FA2487-16-R-0299_JA_23_Mar_16_Redacted_legal.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.

Contracting Activity: AFTC/PZIE

Purchase Request / Local ID Number: FA2487-16-R-0299

Program / Project (and PE, if applicable): Infrared Scene Projectors

Program Type (PEO or Other Contracting): Other Contracting (AFFARS Part 5302.101)

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): J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date Contracting Officer

William K. Hunter

AFTC/PZIE / DSN 872-0181

I. Contracting Activity.

AFTC/ PZIE, Air Force Test Center, Air Force Material Command (AFMC), 205 West D Avenue, Bldg. 350, Ste 414, Eglin AFB, FL, 32542-6864 is the contracting activity responsible for this proposed justification for other than full and open competition action. Purchase Request Number is TBD.

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

This requirement will be accomplished by a new cost-plus-fixed-fee contract with Santa Barbara Infrared, Incorporated (herein referred to as “SBIR”). Contract award is anticipated in the fourth quarter of FY16 and will be funded with Research Development Test & Evaluation (RDT&E) (3600) funding. SBIR is the only responsible source and no other supplies or services will satisfy the requirement.

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

The Air Force Material Command (AFMC), Air Force Test Center (AFTC), 96th Test Wing (96th TW), Guided Weapons Evaluation Facility (GWEF), & the Air Force Research Lab (AFRL), requires support to procure four (4) Resistor Array Infrared Scene Projectors (IRSP), model number 310-002-944, and two options for one (1) additional packaged and operational IRSP each.

The Contractor shall manufacture and deliver the IRSP systems for use in a hardware-in-the-loop (HITL) simulator.

The IRSPs must be compatible with existing HITL infrastructure at the GWEF. The production run shall be appropriately sized to give high probability that all delivered IRSPs meet the technical specifications. Residual IRSP components (e.g. resistor arrays and RIICs) from the production and not included in the delivered system shall become property of the United States Air Force.

The GWEF conducts test and evaluation of guided munitions and infrared countermeasure systems using a wide range of HITL technologies including state-of-the-art IRSPs. The GWEF uses IRSPs throughout the facility to support various test programs. In the simulator, the IRSP projects realistic IR imagery to the unit under test during simulated flight engagements. The IRSPs are optimized to operate at room temperature and are liquid cooled. The existing IRSPs are Honeywell-legacy units based on resistor array technology and are mounted on flight motion simulator (FMS) tables.

The acquisition of the IRSPs will provide the GWEF with key components to both establish a 4th infrared countermeasure (IRCM) test area and provide critical spares for the three (3) existing IRCM Test Areas.

The value of this action, including all options, is estimated to be . The base order is valued at with two options valued at each. Delivery is required 24 months after receipt of order

(ARO).

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

10 USC 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(ii). Only 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 GWEF mission is HITL test and evaluation (T&E) of tactical guided munitions and IRCM systems.

The HITL capability uses highly specialized equipment including high-performance IRSP. The GWEF currently has three test areas dedicated to IRCM customer test support and one test area dedicated to support and development of IRCM test technology. The IRSPs are being procured as spares to existing test areas and to provide support for a fourth IRCM customer test area that is being developed as a capacity expansion due to rapid and sustained growth of IRCM test requirements. It is imperative that all IRCM test areas have a high level of hardware and software commonality to ensure consistent results between test areas, to achieve an acceptable level of integration risk, and to minimize operations and maintenance costs.

COMMONALITY. The GWEF has five (5) operational infrared scene projectors (IRSP) for use in IRCM customer test areas. For long term cost and maintenance reasons explained below, the GWEF was standardized to a common IRSP. Maintaining this commonality can only be achieved by procuring IRSPs from SBIR.

COMPATIBILITY. The GWEF currently employs Honeywell resistor array IRSPs in its IRCM test areas. These IRSPs are the only IRSPs that meet dynamic range, apparent temperature, temporal stability, spatial uniformity, resolution, and refresh rate technical requirements. The GWEF does not possess back-up IRSPs and a catastrophic loss would render the facility incapable of fulfilling its test obligations. SBIR is the only contractor that manufactures compatible resistor array IRSPs due to owning patents for emitter ray technologies. .

INTELLECTUAL PROPERTY (IP). Honeywell invented and proved the process required for emitter array technology and held the exclusive US patents (5,600,148 2/4/1997; 5,973,383 10/26/1999; 6,046,485 4/4/2000; 5,895,233 4/20/1999; 6,036,872 3/14/2000; 6,210,494 4/3/2001) and all previous purchases were sole-sourced to Honeywell. Honeywell sold the exclusive license of this technology for emitter array applications to SBIR in June 2001, who is currently the only vendor of this specific technology. SBIR owns the patents for this technology and competitors would need to purchase the technology from SBIR for the Government to avoid incurring substantial duplication of costs; however, SBIR is unwilling to sell the technology at this time.

