CAD_-_J_and_A_-_Chassis_-_Signed_Redacted.pdf

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

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Choose the funding level for this J&A Document:

< $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: AFSC/PZIOA

Purchase Request / Local ID Number:

Program / Project (and PE, if applicable): VDATS Parts - Chassis

Program Type (PEO or Other Contracting): Other Contracting

Authority (include full title): 10 U.S.C. 2304(c)(1)

Estimated Contract Cost (including options): $ J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date Project Lead/Program Mgr/Requiring Activity William Curtis

WR-ALC/OBCA, 468-8903

Signature

Date Contracting Officer James G. Katsekis

AFSC/PZIOA, 468-3581

Signature

Date Local Legal Reviewer

James Peeler

78 ABW/JA, 472-0575

Signature

APPROVAL (AFFARS 5306.304(a) )

Date Competition Advocate Sharon C. Broughton

AFSC/PZCA, 472-1102

Signature

CURTIS.WILLIAM.W.JR.

1230084110

Digitally signed by CURTIS.WILLIAM.W.JR.1230084110 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=CURTIS.WILLIAM.W.JR.1230084110 Date: 2016.03.31 10:56:27 -04'00'

KATSEKIS.JAMES.G.122

9954764

Digitally signed by KATSEKIS.JAMES.G.1229954764 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=KATSEKIS.JAMES.G.1229954764 Date: 2016.04.01 07:25:34 -04'00'

PEELER.JAMES.MIC

HAEL.1381070367

Digitally signed by

PEELER.JAMES.MICHAEL.1381070367

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=PEELER.JAMES.MICHAEL.1381070367 Date: 2016.04.01 13:14:23 -04'00'

BROUGHTON.SHARON

.C.1229889873

Digitally signed by BROUGHTON.SHARON.C.1229889873 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=BROUGHTON.SHARON.C.1229889873 Date: 2016.04.01 13:42:44 -04'00'

I. Contracting Activity.

This Justification and Approval is to request authority for Other Than Full and Open Competition supporting requirements generated for contracting action F3QCCM6069A002 to support requirements generated for 402 EMXG, Electronics Maintenance Group. The contracting activity for this requirement is

AFSC/PZIOA.

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

Due to the circumstances described herein, the activity requests authority for a new one time contract under `Other than Full and Open Competition' as prescribed by FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” This acquisition will be an Indefinite Delivery/Indefinite Quantity (IDIQ), Firm-Fixed Priced (FFP) contract with a 60-month ordering period.

We anticipate a need for fifteen Versatile Depot Automatic Test Stations (VDATS) DA-1 stations per year.

The sources for this requirement are as follows:

Teradyne, Inc.

700 Riverpark Drive North Reading, MA 01864-2634

CAGE: 23350

Large Business

Astronics Test Systems 4 Goodyear Irvine, CA 92618-2002

CAGE: 21793

Large Business

Tracewell Systems, Inc.

567 Enterprise Drive Lewis Center, OH 43035-9429

CAGE: 1PMK5

Small Business

In addition to the original manufacturers, all resellers will be solicited independently.

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

The VDATS is an organically designed test station with Open Architecture and Virtual Modular Equipment (VME) Extensions for Instrumentation (VXI) technology. The test station contains flexible hardware and software architectures that are fully expandable and customizable, and eliminate or reduce the need for active Interface Test Adapters (ITAs).

The VDATS consists of standardized, commercially available test equipment, components and software. There are two configurations of VDATS; the DA1 and DA2. Additionally, there is an RF1 roll-up rack that provides radio frequency capability to the core DA. Currently, these configurations support the B-1, B-2, C-130J, and F-15 weapon systems.

This item is available on a GSA contract GS-07F-0304V with Teradyne. It is on a GSA contract with two of Tracewell's resellers;

Govware (GS-35F-0014T) and Computech International (GS-35F-0186P), however not currently on GSA with Tracewell. The item is not on a GSA contract with Astronics. This contract will be awarded as a follow-on limited competitive acquisition.

Restricting this procurement to only companies with GSA contracts would prohibit Tracewell and Astronics from being able to compete.

The period of performance for this IDIQ contract is 60 months with the basic minimum quantity required to be delivered no later than 30 days after contract award.

The Noun/NSN covered by this J&A is shown in the chart below. References to specific “order years” are only to provide an estimated period when items are anticipated to be ordered. The estimated total contract amount is $ This will be funded with CSAG-M (DMAG) funds. The cost for each item has an estimated inflation of two percent for each successive year following the first year period.

