21-00012 - SSJ Redacted Final.pdf

Controlled Unclassified Information

SOLE SOURCE (INCLUDING BRAND NAME) JUSTIFICATION

Simplified Procedures for Certain Commercial Items

I. Contracting Activity.

This Sole Source Justification (SSJ) is to request authority for Other Than Full and Open Competition supporting requirements generated for the Air Force Sustainment Center (AFSC), 638 Supply Chain Management Group (SCMG), 409 Supply Chain Management Squadron (SCMS)/GUMAA. The contracting activity for this requirement is AFSC/PZAAB. The purchase request number supporting this contracting action is FD2060-21-00012.

II. Nature and/or Description of the Action Being Processed.

Due to the circumstances described herein, the activity requests authority to repair the items listed in this document using Other Than Full and Open Competition as prescribed by, AFFARS

5313.501 - 10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures (41 U.S.C.

1901). This action will result in the award of a follow-on, Firm-Fixed Price (FFP), Requirement Indefinite Delivery Contract (IDC) with a basic one-year plus four (4) one year ordering periods.

The period of performance (PoP) is projected to be 01 February 2022 through 31 January 2027.

During the original synopsis phase, prior to release of the solicitation, AFSC/PZAAB contracting was contacted by Integrated Procurement Technologies (IPT). IPT notified the Air Force Negotiation Team (AFNT) that they had recently entered into an agreement with Extant Aerospace, the certified repair source for this effort. Due to the agreement, IPT would support sales and repair activities with Extant for several product lines, including the Battery Charger Electronic Module (BCEM). In a further clarifying email, IPT stated Extant is still manufacturing/repairing the product as before; Extant is asking IPT to manage the transactional requirements with the government representatives.

Following review of the distributor agreement, the AFNT moved forward with IPT as the prime contractor. During negotiations with IPT, the AFNT was contacted by Extant who offered to remove this NSN/part number from the distributor agreement. The distributor agreement has since been dissolved for this NSN/part number allowing the government to contract directly with the OEM, Extant Aerospace. Removing this NSN/part number from the distributor agreement produced an opportunity for a price that was fair and reasonable to the government and the contractor.

This sole source requirement will be purchased from the following company:

Symetrics Industries, LLC DBA Extant Aerospace 1615 W NASA Blvd Melbourne, FL 32901-2613 Cage Code: 22830 Large Business

III. Description of the Supplies/Services Required to Meet Agency Needs.

This requirement is for the depot level repair, calibration and functional test as necessary to restore NSN: 6130-01-535-7275 to serviceable condition. The C-5 Battery Control Electronics Module (BECM) is part of the Emergency Power System (EPS) on all models of C-5 aircraft and is additionally used in conjunction with the auxiliary power unit (APU) system on C-5M model aircraft. The requirement is for repair of all reparable carcasses. The repair is to be completed by the contractor and returned to the Air Force within 60-days after receipt of reparable or funded delivery order, whichever is later. The annual Best Estimate Quantity (BEQ) will be 120 Repairs, (1) One No Fault Found (NFF), and (1) One Beyond Economical Repair (BER) are as follows. The estimated quantities are based on D200 Computation and current repair quantities.

D200 is Secondary Item Requirements System that computes spare parts requirements for all weapons systems on an aggregate basis and applies all available worldwide assets to these requirements. A escalation factor was applied to the estimated unit price for each one-year ordering period. The basis for the estimated cost was derived by utilizing contract FA8538-19- D-0002 repair costs.

BCEM

NSN: 6130-10-535-7275

Year Repair Cost Repair Quantity Estimated Cost 1 120 2 120 3 120 4 120 5 120 Total 600

Year Unit Cost NFF/BER Quantity Estimated Cost 1 2 2 2 3 2 4 2 5 2 Total 10

Total Contract Cost:

A No Fault Found (NFF) contract line item (CLIN) was added for any units sent to the contractor resulting in no failure mode/fault detected during initial testing. This line item covers charges for testing and reinstallation/loading of software/firmware to successfully run that test to determine failure/fault mode in cases where the units test as being in serviceable condition and can be returned to the Air Force without repair. A BER line item is included to cover the cost of testing or other work needed to determine if a unit is beyond economical repair. Over and Above funding in the event it is required.