INTEGRATION COST. The SBIR IRSP is the only IRSP that can integrate into the existing test configuration without redesign and procurement of custom optical components and computers, or development of auxiliary software and real-time communication interfaces. Awarding this contract to another manufacturer would create deficiencies with the existing calibration software and hardware, and optical configuration resulting in additional costs that could degrade test capability and would require an integration cost estimated at .

• Labor to redesign configuration interface is estimated at .

• Procurement of interface components is estimated at .

Computer Interface Cards ~

Optical Components ~

Breadboards ~

Misc ~

• Labor to build, test and verify new calibration software, different optical components and new control system to work with the existing IRCM test area system configuration is estimated

• Training on new IRSP for engineers, analysts, and technicians:

RECURRING COST. Based on past experience, a recurring expense of will be incurred to support a new type of IRSP. This cost is broken down as:

• Dedicated technical support ;

• Maintenance of a separate simulation software code base ; and

• Recurring verification/validation .

The GWEF currently has nine (9) technicians trained on the IRSP who spend about one-third man-year per year maintaining and calibrating the IRSP. A non-SBIR IRSP would require additional training (both initial and recurring to maintain proficiency) and efficiency would be significantly less since only one of these incompatible systems would be maintained.

The tight integration of the IRSP with the simulation software will necessitate a separate simulation software code base be maintained for any new IRSPs. Given the regular updates to the simulation environment, the Government estimates this to take approximately one-third man-year per year for a software engineer.

As these software updates are made, periodic verification and validation of the new software will have to be performed in an active test area with a full test team.

OPPORTUNITY COST. Selection of any other vendor will result in a loss of between in reimbursable test income for the GWEF, caused by the delay in completion of the test area by the required for integration of the new IRSP. This estimate is based on the typical IRCM test area income of . This lost opportunity cost directly affects major acquisition programs.

The additional test area is being established to address significant capacity issues that are directly impacting ACAT I programs.

SCHEDULE RISK. Selection of SBIR is the only option to avoid unacceptable schedule risk in bringing the new test area online to support high-priority ACAT 1 IRCM development and fielding programs. The GWEF supports numerous high-priority IRCM test programs with a growing demand that currently exceeds capacity. Within the last two years, the competition for GWEF test resources has resulted in two instances of ACAT 1 programs being “bumped” from test areas by higher priority programs, with several lesser priority test programs denied entry altogether. Selection of any other vendor would would increase the costs as outlined previously and directly impact the schedules of supported IRCM programs.

SUMMARY. Accordingly, SBIR is the only firm 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.

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

The GWEF has subject matter experts (SMEs) in test technology who work closely with similar facilities, organizations, and investment programs throughout the Department of Defense in developing the technology required for HITL simulation. The SMEs keep abreast of technology and vendors in this field using trade journals, web research, inquiries, technical symposiums, and working groups.

In order to satisfy our IRSP requirements, three potential sources were evaluated: Kent Optronics, Optra, and SBIR. The sources were discovered through professional contacts in the infrared scene projection community and through active participation in the Small Business Innovation Research and Small Business Technology Transfer programs. The DoD services have Small Business Innovative Research programs that aim to develop IRSP technology for future test and evaluation requirements which GWEF personnel are following closely.

This does not meet the GWEF requirements for flicker-free image output.

Other developmental technologies, including were considered but rejected due to low technology readiness levels.

SBIR IRSPs have the ability to produce IR imagery with a format of 512 by 512 pixels, to support required minimum frame update rates, to project flicker-less imagery, and to interface with existing FMS and calibration software and hardware. They are the only vendor that produces an IRSP that can meet the requirements for compatibility with existing software and optical components.

Finally, the Government issued a Sources Sought notice on the Federal Business Opportunities website.

The notice ran a minimum of 15 days in accordance with FAR 5.203(a) from 2-17 June 2015. One capability package was received and it was from SBIR. No other sources requested further information or submitted documentation as requested in the notice.

The Government will continue to monitor the industry through perusal of trade journals, technical symposiums and contact with industry representatives. Any future requirements will be researched and if a product meeting the requirements is identified then a competitive acquisition for the requirement will be considered.

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

The Contracting Officer will ensure the final price will be fair and reasonable. Cost analysis will be performed in accordance with the FAR. The Government will use a traditional pricing approach to determine fairness and reasonableness using the following means: (1) cost analysis IAW FAR 15.404-1(c); thorough technical evaluation;

and 3) utilization of weighted guidelines to determine profit. At the conclusion of negotiations, the contractor will be required to provide certified cost and pricing data in accordance with FAR 15.403-3.

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 synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.

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

No other facts.

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 office will continue to monitor the industry through perusal of trade journals, technical symposiums and contact with industry representatives. Any future requirements will be researched and if a product meeting the requirements is identified then a competitive acquisition for the requirement will be considered.

XII. Certification by the Contracting Officer.

As evidenced by his/her signature, the contracting officer has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

XIII. 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.