18-01042 Amendment-Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

PR FD2060-18-01042

I. Contracting Activity.

This Justification and Approval Amendment is to request authority for Other Than Full and Open Competition supports requirements generated for the Air Force Sustainment Center (AFSC), 638 Supply Chain Management Group (SCMG), 408 Supply Chain Management Squadron (SCMS)/GULA. The contracting authority for this requirement is AFSC/PZABB. The purchase request number supporting this contracting action is FD2060-18-01042.

II. Nature and/or Description of the Action being approved

Due to the circumstances described herein, the activity request authority to acquire spares listed in this document using Other Than Full and Open Competition as prescribed by Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This action will result in the award of a follow-on contract, which will be a Firm-Fixed Price (FFP), Definitive “C” with basic one (1) year plus four (4) one-year option periods (OPs). Based on projected award date, orders can be issued 26 February 2021 to 25 February 2026.

The purpose of this amended J&A is to update the awardee of the sole-source requirement from Pacific Design Technologies Inc. (PDT) to Kellstrom Defense. PDT was subsequently purchased by Ametek (CAGE OZTJ5) on 04 September 2019. The reason for this change is due to a distribution agreement made between Ametek and Kellstrom Defense. Due to the distribution agreement, effective 01 Jan 2020, Kellstrom Defense will serve as prime contractor for this requirement. The Ametek/Kellstrom distribution agreement states that all aftermarket, replacement, and spares, solicitations go directly to Kellstrom Defense. As the Ametek authorized distributor, Kellstrom Defense will procure the product (ALQ-184 ROTARY PUMP UNIT) in a finished goods state from Ametek.

This sole-source requirement will be awarded to the following company:

Kellstrom Defense Aerospace, Inc.

DBA: Kellstrom Defense 15501 SW 29TH Street, Suite 101 Miramar, FL 33027-5261

CAGE: 1ZK21

Large Business

III. Description of the Supplies/Services Required to Meet Agency Needs (including the estimated value).

The original J&A for this action was approved 19 December 2018 by the Competition Advocate with an estimated value of This J&A Amendment updates the estimated value of the requirement, updates the period of performance and updates the market research.

This requirement is for the purchase of the AN/ALQ-184 Motor Driven Pumping Units/Liquid Colling Systems which are required to support sustainment of the AN/ALQ-184 Electronic Attack (EA) Pod.

The revised total estimated cost is . This estimate is based on the previous Market Research Report and the proposal received from Kellstrom Defense. The prior J&A delivery schedule was 180 days after receipt of delivery order. The new anticipated delivery schedule will be 290 days after receipt of contract award at a rate of 25 asset per month, including out-year OP production units.

The requirement will use Consolidated Sustainment Activity Group (CSAG – Supply 4930) FY21 - FY26 Defense Working Capital Funds (DWCFs).

*NRE – Non Recurring Engineering is needed to ensure that the repair line is available. This repair line would typically already be in place as this is a NSN production procurement, however this is not the case as production for the ALQ-184 Coolant Pump has been down for over two (2) years.

The nominal Contract Line Item Numbers (CLINs) anticipated for each period are as follows:

CLIN Description Contract Type Qty Unit of Measure 0001 Production FFP 35 each 0002 Data NSP 1 LOT

0003 NRE FFP 1 LOT

1001 Production (OP1) FFP 65 each 1002 Data NSP 1 LOT

ALQ-184 Coolant Pump NSN Basic/Option Qty Unit Price Total Price

NSN:4320-01-569-2102EW

Basic 35 Basic *NRE

1 65 2 65 3 65 4 65

Contract Total

2001 Production (OP2) FFP 65 each 2002 Data NSP 1 LOT 3001 Production (OP3) FFP 65 each 3002 Data NSP 1 LOT 4001 Production (OP4) FFP 65 each 4002 Data NSP 1 LOT

This NSN was screened and assigned Acquisition Method Code (AMC)/Acquisition Method Suffix Code (AMSC) of 3/B. A “3/B” AMC/AMSC means to acquire, for the second or subsequent time, directly from the actual manufacturer. The screening sheet indicates Raytheon is an approved source, however they were the Prime contractor who subcontracted the development and production to PDT. PDT was purchased by Ametek, making Ametek the original equipment manufacturer (OEM). Raytheon is no longer considered to be an approved source. This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application.

IV. Statutory Authority Permitting Other Than Full and Open Competition.

10 USC 2304(c)(1), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

V. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (Applicability of Authority).

