P-8A Increment 3 Risk Reduction Capabilities Integration Analysis

Action was not competitive based on the rationale included in the Attached Justification and Aprroval for use of Other Than Full and Open Competition under the authority of 10 USC 2304(c)(1) and FAR 6.302-1. Contract is not fixed price: Justification of the use of a CPFF contract is in accordance with FAR 16.103(d) is as follows: a. A cost reimbursable contract is appropriate pursuant to DFARS 235.006(ii)(A). This is a development program for which the use of a fixed-price type contract would not provide an equitable and sensible allocation of program risk between the Government and the Contractor. b. Use of a Cost Plus Fixed Fee best meets the Government's needs. This effort involves many unknowns and uncertainties due to the developmental nature of Increment 3 requirements. Cost incentives were considered, but parts of the effort require the Government to be responsible for final outcomes. For example, it is planned that Boeing will act in a support role to the Government for verification. Boeing's costs incurred related to verification would be primarily dependent on the Government's ability to perform verification tasking without substantial assistance from the contractor. c. Government resources exist to plan for, award, and administer a cost type contract. The Defense Contract Management Agency (DCMA) will be administering this contract. DCMA currently administers the majority of the P-8A Poseidon contracts, and are very familiar with administration and oversight of Cost-type contracts, as the P-8A contracts during the System Development and Demonstration (SDD) phase were Cost-reimbursement type. They have the personnel necessary for properly administering this type of contract. d. Boeing currently has an approved accounting system.