6 - JA 19-02777 v3_Redacted.pdf

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JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

United States Air Force

AFSC/PZA

3001 Staff Drive Tinker AFB, OK 73145

Purchase Request (PR): FD2030-19-02777

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

This individual Justification and Approval (J&A) authorizes the use of other than full and open competition procedures to obtain a new follow-on, firm-fixed price (FFP) requirements-type contract for the repair of the F-16 Converter - Transducer. The contemplated contract is for a commercial repair service with Hamilton Sundstrand Corporation, Cage Code 1VJX1.

In accordance with (IAW) FAR 16, a FFP, requirements type with a 1-year basic contract and six 1-year options is considered to be appropriate for this acquisition. This is not a bridge action. The estimated total value of this award is $4,833,076.00 with an estimated award date of Dec 2020.

Previous Contract Numbers: FA8117-16-D-0005 Date of Award: 18 Dec 15 Completion Date: 17 Dec 20 Basic Award: Sole Source

III. DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET AGENCY

NEEDS

This is a service contract. The anticipated contract will include a one year basic period and six, 1 year option periods and the option years will be exercised in accordance with Federal Acquisition Regulation (FAR) 52.217-9 Option to Extend the Term of the Contract. The anticipated contract will not include a six month extension IAW FAR 52.217-8, Option to Extend Services.

The contemplated contract is a services contract for the repair of the F-16 Converter - Transducer. The dollar values listed below reflect the anticipated value.

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NSN: 1660-01-135-0219 P/N: 11222-1 & 16VY012002-1

NSN: 1660-01-212-8889 PN: 11264-1 & 16VY021002-1

Noun: Electronic Flow Control Converter – Transducer Assembly Application: F-16 Type of appropriation: 97X4930

O&A surge option/expedite fee is to be negotiated (TBN) and is estimated by using 25% of the total estimated repair dollars. The O&A surge will address any impact on (funds, quantity, services, period of performance, etc.) which may arise due to any possible surge requirements associated with this acquisition. Surge requirements are used to respond to real world contingency events by accelerating PI processing and allowing contract provisions to expedite items and services.

Total Estimated Line Item 0008 PR Dollars:

CLIN 0009

Data Not separately priced (NSP) Data IAW DD 1423 Contract Data Requirements List (CDRL).

CAV-AF Reporting

TOTAL ESTIMATED DOLLARS FOR ACQUISITION: $4,833,076.00

Due to the circumstances described below in Sections V, IX and XI, there are no immediate actions that could be taken to develop competition. Therefore, it is considered appropriate to seek approval for more than one fiscal year’s requirement. If other qualified or approved sources become known during the life of this contract, full and open competition will be utilized to the maximum extent practicable.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND

OPEN COMPETITION

10 USC 2304 (c)(1), as implemented by FAR 6.302-1(a)(2)(iii), and required by FAR 6.303- 2(b)(4).

V. DEMONSTRATION THAT THE CONTRACTOR'S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES

THE USE OF THE AUTHORITY CITED ABOVE (APPLICABILITY

OF AUTHORITY)

Hamilton Sundstrand Corporation is the only known source who possesses the data, parts, expertise, tools and test equipment necessary to repair above mentioned items from Section III. Hamilton Sundstrand Corporation previously repaired 1660-01-135-0219 and 1660-01- 212-8889 under contract FA8117-16-D-0005.

Although the Government realizes that it has unlimited usage rights to form, fit and function data as well as data related to operation, maintenance, installation, and training; such rights are insufficient for purposes of meeting the Government’s requirement. The repair data and acceptance test criteria needed to foster competition for repair is not available to the

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Government and it is not possible to draft adequate specifications for this repair effort.

Hamilton Sundstrand Corporation possesses unique equipment and capabilities (such as test equipment, acceptance test software, theory of operation/architecture, assembly/disassembly procedures, material provisioning and selection criteria, fault diagnostics, shop practices, replacement parts, trained personnel, etc.) derived from knowledge and expertise gained during previous production and repair of these items. The government does possess some form, fit, and function data; however, this data is not sufficient to perform repair nor is it sufficient to establish repair requirements. This repair process is highly specialized because it uses unique test equipment, test software and test procedures designed specifically to troubleshoot and repair the F-16 Converter-Transducer. The government does not own or have access to the repair data necessary to perform or compete this repair service. Therefore, this follow-on contract is for the continued performance of a highly specialized service.

The 422 Supply Chain Management Squadron (SCMS) requested a rough order of magnitude to Hamilton Sundstrand Corporation for the procurement of data to complete repair on 04 Mar 2020 with a response date of 04 Apr 2020. Hamilton Sundstrand Corporation failed to respond by the requested date and their lack of response is considered as a refusal to sell data needed to complete repair.

The 422 SCMS believes that award to any other source would result in unacceptable delays in fulfilling the Air Force’s requirements. Qualification of any other source is estimated to take a minimum of 4 years from the initiation of a Source Approval Request (SAR) package.

