JA_redacted2.pdf

Data IAW DD 1423 CDRL CAV-AF Reporting

The Contract Line Item Number (CLIN) structure for this requirement will not include separately priced CLINs for Intellectual Property (IP) or IP rights. The preceding IP strategy is consistent with the Acquisition Strategy as approved by the appropriate authority.

The total estimated value for this requirement is based on the Independent Government Estimate (IGE). The IGE was developed using historical prices paid on contract FA8117-20-D-0034. The IGE also applied a 5% increase to account for inflation.

This J&A covers all contract actions including options, task orders and delivery orders for all CLINs detailed in the CLIN table above.

The development of an additional source to repair this item is not feasible within allowable mission requirement timeframes as it would take a minimum of three years to fully develop a technical data package. Delays in repair sustainment have the potential of disrupting the availability of UH-1 aircraft, IV. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES

THE USE OF THE AUTHORITY CITED ABOVE (APPLICABILITY OF

AUTHORITY)

The UH-1 Electronic Amplifier is a complex and critical Line Replaceable Unit (LRU) applicable to the UH-1 Weapon System. Due to the complexity and criticality of the Electronic Amplifier, Firstmark Aerospace is the only vendor that possesses the required technical data, drawing packages, and acceptance test criteria needed to meet Air Force requirements in terms of schedule needs and the potential for excess capacity to meet critical changes in mission operational tempo.

Therefore, this acquisition will be a follow-on contract for the continued performance of a highly specialized service.

Firstmark Aerospace is the Original Equipment Manufacturer (OEM) and is the contractor on the current effort, FA8117-20-D-0034. Additionally, Firstmark Aerospace is the only known source that has the data, parts, expertise, tools, facilities, and test equipment necessary to sufficiently meet the Government’s sustainment needs. The Government does not have in its possession sufficient, accurate, or legible data to contract repair with other than current source, Firstmark Aerospace Corporation (Cage 3BMX1) which has existing unique repair capabilities, engineering skills, manufacturing knowledges, and test data to repair the item. The CRSAW identifies the current Repair Method Suffix Code (RMSC), which indicates the data rights/completeness for future repairs/acquisitions. The Government attempted to acquire the necessary data rights during the period of performance of the previous effort with no success. In fact, the

Government has asked, on multiple occasions, Firstmark Aerospace to sell or license its data for many drawings. The data and data rights situation has still not improved.

The 422 SCMS believes that award to any other source would result in unacceptable delays in fulfilling the Air Force’s requirement. The development of an additional source to repair this item is not feasible within allowable mission requirement timeframes as it would take a minimum of three years to fully develop a technical data package. Delays in repair sustainment have the potential of disrupting the availability of UH-1 aircraft, Additionally, the Government will experience unacceptable delays.

The previous and current contract did not include any intellectual property (IP) clauses or the Deferred Ordering Clause, DFARS 252.227-7027. Additionally, the Government did not acquire any IP rights in the previous or current contract. The rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. With Firstmark Aerospace retaining all data rights and completeness of its data, it is the only valid source that can meet the requirements.

To date, the Government has not initiated any pre-challenges information requests or formal challenges to the assertions of development of IP at the OEM’s private expense. An economic analysis was conducted to evaluate the possibility of reverse engineering this item to build a competitive technical data package (TDP). This analysis was conducted utilizing guidance found in MIL-HDBK-115. The analysis considered elements including engineering and program management efforts, prototype manufacturing, qualification testing, calculated future repair quantities, and discounts to the unit cost through competitive acquisition. Considering these elements, the results of this analysis showed the payback period for this effort was in excess of the remaining UH-1 service life. Accordingly, the costs associated with developing a competitive TDP are not expected to be recovered through competition and reverse engineering efforts should not be considered.

Accordingly, Firstmark Aerospace is the only firm capable of providing the highly specialized services described in Section III without the Government experiencing unacceptable delays in fulfilling its requirements.

V. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE INCLUDING WHETHER A NOTICE WAS OR WILL BE

PUBLICIZED AS REQUIRED BY SUBPART 5.2 AND, IF NOT, WHICH

EXCEPTION UNDER FAR 5.202 APPLIES

Sources Sought Synopsis (SSS) FA8117-22-SS-0030 was posted to www.betasam.gov on August 30, 2022 and closed on September 30, 2022. One response was received from Artemis Electronics, LLC. A SAR package submitted by Artemis Electronics reveals that the company does not possess required repair manual and special test equipment and OEM agreement/license needed for repairing the subject Electronic Amplifier.

This requirement will be synopsized in SAM.gov as a notice of proposed contract action in accordance with (IAW) FAR 5.201 on 31 March 2023.

VI. 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 as supplemented, the contractor will be required to submit Certified Cost or Pricing Data and/or Other Than Certified Cost or Pricing Data. A detailed cost analysis and price analysis will be performed. The Contracting Officer will request a technical evaluation from the Defense Contract Management Agency (DCMA) to aid in the evaluation of the contractor’s proposal. The Contracting Officer will seek audit assistance from the Defense Contract Audit Agency (DCAA) if necessary.

VII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH

WAS NOT CONDUCTED

In accordance with FAR10.001 (a)(2), market research was conducted and there is no other potential repair source identified. Regardless of the type of contract used, the following is required: Government Source Inspection (GSI), Configuration Control (Class I and Class II Change approval), and in-plant DCMA contract administration. 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. Due to the complexity and criticality of the item, only pre-approved sources meet USAF requirements.

The Government does not own the necessary data for this requirement. USAF requirements have been reviewed and are unable to be modified. A review of Parts Manufacturer Approvals (PMA), HAYSTACK, and a web search conducted on 15 Dec 22 did not reveal any additional sources of repair. Therefore, Firstmark Aerospace Corporation, Cage: 3BMV1 is the only approved repair source.

VIII. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL

AND OPEN COMPETITION

No Further information.

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

ACQUISITION

Firstmark Aerospace, Corp. CAGE: 3BMV1 1176 Telecom Drive Creedmoor, NC 27522-8294 Phone Number: 919-956-4390

Artemis Electronics, LLC. CAGE: 41JV4

13400 W HWY 42

STE 180

Prospect, KY 40059-9264 Phone Number: 502-526-5884 See Section V for more detail.

X. 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

The 422 SCMS/GUEA engineering group will continue to monitor the marketplace for potential source development. The Government will continue to synopsize the requirement and rescreen the item for changes in data and source availability. As a result of continued refusal by the sole source contractor to provide or license data as well as the unacceptable delay of developing additional sources per Sections V and IX, there are no known additional actions which can be taken to remove barriers to competition and therefore, specific actions and milestones cannot be established.

XI. CERTIFICATION BY THE CONTRACTING OFFICER

I. As evidenced by their signature, the contracting officer certifies that this justification is accurate and complete to the best of their knowledge and belief.

XII. 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.