AC_Voltage_JA_2aug16_Signed.pdf

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

Updated: 15 Mar 16 Updated: 15 Mar 16

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: AFLCMC/WNMK (AFMETCAL)

Purchase Request / Local ID Number: F4FTMM 6057A002 / 16E-132A-DC

Program / Project (and PE, if applicable): AC Voltage Measurement Standard

Program Type (PEO or Other Contracting): PEO (Agile Combat Support)

Authority (include full title): FAR 6.302-1 - Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): $9,405,000.00 J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) ) Sign and Save Procedure

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Date

01 Aug 2016

Contracting Officer Michael D. Hickey

AFLCMC/WNMK / DSN 366-5043

Signature

X

Date

01 Aug 2016

Engineer, Project Lead Kristopher Onderko

AFLCMC/WNMEE / DSN 366-5050

Signature

X

Date

01 Aug 2016

Engineering Branch Chief James Bohus

AFLCMC/WNME / DSN 366-5120

Signature

X

Date

01 Aug 2016

Contracting Branch Chief Amy I. Poling

AFLCMC/WNMK, DSN 366-5045

Signature

X

Date

02 Aug 2016

Local Legal Reviewer Edward Fisher AFMC Law Office / DSN 674-7113

Signature

X

Date

02 Aug 2016

Chief of the Contracting Office (COCO) Victoria A. Fry

AFLCMC/WNK, DSN 674-2271

Signature

X

APPROVAL (AFFARS 5306.304(a) ) ** The text in the signature blocks below is editable, including the title.

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Date

03 Aug 2016

Competition Advocate Donald S. Poole

AFLCMC/PK, 312-785-3741

Signature

X

Note 1: See guidance at the end of this document for completing the following sections.

Note 2: Each field will expand automatically if additional space is needed.

I. Contracting Activity.

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated by Air Force Life Cycle Management Center (AFLCMC), Agile Combat Support Directorate, Air Force Metrology and Calibration Division (AFMETCAL). The contracting activity executing this requirement is AFLCMC/WNMK, 813 Irving- Wick Dr., W Horton Building, Heath, Oh 43056. Purchase request number for this requirement is F4FTMM6057A002.

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

This J&A is for a new, sole source, firm fixed price commercial contract. AFMETCAL has a requirement to replace its current inventory of AC Voltage Measurement devices, Fluke 5790 A/AF Option 3, that have become old, obsolete, and costly to sustain. The proposed contractor is Fluke Corporation, 6920 Seaway Blvd., Everett, WA 98203.

The strategy is for the contractor to deliver 2 first production units that the Government will acceptance test to ensure that the units meet the specifications of the purchase description and acceptance test plan prior to purchasing base and option quantities. The Government is also considering purchasing an extended warranty not to exceed 5 years.

Market Research results conclude that there is not a reasonable expectation that two or more responsible offerors competing independently would submit priced offers in response to the solicitation expressed requirement. Therefore, the government will pursue a sole source acquisition utilizing FAR 6.302-1: Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

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

The AC Voltage Measurement Standard is a highly accurate AC voltage measurement device that shall be used to maintain measurement traceability for AC Voltage in the calibration of AC Voltage Test, Measurement and Diagnostic Equipment for the Air Force. The AC Voltage Measurement Standard shall be capable of accurately measuring AC Voltages of 0 to 1000 V at frequencies of 10 Hz to 50 MHz. Input to the AC Measurement Standard shall satisfy two range requirements: AC Voltages of 0 to 1000 V at frequencies between 10 Hz and 1 MHz and a wideband range up to 7 V at frequencies of 10 Hz to 50 MHz. The full AC voltage range shall be accomplished by utilizing multiple AC voltage ranges. Each AC voltage range shall maintain a separate measurement uncertainty. The AC Voltage Measurement Standard shall be capable of directly measuring AC or DC voltage as well as comparisons to an external voltage standard. The wideband input terminal shall utilize a 50 ohm Type N coaxial connection. The AC Voltage Measurement Standard shall operate with front panel or standard IEEE-488 interface which offers flexibility during the measurement process.

Quantities to be purchased are as follows utilizing 3400/O&M funds (price includes an estimated $5,000 for possible extended warranty per unit):

Year Qty Est Unit Price Est Subtotal Description FY16 2 $ 55,000 $ 110,000 First Production FY16 40 $ 55,000 $ 2,200,000 Base Quantity FY17 31 $ 55,000 $ 1,705,000 Option 1 FY18 43 $ 55,000 $ 2,365,000 Option 2 FY19 33 $ 55,000 $ 1,815,000 Option 3 FY20 22 $ 55,000 $ 1,210,000 Option 4 Total 171 $ 55,000 $ 9,405,000

AFMETCAL has a firm requirement for 171 devices budgeted over the next 5 fiscal years due to annual O&M funding constraints.

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

10 USC 2304 (c)(1), as implemented by FAR 6.302-1, 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).

AFMETCAL's mission is to manage the Air Force Metrology and Calibration (AFMETCAL) Program to ensure Air Force systems and equipment are accurate, uniform, reliable, and traceable to the National Institute of Standards and Technology (NIST) or other sources as approved by AFMETCAL (Metrology).

AFMTECAL utilizes a number of various AC Voltage measurement devices in the course of executing its mission. A key piece of equipment in its inventory is the Fluke 5790 A/AF Option 3 AC Voltage Measurement device, which is capable of extremely high tolerance and accuracy readings with metrology-grade level performance.

The Fluke 5790 A/AF Option 3 AC Voltage Measurement devices are manufactured and serviced exclusively by Fluke Electronics Corporation and have been sold to government and non-government entities for at least 20 years commercially.

