JA_17M-214A-PR_ADCS-601_Upgrade_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 l I 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 l l and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official. l I I l----------------------------------------------------------------------------------

Choose the funding level for this J&A Document:

~ $700K > $700K and ~ $13.SM > $13.SM and ~ $93M

Contracting Activity: AFLCMC/WNMK

Purchase Request I Local ID Number: 17M-214A-PR

Program I Project (and PE, if applicable): Air Data Calibration Standard (ADCS)-601 Upgrade

Program Type (PEO or Other Contracting): PEO

> $93M h d f II .

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

Aut or1ty inc u e u tit e : R . t equ1remen s.

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

COORDINATION (AFFARS 5306 .304(a))

Date Contracting Officer Signature

14Jul2017

Date Engineering Branch Chief Signature

14Jul2017

Date Contracting Branch Chief Signature

14Jul2017

Date Local Legal Reviewer Signature

18 Jul 2017

Date Chief of the Contracting Office (COCO) Signature

24 Jul 2017

APPROVAL (AFFARS 5306 .304 (a))

25 Jul 2017

I Competition Advocate

I

Signature Date

Updated: 15 Mar 16 Page 1 of 6

I. Contracting Activity.

This Justification and Approval (J&A) 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.

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

This J&A is for a new, sole-source, firm-fixed price contract. AFMETCAL has a requirement to upgrade nine (9) ADCS-601 Air Data Calibrators owned and operated by the United States Air Force (USAF) at nine (9) different locations (Air Force Primary Standards Laboratory (AFPSL), Elmendorf, Hill , Holloman, Otis, RAF Feltwell, Robins, Tinker and Wright Patterson). The proposed contractor will be a large business, Fluke Electronics Corporation, 6920 Seaway Blvd, Everett, WA 98203-5829 (hereinafter Fluke) (Cage 4U744).

The current inventory of ADCS-601s were acquired in Aug 2004 (FY2333-04-M-0021 , commercial acquistion) from small business DHI Instruments, which was acquired by Fluke in 2007. The system consists of an integrated hardware configuration along with system specific software called ADCS Tools that is required to accomplish system operation. The details of the system design are proprietary, as is the controlling software and the interface designs.

Fluke does not share their data at this level of detail nor does it use other companies to support the ADCS-601 s.

The ADCS upgrade project will replace some aging/obsolete hardware with modern/current hardware that is sustainable. Problems related to controlling pressures below 4 psi have been encountered and are linked to the aging pressure controllers used in the rack/cabinet portion of the system. Additionally, the current system controller and ADCS Tools software is not fully compatible with the new Windows 10 operating system. It is expected that the upgraded systems will last for another 10-15 years.

As Fluke does not authorize other contractors to support this equipment and does not share the detailed data required to do so, 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.

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

The ADCS-601 serves as the primary Air Data Calibration system for the USAF. ADCS-601 is a fully automated reference level Air Data Calibration Standard for the verification and calibration of air data range instruments, in particular Air Data Test Sets (ADTS). The ADCS-60 I Air Data Calibration System is an integrated, bench mounted system with an equipment rack covering the range of 0.3 to 110 inHg with both absolute and gauge mode operation.

Operation is fully automated including setting individual on demand pressure points, multi-point calibration sequences, data acquisition and remote control of compatible test instruments.

The complete system consists of: ( 1) rack/cabinet containing two pressure controllers, a pressure monitor and an assortment of valves, regulators, tubing and electronic hardware; (2) bench with PG7601 Dead Weight Piston Gage, FPG8601 Force - Balanced Piston Gage, AMH-38 Automated Mass Handler, vacuum pumps and int~rconnecting hardware; and (3) a controller with ADCS Tools software that runs the system.

The market for this product is limited. The United States Army and USAF utilize these systems in addition to a small number of aerospace contractors and foreign military customers. Fluke has sold the ADCS-601 commercially for the

Updated : 15 Mar 16 Page 2 of 6 last 13 years. At this time, most of the potential customers already have their ADCS-601 systems, leaving the current market saturated. The USAF's ADCS-601 s are among the oldest systems in existence, and thus among the earliest candidates for upgrade/replacement.