The agency’s minimum needs can only be satisfied by the unique supplies or services available from Kellstrom Defense, the only authorized Ametek distributor of the Coolant Pump for the ALQ-184 Electronic Countermeasure Pods due to Ametek/Kellstrom Defense distribution agreement. The AN/ALQ-184 is a self-protect Electronic Countermeasures (ECM) Electronic Warfare (EW) Pod with widespread use in United States Air Force combat aircraft. It provides electronic countermeasures against Surface to Air Missiles, radar-directed Anti-Aircraft Artillery, and Airborne Interceptors for the A-10 and F-16 aircraft. The AN/ALQ-184 Pumping Units/Liquid Cooling System is responsible for maintaining coolant flow to keep the temperature of the pod below the maximum operating temperature of the electronic components in all operating environments of the host aircraft. It is a critical, highly specialized component of the

AN/ALQ-184.

Previously, PDT (now Ametek) was qualified through a competitively awarded redesign contract. PDT developed a new pumping unit and utilized PDT proprietary components in the design. The redesign contract did not include purchase of a technical data package (TDP). PDT has manufactured the pumping units since 2005. The expired sole-source Indefinite Delivery / Indefinite Quantity (ID/IQ) contract was SPRWA1-15-D-00002. It was awarded 15 May 2015 and expired 14 May 2020 2020, however the maximum quantities established in the contract have been reached and the contract is no longer a viable vehicle to support sustainment requirements.

During negotiations PDT disclosed they had been purchased by Ametek. Shortly thereafter , a distribution agreement between Ametek and Kellstrom Defense was executed with effective date of 01 January 2020. Ametek will continue to manufacture the AN/ALQ- 184 but Kellstrom Defense will be their authorized distributor and all solicitations and contract awards should be to them.

The Pumping Units to be procured under this proposed contract are highly specialized in nature due to the generator design of the pump and using coolant 20. Ametek (formerly PDT) retains all proprietary data required to manufacture this item. Additional system level requirements and undocumented engineering knowledge of its operation are owned by Ametek. The Government does not own or have Government purpose rights to the technical data required to manufacture this item. The Government was previously advised by PDT on 13 September 2018 that they are unwilling to sell their Intellectual Property, including, but not limited to, the drawings associated with the AN/ALQ-184 Pumping Unit or the technical data (or rights to the data) required to manufacture the Pumping Unit.

Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Air Force’s requirements. Because PDT was unwilling to sell the proprietary data required to manufacture this item, award to any other source would require a reverse engineering effort to develop a technical data package. Based on the Air Force’s engineering staff’s experience and comparison to similar engineering effort, identify and rectify any obsolescence issues, deliver qualification reports, manufacture First Articles, deliver a technical data package for Government review/approval, and begin deliveries. The estimated cost for such an effort, not including the cost of production costs, is This estimate was obtained from a White Paper written by Georgia Tech Research Institute on 15 July 2013 for the ALQ-184 Program Office.

The White Paper estimated to be (FY13). This estimate was inflated by 3% each year to calculate the FY18 estimate. Such an effort would not result in enough savings to recoup the costs required to award to another vendor as the estimated Return on Investment (ROI) would not be achieved until FY30, beyond the life cycle of the pods. Additionally, it will take 3 years to complete a reverse engineering effort. The current Pod Upgrade Program is expected to replace all ALQ-184 pods with ALQ-131A by 2027. In addition, a reverse engineering effort would expose the Air Force to unnecessary cost risk, schedule risk, and technical risks with no guarantee of success. New competitive redesign would not be cost effective or feasible

The delays associated with award to another vendor are unacceptable as the backorders and Mission Impaired Capability Awaiting Parts would continue to accrue during the new contractor’s reverse engineering effort, build, test, qualification, manufacturing start-up, and delivery phases. The overall mission capable rate of the AN/ALQ-184 fleet would be detrimentally impacted, as would the aircraft they support.

Accordingly, Ametek (via distributor Kellstrom) is the only firm capable of providing the supplies and services described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

VI. Description of Efforts Made to Ensure that Offers are Solicited From as Many Potential Sources as Practicable.

A Sources Sough (SS)/Request for Information (RFI) synopsis was posted to Federal Business Opportunities (FedBizOpps) on 3 August 2018 with a response date of 3 September 2018 under Solicitation Number FA85220180ALQ-184-2102. The SS/RFI requested response from interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this effort. The SS/RFI defined the Government’s requirements regarding the manufacture of the AN/ALQ-184 Motor Driven Pumping Unit and included a capability survey with which interested contractors could describe their capabilities to support the requirements.

No responses were received to the SS/RFI.