Part Number/ NSN Basic Qty Max Qty Unit Price Total Price Description 608-223-02 5975-01-577-1282KV or First Year 5 10 $ $ or 5975-01-596-1426 Second Year 15 $ $ 5901003-F02-02 Third Year 15 $ $ or Fourth Year 15 $ $ 1263HPr-B Fifth Year 15 $ $ Chassis Total 5 70 $

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

10 U.S.C. 2304(c) (1), as implemented by FAR 6.302-1, one responsible source and no other supplies or services will satisfy agency requirements.

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

The agency's minimum needs can only be satisfied by the unique supplies or services available from the above cited sources, which possess unique capabilities demonstrated as follows:

Only Capable Source: This requirement will be solicited under “Other Than Full and Open Competition” to Teradyne, Tracewell Systems, and Astronics Test Systems. These companies are the Original Equipment Manufacturers (OEMs) for these NSNs and are the only sources capable of providing tested and approved VDATS part NSNs as identified in Section III.

NSNs included in this effort have an Air Force Material Command Form, 761 AMC/AMSC Screening Analysis Worksheet (SAW), which states an Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) (3/Z). The “3” code means to acquire directly from the actual manufacturer, whether or not the Prime contractor is the actual manufacturer. The “Z” code means the part is commercial/non-developmental/off-the-shelf item.

Technical Requirements/Data: To maintain strict configuration management of current production efforts and to comply with the technical requirements identified in the VDATS system technical documentation, the exact part numbers are required and must be procured in order to maintain the configuration control baseline and promote transportability of workload between test stations. The items listed are commercial items available only from Teradyne, Tracewell or Astronics. In accordance with the DoD Automated Test Station (ATS) Selection Guide which can be found at http://www.acq.osd.mil/ats, program managers are mandated to select from appropriate, DoD approved ATS families to satisfy testing requirements. Program managers for various weapon systems have contacted the VDATS program office requesting new or replacement VDATS assets.

Data for these source-controlled commercial items is unavailable. The commercial vendors have thus far declined to provide quotes for data procurement. Purchase of data through these companies was requested on 27 Jan 2016. The companies confirmed again that they would not sell the data for their parts.

This acquisition must remain restricted to the part number controlled baseline that is approved and tested for the VDATS ATS. Any change to the VDATS configuration potentially impacts every VDATS user and creates a ripple effect for software and firmware within Test Program Sets (TPS) for Line Replaceable Units or Shop Replacement Units (LRU/SRUs) tested on the VDATS Support Equipment. The Government does not own the data rights to these proprietary items.

Substantial Duplication of Cost: Qualification of substitute parts - The Software Integration Lab (SIL) researches alternative parts. This research normally takes 18 to 24 months to complete alternate parts review and testing. The review of substitute parts is done at a part number level and not component level.

There are 40 to 50 part numbers per VDATS station and each station must be customizable to the extent for testing approximately 200 unique weapon system platforms. This review/testing labor of approximately 3 engineers ($80K per year) and 3 technicians ($60K). There is one part number related to the VDATS test station build for this requirement. The cost of 24 months of testing and integration for any part in any of the VDATS configurations is estimated at $ . This type part number qualification process is only completed in the case of parts obsolescence. This is not a viable alternative.

The team considered the alternative of contractor development of VDATS replacement tester. If pursued, the deliverables would be a VDATS-compatible station, Level III drawing package, and full rights to all developed software. The estimated cost of this effort would be $ , based on initial budgetary quotes received from vendors when the SPO tried to procure complete stations through a Performance Based Acquisition in the FY09-10 timeframe. The cost of rehosting TPSs in addition to the design/ development cost is incalculable. Furthermore, this is a DoD family of testers. SAF/AQ mandated that this tester be the preferred automatic tester for the Air Force. This is not a feasible alternative.

Reverse engineering of the chassis has been done to the extent that the government was able to determine that the Tracewell and Astronics chassis are suitable substitutes for the Teradyne, thereby allowing for limited competition between the three manufacturers. Previous purchases of the chassis were sole sourced to Teradyne. The cost to add an additional source was less expensive than producing the data required to support full and open competition, and in practice, because we are using Commercial Off-The-Shelf (COTS) equipment, just as effective.

