integration, only Raytheon is capable of producing and supporting these systems with engineering services, new development, technology insertion, and upgrades, given the existing technical data package (TDP) and the required time frame. The Government does not own the full TDP that would allow for full and open competition for the development, production, and/or sustainment of the MTS family systems. In order to compete this action, the Government would need to provide a Contractor full access to the TDP or would have to reverse engineer the system. A reverse engineering effort would present unacceptable levels of performance, schedule, and cost risk to the program.

Please see the referenced redacted J&A for further information to satisfy the requirements of FAR 5.705(b) for this action not being awarded competitively. Firm-fixed-price (FFP) orders will be issued for procurement of systems, spare parts, and retrofits. Cost type orders will be utilized for services. 

The use of a CPFF type contract is determined to be the most appropriate method of acquisition for the associated efforts required by the Contractor to provide ongoing and undefined engineering, program management, platform integration, logistics, and depot support where there is a reasonable degree of uncertainty in contract performance and where it cannot be estimated with sufficient accuracy to use a fixed price contract type. Pursuant to FAR 16.301-2, a cost type contract was selected due to the reasonable degree of uncertainty in contract performance of efforts that cannot be estimated with sufficient accuracy to use any type of fixed price contracts. In accordance with FAR 16.306(b), a CPFF contract is suitable for use when the conditions of 16.301-2 are present and, for example, the contract is for the performance of research or preliminary exploration or study and the level of effort required is unknown or the contract is for the development and test, and using a cost plus incentive contract is not practical. The CPFF efforts that will be performed under this acquisition meet these criteria.

In accordance with FAR 16.301-3, Limitations, (1) the factors in FAR 16.104 have been considered; (2) a written acquisition plan was approved and signed at least one level above the contracting officer; and (3) the contractor’s accounting system has been verified to be adequate for determining costs applicable to the contract or order ; and (4) prior to award of the contract, or order, adequate Government resources are available to award and manage a contract other than firm-fixed-priced, including appropriate Government surveillance during performance in accordance with 1.602-2, to provide reasonable assurance that efficient methods and effective cost controls are used. Designation of at a contracting officer’s representative (COR) qualified in accordance with 1.602-2 was made. Appropriate Government surveillance during performance to provide reasonable assurance that efficient methods and effective cost controls are used.

Awarded contract W56KGY-19-D-0005 to RAYTHEON COMPANY for 427298588.00 on 2019-09-13.