5 Axis CNC Standardization_Class JA_Redacted.pdf

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

Controlled Unclassified Information (CUI)

March 2020 Controlled Unclassified Information (CUI) Page 6 of 7March 2020 Controlled Unclassified Information (CUI) Page 6 of 7

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

A joint Category Management (CM) CIR between the 76th CMXG and AFICC was accomplished to gain practical knowledge and experience in how the 76th CMXG manages 4 & 5 axis CNCs, as well as to assess current market and industry trends and practices. Supporting facts in this Class J&A were drawn from this CIR, which documents historical and future 76th CMXG 4 & 5 axis long-term and in-depth spend and trend analysis. Input was gathered from 76th CMXG subject matter experts, market analysis, and gap analysis.

The underlying analysis of the need for standardization accounted for as many different manufacturer's brands as would be practical to achieve the maximum amount of savings and efficiencies. Additionally, a SSS was issued to identify firms capable of meeting the 76th CMXG's brand name requirement.

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

At this time the 76th CMXG needs immediate J&A authority to limit competition to assigned brand name manufacturers; Starrag and Makino. The 76th CMXG currently owns 14 milling machines with either 4 or 5 axis capability. Of those machines, 5 are completely inoperable, and 3 are operable less than 15% of the time. In addition, 7 of the 14 milling machines are at or past their useful life; 2 machines at 13 years, 5 machines at greater than 13 years, with one of those 5 machines being 25 years old and another being 27 years old. The 76th CMXG commander has established a formal policy on 4 & 5 axis CNC Standardization (31 Jul 20), with standardization directed to the cell level (a group of 4-6 machines) to ensure efficient performance of the 76th CMXG's critical mission, generating parts for the AF. Procuring under this Class J&A will replace the anticipated repeated requests from the 76th CMXG for brand name J&A's necessary to ensure equipment interoperability. This Class J&A eliminates the need for separate Individual J&A's, creating more agile acquisition cycles and maximizing savings to the AF.

In order to implement this acquisition strategy, the AF must pre-plan the brand name 76th CMXG 4 & 5 axis CNCs per backshop cell supported. An analysis of the 76th CMXG's current 4 & 5 axis manufacturers was conducted in conjunction with the CIR market analysis, using known samples of each brand in operation within the 553rd; This analysis took into account; price, quality, reliability, milling accuracy, and similarity of offered components across multiple capabilities. Considering the 76th CMXG's mission demands, Starrag and Makino offer the optimal combination of factors to drive mission capability up while decreasing TCO. There are available manufacturers that offer higher priced machines with increased accuracy and specialized capabilities, but that lack interoperability. There are other manufacturers that can offer reduced per machine unit pricing, but lack accuracy, supportability, and reliability-- all of which increase the 76th CMXG's TCO and degrade mission capability.

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

See Section VI

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 only barriers to competition under this Class J&A have been generated by historical purchases. This Class J&A only recognizes that past competitive awards have established the number and mix of the 76th CMXG 4 & 5 axis CNCs occupying floor space on TAFB. The CM analysis and action only recognizes

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

Controlled Unclassified Information (CUI)

March 2020 Controlled Unclassified Information (CUI) Page 7 of 7March 2020 Controlled Unclassified Information (CUI) Page 7 of 7 these historical facts, and purports to maximize savings and efficiencies based on the 76th CMXG's mission demands and available resources/constraints. The AF will continue to perform data driven analysis over time to look for market changes that may increase competition amongst 4 & 5 axis CNC machine manufacturers.

The restriction to full and open competition is necessary to maximize the modern, high functioning, and operational 4 & 5 axis CNC machines existing today over their remaining useful life. However, full and open competition will be pursued for new milling machine cells as they are stood up within the 76th CMXG. Additionally, full and open competition will be continually evaluated as end of life-cycle decisions afford opportunities to new entrants. It is anticipated that future competitive requirements, beyond the 11 units within the scope of this class J&A, will be written at the cell level and not for individual machines. This allows the necessary standardization, but removes barriers to competition by defining the physical, functional, and performance requirements that meet the 76th CMXG's minimum quality and reliability specifications per cell, as defined in future solicitations. Interested offerors would be free to propose any brand or model that meets these minimum requirements.

XII. Certification by the Contracting Officer.

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