J_and_A__FD2030-19-00009_FINAL_Redacted_1_Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. Contracting Activity

United States Air Force

AFSC/PZA

3001 Staff Drive Tinker AFB, OK 73145

Purchase Request (PR): FD2030-19-00009

II. Nature and/or Description of the Action Being Processed

This individual Justification and Approval (J&A) authorizes the use of “Other Than Full and Open Competition” procedures to obtain a new cost type contract (cost plus fixed fee and cost reimbursable line items). Under the contemplated contract, Northrop Grumman Technical Services (Cage code 78JW8 will perform engineering services to design, prototype, test, and qualify a replacement Crystal Oscillator (CO) used on B-2 Airborne Time Transfer Unit (ATTU). This is a non-commercial acquisition. This activity will acquire a new engineering effort to fully qualify replacement CO; there is no previous contract or engineering effort for this requirement. This acquisition is not a Bridge Action as defined in AF Bridge Action Reduction Plan. The period of performance is a three year base with no options. The estimated value of this award is $ with an estimated award date of Sep 2019.

Previous Contract Number: None Estimated Period of Performance: Sept 2019 – Sept 2022

III. Description of the Supplies/Services Required to Meet the Agency’s Needs

The anticipated contract is for a non-commercial Cost-Plus-Fixed-Fee (CPFF) performance based service that is to be procured on a sole source basis from Northrop Grumman Technical Service, Inc. Under the contemplated contract, Northrop Grumman Technical Services will perform engineering services to design, prototype, test, and qualify a replacement Crystal Oscillator (P/N: AA0744-001, NSN: 5955-01-356-4341 or P/N AA0744-003, NSN 5955-01-462-1223) used on B-2 Airborne Time Transfer Unit (ATTU) for the 848th Supply Chain Management Group (SCMG). This acquisition will actively prevent Mission Impaired Capability Awaiting Parts (MICAP) on the B-2 ATTU in the next three years by solving the Diminishing Manufacturing Sources and Material Shortages (DMSMS) problems for the original CO. Northrop Grumman Technical Services (NGTS) shall be responsible for the CO prototype development including prototype analysis/feasibility study, prototype design and fabrication, and NGTS shall also be responsible for qualification testing necessary to fully qualify a form-fit-functional CO replacement. The CO replacement qualification effort will be more than one year because of the complexity nature of the Hardness Critical Item (HCI) requirements, functional requirements, and system integration requirements that the CO replacement must meet.

The milestones/delivery requirements are addressed in the Performance Work Statement

(PWS).

Contract Summary

Estimated Dollars Estimated Period of Performance PR Line Item Quantity Unit Price

0001 Labor 36 Months $ $ Sep 2019 – Sep 2022

0002 Material 1 Lot $ Sep 2019 – Sep 2022 0003 Data 1 Lot $0.00**(NSP) $ ) Sep 2019 – Sep 2022 0004 Travel 1 Lot $ $ Sep 2019 – Sep 2022

Estimated Total Contract Value

$ Sep 2019 – Sep 2022

* Fixed Fee included – Dollars are rounded ** Not separately priced (NSP)

PR line item 0001 Engineering Labor/Services (Cost Plus Fixed Fee) Line item description: Prototype design analysis/feasibility study, engineering support, testing, and data requirement.

Fixed Fee is included in the estimated cost of this line item.

Total estimated dollars for PR line Item 0001: $ Type of appropriation: 97X4930

PR line item 0002 Material (Cost Reimbursable – No Fee) Line item description: Prototype fabrication Total estimated dollars for PR line item 0002: $ Type of appropriation: 97X4930

PR line item 0003 Data (Not Separately Priced) Line item description: Technical Data Total estimated dollars for PR line item 0003: Not Separately Priced Data IAW DD 1423 CDRLs Type of appropriation: 97X4930

PR line item 0004 Travel (Cost Reimbursable – No Fee) Total estimated dollars for PR line item 0003: $ Type of appropriation: 97X4930

Estimated Total PR Dollars: $

IV. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c) (1), as implemented by FAR 6.302-1(a) (2) (iii).

