Redacted_J&A.pdf

FOR OFFICIAL USE ONLY

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

----------------------------------------------------------------------------------, I NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action j 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 j ! and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official. j I I L---------------------- ------------------------- ---------- --------- ----------------

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

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? D Yes !ZI No

Funding level for this acquisition:

Contracting Activity: AFLCMC/WNMK

Purchase Request/ Local ID Number: 18M-221A-PR

Program/ Project (and PE, if applicable): ADC-2500 Upgrade

Program Type (PEO or Other Contracting): PEO

Authority: 6.302-1 - 1 O USC 2304(c)(l), Only One Responsible Source and _No Other Supplies or Services Will Satisfy Agency Requ irements

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

COORDINATION (AFFARS 5306 .30 4( a) )

Date Engineer, Project Lead Signature

05 Jun 2018 Digitally signed by

AFLCMC/WNMM, DSN Date: 2018.06.05 09:27:14 ·04'00'

Date Chief, Engineering Branch Signature

AFLCMC/WNMM, DSN Date: 2018.06.05 09:34:34 -04'00'

Date Contracting Officer Signature

Dig ital ly signedby

AFLCMC/WNMK, DSN Date: 2018.06.05 09:51 :31 -04'00'

Date Chief, Contracting Branch Signature

AFLCMC/WNMK, DSN Date: 2018.06.05 12:43:49 -04'00'

Date Local Legal Reviewer Signature

06 Jun 2018

AFMCLO/JANS, DSN Date: 2018.06.06 15:17:56 -04'00'

Date Chief of the Contracting Office (COCO) Signature

25 Jun 2018

AFLCMC/WNK, DSN Date: 2018.06.25 11 :41 :36 -04'00'

March 2018 FOR OFFICIAL USE ONLY Page 1 of 6

APPROVAL (AFFARS 5306.304 (a) l

Date Competition Advocate Signature

Digitally signed by 03 Jul 2018

AFLCMC/PK, Date: 2018.07.03 10:59:39 -04'00'

March 2018 FOR OFFICIAL USE ONLY Page 2 of 6

I. Contracting Activity.

AFLCMC/WNMK, 813 Irving-Wick Dr W, Heath, OH 43056-1199

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

This J&A is for a new sole-source firm-fixed price commercial contract. The proposed contractor will be TestVonics Incorporated. Based on Market Research, the Original Equipment Manufacturer (OEM), TestVonics is the only manufacturer that can supply this upgrade. The object of this upgrade is to update the 87 Air Force ADC-2500 Air Data Calibrators in use at Precision Measurement Equipment Labs (PMELs) around the world. The units are over 8 years old and are critical to support the Air Force mission. This upgrade is to replace aging components no longer supported by the OEM and update the operating software. This item is used to calibrate air speed and altitude for all aircraft. This upgrade will include procuring the necessary components as well as installation onto the existing units. This upgrade will also include a new 5 year warranty. The new warranty is justified due to the criticality of this standard in supporting basic aircraft instrumentation and our history with this contractor demonstrates that the quality of the warranty support is excellent. The risk should be minimal as TestVonics produces these units routinely at their facility. Aircraft can be grounded because Air Data Test Sets are unavailable to the Aircraft Maintenance Crews.

As TestVonics does not authorize other contractors to support this equipment and does not share the detailed data required to do so, there would be a substantial duplication of costs to the Air Force that is not expected to be recovered through competition were the Air Force to pursue a competitive acquisition. 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 upgrade will make the Air Force ADC-2500 Air Data Calibrators identical to the new ones currently being sold by the vendor. The upgrade will also add an oil-free vacuum pump, a 5 year ML warranty, and a software update. The software update will add compatibility with additional Air Force Air Data Test Sets and yield significant productivity increases over the life of the system. The upgrade will add 10 years to the service life of the system. The removal, transportation, and recycling of the old equipment is the responsibility of the contractor.

This approval is expected to cover requirements spread out over the next 4 fiscal years (FYl 8 - FY21) and will be funded by 3080 appropriations.

Year Units Unit Cost Yearly Total

FY18 40

FY19 32

FY20 11

FY21 4

Total 87

The rationale for pursuing this as a sole source acquisition is that only the OEM can perform the required upgrade. The only feasible action that could be taken to facilitate competition in the out-years would be to replace the current system with a new Air Data Calibrator and this would result in substantial duplication of cost to the government that is not expected to be recovered through competition. The entire rationale is detailed in Sections V and VI below.

IV. Statutory authority permitting other than full and open competition.

1 O USC 2304(c}(l ), as implemented by Federal Acquisition Regulation (FAR) Part 6.302-1 (a)(l) Only One Responsible

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Source and No Other Supplies or Services Will Satisfy Agency Requirements, and 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) .

