Coatings and Sealants JA_Redacted_1.pdf

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

CONTROLLED UNCLASSIFIED INFORMATION

March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 1 of 10March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 1 of 10

Was a J&A approved for the preceding acquisition where that acquisition required a J&A? Yes No

! ! Attach the preceding J&A in the staff package for this J&A. The preceding J&A will be used as a reference document.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined at AFFARS 5302.101? Yes No

Dollar Value of this Acquisition: < $750K > $750K and < $15M > $15M and < $100M > $100M

Contracting Activity: United States Air Force

AFMC AFSC OL:H/PZIMA

6038 Aspen Ave, BLDG 1289, Hill AFB, UT 84056

Purchase Request (if available) / Local ID Number: TBD

Program / Project (and PE, if applicable): Complex Coatings and Sealants (7858)

Program Type (PEO, Enterprise, of Operational): Operational

Authority:

6.302-1 – 10 USC 3204(a)(1), Only One Responsible Source - No Other Supplies or Services Will Satisfy Agency Requirements Estimated Contract Cost (including options): $ J&A Type: Class Individual

COORDINATION ( AFFARS 5306.304(a) )

Date

21 Aug 2023

Project Lead / Program Mgr / Requiring Activity Brenda Keesler

MXSG/MXSDA DSN: -

Signature

Date

22 Aug 2023

Contracting Officer Jason Neering

OL:H/PZIMA/DSN: -

Signature

Date

23 Aug 2023

Local Legal Reviewer Alicia Kooda

75 ABW/JAQ, DSN: -

Signature

Date

24 Aug 2023

Chief of Contracting Office Andrew Hatch

AFSC OL:H/PZI DSN: - -

Signature

Date

08 Sep 2023

Competition Advocate Melinda Schmidt

OL:H/PZC/DSN: -

Signature

Date

11 Sep 2023

Director of Contracting Colonel Jonathan Wright

AFSC OL:H/PK/PZ DSN: -

Signature

KEESLER.BRENDA.LEE.1

388299009

Digitally signed by

KEESLER.BRENDA.LEE.

Date: 2023.08.21 16:44:04 -06'00'

NEERING.JASON.T.1512

309115

Digitally signed by

NEERING.JASON.T.

Date: 2023.08.22 08:53:23 -06'00'

KOODA.ALICIA.R

EA.1459318743

Digitally signed by

KOODA.ALICIA.REA.

Date: 2023.08.23 14:14:02 -06'00'

HATCH.ANDREW.L.124

9736666

Digitally signed by

HATCH.ANDREW.L.

Date: 2023.08.24 09:35:03 -06'00'

SCHMIDT.MELINDA.M.1

144943801

Digitally signed by

SCHMIDT.MELINDA.M.

Date: 2023.09.08 14:35:41 -06'00'

WRIGHT.JONATHAN.L.1

073508564

Digitally signed by

WRIGHT.JONATHAN.L.

Date: 2023.09.11 10:26:05 -06'00'

March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 2 of 10March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 2 of 10

APPROVAL ( AFFARS 5306.304(a) )

Date

14 Sep 2023

Director of Contracting Mr. Joseph A. Fountain, SES

AFSC/PK DSN -

Signature

FOUNTAIN.JOSEPH.A.

2023.09.14 13:07:53 -04'00'

March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 10March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 10

I. Agency and Contracting Activity.

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

A. The proposed contract will be a single award Firm Fixed Price Indefinite Delivery Indefinite Quantity (IDIQ) contract to include a three (3) year Ordering Period with a thirty-nine (39) month Period of Performance (PoP).

This is a follow-on effort to contracts FA8224-16-D-0004 and FA8224-17-D-0014 which have a PoP end date of 5 Jan 2024.

This will be a commercial supply contract with incidental services. Estimated dollar value $ Estimated award date is 6 Jan 2024.

B. Award of the IDIQ will be to:

Automotive & Industrial Supply Company (AIS) 2507 S 1900 W, Ogden, UT 94401-3219 CAGE code: 1FVZ3

C. Previous Contracts:

FA8224-17-D-0014: Ordering PoP 6 Jun 2017 to 5 Jun 2022, 52.217-9 extension to 6 Jan 2023, award date: 6 Jun 2017. The PoP end date for this contract is 5 Jan 2024.

FA8224-16-D-0004: Ordering PoP 1 Aug 2016 to 31 Jul 2021, award date 26 Jul 2016. This effort was moved onto contract FA8224-17-D-0014 upon its completion.