V. Demonstration of the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above to Provide the Required Supply/Service (Applicability of Authority)

The AA0744-001 and AA0744-003 Crystal Oscillators (CO) are custom manufactured to provide a high-stability, low-aging rate 4.9152 MHz signal used by the Airborne Time Transfer Unit (ATTU). The ATTU, part of the Astro-Inertial Navigation System in the B- 2 bomber, is an extremely accurate timekeeper designed to provide portable time reference from the Base Time Standard to aircraft, and it also provides very accurate time needed for star tracking purpose, especially during combat when GPS is unavailable or in a nuclear event. It is designed specifically for the B-2 aircraft and possesses a tolerance to nuclear environments. Since this is a new requirement, there is no previous contract.

Northrop Grumman, the original design activity, is the only known contractor that has the Hardness Critical Item (HCI) data, system integration information and requirements, and expertise necessary to develop, test, evaluate, and qualify a CO replacement to satisfy the Air Force’s requirement. The technical data necessary to foster competition for this effort is not available to the Government presently, and it is not possible to draft adequate specifications for this work without such data. Although the Government realizes that it has unlimited usage rights to form, fit and function data (including source qualification data) as well as data related to operation, maintenance, installation, and training, such rights are insufficient for purposes of meeting the Government’s needs.

The 422 SCMS/GUEA believes that award to any other source would result in unacceptable delays in fulfilling the Air Force’s requirement. Government efforts to purchase the data use rights have been unsuccessful. On 13 Nov 2013, Engineering sent Northrop Grumman an email requesting the current status of the sale/licensing of proprietary data to the Government. Northrop Grumman responded on 20 Nov 2013 that they were unwilling to sell technical data license rights to the Government. The contractor was contacted again on 13 May 2016. Northrop Grumman was unable to develop the ROM due to lack of response or bids from OEM partners, with whom Northrop Grumman has an intellectual property agreement with. Contractor declined to offer additional access, sell, or transfer ownership of Northrop Grumman proprietary data. Due to the lack of integration data and qualification requirements, the Government does not expect that another source could become qualified to develop and qualify a replacement Crystal Oscillator (CO) to support the repair of the end item, B-2 Airborne Time Transfer Unit (ATTU) in time to avoid unacceptable delays in meeting the Government’s requirement. It is estimated that it would take another contractor up to 7 years to support this requirement, in addition, it would also require that the contractor could also successfully obtain license/agreement with Northrop to use Northrop’s proprietary data. The Government presently doesn’t not possess HCI information and system integration information to evaluate the prototype package submitted by any contractor.

Accordingly, Northrop Grumman Corporation is the only firm capable of providing the services described in section III above without the U.S. Air Force experiencing unacceptable delays in fulfilling its requirements.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

This requirement will be synopsized in http://www.FedBizOpps.gov as a notice of proposed contact IAW FAR 5.201. The notice of proposed contract action is expected to be published approximately 17 June 2019.

A Sources Sought Synopsis (SSS), looking for the actual Crystal Oscillator (CO), was posted on FedBizOpps (www.fbo.gov) on 24 May 2018 with a response date of 22 June 2018 under solicitation number FA8117-18-SS-0013. The Government has not received any responses from the advertised SSS, and to date only Northrop Grumman Technical Services Inc. (Cage: 78JW8) offers support.

A Source Sought Synopsis, looking for CO replacement, as posted on FedBizOpps on 14 Mar 2019 with a response date of 29 March 2019 under Solicitation number FA8117-19- SS-0011, and Northrop Grumman System Corporation is the only source offering support solution to this requirement.

Government defined pre-award qualifications for new sources cannot be drafted due to the unavailability of the necessary technical data as described in section V. Northrop Grumman is the only entity capable of approving additional sources at this time.

