25-00068_JA Final_redacted.pdf

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Attached to
ALR-56M (Frequency Converters) Federal contract opportunity
Solicitation number
FA852225D0006
Issued by
Department of the Air Force Materiel Command Air Force Sustainment Center

About this file

This Justification and Approval (J&A) document supports a sole-source contract for AN/ALR-56M Frequency Converters for the Air Force Sustainment Center (AFSC). The procurement is for a 5-year Indefinite Delivery Contract (IDC) with a basic 1-year ordering period and four additional 1-year options, covering F-16 Blocks C/D and C-130J aircraft, with orders possible from 30 June 2025 through 29 June 2030. The sole source vendor is General Microwave Corporation, the parent company of the only approved manufacturer for these specialized electronic components.

The contract is valued at an undisclosed amount, with quantities based on the Service Parts Management (SPM) Requirement System and a 5% annual escalation factor. Market research, including a Sources Sought/Request for Information posted on SAM.gov, found no alternative vendors capable of meeting the government's precise military specifications. The frequency converters are critical components of the AN/ALR-56M Radar Warning Receiver system, with a projected lifecycle through 2040. The government determined that qualifying a new source would require extensive redesign and testing, estimated to take two years and cost more than the potential competitive savings would justify.

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Justification and Approval (J&A) for Other Than Full and Open Competition

CUI

August 2023 CUI Page 3 of 6

Contract Data Requirements List (CDRL):

- A001 DI-NDTI-80603A Acceptance Test Report (ATR)

- A002 DI-MGMT-81803A Item Unique Identification (IUID) Marking Plan

- A003 DI-MGMT-81804A Item Unique Identification (IUID) Marking Activity and Verification Report

- A004 DI-MISC-81832 Counterfeit Prevention Plan

Total estimated contract value is $ The basis for the estimated quantity and cost was derived from the Forecast Unit Price on the March 2024, SPM REAL Tool. A 5% escalation factor was applied to estimated unit price for each out-year ordering period. The government is not purchasing data rights for this effort.

Based on the anticipated contract award date, orders can be issued on the Requirement IDC beginning 30 June 2025 through 29 June 2030. This J&A covers the ordering period of the Requirement IDC through completion of all delivery/task orders. This Performance Based acquisition will be funded with Consolidated Sustainment Activity Group-Supply Division Defense Working Capital Fund 97X4930 appropriations.

The NSN has been screened and assigned Acquisition Method Code (AMC) “3” and Acquisition Method Suffix Code (AMSC) “B.”

AMC 3. Acquire, for the second or subsequent time, directly from the actual manufacturer.

AMSC B. 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. Although, by DoD-STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained.

IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above.

The Frequency Converter is critical to the overall functionality of the AN/ALR-56M Weapon System installed on the F-16 Blocks C/D and C-130J aircraft. This part must meet stringent specification requirements in order to function in the demanding military environment in which it operates. The Frequency Converter must pass extensive test requirements to maintain a high field reliability of the AN/ ALR-56M Radar Warning Receiver. The anticipated life cycle of the AN/ALR-56M Weapon System is through 2040.

This is a follow-on buy effort to sole source contract FA8522-20-D-0011. This contract was awarded 28 September 2020 and expired on 27 September 2022. Therefore, this acquisition will be a follow-on contract for the continued production of highly specialized equipment.

The Frequency Converter supports full-up AN/ALR-56M systems that meet United States Air Force (USAF) and Foreign Military Sales new system installation requirements. BAE is the original equipment

August 2023 CUI Page 4 of 6 manufacturer (OEM) of the Frequency Converter. BAE has qualified sub vendor General Microwave Israel (GMI). They are the only approved source for the Frequency Converter under GMI P/N 2697. GMI does not do business with the United States (US) Government directly. All US Government contracts must be awarded to the GMI parent company, General Microwave Corporation (CAGE: 11332). Per email from GMI, they affirmed there will be no pass-through cost associated with contracting with General Microwave Corporation verses GMI.

The operating characteristics for the product are contained in the Government owned Source Control Drawings (SCDs). SCDs are drawings per MIL-STD-100, prepared for the intent of purchasing controlled standard parts. Purchase of the specified devices from manufacturing sources other than those listed in SCDs is prohibited. The Government owned SCD lists only the operating characteristics of the device and does not contain any technical data related to the manufacture or repair of the item. An inquiry for sell of the technical data package was sent to BAE on 26 August 2024. BAE responded on 27 August 2024 and declined interest in selling the data package.

The 408 SCMS has determined 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.