Each of these alternatives presents substantial duplication of costs to the Government that is not expected to be recovered through competition.

Unacceptable Delay: The VDATS are highly specialized equipment; without serviceable assets that have been tested and approved, system performance in accordance with test station specifications will be placed at great risk. Lack of proper configuration impacts every VDATS, causing failure to execute mission or prevent the achievement of critical objectives and the DoD ATS Selection Guide mandates program managers to select from appropriate, DoD approved, ATS families to satisfy testing requirements.

Significant delay would be realized if testing and approval are required from sources other than the OEMs.

The estimated timeline is based on minimum of 18 months to prepare a competitive solicitation, and up to 48 months to test and approve each applicable NSN. Failure to acquire this specific VDATS part could potentially impact multiple weapon system programs. This VDATS part is the Air Force's preferred family of tester. The family of tester program was designed to reduce proliferation of unique test systems by providing a common solution. The existence of tester families severely reduces the cost of development and sustainment of the unique test requirements. The item being acquired is critical to maintaining configuration control in all of the test stations. A delay of 48 months would adversely affect sustainment of the VDATS.

Accordingly, Teradyne, Tracewell Systems, and Astronics Test Systems are the only sources capable of providing the supplies described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

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

This requirement will be synopsized on the Federal Business Opportunities (FedBizOpps) web page as required by FAR 5.201 citing conditions which preclude Full & 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. Contractors interested in subcontracting opportunities will be referred to the OEM contractors.

Additionally, a Request for Information (RFI) (RFIVDATSCHASSIS2015) was issued on 9 Dec 15 and closed on 28 Dec 15, requesting information from interested companies concerning their capabilities to provide the item, past experience, and general business practices regarding manufacturing of this kind of part. Teradyne and Astronics were the only companies that responded.

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

The contract price will be negotiated in accordance with the procedures in FAR Part 12 ensuring the ultimate price to the Government is fair and reasonable. The Contracting Officer will evaluate other than certified cost or pricing data to support the Government's evaluation of the proposed cost. This includes data on the prices at which the same or similar items have previously been sold to Government and commercial sources, current catalog and/or price lists, and if required, other data in sufficient detail to allow for determination of fair than and reasonable pricing.

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

Market research was conducted as required by FAR Part 10.001 and FAR Part 10.002 on 15 Jul 15 and completed 09 Mar 16 using techniques that included review of Government database information for individual part number requirements as well as a search of the dynamic small/disadvantaged business database. A query of the Small Business Dynamic Search engine was performed. NAICS codes 334515, 334111, and 334118 were used as well as the key word “chassis.” No sources other than Teradyne, Tracewell and Astronics were identified as being capable of meeting the exact and mandated requirements of the Government.

A search for HUBZone, 8(a), Veteran, Woman Owned and Service Disabled Veteran Owned businesses was conducted using the Dynamic Small Business Search engine. Several sources for “chassis” were identified, however, due to the proprietary nature of the parts being procured; none are capable of satisfying the requirement. Teradyne and Astronics, large businesses, and a small business, Tracewell, own the proprietary data needed to maintain configuration control and performance according to test station specifications.

This VDATS part is commercially available through Teradyne, Tracewell Systems, and Astronics Test Systems. The exact part numbers are required in order to maintain the configuration control baseline and promote transportability of workload between test stations. No other sources are capable of providing this commercial part.

Last, as discussed in Section VI, the RFI issued 9 Dec 15 with closing on 28 Dec 15 only resulted in responses from Teradyne and Astronics Test Systems.

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

None.

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

See Section VI above.

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.

This acquisition must remain restricted to the part number controlled baseline that is approved and tested for the VDATS. Alternate sources of supply for similar parts is not viable for this acquisition. If any potential sources are identified through our on-going market surveillance, they will be evaluated by the VDATS team. Evaluation of alternate sources of supply could take up to four years to complete. The alternate part must meet VDATS TPSs from previous part to the new part. The remaining life cycle for the VDATS system is 30 years.

The Air Force owns Level III drawing package data for all VDATS configurations. This effort is to procure the commercial piece parts required to assemble the stations. Assembly of the piece parts will be performed organically based on Level III drawing configuration. Data for the piece parts is source-controlled and not available to the Government. The drawings/data for the piece part was requested from the OEMs on 27 Jan 16 and they declined to sell or make them available to the Government. The VDATS System Program Office will request release of the commercial data from the OEMs on an annual basis.

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.