See FAR 2.101 & 3.104 Page 1 of 8 Addendum 2 to Ju
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DEFENSE LOGISTICS AGENCY HEADQUARTERS 8725 JOHN J. KINGMAN ROAD FORT BELVOIR, VIRGINIA 22060-6221 Addendum 2 to Justification and Approval for Other than Full and Open Competition (SPRBL1-15-D-0017) 1. Contracting Activity: This Justification and Approval for Other than Full and Open Competition (J&A) Addendum 2 supports requirements generated by the Army, Air Force, Marine Corps, Navy, Defense Logistics Agency (DLA), and Foreign Military Sales (FMS). The contracting activity for this requirement is DLA Land at Aberdeen, Aberdeen Proving Ground, MD. 2. Description of the Action Being Approved: Contract SPRBL1-15-D-0017 was awarded to Raytheon Company – 350 Lowell Street Andover, Massachusetts, Cage code 05716, on September 28, 2015, on a firm-fixed-price basis including a three (3) year base followed by a three (3) year redeterminable option period. The contract anticipates performance by the following Raytheon Contractor and Government Entity (CAGE) codes: 05716; 15090; 37695; 96214; 072E5; 2M191; 3B150; 4U884; 7Y193; 00724; 06845; 49956; 54X10; 5D744; 4D494; K0268 and 9F358. Raytheon is a large business. The original J&A, approved on July 23, 2014, supported an Indefinite-Delivery Indefinite-Quantity (IDIQ) contract on a sole source basis for the acquisition of Depot Level Repairable (DLR) and consumable spare parts associated with 176 specific Raytheon manufactured systems and/or system components. The J&A scope included an attachment, titled the “Add-On Process”, detailing the procedure for on-ramping items covered by an attached list of platforms, systems and subsystems for which Raytheon is the sole source Original Equipment Manufacturer (OEM). J&A Addendum 1 was approved on June 29, 2016, for a scope increase to contract SPRBL1-15-D-0017. This scope increase broadened DLA’s long-term strategic sourcing contract with Raytheon to encompass repairs, engineering services and associated data that are sole source to Raytheon. J&A Addendum 1 also authorized an increase in the base contract period from three (3) years to six (6) years, resulting in a nine (9) year contract. Additionally, the Government identified more systems for which Raytheon is the sole source OEM; therefore, J&A Addendum 1 expanded the number of platforms, systems and subsystems supported from 176 to 244. The contract contains DLAD 52.216-9006, Addition/Deletion of Items, to allow for the addition of items of supply and their associated services within the contract scope. Ultimately, the contract is expected to include all supplies and services identified as sole source to Raytheon in support of DoD weapon system requirements. This evolutionary Source Selection Information & Sensitive – See FAR 2.101 & 3.104 Page 1 of 8 Justification and Approval Addendum 2 SPRBL1-15-D-0017 acquisition approach assumes iterative contract modifications throughout the life of the contract to add on sole source requirements as they are identified. This J&A Addendum 2 authorizes an increase to the contract ceiling from to , expands the contract scope to include Performance Based Logistics (PBL), maintenance, training, and kit services, adds four additional systems to the scope of platforms, systems and subsystems supported, and revises the Add-On Procedures to more clearly document the process to add sole source Raytheon services to the contract. See Attachment 1 for revised Add-On Procedures, originally developed under the J&A from June 2014, which better aligns the procedures for processing services-related requirements, in addition to supplies. It also authorizes addition of other supplies and services demonstrated to be sole source to Raytheon in accordance with the procedures in Attachment 1. Presently, an increase to the ceiling is needed in order to ensure comprehensive sustainment and support of the critical sole source Raytheon Patriot system. Due to the value associated with adding Patriot projects (including the PBL) and various other projects to SPRBL1-15-D-0017, it is projected that a maximum contract ceiling is necessary in order to support the current nine-year contract duration. This ceiling authority will provide coverage for the previously added systems, and will provide the continued flexibility to on-ramp additional systems in the coming years. Funding will come from Defense-Wide working capital funds, Military Service working capital funds, Military Service procurement or operations and maintenance funding, as well as FMS funds. Approximately of the current contract ceiling remains, which is anticipated to be exhausted rapidly with the existing roadmap of systems to be on- ramped. The estimated total 9-year spend for projects already on contract is . The estimated total spend for the six Patriot projects that are in process for award during FY18/FY19 is . The estimated total spend for the eleven other non-Patriot projects in process for award in FY18 is . Additionally, is requested to support the 13 other identified prospective projects, as well as to allow for additional growth of the