Basis of Award: Sole Source to AIS

D. General Description of Requirement: The purpose of this contract is to provide just-in-time delivery of aerospace coatings, sealants, and technical assistance in support of the Ogden Air Logistics Complex (OO-ALC) at Hill Air Force Base (AFB), Utah which includes the 309th Aerospace Maintenance Groups In Accordance With (IAW) the Statement of Work (SOW).

Recent market research revealed that additional Contractors could perform this scope of work, but would need twelve (12) months to ramp up after award. Unfortunately, the timing and discovery of competitive interest did not allow a competitive acquisition to be conducted before the existing contract FA8224-17-D-0014 expires. In addition to the twelve (12) month ramp up time required, it is estimated to take two (2) years to work a source selection and make a competitive award.

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

A. The purpose of this contract is to provide just-in-time delivery of aerospace coatings, sealants, and technical assistance in support of the OO-ALC at Hill Air Force Base (AFB), Utah. The OO-ALC supports the 309th Aircraft Maintenance Group (309 AMXG), 309th Commodities Maintenance Group (309 CMXG), 309th Maintenance Support Group (309 MSXG), and 309th Electronics Maintenance Group (309 EMXG). The Contractor shall provide aerospace coatings and sealants as listed in Appendix D of the contract. Appendix D, is incorporated by reference and is made a part of this J&A. These aerospace coatings and sealants products shall conform to military specifications as directed by Technical Orders in support of the workloads accomplished within OO-ALC at Hill AFB, Utah. The Contractor shall use best commercial practices, documentation, and standards.

B. The IDIQ estimated value is $ utilizing Depot Maintenance Activity Group (DMAG) 4930 funds. This estimated value is based on historical pricing with inflation and future quantity expectations built in.

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C. Contract Line Item Number (CLIN) totals will be estimates and subject to change based on actual orders. Unit prices will be negotiated and all pricing will be provided in Appendix D. Products on Appendix D may evolve year over year due to specification changes, size changes, and the specific needs of OO-ALC to enable long term sustainment support. Items that perform the same scope functions as the items listed in Appendix D are deemed within scope of this J&A and can be added as needed by negotiation. Quantities ordered, date of delivery, delivery period, and ship to address shall be determined at the issuance of each Delivery Order. The supplies being procured do not have a stock number.

Ordering Periods:

Ordering Period 1: 6 Jan 2024 - 5 Jan 2025 $ Ordering Period 2: 6 Jan 2025 - 5 Jan 2026 $ Ordering Period 3: 6 Jan 2026 - 5 Jan 2027 $

CLIN: 0001, 1001, 2001

Description: 309th AMXG Technical Support Delivery: Quantity, PoP, and ship to address shall be determined at the issuance of each individual order.

Est Quantity: 12 per year Unit of Measure: Months Estimated dollar value of each CLIN:

CLIN 0001, $

CLIN 1001, $

CLIN 2001, $

CLIN: 0002, 1002, 2002

Description: C-130 Marine Kit Delivery: Quantity, delivery date, and ship to address shall be determined at the issuance of each individual order.

Est Quantity: 8 per year Unit of Measure: Kit Estimated dollar value of each CLIN:

CLIN 0002, $

CLIN 1002, $

CLIN 2002, $

CLIN: 0003, 1003, 2003

Description: C-130 Navy Kit Delivery: Quantity, Delivery date, and ship to address shall be determined at the issuance of each individual order.

Est Quantity: 3 per year Unit of Measure: Kit Estimated dollar value of each CLIN:

CLIN 0003, $

CLIN 1003, $

CLIN 2003, $

CLIN: 0004, 1004, 2004

Description: F-16 Standard/Poly Kit Delivery: Quantity, delivery date, and ship to address shall be determined at the issuance of each individual order.

Est Quantity: 20 per year Unit of Measure: Kit Estimated dollar value of each CLIN:

CLIN 0004, $

CLIN 1004, $

CLIN 2004, $

CLIN: 0005, 1005, 2005

Description: F-16 Thunderbird Kit Delivery: Quantity, delivery date, and ship to address shall be determined at the issuance of each individual order.

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Est Quantity: 3 per year Unit of Measure: Kit Estimated dollar value of each CLIN:

CLIN 0005, $

CLIN 1005, $

CLIN 2005, $

CLIN: 0006, 1006, 2006

Description: F-16 Aggressor (lizard/splinter) Kit Delivery: Quantity, delivery date, and ship to address shall be determined at the issuance of each individual order.

