Adversary_Air_Support_JA_for_Other_Than_Full_and_Open_Competition_Redacted.pdf

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

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I. Contracting Activity.

The Airfield Sustainment Flight (LGCC) of the 99 CONS on Nellis Air Force Base (AFB) is responsible for this "Justification for Other than Full and Open Competition". with Operational and Maintenance (O&M) Funding.

II. Nature and/or description of the action being processed.

99 CONS will be issuing a modification to the current AAS contract (FA4861-15-D-C003) to increase the IDIQ maximum limit amount by $28M. The IDIQ total amount will increase from $6.5M to $34.5M for flight hours and fuel. The period of performance will change from 22-Sep-15 through 21-Sep-16 to 22-Sep-15 through 30-Sep-17.

III. Description of supplies/services required to meet agency needs.

Phase I is the initial proof of concept AAS contract that provides tactically relevant Contractor Owned, Contractor Operated (COCO), 3rd generation/high sub-sonic, Fire Control Radar (FCR) equipped fighter aircraft, to simulate adversary tactics during air-to-air training. The contractor is currently providing gallons of jet fuel with an ordering period of 22-Sep-15 to 21-Sep-16.

At the time that the Phase I contract was written, it wasn't known whether contract AAS would be a viable option beyond the initial minimum order and the Government did not know how many hours would be utilized in one year. After the initial minimum order, the service proved to be a viable option to help meet the adversary deficit. Based on the below market research, the Government decided to utilize a three-phase approach and began working on the Phase II acquisition in December 2015. Originally, the project schedule had the Phase II award date in July 2016 with a two year ordering period.

However, during the Phase II acquisition planning phase, the Government changed the acquisition strategy to allow the Acquisition Management Integration Center (AMIC) time to complete a business case analysis (BCA) and also handle the contracting process for Phase III. AMIC requested that the Phase II ordering period be extended to meet their Phase III project schedule. This change to the ordering period increased the project schedule of Phase II to an an estimated award date of September 2017.

The increase in magnitude for this modification is to provide AAS services at the current utilization rates that were not known prior to award. Currently Nellis AFB is utilizing on average, . The modification will cover per day, for a flight hour increase of . The average fuel burn has been

Under the contemplated modification of the current contract (FA4861-15-D-C003), the contractor will provide

The ordering period for this contract will also be extended to 30 September 2017. The additional flight hours and fuel will allow adequate acquisition time to prepare for Phase II of a three-phase approach to address the Nellis AFB adversary air deficit.

Phase II, will be a five year follow-on contract for AAS services utilizing, COCO, 3rd generation/high sub-sonic, FCR equipped fighter aircraft, to simulate adversary tactics during air-to-air training and will provide services during the acquisition/ Government process of Phase III. Based on the current project schedule, Phase II performance is expected to begin in September 2017. The Phase I modification will provide the Government services until performance begins on Phase II. Phase II will have an ordering period of 5 years to accommodate the Phase III process.

Phase III will provide the Government with a 4th generation/super-sonic threat; either organically or COCO to simulate adversary tactics during air-to-air training. Currently a BCA is being conducted by AMIC to determine whether the requirement will be fulfilled organically, by COCO, or a mix of the two. The estimated project schedule for the Phase III acquisition process (24 months) and mobilization (18 months) is 3.5 years after the completion of the BCA (December 2016).

Based on these time-lines, Phase III will begin performance in June 2020 barring any delays or setbacks in the acquisition and/or mobilization process. In order to compensate for delays/setbacks it is imperative that the Government maximize the ordering period for Phase II to permit the Government time to complete their BCA and acquire the necessary organic assets

Page 3 of 6Updated: 15 Mar 16 or COCO services to obtain a realistic threat for the Nellis AFB adversary deficit.

IV. Statutory authority permitting Other than Full and Open Competition.

As stated in the instructions, the following authorities permit this Justification for Other than Full and Open Competition:

10 U.S. Code 2304(c) "The head of an agency may use procedures other than competitive procedures only when—

(1) the property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency".

FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

FAR 6.302-1(a)(2)(iii) For DoD, NASA, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in--

(A) Substantial duplication of cost to the Government that is not expected to be recovered through competition, or

(B) Unacceptable delays in fulfilling the agency’s requirements. (See 10 U.S.C. 2304(d)(1)(B).)

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

IAW FAR 6.302-1(a)(2)(iii), this modification is for the continued provision of highly specialized services and it is likely that award would result in unacceptable delays in fulfilling the requirement.

Based on the market research in section VIII of this justification, there are no contractors with the required capabilities without an unacceptable delay. An unacceptable delay is defined as any delay in performance. AAS services have become an integral part of the 57th Adversary Tactics Group (57 ATG) training mission and provide invaluable support to maintain training proficiency among the rated pilots.

At this time Draken International is the only company with an *adequate number of "high sub-sonic" FCR equipped aircraft available for AAS services in the United States. Draken's capability has been demonstrated by their performance on the current contract.

In conclusion, Draken 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.

*The 57 ATG requirement is for the contractor to perform a 6 aircraft turn pattern.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

On 30 March 2015, a Draft Performance Work Statement (PWS) with a request for industry input was posted to FBO.gov.

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In July 2015, a revised Draft Performance Work Statement with a request for industry input was posted to www.fbo.gov.

On 12 August 2015, 99 CONS hosted an Industry Day for AAS.

