FA811725D0026_Redacted JA.pdf

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

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I. Agency and Contracting Activity.

United States Air Force

AFSC/PZA

3001 Staff Drive Tinker AFB, OK 73145 PR Number: FD2030-25-00278

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

This is a follow-on acquisition for a non-commercial, sole source, firm-fixed price requirements-type contract. The contemplated award is for the repair of the Stability Augmentation Control Assembly on the T-38 Aircraft for the US Air Force. A Class Justification and Approval (J&A) is appropriate based on the expectation that there will be multiple delivery orders generated from the basic contract. Because the delivery orders will be authorized by the basic contract, the orders will be for in-scope work. The contemplated contract is for a repair service from Pacific Electronic Enterprises (CAGE) code 32324.

This acquisition is a non-commercial effort. This is not a bridge action. A 1-year basic contract with nine 1-year options is appropriate for this acquisition. The estimated total value of this award is with an estimated award date of September 2025.

Previous Contract Number: FA8117-20-D-0032 Contractor Name: PACIFIC ELECTRONIC ENTERPRISES INC.

Award Date: 14 Sep 2020 Completion Date: 13 Sep 2025 Basis of Award: Sole Source Total Award Amount: $246,000.00

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

This acquisition is for repair services for the sustainment of the Control Assembly installed on T038 Weapon System platform used by the Air Force. National Stock Numbers (NSN) is 6615-00-754-4916 Contract Summary Year Estimated Period of Performance Estimated Dollars Basic 14 Sep 25 - 13 Sep 26 Option 1 14 Sep 26 - 13 Sep 27 Option 2 14 Sep 27 - 13 Sep 28 Option 3 14 Sep 28 - 13 Sep 29 Option 4 14 Sep 29 - 13 Sep 30 Option 5 14 Sep 30 - 13 Sep 31 Option 6 14 Sep 31 - 13 Sep 32 Option 7 14 Sep 32 - 13 Sep 33 Option 8 14 Sep 33 - 13 Sep 34 Option 9 14 Sep 34 - 13 Sep 35 Over & Above (O&A) 14 Sep 25 - 13 Sep 35 O&A (Expedite Fee) 14 Sep 25 - 13 Sep 35

Dollar Values estimated using previous historical data with a 5% inflation rate for option years.

Purchase Request (PR) Line Item (L/I) 0001: Repair

Repair of NSN: 6615-00-754-4916 P/N: 2-73900-13 Noun: Stability Augmentation Control Assembly Application: T-38 Type of Appropriation: 97X4930

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Total Estimated Dollars: $

PR L/I 0002: No Fault Found (NFF)

Repair of NSN: 6615-00-754-4916

PN: 2-73900-13

Noun: Stability Augmentation Control Assembly Application: T-38

Type of Appropriation: 97X4930 Total Estimated Dollars: NFF costs are less than the cost of repair. They are applied through de-obligated funds from the cost of repair, thereby reducing the dollar value of the contract. Cost estimation is unnecessary.

Total Estimated Dollars: $0.00

PR L/I 0003: Beyond Economic Repair

Repair of NSN: 6615-00-754-4916

PN: 2-73900-13

Noun: Stability Augmentation Control Assembly Application: T-38

Type of Appropriation: 97X4930

Total Estimated Dollars: BER costs are less than the cost of repair. They are applied through de-obligated funds from the cost of repair, thereby reducing the dollar value of the contract. Cost estimation is unnecessary.

Total Estimated Dollars: $0.00

PR L/I 0004: Over and Above (O&A)

Repair of NSN: 6615-00-754-4916

PN: 2-73900-13

Noun: Stability Augmentation Control Assembly Application: T-38

Type of Appropriation: 97X4930 Total Estimated Dollars: Is negotiated on an as needed basis. Over and above is estimated at 5% of total estimated repair dollars based on historical requirement.

Total Estimated Dollars:

PR L/I 0005: O&A (SURGE Expedite Fee)

This item is negotiated on an as needed basis for surging/expediting delivery forward. The O&A Expedite Fee is estimated at 5% of the total estimated repair dollars.