Quantity: 1per year Unit of Measure: Kit Estimated dollar value of each CLIN:

CLIN 0006, $

CLIN 1006, $

CLIN 2006, $

CLIN: 0007, 1007, 2007

Description: F-16 Aggressor (Desert) Kit Delivery: Quantity, Delivery date, and ship to address shall be determined at the issuance of each individual order.

Est Quantity: 1 per year Unit of Measure: Kit 1 Estimated dollar value of each CLIN:

CLIN 0007, $

CLIN 1007, $

CLIN 2007, $

CLIN: 0008, 1008, 2008

Description: F-16 Aggressor (Arctic/Splinter) Kit Delivery: Quantity, delivery date, and ship to address shall be determined at the issuance of each individual order.

Quantity: 4 per year Unit of Measure: Kit Estimated dollar value of each CLIN:

CLIN 0008, $

CLIN 1008, $

CLIN 2008, $

CLIN: 0009, 1009, 2009

Description: F-16 Aggressor (Blue) Kit Delivery: Quantity, delivery date, and ship to address shall be determined at the issuance of each individual order.

Quantity: 1per year Unit of Measure: Kit Estimated dollar value of each CLIN:

CLIN 0009, $

CLIN 1009, $

CLIN 2009, $

CLIN: 0010, 1010, 2010

Description: F-16 Intake Kit Delivery: Quantity, delivery date, and ship to address shall be determined at the issuance of each individual order.

Quantity: 44 per year Unit of Measure: Kit Estimated dollar value of each CLIN:

CLIN 0010, $

CLIN 1010, $

CLIN 2010, $

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CLIN: 0011, 1011, 2011

Description: A-10 Kit Delivery: Quantity, delivery date, and ship to address shall be determined at the issuance of each individual order.

Quantity: 46 per year Unit of Measure: Kit Estimated dollar value of each CLIN:

CLIN 0011, $

CLIN 1011, $

CLIN 2011, $

CLIN: 0012, 1012, 2012

Description: F-16 FMS 3600 Delivery: Quantity, delivery date, and ship to address shall be determined at the issuance of each individual order.

Quantity: 40 per year Unit of Measure: Kit Estimated dollar value of each CLIN:

CLIN 0012, $

CLIN 1012, $

CLIN 2012, $

CLIN: 0013, 1013, 2013

Description: Singles Delivery: Quantity, delivery date, and ship to address shall be determined at the issuance of each individual order.

Quantity: 40,526 per year Unit of Measure: Each Estimated dollar value of each CLIN:

CLIN 0012, $

CLIN 1012, $

CLIN 2012, $

CLIN: 0014, 1014, 2014

Description: Data (A001 Quality Audit Site Visit Report, A002 Incident/Mishap report, A003 Contractor Roster) no drawings or technical data is required with this effort.

Delivery: The Contractor shall provide and deliver data required for aircraft coatings and sealants IAW the Contract Data Requirements List (CDRL) outlined in the SOW. See CDRLs Exhibit A. Specific CDRLs will be identified at the order level.

Quantity: 1 Unit of Measure: Lot Estimated dollar value of each CLIN:

Unit Price: USD $ NSP (Not Separately Priced)

D. The type of appropriation to fund each Task Order is Depot Maintenance Activity Group (DMAG) 4930 funds.

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

A. This proposed action is for highly specialized materials and items used to coat and seal each airframe (F-16, C- 130, A-10, F-35, and F-22) that comes to Hill AFB for depot maintenance. The unique capabilities of these coatings and sealants are highly specialized because they are used on military airframes that perform military-style maneuvers, including at times, traveling at past the speed of sound, which can create critical problems with coatings/sealants adhesion. The corrosion protection properties of these required coatings and sealants are also extremely unique and of utmost importance, as most of these airframes (F-16, C- 130, A-10, F-35, and F-22) are past their intended lifespan and experience high levels of corrosion.

Therefore, this acquisition will be a follow-on contract for the continued supply and technical services of highly specialized product to Hill AFB.

B. AIS is the only Contractor authorized by all five manufacturers of the required military specification coatings and sealants

March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 7 of 10March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 7 of 10 that can provide just-in-time delivery within twenty-four (24) hours of request to Hill AFB. Just-in-time delivery is required, due to the limited storage options that exist in the hangars. The coatings and sealants being procured have very specific storage requirements; including, temperature control, in that some must be stored in large -80-degree freezers with 24-hour digital monitoring with backup generators for storing large amounts of pre-mixed and frozen (PMF) sealants. The products also have shelf life that need to be closely monitored. AIS is the only Contractor with the specialized storage facilities near Hill AFB required to provide just-in-time delivery of the coatings and sealants.