In order to qualify a new source, the vendor would have to design a new component to meet the specifications in the SCD. A new component would require integration testing which may require the involvement of BAE since they are the OEM. The Government does not currently have the capacity to conduct qualification tests on AN/ALR-56M sub-components. Based on a similar redesign effort of the AN/ALQ-155, which is a component of the AN/ALR-56C (SPRWA1-19-D-0006), a redesign/requalify effort for the Frequency Converter is estimated to take approximately two (2) years to accomplish at an estimated cost of This estimate does not include cost associated with BAE integration testing or development costs for the TDP estimated to cost . To support competition, the TDP must include a parts list, functional block diagrams, outline drawings including reference designators, schematic diagrams (electrical, mechanical and electromechanical), Preferred Parts Selection List, non-standard parts list, detailed troubleshooting & fault diagnostic procedures, special materials & process guide, identification of special tooling and test equipment, environmental qualification procedures, Acceptance Test Procedures, and identification of any potential obsolescence issues.

A cost analysis was conducted using the estimate for redesign/data procurement to determine if there was any fiscal advantage to pursuing this type of effort. The average production cost is A 10% competitive savings would be per unit. If is divided by the breakeven point is 1,481 units. The Government averages 79 production units per year. Based on lifecycle ending in 2040, and the two years required to accomplish a redesign effort, the Government return on investment would not occur until 2044; therefore, a redesign effort is not economical to pursue.

Accordingly, General Microwave Corporation is the only firm capable of providing the requirements without the USAF experiencing a substantial duplication of cost to the Government that is not expected to be recovered through competition.

V. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under

FAR 5.202 applies.

A Sources Sought (SS) / Request for Information (RFI) was posted to SAM.gov under Notice ID

August 2023 CUI Page 5 of 6

FA8522-25-RFI-00054 on 27 August 2024 with a response date of 27 September 2024. The SS/RFI requested responses from interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this effort. No responses were received.

This requirement will be synopsized in SAM.gov in accordance with FAR 5.201, citing conditions which preclude full and open competition. Sources expressing an interest as a result of the synopsis will be investigated for their capabilities to perform on this and/or future requirements and identified to the awardee of the contract for possible subcontracting opportunities.

VI. 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 to support the Government's evaluation of the proposed cost. The proposed skill mixes of labor, labor hours, types and quantities of material and other direct costs, and direct and indirect rates will be negotiated by the Government based on recommendations from the Defense Contract Management Agency and System Program Office expert technical personnel supporting the program. In addition, comparison to past actual if available. The contract price will be negotiated in accordance with the procedures in FAR 15 ensuring the ultimate cost to the Government is fair and reasonable.

VII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

Market research was accomplished between 20 August 2024 and 20 September 2024 pursuant to FAR Part

10.001 and 10.002. The Streamlined Market Research and Acquisition Approach report was completed on 27 September 2024. The market research techniques used are as follows:

As stated in Section V, a SS/RFI was posted to SAM.gov on 27 August 2024 with a response date of 27 September 2024. No responses were received.

The Government performed several queries in the marketplace, as well as in databases listed on the approved Acquisition Center of Excellence (ACE) website. The AN/ALR-56M Systems Engineering Team searched the databases and websites by NSN, part number, and/or item description. With exception to General Microwave Corporation, the research revealed there are no other vendors capable of meeting the Government needs because they do not possess the data or facilities required for accomplishment of this requirement.

A Google-based search for “ALR-56M Frequency Converter” failed to yield any useful returns.

The Frequency Converters does not fit the definition of a commercial item as defined in FAR Part 2.101.

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 aircraft in the commercial market with the same or similar components.

The market research concluded General Microwave Corp is the only vendor capable of fulfilling the Government's requirement.

August 2023 CUI Page 6 of 6

VIII. Any other facts supporting the use of Other Than Full and Open Competition.

None

IX. List of any sources that expressed, in writing, an interest in the acquisition.

See Section V above

X. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

The plan to overcome barriers to competition is to contact BAE Systems prior to the next follow-on contract requirement to inquire their willingness to sell the technical data package to the Government. If BAE Systems agrees, action will be taken to obtain funding for data acquisition provided the cost is determined to be reasonable and purchase is in the best interest of the Government.

In regard to actions taken to remove or overcome any barriers to competition, the prior J&A stated “The IPT is currently working to change this item's ERRC from “N” to “T” by November 2019. Once changed, the Frequency Converter will be reparable versus a consumable item. Future procurement of the Frequency Converter is highly unlikely. Therefore a plan to break barriers to competition for future reparable requirements is to qualify a repair source through full and open competition.” The ERRC (Expendability, Recoverability, Repairability Category) was never changed to “T” and Integrated Product Team decided in 2024 to not make the change based on General Microwave's ability to continue to manufacture the Frequency Converter as an ERRC "N" item. A reparable version of this part would require alterations to convert to ERRC "T". Since the prior plan was not completed, the current J&A requires higher level approval in accordance with DFARS PGI 206.304(a)(S-70)(ii).

XI. Certification by the Contracting Officer.

As evidenced by my signature, I certify that this justification is accurate and complete to the best of my knowledge and belief.

XII. Certification by the technical/requirements personnel.

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

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