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

CLIN Description Cost X001 Test and No Fault Found FFP X002 Repair or Batter Charger FFP X003 Beyond Economical Repair FFP X004 Over And Above TBN X005 Data X005AA Commercial Asset Visibility AF NSP X005AB Annual Physical Inventory Report NSP X005AC Quarterly Status Report NSP X005AD Item Unique Identification (IUID) Marking Plan NSP X005AE IUID Marking Activity and Verification Report NSP X005AF Annual DMSMS Report NSP

Orders can be issued on this IDC contract for five years after contract award, anticipated to be 01 February 2022 through 31 January 2027. This SSJ covers the ordering period of the IDC and completion of all task/delivery orders as well as any increased beyond the stated BEQs as long as the increases do not exceed the threshold stated in FAR 13.5. The delivery schedule for repairs is anticipated to be 60 days after receipt of repairable or funded delivery order, whichever is later. This requirement will be funded with Defense Working Capital Funds (DWCF) 97X4930 revolving funds.

This NSN was screened and assigned Repair Method Code (RMC)/Repair Method Suffix Code (RMSC) of R5/R. RMC R5 is repair directly from a sole source contractor, which is not the actual manufacturer. RMSC/R indicating that the Government does not own the data lacks rights to data, or both needed to contract repair of this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights.

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

10 U.S.C. 2302b. Implementation of Simplified Acquisition Procedures in accordance with procedures of FAR 13.5, Simplified Procedures for Certain Commercial Items.

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 only the cited source(s), which possesses the unique capabilities demonstrated as follows:

GE Aviation is the Original Equipment Manufacturer (OEM), however, through a novation agreement signed in Oct 2016, GE licensed Extant Aerospace to manufacture and repair the BCEM to include the market products, technical knowledge, and intellectual property (drawings and tech data). The BCEM is “highly specialized” and the current needs can only be satisfied by the one qualified source, Extant Aerospace.

During a market research discussion on 19 June 2019 with Extant, the Government asked if Extant would be willing to sell data rights to the Government, but it respectfully declined. Due to the unwillingness of Extant to sell data, a workload shift has been initiated to change repair recommendation to contract repair. Therefore, this instant acquisition is necessary for the continued repair performance of a highly specialized item/system. This Market Research recommends contracting with Extant Aerospace for repair in order to receive the expertise and precision necessary to guarantee safety of flight and prevent short-term grounding of the aircraft.

The Source of Repair Assignment Process (SORAP) is currently assigned as organic repair at WR-ALC. Attempts to establish organic repair have failed in the past, however, the 409 SCMS engineering and AFLCMC/WLS engineering have recently teamed up with the Robins AFB Reverse Engineering Avionics Redesign Manufacturing (REARM) office. The REARM office has completed initial analyses and provided WLS a detailed Rough Order Magnitude (ROM) to provide “limited” depot repair capability including test equipment & software, and technical data at a cost and one-year POP. It has been projected the limited repair capability would repair approximately 70% of the assets and at a much lower rate than contractor. WLS has calculated Return on Investment (ROI) feasibility and agreed to request funding in the FY23 Program Objective Memorandum. This is encouraging but it is contingent on WLS receiving funding, REARM completing the project successfully, the Reverse Engineering (RE) project and the repair cost estimate remaining true and the contractor repairing the remaining 30% of the assets.

It is expected this RE effort would take a minimum of 3 years, allowing the Government to work an RE effort in parallel while receiving BCEM contract repair for a five-year period of performance.

Based on engineering's experience and past RE efforts for “full” depot repair capability, it is anticipated that a RE effort could cost approximately $3M and estimated to take 5 years to complete. The estimated cost for the first year of repair is . Assuming that an RE effort was successful and competition resulted in a 20% reduction in cost, the yearly savings would be about $125,442.00. With a RE investment of $3M, not adjusting for inflation, it would take approximately 24 years to recover the RE investment ($3M divided by $125,442.00). If an RE project could be funded by 2022 and assuming it takes a minimum of 5 years to complete, the estimated completion of the project would be 2027. With approximately 24 years to recover the investment, the Government would break even in 2050 which is 10 years past the estimated retirement of the aircraft in 2040. As well as the high cost associated with RE, AFLCMC has funding responsibility to standup organic depot repair. Due to the substantial duplication of costs not expected to be recovered, RE is an improbable solution and cannot be economically justified.

In the event the reverse engineering effort was successful it would first require approximately 18 months administrative lead time to award contract. A new source would also be required to undergo first article testing and repair line demonstration. This would cost approximately and take 2-4 weeks accomplish. The dollar values are based on the first article cost estimation worksheet.

The BCEM is only used on the C-5 aircraft and Extant Aerospace is the only source capable of providing extensive knowledge of the technical design techniques. The test equipment required is possessed only by Extant and the engineering data package that includes assembly, schematic, and test procedures for this item. The Government does not possess the internal technical drawings for any of these components.