contract from 2019 thru 2024. A breakout of the projects and estimated values are shown in Table 1 below. This contract ceiling increase ensures authority to allow for the award of the Patriot and other projects identified in Table 1, and provides flexibility for future growth. Space left blank intentionally Source Selection Information & Sensitive – See FAR 2.101 & 3.104 Page 2 of 8 Justification and Approval Addendum 2 SPRBL1-15-D-0017 PBL services will provide cost effective weapon system support for Raytheon sole source systems where applicable and beneficial to the Government. These contract efforts are designed to deliver performance outcomes rather than a good or service. PBLs may be utilized as needed to support the sustainment of systems listed on Attachment 2 “List of Raytheon Sole Source Systems”. 4. Statutory Authority for Other than Full and Open Competition: Use of Other than Full and Open Competition is authorized by 10 U.S.C. 2304(c)(1) and FAR 6.302-1, as there is only one responsible source and no other supplies or services will satisfy agency requirements. The acquisition of current and future add-on projects is restricted to the prime contractor, Raytheon, for requirements in which they are verified to be the only source having the capability to furnish the required support. 5. Demonstration of the Contractor’s Unique Qualifications or Rationale for use of the Cited Statutory Authority: This J&A Addendum 2 supports adding projects which relate to sole source Raytheon systems, platforms and subsystems for which only Raytheon can provide the necessary support. Added projects will be verified sole source to Raytheon via the Attachment 1 Add-on Procedures before being solicited. The Government will evaluate all future add- ons, identifying each part/item/service and the system to which it belongs, and will verify through market research that the item is sole source. Only projects for which Raytheon is determined to be the only company possessing the requisite engineering expertise, data rights, configuration management, tooling, and/or management knowledge will be added. This process also ensures that complex weapon systems remain reliable and safe. PBL contract efforts are designed to deliver performance outcomes rather than a good or service. Given that the Government does not possess the technical data packages for these systems, the Government cannot solicit other contractors to integrate and manage these system readiness objectives for the sole source systems as a whole. Due to rapid technological changes and disruptive innovations, components may become outdated or reach end of life at any time. As the designer, developer, and manufacturer of supported items, only Raytheon is capable and qualified to provide the government with the required supplies and services and integrate these into the overall systems. Only Raytheon possesses the technical data required to upgrade current system architecture by performing obsolescence management or technical support. Additionally, for supplies, the Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) assigned by the DOD will be used to support a conclusion that the item is sole source in accordance with DFARS PGI 217.7056 - Spare Parts Breakout Program, 2-201.1 Acquisition Method Codes, and 2-201.2 Acquisition Method Suffix Codes. If any item or service belonging to a system, platform, or subsystem is determined to be competitively available, it will not be awarded under this contract vehicle. If any item or Source Selection Information & Sensitive – See FAR 2.101 & 3.104 Page 4 of 8 Justification and Approval Addendum 2 SPRBL1-15-D-0017 service is determined to be competitively available after contract award it may be deleted from the contract and competitively re-solicited. 6. Market Research/Efforts to Obtain Competition (10 U.S.C. 2304(f)(3)(D)): Relative to the September 28, 2015, award of contract SPRBL1-15-D-0117, a special notice, in the form of a market survey, was posted on the Federal Business Opportunities (FedBizOpps) web page on March 25, 2014. This market survey outlined a brief scope of work, including information about the possibility of adding future phases. The survey listed questions regarding potential sources’ abilities to satisfy the requrement. No vendors responded. In accordance with FAR 5.201, the proposed action was synopsized in FedBizOpps on April 4, 2014. A synopsis posting a draft Request For Proposal (RFP) was issued through FedBizOpps on April 24, 2014. Raytheon was the only contractor to respond. The J&A was made available for public inspection via FedBizOpps after award, in accordance with FAR 6.305. Relative to J&A Addendum 1, a Sources Sought Announcement outlining the proposed scope expansion including the addition of three (3) base contract years, repair and engineering services was publicized on FedBizOpps on May 25, 2016. Raytheon was the only contractor to respond. A synopsis was posted on June 8, 2016, summarizing the anticipated contract modification. This J&A Addendum was made available for public inspection via FedBizOpps after contract modification.