C. The 309th Aerospace Maintenance Groups have determined that award to any other source would result in unacceptable delays in fulfilling the agency's requirements. AIS is the only authorized Contractor for all required coatings and sealants and the only Contractor set up to provide just-in-time delivery and service at this time.

The 309th Aerospace Maintenance Groups use coatings and sealants manufactured by CAAP Co., Hentzen, Deft/PPG, Akzo Nobel, and 3M to coat and seal each airframe per technical orders (TOs) 1-1-8, 1 F-16CJ-23, 1 A-1 OA-23 and 1 C-130H-23.

Airframe drawings indicate which coating or sealant manufacturer to use, and this will differ based upon whether the airframe is that of the Air Force, Navy/Marines, or Coast Guard.

With the variety of airframes maintained at Hill AFB each dictating which manufacturer's products to use, it is imperative that the Contractor awarded this contract be an authorized Contractor for all five of the manufacturers (CAAP Co., Hentzen, Deft/ PPG, Akzo Nobel and 3M), so as to meet the twenty-four (24) hour just-in-time delivery requirement.

To be able to supply the 309th Aerospace Maintenance Groups with the required coatings and sealants, the Contractor will need to have an established temperature-controlled storage location in/around Hill AFB to meet the just-in-time delivery requirements; and be an authorized dealer to Hill AFB for all five of the coating and sealants manufacturers: CAAP Co., Hentzen, Deft/ PPG, Akzo Nobel, and 3M. Market research revealed AIS as the only Contractor currently authorized to distribute to Hill AFB. A Contractor would also need to have the capability to provide technical services for the coatings and sealants. These technical services include providing training for evaluation of materials, material processes, inventory control, approved product changes, and any coatings and sealants failures.

From Contractor feedback received through market research and based on the knowledge of the 309th Aerospace Maintenance Groups, it has been determined that any other Contractor would need twelve (12) months after award to become fully operational. A Contractor would need to set up shop, obtain all necessary manufacturer authorizations to distribute product to Hill AFB, and become knowledgeable with the Hill AFB supply and demand needs in order to satisfy the just-in-time requirement and provide the needed technical assistance. AIS is the only Contractor with a fully operational storage facility by Hill Air Force base and authorization to distribute all products on the Appendix D product list.

The 309th Aerospace Maintenance Groups require that a Contractor be fully operational and capable to fulfill the effort on the anticipated award date. Any delay would cause severe damage to the Air Force to include a full shutdown of the F-16, C- 130, A-10, F-35, and F-22 operations. Based on daily revenue losses projected by Hill AFB AMXG Finance Department, this would lead to an estimated $ in operational losses per business day. Over the course of three (3) years (2-year source selection and 1-year ramp up after award) or 780 business days, this would lead to an estimated $ in operational losses.

Hill AFB is the only depot that provides the unique work needed on the F-16, C-130, A-10, F-35, and F-22 aircraft. A potential three (3) year delay in award would inhibit this work from being completed on the aircraft limiting the availability of these aircraft in the field and endangering USAF missions and national security.

D. Accordingly, AIS is the only firm capable of providing the supplies and services described in Section III above without the Government experiencing unacceptable delays in fulfilling its requirements.

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. Initial Market research identified that Automotive & Industrial Supply (AIS) Company was the only certified Contractor that could provide the coatings and sealants based off a sources sought, FA8224-21-MC-0179, that was posted to sam.gov on 28 June 2021, with a deadline of 28 July 2021. The Statement of Work (SOW) was posted with the sources sought. The purpose

March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 8 of 10March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 8 of 10 of the sources sought was to identify additional companies which can provide the coatings, sealants, and technical assistance. AIS Company was the only company to respond to the sources sought.

A separate Sources Sought FA8224-21-R-COATINGS was posted to beta.Sam from 17 Feb 2021 to 19 Mar 2021 for the FMS-3600 coating and the Government received one (1) Contractor response from AIS which was deemed technically capable.

On 25 Mar 2022 a third sources sought, FA8224-22-0084MC, was posted with a deadline of 24 Apr 2022 that was for the combined requirement. AIS was the only company that responded that could support the requirement. On 6 May 2022 the Sources Sought (FA8224-22-0084MC) was revised to reflect an anticipated increase to the PoP and closed on 20 May 2022.

AIS was the only source that responded.