Accordingly, Symetrics Industries, LLC DBA Extant Aerospace is the only firm capable of providing the supplies and services described in Section III above with the USAF experiencing a substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delay in fulfilling its requirements.

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

A Sources Sought (SS)/Request for Information (RFI) was posted to Federal Business Opportunities (FedBizOps) website on 6 August 2019. The SS/RFI was posted under solicitation #RFI_C5_BCEM with a response date of 23 August 2019. The SS/RFI requested responses from potential sources that possess the repair data, expertise, capabilities, and experience to meet qualification requirements to repair the C-5 BCEM. There were no responses.

This requirement will be synopsized on the FedBizOpps website as required by FAR 5.201 citing conditions, which preclude full and open competition. It is anticipated that sources having an interest in subcontracting 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 for subcontracting possibilities.

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 negotiated in accordance with procedures in FAR Part 12 and FAR 13.106-3(a) (2), and include a statement of price reasonableness confirming the ultimate price to the Government is fair and reasonable. Additional pricing methodologies to negotiate fair and reasonable price may include reviewing publicly offered catalogs, comparison to historical contractor sales, and/or analysis of limited cost or pricing information provided by the contractor. In the event that limited cost or pricing information is made available, the Government's negotiation objective will be developed using local technical analysis and direct and indirect rate factors recommended by the Defense Contract Management Agency.

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

Market research was conducted pursuant to FAR 10.001 and 10.002. The market research report was completed 28 February 2020, updated on 21 December 2021. Market research techniques used are as follows:

A SS/RFI, entitled RFI_C5_BCEM, synopsis was posted to FedBizOpps on 6 August 2019. No responses were received.

A. Current: The C-5 Engineering Office conducted research through the completion/review of current AFMC Form 762, Contract Repair Screening Analysis Worksheet (CRSAW) documents completed in accordance with AFMCI 23-113. The items to be repaired under this effort are those for which screening processes determined that technical data is inadequate for competition.

B. Current: Market research techniques included a vendor survey via telephone/e-mail contact using sources supplied by google search to determine any repair capability for the C-5 BCEM.

None had repair capability.

C. Current: A query was run on the Dynamic Small Business Search (DSBS) website at http://dsbs.sba.gov/dsbs/search/dsp_quicksearch.cfm using specified criteria. The search produced one result using the NAICS 336413, Keywords; Battery Charger. This vendor was non capable, they do not have access to the proprietary technical data to repair the item.

D. Current: Two internet queries utilizing Google search engine and ThomasNet with criteria “Battery Charger Electronics Module repair” was performed; no capable vendor in query results .

E. Forward-Looking: Prior to each ordering period is awarded, internet searches will be conducted on the U.S. Dept. of Commerce, United States Census Bureau website using North American Industry Classification System (NAICS) Code 336413 to research companies that might possess spare/repair and engineering capability for the BCEM.

The BCEM is considered a commercial item as defined in FAR 2.101. The BCEM is used by both the military and the commercial aviation industry.

Market Research concluded Symetrics Industries, LLC; DBA Extant Aerospace is the only vendor capable of fulfilling the Government's requirement due to their proprietary access to the technical data necessary to repair this item.

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 C-5 aircraft is mature in the sustainment life cycle. The life remaining on this program is 20 years. Current market research for the subject NSN's indicates a life cycle through 2040, which date of planned retirement of C-5 Aircraft, the Government will continue to take the following steps to overcome barriers to competition for future repairs:

A. Although, Extant Aerospace has declined to sell technical data to the AF in the past, the 409th SCMS/GUME will continue to review the NSN prior to exercising each ordering period to identify opportunities where procurement of technical data/drawings would return a positive ROI to support competitive acquisition or performance by Government personnel.

B. Continue to request funding to acquire technical data/drawings for competition in the appropriate fiscal cycle to yield the purchase of sufficient data packages where procurement of technical data/drawings would return a positive ROI or other benefit to justify competition or performance by Government personnel. When this was reviewed by the 409th SCMS/GUME in 4QFY19, this type of project (Reliability and maintainability) are normally ranked low and not funded because of their reliable source of repair.

C. On 19 June 2019, during the initial Market Research, , stated, “Extant is currently unwilling to provide or sell the data rights required to repair the BCEM”.

Should Extant concur with releasing the necessary technical data, the Government will then be able to pursue competitive repair acquisitions in the future. Prior to any subsequent acquisition, the team will explore further market research techniques and will again consider the possibility of a reverse engineering effort.

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. Certification by the Technical/Requirements Personnel.

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.