When exploring the option of pursuing an upgrade of the existing air data calibrator system, the technical team sought to preserve as much of the existing system as possible. The AF technical team determined it was unnecessary to update the bench portion of the system in order to achieve the requirements of the purchase description. Rather, the rack/cabinet and controller portions were the only components that would need to be changed .

The precision mechanical components (the PG7601 Dead Weight Piston Gage . the AMH-38 Automated Mass Handler and the FPG8601 Piston Gages that form the heart of the ADCS-601 and generate the high accuracy pneumatic pressures are identical to the new ones sold today, and these will be retained in the bench portion of the system. The mechanical portions of these Piston Gage Systems are very durable and last for many years. Any newly procured system would simply replace these Piston Gages with identical units to no appreciable advantage. The AF currently has piston gages that are over 30 years old and still in use. These systems become obsolete because electromechanical pressure controllers and electronic digital readouts fail and can not be replaced. The upgrade will replace the pressure controllers and pressure monitor in the rack/cabinet system, the contro ller and the software.

Fluke provided an estimated price for upgrading the system to be per unit. The upgrade would also include transportation, installation and training at each site on the new upgraded system.

Quantities to be purchased are as follows utilizing 3400/0&M funds :

Yea r Qty Est Unit Price Est Subtotal Description FY 17 6 Base Quantity FY18 3 Option 1 Total 9

During initial market research, conducted in FYl6, Fluke also indicated the acquisition ofa new ADCS-601 would cost approximately per unit. Around of the estimated cost _of a new unit is attributab le to the bench portion of the system, which the AF technical team had determined was unnecessary to update in order to achieve the requirements of the purchase description.

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

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

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

Only One Reasonable Source 6.302-1 - This acquisition is to procure replacements for outdated system components and update the system control software. The control system contains proprietary software and proprietary hardware interfaces. The unit must be set up properly and training provided in the updated system operation. Only Fluke has the proprietary data required to accomplish full system integration, functionality, control and commun ication.

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

Initial market research was conducted in FY 16. Internet searches were conducted to identify any potential sources

Updated: 15 Mar 16 Page 3 of 6 and the OEM contractor was contacted. A Sources Sought Synopsis, numbered I 7M-2 l 4A-PR was published on 23 May 2016 in FedBizOps (FBO) by AFMETCAL contracting, AFLCMC/WNMK, advising AFMETCAL was considering purchase of an ADCS-60 I upgrade. Responses were received from two sources, Fluke and American Component Exchange (hereinafter ACE, cage 72XK6).

The OEM, large business Fluke, responded, suggesting a new rack/cabinet be provided to replace the functionality of the current rack/cabinet as well as a new controller with the current version of ADCS Tools software. Fluke advised that it has not provided an upgrade to a customer' s existing ADCS-60 I system, as no customer has required or requested such an upgrade to date. However, they have provided this type of support/service to other equipment they have sold and could update this particular piece of equipment as well.

Fluke also confirmed the ADCS~601 system is a proprietary system originally engineered and delivered by DHI Instruments which was acquired by Fluke in 2007. Fluke provided an estimated price for the upgrade of nine (9) units (including installation and training) of approximately each.

ACE is a large business distributor of electronic, electromechanical and hardware components of various types and varieties. ACE, although submitting initial interest to the Sources Sought, was unresponsive to further inquiries by AFMETCAL engineering.

Additional market research was conducted in Mar 2017 to specifically identify existing or emerging companies that could provide a new system to meet the government's requirement. A Sources Sought Synopsis, numbered l 7M-214A-PR was published on 29 Mar 2017 in FBO by AFLCMC/WNMK. No responses were received.

Subsequently, upon inquiry from AFCLMC/WNMK, Fluke advised that the ADCS-60 I is currently obsolete and not currently available. A key system component of Fluke's ADCS-601 , which was supplied by a subcontractor, is no longer available, and while replacement components do exist, they would require a re-engineering effort that Fluke has not accomplished at this time.