As of 14 Apr 20 no SAR packages have been received from any vendors by the small business office. These items are critical application items. However, they are not critical safety items on the systems listed in Section III. Reverse engineering the repair process is not feasible within allowable timeframes. Any efforts to reverse engineer the repair process are estimated to take a minimum of 5 years from the initiation of a CSAG (Consolidated Sustainment Activity Group) Sustaining Engineering project. This estimate is based on similar projects that have been completed. Delays in repair have the potential of disrupting the availability of the F-16 weapon system, thereby leaving the Air Force unable to meet critical mission requirements and hampering the Air Force’s ability to execute its global mission. If another company were able to obtain the data and show the ability to obtain obsolete parts for repair, it would take a minimum of six years to develop full repair capability.

Accordingly, Hamilton Sundstrand Corporation is the only firm capable of providing the services described in Section III above without the U.S. Air Force experiencing unacceptable delays in fulfilling its requirements.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS PRACTICABLE

In accordance with FAR 5.201, this requirement shall be synopsized and the Request for Proposal will be posted to the beta.SAM.gov website. The Sources Sought Synopsis (SSS) was posted independently and respectively on FA8117-19-SS-0028 on 10 Jul 19 with a response date of 9 Aug 19. The SSS included NSNs (listed in Section III), part number and quantity in support of market research to identify potential sources for repair of the NSNs.

Two companies, Wavetron Corporation and Technical Concept Solutions expressed interest.

As of 14 Apr 20 neither company has submitted a source approval package to the local small

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business office. The items are listed on the Master JQR listing. This requirement will be synopsized in http://www.beta.SAM.gov as a notice of proposed contract action IAW FAR

5.201. The expected date of publication is 30 Jun 2020.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE

The Contracting Officer will ensure that the items described herein are negotiated at a fair and reasonable price to the Government. IAW FAR 15.4, the contractor will be required to submit Other Than Certified Cost or Pricing Data to support the Government’s evaluation of the proposed cost. A detailed cost and/or price analysis will be performed. The Contracting Officer will request a technical evaluation from the Defense Contract Management Agency (DCMA) to aid in the evaluation of the contractor’s proposal if neccesary. The Contracting Officer may seek audit assistance from the Defense Contract Audit Agency (DCAA) if necessary.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH

WAS NOT CONDUCTED

As described in Section VI above IAW FAR Part 10, market research was conducted by Sources Sought Synopsis posted 10 Jul 2019. Additionally, a multi-functional team consisting of the Logistics Manager, Engineer, Contracting Officer, and Production Management Specialist conducted further research by reviewing Parts Manufacturer Approvals (PMA), HAYSTACK, and a web search conducted on subject P/N was completed on 19 March 2020. Market research revealed no further potential repair source. While other companies perform similar efforts in the marketplace, they do not possess the applicable technical data, tooling, and observable capabilities that are required. Due to the complexity and criticality of the item, only pre-approved sources meet Air Force requirements. Further, this requirement can be satisfied with commercial services within the current market place, however must be qualified by the Government. This market research did not reveal any other qualified sources available or capable of fulfilling the requirement.

A Sources Sought Synopsis was also conducted; see Section VI for more details. Based on this market research, Hamilton Sundstrand Corporation was found to be the only source able to fulfill the requirements described in Section III.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL

AND OPEN COMPETITION

The government realizes that it has unlimited rights to form, fit, and function data, including source qualification data, as well as data related to operation, maintenance, installation, and training. However, such rights are insufficient to satisfy the current need. Access to repair data is necessary to accomplish the tasks for this acquisition. Efforts by the government to acquire a license from the OEM have been unsuccessful. The most recent attempt by the government to acquire the data or rights to the data occurred on 04 Mar 20 when the program manager sent the OEM a letter requesting data to complete repair. The OEM did not respond by the response date of 04 Apr 20. The lack of response from the OEM is considered as a

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refusal to sell data needed to complete repair. The Government does not have enough experience or historical data to estimate costs with any degree of specificity, but we anticipate that developing a repair capability for these parts without any releasable data would be a very high risk endeavor. Further, funding has not been approved, and the priority of these parts does not rise to the level at which funding likely would be approved or budgeted.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE

ACQUISITION

Hamilton Sundstrand Corporation CAGE: 1VJX1 Carr 538 KM 0.7 Calle B Lte 9 Santa Isabel, Puerto Rico 00757-0000 Phone: (860) 308-0769

Wavetron Corporation CAGE: 88VS4 14241Dallas Parkway Dallas Tx, 75254 Phone: (214) 814-7486

Technical Concept Solutions CAGE: 5ZLC3 1323 Butler Dr.

San Antonio TX 78251-4923 Phone: (210)473-7231

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 422 SCMS/GUMA will continue to monitor the marketplace for potential sources and will continue discussions with the OEM regarding additional sources. The Government will continue to synopsize requirements for potential sources, periodically screen the item for changes in data and source availability, and attempt to acquire the necessary data to competitively procure this item during future acquisition efforts.

Per PGI 206.304(a)(S-70)- As indicated by signature on the Coordination and Approval Document, the previous J&A has been reviewed and the Approval Authority determines that all stated actions to remove barriers to competition have been accomplished.

XII. CERTIFICATION BY THE CONTRACTING OFFICER

The contracting officer’s signature on the Coordination and Approval Document evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

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XIII. CERTIFICATION BY THE TECHNICAL/REQUIREMENTS PERSONNEL

By their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified as accurate and complete all supporting data, which is their responsibility, contained herein IAW FAR 6.303-2(c).