OTHER ACTIONS: None QUALIFYING COUNTRY SOURCES: None

VII. Determination by the Contracting Officer That The Anticipated Cost to the Government Will Be Fair and Reasonable

The Contracting Officer will ensure that the items described herein are negotiated at a fair and reasonable price to the Government. IAW FAR 15.4, the contractor will be required to provide Certified Cost or Pricing Data and/or Other Than Certified Cost or Pricing Data to support the Government’s evaluation of the proposed cost. A detailed cost analysis and price analysis will be performed on the proposed skill mix of labor, labor hours, types and quantities of material and other direct and indirect rates, and will be negotiated by the Government based on recommendations from the . Defense Contract Management Agency (DCMA) and expert technical personnel supporting the program. The Contracting Officer http://www.fedbizopps.gov/ will seek audit assistance from the Defense Contract Audit Agency (DCAA) if necessary.

The contract price will be negotiated IAW procedures in FAR Part 15 ensuring the ultimate cost to the Government is fair and reasonable.

VIII. Description of Market Research Conducted and the Results, Or A Statement of the Reason Market Research Was Not Conducted

Pursuant to FAR Part 10, market research was accomplished for this effort. An extensive survey of the market (via the internet along with phone calls) started in May 2017 and concluded in April 2019. Modification of weapons systems to incorporate current or emerging technologies to alleviate this requirement is impractical due to supply requirements and costs associated with such endeavors.

Visits to websites such as http://freqelec.com/, http://www.boeing.com/defense/, http://www.markeresearch.com/, Parts Manufacturer Approvals (PMA), Haystack, etc.

were made. These sites were searched for availability of the Crystal Oscillator (CO), PN:

AA0744-001 or AA0744-003 but there was no CO or suitable replacement found. In addition, phone calls and emails were made to Frequency Electronics Inc., a Northrop Grumman’s approved source, and D&L Technical Sales, Frequency Electronics’ Sale Directory in United States, seeking for information as to whether the companies have part availability or whether they have the ability to generate engineering solution, but there was no response from the companies. This research revealed that there is no commercial equivalence for this CO that meet the requirements used in this military application. The market research results determined that Northrop Grumman is the only known source possessing the HCI data, sufficient technical data, and system integration information, etc.

that satisfy this requirement.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION

To the Government’s knowledge, Boeing, is the sole source repair source for the ATTU, and they attempted to develop a CO replacement in 2010; however, Boeing did not submit the qualification plan to 422 SCMS in 2010. In 2016, 422 SCMS received Boeing’s CO qualification plan, which indicated that Boeing performed just some lab tests on only one CO prototype for Boeing’s study/analysis. Boeing proposed qualification plan was not adequate for qualification since the CO replacement qualification requires Hardness Critical Item (HCI) test/evaluation, performance test, and system integration test. Boeing does not possess HCI information and system integration information, which owned by Northrop, necessary for CO replacement qualification. This obsolescence issue must be resolved to prevent future MICAPs against the ATTU and thereby degrading the Air Force’s combat capability.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE

ACQUISITION

Northrop Grumman Technical Services, Inc.

Point of Contact: Jason Johnson Contract Administrator 4601 S. Air Depot Blvd Oklahoma City, OK 73135 Cage code: 78JW8 Telephone: (405) 736-8304 Email: jason.johnson@ngc.com

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

On 17 May 16, Northrop Grumman provided a response to the Government's request for a rough order of magnitude (ROM) estimate to obtain proprietary data and information related to the engineering services for 848 SCMG managed items. In the response, Northrop Grumman stated that due to lack of response or bids from OEM partners, with whom Northrop Grumman has an intellectual property agreement with, Northrop Grumman was unable to develop the ROM, and declined to offer additional access, sell, or transfer ownership of Northrop Grumman proprietary data. Technical information and Revised Procurement Specifications of the B-2 ATTU Crystal Oscillator replacement delivery is a part of this contract and will become Government property and be added to the applicable Government technical orders/data repository. The data provided under this contract will be used to periodically screen the item in an effort to remove barriers to competition.

XII. Contracting Officer’s Certification

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

XIII. Technical/Requirements Personnel’s Certification

By their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified as accurate and complete all supporting data, which is their responsibility, contained herein IAW FAR 6.303-2(c).