The AF technical team did some additional Internet research. After careful review, the AF technical teams determined that Mensor had acquired access to piston gage technology. The AF technical team contacted Mensor directly and they provided us with information on their commercially available Air Data System. The AF technical team determined that the commercial system does not meet the AF requirements, specifically it does not cover the AF's required low pressure/high altitude pressure range. The AF technical team pursued additional inquiries to determine if Mensor could build a system to meet the AF requirements. Mensor informed us that they had no equipment capable of meeting our accuracy requirements in the low pressure ranges we required. Based on the foregoing, it was determined by the AF technical team that currently Mensor can not meet the AF requirements but they do demonstrate a basic technological capability and potential as a source for future acquisitions.

As required by FAR 5.2, the proposed contract action will by synopsized on FBO.

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

Currently, AFLMC/WNMK is working with the DCMA Commercial Item Group (CIG) to determine the commercial/non-commercial nature of the proposed upgrade to the ADCS-601. As mentioned in Section VI, Fluke has not previously provided an upgrade to this particular piece of equipment. This piece of equipment was previously purchased via a commercial contract, is constructed of commercial parts, yet the proposed upgrade has not been previously provided to the general public as the Air Force is the first customer of this product to require an upgrade to it. Based on the outcome of the analysis of the DCMA CIG, appropriate cost/price procedures will be utilized.

AFLCMC/WNMK is confident a fair and reasonable price is determinable based on information received from

Updated: 15Mar16 Page 4 of6

Fluke, during market research, as to what comprises their estimated price for upgrading the system for per unit:

- Main Components of the Rack/Cabinet( The main components of the rack/cabinet that will be replaced (PPC4-ADCS PG7601 Controller, Range 700KPA , 72521-ADCS, ADCS Low Pressure Controller, Ranges lOOKPA ABS and 5/ 15 KP,A , and 402206, Platform, RPM4-Al 16K are based on commercial price lists that are readily available and consistent with those offered to the general public.

-ADCS Rack Assembly (components, integration, testing) Material- and Labor - . The AFNT will seek to obtain more information about the estimated number of hours of direct labor and rate utilized.

This information will be compared to the technical evaluation as well research regarding rates utilizing the Bureau of Labor Statistics (BLS) Wage Data. As for the additional components/material, the AFNT will rely on the technical evaluation to determine if they are necessary for successful completion of this effort.

-Installation and Training, 4 days for Pressure Products Estimated travel cos~s were verified utilizing the Federal JTR and Travelocity. Additionally, the AF technical team advised that the estimated travel purposes were reasonable and necessary for the effort.

-Custom Crating The AFNT will rely on the technical evaluation to determine what type of crating and shipping is appropriate for crating and transpo11.

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, market research, in accordance with FAR Part 10, was conducted by contacting a known source of the product, Internet searches and two sources sought synopsis. Based on market research results, no other vendor was found to provide a new air data calibration system. Furthermore, no other vendor, besides Fluke was found to be able to perform an upgrade of the existing ADCS-601 that meets the AF requirement as described in this Justification and Approval.

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

NIA

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.

An upgraded ADCS-601 System is expected to meet the government's requirements for the next 10-15 years. The AF technical team is very confident that a future procurement in I 0 to 15 years would be competitive. Currently only one company (Fluke) has sold commercial items meeting AF requirements. An analysis of the current market suggests that at least one other company (Mensor) has the technical expertise to produce systems capable of eventually meeting AF requirements. Mensor currently makes the high accuracy piston gages which would be incorporated into an ADCS system. Although Mensor's commercially available systems do not currently meet the AF requirements they demonstrate an emerging technical capability. Furthermore. AFMETCAL has recently bought a modular pressure controller from Mensor. We anticipate that this engagement with them will result in more

Updated: 15 Mar 16 Page 5 of6 awareness on their part of our requirements and more interest in this segment of the government market.

A contract with one base year and one option is anticipated . Prior to exercising options, Simplified Market Research will be conducted to take into account any significant changes in the market. AFMETCAL will continue to monitor the market place through the life-cycle of this system and anticipate that subsequent procurements to maintain this capability will be in an open and competitive market.

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.

Updated: 15 Mar 16 Page 6 of 6