0n 3 Nov 2022 and again on 14 Feb 2023 Hill PZIMA Contracting and 309th Aerospace Maintenance Group representatives met with the Defense Logistics Agency (DLA) to determine if they could support the requirement. DLA's prime Contractor SAIC stated they could not support the same day delivery, most items have an 8/10/15 delivery, they also stated DLA could only support the items that have an established National Stock Number (NSN).

To bring the market research current, on 13 Feb 2023 sources sought FA8224-23-R-1084CS was posted to SAM.gov with a deadline of 15 Mar 2023, :

On 29 Mar 2023 clarifying questions were sent to the respondents to determine if they could support the contract. Based on their responses, it was determined that it's possible that could accomplish this effort if they had twelve (12) months after award to set up shop near Hill AFB, obtain authorization from the product manufacturers to distribute to Hill Air Force Base including the FMS-3600 product that requires authorization through Lockheed Martin, and otherwise become capable to deliver product just-in-time and provide technical assistance as needed.

Additionally, other Air Force base Coatings and Sealant related Government contract POC's were contacted and internet searches performed as part of the market research.

B. This requirement will be synopsized at www.sam.gov as a notice of contract action IAW FAR 5.201.

C. Other actions: None

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

A. Actions anticipated to ensure reasonableness of the price will be accomplished with procedures and criteria contained in Subpart 15.4 - Contract Pricing, as appropriate. The Government will use price analysis to determine price fair and reasonable. The Government will require AIS to provide Data Other than Certified Cost or Pricing Data as needed in order to determine the price is fair and reasonable in accordance with FAR 15.403-3(c). The data may include history of sales to non-governmental and governmental entities or appropriate data documenting the prices for same or similar items have previously been sold. The data may also include invoices showing how much AIS has paid their suppliers for these items.

B. The AMXG Program Office has also provided an Independent Government Cost Estimate (IGCE) that will be utilized to determine the price fair and reasonable.

C. Contracting will provide detailed documentation and justification of price reasonableness in a Price Negotiation Memorandum (PNM), to be prepared upon completion of negotiations.

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

A. See Section V above. Market research, in accordance with FAR Part 10, was conducted.

B. It is determined that this type of commodity is offered in the commercial marketplace and meets the definition of a commercial commodity as defined in FAR Part 2.

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 for more detail.

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.

A. A major barrier to competition is the twelve (12) months needed for competition to set up shop, gain the needed distribution authorizations, and otherwise become capable to deliver product just-in-time and provide technical assistance as needed after award. To overcome this barrier, a follow-on contract will need to be awarded twelve (12) months prior to the contract end date.

The Government will limit the current effort to a three (3) year Ordering Period with a three-nine (39) month PoP. The Government intends to immediately start working on a competitive source selection follow on effort. This process from beginning to end is anticipated to take two (2) years to award. The follow on effort will then be awarded a year prior to the current effort's Ordering Period end date and include a one (1) year ramp up to allow a new Contractor to have up to a year to establish a storage facility near HAFB, obtain the necessary distribution authorizations from the manufacturers, and be ready to perform on the contract once the current effort's PoP is completed.

In addition, the program when considering a follow-on contract, will consider for any future effort, the possibility of making a split-award between competing parties. The possibility of a split award could have the effect of broadening the industrial base and preventing this essential program from being totally reliant on a single source.

The Government has conducted market research and will again every 18 months and before the next contract is awarded to better understand the marketplace, educate industry on the requirement, and keep them aware of the requirement. A resultant market research report will be sent to the competition advocate every 18 months.

B. The prior Coatings and Sealants J&A dated 17 Nov 2017, cited 2 future actions to be taken to foster competition listed below:

-The using organizations will utilize e-mail or phone to contact the weapon system corrosion control offices and paint manufacturers to encourage them to certify more coating and sealant distributors for increased competition in the serviced region.

Additional distributors have not been certified during the lifespan of the contract. Based on recent industry feedback, once a contract is awarded to service Hill AFB then the 5 manufacturers will likely certify that Contractor.

-Government will continue to conduct market research throughout the course of this contract to determine if other qualified sources exist. Off-ramp will be added to this contract in the event any other qualified sources are discovered.

Market research has been conducted and a better understanding of the marketplace has been gained. It's unclear if an off-

March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 10 of 10March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 10 of 10 ramp was added to the contract or what was meant by off-ramp. The effort was an IDIQ which allowed the Government to go elsewhere if desired once the minimum was met.

XI. Certification by the Contracting Officer.

As evidenced by their signature, the contracting officer certifies that this justification is accurate and complete to the best of their knowledge and belief.

XII. Certification by the technical/requirements personnel.

As evidenced by their signatures, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.

J&A Attachments:

1. Appendix D