From October 2015 to December 2016 99 CONS hosted contractor "one-on-ones" either via teleconference or in person.

Based on the results of the "one-on-ones" a Contractor Profile Briefing was drafted. Each contractor identified from the RFIs and Industry Day received 3 dedicated slides in the briefing.

On 15 March 2016, 99 CONS hosted an Industry Day for AAS.

By extending the current contract it will allow the Government to seek competition on the follow-on contract. The Phase II contract will be a 5 year IDIQ and will include a 90 day mobilization period to allow for competitive offers. That 90 day mobilization period will allow contractors to properly equip their aircraft to meet the FCR requirement.

This modification will require a synopsis IAW FAR 5.201 with a redacted version of this Justification and Approval document.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

Based on the current AAS contract on Nellis AFB (FA4861-15-D-C003) was considered fair and reasonable.

There is no reason to anticipate a significant change in Draken's pricing, but all prices will be subject to the Truth in Negotiations Act and certified cost and pricing data will be requested and evaluated.

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

In order to properly address the AAS service requirement, an initial "Proof of Concept" requirement was written to not only provide services, but identify any issues associated with the service that may or may not impact performance. Several beneficial, unintended results of the initial "Proof of Concept" contract were the identified; actual industry capabilities, small business interests, industry points of contact, and market attitudes toward the service.

This market research report starts with the initial research conducted during the "Proof of Concept" requirement and moves into the additional market research conducted for Phase II. A summary of the previous market research and contracting process is as follows:

A "Draft" PWS was posted to www.fbo.gov on 30 March 2015 with a request for industry inputs.

all submitted responses with questions and comments that were used to revise the Performance Work Statement and Solicitation.

Solicitation FA4861-15-R-C001 was posted by 99 CONS to FBO.gov for AAS services as a 100% small business set-aside.

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On 13 July 2015 a Sources Sought was posted to announce the AAS Industry for Nellis AFB. Along with the notice was a request for information and a revised "Draft" PWS to inspire questions during the Industry Day. Due to mission requirement needs, solicitation FA4861-15-R-C006 was posted on 30-Jul-15 for AAS services under full and open competition with a closing date of 1 September 2015.

An Industry Day was hosted on 12 August 2015 to discuss the previously awarded "Proof of Concept" contract and the potential long term requirement, which was then coined as Phase II AAS. An open panel was conducted for Phase II, during which the industry was allowed to ask any questions they wanted to the various AF technical experts attending. The Industry Day outlined several key factors that would have to be resolved before Phase II could begin; aircraft type, radar, multiple award versus single award, aircraft importation and lead time. During the administration and performance of the Proof of Concept contract the Air Force was able to resolve these key issues and incorporate them into the PWS.

As part of the Air Force Airworthiness process for the Proof of Concept contract, from the Technical Air Worthiness (TAA) Authority visited During their visit, the facility, aircraft, and procedures were inspected to determine if their operation met TAA standards. This inspection is a subjective measure to minimize the risk associated with AAS services. The site visit provided both 99 CONS and the TAA with valuable information to further define AAS procedures that will be included in the Phase II

PWS.

After performance began on the "Proof of Concept" contract, work began on Phase II. Contractors identified during market research, the Industry Day, and requests for information were contacted to discuss the potential long term requirement after the award of the "Proof of Concept" requirement. One-on-One Industry Sessions were hosted either by teleconference or face-to-face from October 2015 to December 2015. A total of seven contractors had the opportunity to discuss AAS services and five responded. The goal was to identify what capabilities the industry has, how long it would take them to bring in additional aircraft, and what aircraft are available to them around the globe. Each contractor revised and validated the information collected in the attached Contractor Profile Briefing to ensure the validity of the market research.

In order to ensure that the Government understood the AAS insurance process, from the Naval Air Systems Command (NAVAIR) were contacted. NAVAIR has at least 15 years of experience dealing with contract air services. The main topic of discussion was insurance and liability for AAS services. It was determined that the Air Force DD Form 2400, Certificate of Liability Insurance establishes the minimum coverage required by contractors to land on a DOD airfield. The Navy further created a clause that established higher levels of insurance for AAS contractors. These insurance levels were incorporated into the AAS Phase II PWS.

In conclusion, Based on the language in FAR 6.302-1(a)(2)(iii)(B), this requirement is a follow-on contract for the continued provision of highly specialized services and it is likely that award to another source would result in unacceptable delays in fulfilling the agency's requirements.

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

During the process of each of the above mentioned events, Draken International has been shown to be the only contractor with the capability to provide the requested services. The Contractor Profile Briefing provided each interested contractor with the opportunity to provide in writing what aircraft they own, what they propose to provide if given a contract, and the time-line to provide FCR equipped aircraft. Only Draken provided a response that they were able to provide the service within the next 30 days.

All other contractors provided information that they were able to provide FCR equipped aircraft in greater than 6 months after award.

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

have been the only companies that expressed

Page 6 of 6Updated: 15 Mar 16 interest in the requirement.

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.

At this time Draken International is the only contractor capable of providing a sub-sonic COCO FCR equipped aircraft without an unacceptable delay. Based on information provided by

The 90 day mobilization will permit the awardee adequate time to complete the AF Military Flight Release process and mobilize to Nellis AFB. In essence this sole source acquisition is a means to overcome the competition barrier and allow industry to prepare for future AAS requirements for the Air Force.

XII. Certification by the Contracting Officer.

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