The requirement was synopsized in FedBizOpps in accordance with FAR 5.201. It is anticipated that sources having an interest may be identified through synopsis. Any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

VII. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The overall cost of this acquisition will be fair and reasonable to the Government. In accordance with FAR 15.403-4, the contractor will be required to provide certified cost or pricing data to be used in supporting the Government’s evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types and quantities of material, other direct costs, and direct and indirect rates will be negotiated by the Government based on recommendations from the Defense Contract Management Agency (DCMA) and expert technical personnel supporting the program.

The contract price will be negotiated in accordance with the procedures in FAR Part 15 ensuring the ultimate cost to the Government is fair and reasonable.

VIII. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research was not Conducted.

The original market research was conducted in accordance with FAR Part 10.001 and 10.002 and was completed on 5 October 2018. A revision of the market research was conducted on 20 November 2020 and completed on 7 December 2020 changing the qualified source to Ametek after the company purchased PDT. The revised market research also describes the distribution agreement that took place between Ametek and Kellstrom Defense. Market research techniques used are as follows:

As described in Section VI above, a SS/RFI synopsis was posted to FedBizOpps on 03 August 2018 under solicitation number “FA8522-18-ALQ184-2102.” No one responded to the SS/RFI.

PDT was conducted via email on 10 September 2018 by the Government to validate their interest in the spares procurement contract and request data rights for the ALQ-184 Coolant Pump NSN:

4320-01-569-2102EW / PN: G254008-1V4. They responded the same day with interest to pursue a follow-on contract but would not sell intellectual property.

Research was conducted on the acquisition and support history for the AN/ALQ-184 Electronic Attack Pod, including reviewing previous contract vehicles for this item. Thorough documentation searches were conducted within Government databases, combined with various internet searches (Thomas Registry, IHS Haystack, Google, etc.) for part/national stock numbers and manufacturers. Qualified individuals, within the appropriate Government organizations, were contacted and assisted with the gathering of product background information. A search for HUB zone and service-disabled veteran owned businesses were conducted using the Dynamic Small Business Search Engine (http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm), using criteria consisting of keywords pertaining to the item description. PDT, identified now as Ametek was the only capable source identified through these searches.

The AN/ALQ-184 Electronic Attack Pod’s Motor Driven Pumping Unit/Liquid Cooling System does not fit the definition of a commercial item as defined in FAR Part 2. This item is defined as military unique and is not customarily used by the general public or by non-Governmental entities. The Government requires parts that meet an exact form, fit, and function as determined by the specific mission. There are no commercial or non-developmental items that meet the requirements.

The updated market research concluded that Ametek (via distributor Kellstrom) is the only vendor capable of fulfilling the Government's requirement.

IX. Any Other Facts Supporting the Use of Other Than Full and Open Competition.

None.

X. List of Sources, if any, That Expressed Interest in the Acquisition.

See Section VI above.

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 possess the TDP to support full and open competition. An inquiry for sell of the data was sent to PDT on 10 September 2018 and they declined interest in selling the technical data.

A reverse engineering effort is estimated to take at least 3 years to complete at an estimated cost of The breakeven point of a reverse engineering effort is not expected to occur until FY30. The lifecycle of the ALQ-184 Program is through 2027. A reverse engineering effort would be a duplication in cost and would cause unacceptable delay in meeting Air Force requirements, therefore determined not feasible. The FY30 funding breakeven point of funding another vendor through competitive redesign would not be cost effective or feasible.

It is anticipated that there will be follow-on requirements, and such, the Program Office will continue their attempts to procure data from Ametek. Should Ametek agree to sell the technical data, the Program Office will budget for funding to procure the technical data if it makes economic sense to do so.

Furthermore, the current system will be replaced by ALQ-167, which will replace all AN/ALQ-184 Electronic Countermeasures (ECM) Pods. Once the ALQ-167 replaces all legacy ALQ-184 pods, the AN/ALQ-184 Pump will be removed from Air Force inventory.

The AN/ALQ-184 Pump will continue to support the F-16 and A-10 airframes until fielding of the ALQ-167 is complete. This is currently projected to occur by 2027 but is contingent on funding.

The previous J&A’s plan to break barriers to competition was to attempt to procure the data to determine the feasibility of pursuing a redesign or reverse engineering effort. This plan was completed, therefore higher level approval of this instant is not required in with DFARS PGI 206.304(a) (S-70) (ii).

XII. Certification by the Contracting Officer.

As evidenced by my signature on the Coordination and Approval Document (CAD), I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Technical/Requirements Personnel’s Certification.

As evidenced by my (our) signature(s) on the CAD, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.