Only One Responsible Source FAR 6.302-1 - This acquisition is to procure replacements for outdated system components, update the system control software and extend the working life of the system for 1 O years. The control system contains proprietary software and proprietary hardware interfaces. Only the OEM has the proprietary data required to accomplish full system integration, functionality, control, and communication.

The TestVonics ADC-2500 Air Data Calibrator is used by Air Force PMELs to cal ibrate thousands of Air Data Test Sets which in turn are used by Air Force Maintenance Crews to perform flight-line calibrations of Aircraft Avionics Systems.

These Avionics Systems supply aircraft displays for altitude and airspeed. This applies to literally all Air Force aircraft (F-15, F-16, C-17, C-130 ... etc). The ADC-2500 Air Data Calibrator was obtained from TestVonics over 8 years ago as the result of a competitive procurement process. Over the last 8 years the Air Force and TestVonics have developed software that automates most of the thousands of PMEL Air Data Test Set calibrations.

Award to any other source would result in substantial duplication of cost to the government that is not expected to be recovered through competition. This upgrade will preserve and expand the currently used automated calibration programs and procedures while procurement of a new system would require development of a new set of programs and procedures. This is critical insofar as this is a large and critical PMEL workload . The total estimated price for the upgrade is per unit times 87 units for a total of . Based on market research, the estimated cost of these systems is per unit or a total of to replace 87 systems. The Air Force technical team determined that the proposed system upgrade would save and provide superior capability to the full replacement option.

Accordingly, TestVonics is the only firm capable of providing the supplies and services described in Section Ill above without the Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition . Therefore, this acquisition is for continued performance of highly specialized equipment.

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

Three equipment manufacturers were contacted and confirmed that they could supply systems capable of meeting Air Force requirements. Mensor and Fluke responded with proposals to supply new Air Data Calibrators at a cost of about each . TestVonics (the OEM) proposed a system upgrade. They were contacted and provided a cost estimate of each. Due to the proprietary nature of the contro l software and the hardware interfaces, only they can accomplish the required upgrade of this system. TestVonics offers an upgrade to the ADC-2500 Air Data Calibrator that meets all USAF requirements which are specified in Sections II and Ill of this J&A. To further reinforce this conclusion an RFI was conducted in February 2018 to solicit input on an upgrade of the current Air Data Calibrator. There were two responses to the RFI; however, as described in Section VIII, only TestVonics can perform the upgrade.

As required by FAR 5.2, it is anticipated the proposed contract action will be synopsized on FBO in June 2018.

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

A cost analysis will be performed to determine if the proposed amount is fair and reasonable. Price analysis will be used to verify the overall price offered is fair and reasonab le upon completion of technical evaluation.

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 TestVonics, the original system vendor and other vendors capable of supplying new systems. Based on the results of this initial market research (conducted in 2017) the Air Force Technical Team determined that a system upgrade provides the best value to the government and no other vendor besides TestVonics was found to be able to perform

March 2018 FOR OFFICIAL USE ONLY Page 4 of 6 the upgrade as described in this Justification and Approval. The Air Force technical team determined that the proposed system upgrade would save and provide superior capability to the full replacement option . To further reinforce this conclusion an RFI was conducted in February 2018 to solicit input on an upgrade of the current Air Data Calibrator. There were two responses to the RFI. TestVonics reaffirmed their willingness to perform the requested upgrade. responded with a proposal to replace the current Air Data Calibrator with new units at a price which is substantially higher than the cost to upgrade the units (approximately per unit upgrade) and also higher than the price estimates for new units obtained in the earlier phase of market research Since the RFI specified a system upgrade the proposal was not actually responsive. Because of the proprietary issues and the fact that the manufacturer is unwilling to provide the required data to vendors, this procurement is a sole source to TestVonics.

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

Full and Open Competition could be used to procure new Air Data Calibrators. As discussed in Section V above the benefits of preserving the current ca libration infrastructure (calibration standards, procedures, training and software) dictates that performing an upgrade provides the best value to the government.

The upgrade to the ADCS-2500 by TestVonics will be able to satisfy customer requirements based upon the market research performed and the engineer's knowledge of the items to be procured . The component items are off the shelf so delays in delivery are not expected . There is no expectation that administration of this contract will be difficult.

X. List of any sources that expressed, in writing, an 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.

TestVonics is the manufacturer of the original systems and this procurement is for the upgrade of 87 systems. It also involves proprietary software which the manufacturer is unwilling to release to another company. For this requirement there is no other action that can be accomplished to generate competition without a substantial duplication of costs.

At this time there is no technological advance that offers significant incentive to replace the Air Data Calibrators with new systems. Future procurements of these systems will include sufficient data rights to permit open competition for repair, component replacement and software development.

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.

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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.

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