Type of Appropriation: 97X4930 Total Estimated Dollars:

PR L/I 0006: DATA

Not Separately Priced

Data IAW DD 1423 CDRL Commercial Asset Visibility-Air Force (CAV-AF) Reporting

Total PR Estimated Dollars:

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IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above.

The instant acquisition is for repair of the Stability Augmentation Control Assembly for the T-38 aircraft used by the US Air Force. Award will be a follow-on action to FA811720D0032, which was awarded to the Pacific Electronic Enterprises Inc. This contract expires on 13 September 2025, and a follow-on contract is required to support the DoD for the repair of the Control Assembly. Therefore this acquisition will be a follow-on for the continued performance of this service with Pacific Electronic Enterprises Inc.

Pacific Electronic Enterprises Inc. is the only known source that can ufficiently meet the Government's needs. Pacific Electronic Enterprises Inc. possesses unique data, capabilities, test equipment, acceptance test procedures, theory of operation/architecture, assembly/disassembly procedures, material provisioning and selection criteria, along with fault diagnostics, shop practices, replacement parts, and personnel specially trained for the repair of the Stability Augmentation Control Assembly. Currently, the Government possesses only the form, fit function, and interface requirements. The Original Equipment Manufacturer Teledyne Controls LLC., was contacted on 8 Nov 24, and asked if unlimited repair data could be transferred to the USAF in order to stand up organic repair capability. Teledyne Controls LLC., has not yet answered about transfer of their proprietary data.

The 422 SCMS has determined that award to any other source than Pacific Electronic Enterprises Inc., would result in unacceptable delays in fulfilling Air Force requirements. Delays in repair will have the

Currently the Government has A delay in this acquisition will generate more backorders as potential Mission Incapable Awaiting Parts (MICAP).

A gap in contract coverage will increase backorders/MICAPs at a

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

This requirement will be synopsized in http://www.sam.gov as a notice of proposed contract action IAW FAR 5.201. A Sources Sought Synopsis (SSS), reference number FA8117-24-SS-0018, was posted on 1 Aug 2024 in support of market research to identify potential repair sources. The SSS closed on 31 Aug 2024 with no responses.

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 Other Than Certified Cost or Pricing Data.

a detailed price analysis will be performed.

VII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

As described in Section V above and IAW FAR Part 10, market research was conducted by Sources Sought Synopsis posted 1Aug 2024. Additionally, a multi-functional team consisting of the Logistics Manager, Engineer, Contracting Officer, and Production Management Specialist conducted further research by reviewing Parts Manufacturer Approval (PMA), Haystack, web searches, and was completed 31 Aug 2024. Market research did not identify another commercial process available to meet this requirement. Finally, no additional sources have been located and market research has revealed that this sole-source condition has existed since at least 1977. Pacific Electronic Enterprises Inc., was found to be the only source available to fulfill the requirement.

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

The Government realizes that it has unlimited rights to form, fit and function data. However, such rights are insufficient to establish organic repair capability or develop repair sources within industry. Access to repair data is necessary to accomplish the tasks for this acquisition. Efforts by the Government to acquire data from the OEM have been unsuccessful. The most

August 2023 Page 5 of 5August 2023 Page 5 of 5 recent attempt by the Government to acquire the data or rights to the data occurred 8 November 2024 with a follow-up call and email on 12 November 2024. As of 18 November 2024 no response was received from Teledyne Controls LLC.

IX. List of any sources that expressed, in writing, an interest in the acquisition.

Pacific Electronic Enterprises Inc. CAGE: 32324 108 Allen St.

Talledega, Al. 35160

(714) 554-8032

X. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

As a result of continued refusal by the sole source contractor to provide or license data as well as unacceptable delay of developing additional sources per Sections IV and X, there are no known additional actions which can be taken to remove barriers to competition and therefore, specific actions and milestones cannot be established.

Per PGI 206.304(a)(S-70)- As indicated by signature on the Coordination and Approval Document, the previous J&A has been reviewed and the Approval Authority determines that all stated actions to remove barriers to competition have been accomplished.

XI. Certification by the Contracting Officer.

As evidenced by my signature above, I certify that this justification is accurate and complete to the best of my knowledge and belief.

XII. 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.