In FY15, Fluke Electronics Corp announced that its 5790 A/AF Option 3 was nearing its end of production, would no longer be serviced, and would be replaced with an-updated model. Within the past few years the current inventory of 5790 A/AF Option 2 devices, acquired over 20 years ago, have experienced reliability issues due to them exceeding their intended shelf life with estimated diagnostic and repair costs of $10,000 per unit. These two issues prompted AFMETCAL to conduct extensive market research and develop an acquisition strategy to replace their inventory of 188 Fluke 5790 A/AF Option 3 AC Voltage Measurement devices.

Initial Market Research was conducted in FY15 using Internet searches, trade journals/shows, searching government databases such as GSA, coordinating with the Small Business office, One-on-One Industry Sessions, as well as contacting other Government Metrology entities. This research did not identify a direct competitor to Fluke Electronics Corp for a AC Voltage measurement device that could compete with the Fluke 5790 A/AF Option 3's level of performance. A Sources Sought Synopsis was issued 1 May 2015; two responses were received. The incumbent, Fluke Electronics Corporation at the time indicated that they were developing a replacement model, but it had not been fielded yet. TEGAM, Inc. also expressed interest and inquired what product was being replaced; a follow up to our response was never received.

As the government finalized its acquisition strategy in July 2016, it conducted follow up market research by contacting both TEGAM and Fluke to ensure we were promoting competition to the maximum extent practicable. TEGAM was asked if they intended to submit a proposal to a pending RFP for this requirement; they indicated that they considered sourcing and modifying a product line, but responded that they would not submit a proposal in response to the RFP. Fluke was asked if their replacement model had been fielded yet, to what customers, and if sold commercially. Their response was yes, the Fluke 5790 B/5 has been sold to both government and commercial customers; they also provided a list of recent customers.

Since the sources sought, the government has continuously monitored the market place via internet search, trade journals, Combined Calibration Group (CCG) meetings (Joint Army, Navy, Department of Energy and the National Institute of Standards and Technology), advisory group meetings, the National Conference of Standards Laboratories International (NCSLI) seminars, and hosted a myriad of sales visits. None of these efforts have revealed a company, other than Fluke, that can currently meet the government's requirement.

Upon receiving sales data from Fluke, the government contacted the Department of Energy and the Army. Both revealed that they had determined Fluke's product to be a commercial item and acquired via sole source to Fluke Electronics Corp.

Market Research results concluded that there is not a reasonable expectation that two or more responsible offerors competing independently would submit priced offers in response to the solicitation expressed requirement.

Accordingly, Fluke has the required knowledge, experience, and infrastructure to manufacture this highly specialized equipment. They have dominated the market place for these types of items for the past 20 years. The opportunity to commit to developing a comparable device has been available to the marketplace during this time, however, no manufacturer has chosen to do so.

Updated: 15 Mar 16

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

A Sources Sought Synopsis (SSS) , numbered 16E-132A-DC, was published on 1 May 2015 in FedBizOps by AFMETCAL Contracting, AFLCMC/WNMK. Two vendors submitted a response to the SSS, TEGAM and Fluke Electronics Corporation. The government attempted to identify and/or promote existing or emerging companies that could provide a product to meet the government's requirement and foster effective competition. This was done through internet searches, examining trade journals, attending Combined Calibration Group (CCG) meetings (Joint Army, Navy, Department of Energy, and the National Institute of Standards and Technology), advisory group meetings, the National Conference of Standards Laboratories International (NCSLI) seminars, and hosting a myriad of sales visits. Through all of these efforts, Fluke has remained the only company identified as being able to meet the government's requirement. Recent additional market research was conducted with the Army and DoE regarding their recent acquisitions of the same item and in both cases; they also found Fluke to be the only source capable of meeting their requirement. Notice of this proposed contract action will be synopsized in accordance with FAR 5.2 to improve small business access to acquisition information and enhance competition by identifying contracting and subcontracting opportunities. The government will continue to monitor the market place throughout the acquisition life cycle. Prior to exercising options, Simplified Market Research will be conducted to take in account any significant changes in the market.

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

The Contracting Officer will perform price analysis IAW FAR 15.404 to ensure the negotiated price is fair and reasonable.

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 V and VI above, market research, in accordance with FAR Part 10, was conducted by sources sought synopsis, scanning Government databases (GSA), conferring with other Government agencies, face-to-face meetings with industry, soliciting inquiries from interested parties, and obtaining source lists. Based on the market research results, no other vendor besides Fluke Electronics Corporation was found to be able to provide a metrology grade product to meet the Air Force requirement as described in this Justification and Approval.

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

The current Fluke product has been used for the past 20 years providing ample opportunity for other companies to develop a competing product. At this time no such offering has been developed.

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

See Sections V and 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.

A contract with one base year and four options is anticipated. Prior to exercising options, Simplified Market Research will be conducted to take into account any significant changes in the market. The government will continue to monitor the market place throughout the acquisition life-cycle.

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.

Updated: 15 Mar 16

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.

Page of Updated: 15 Mar 16 International Agreement Competitive Restrictions Page of 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:

J&A Type:

COORDINATION (AFFARS 5306.304(a)) ** The text in the signature blocks below is editable, including the title.

** To remove a row, click the "X" next to the signature block. CAUTION: Once removed, it can only be restored by downloading the BLANK FORM again.

APPROVAL (AFFARS 5306.304(a)) ** The text in the signature blocks below is editable, including the title.

** To remove a row, click the "X" next to the signature block. CAUTION: Once removed, it can only be restored by downloading the BLANK FORM again.

Note 1: See guidance at the end of this document for completing the following sections.

Note 2: Each field will expand automatically if additional space is needed.

I. Contracting Activity.

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

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

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

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

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

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

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

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

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

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.

XII. Certification by the Contracting Officer.

XIII. Certification by the technical/requirements personnel.

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