FD20302201040 J and A_Redacted.pdf

FD2030-22-01040

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

United States Air Force (USAF)

AFSC/PZA

3001 Staff Drive Tinker AFB, OK 73145 Purchase Request (PR): FD2030-22-01040

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

A Class Justification and Approval (J&A) is appropriate based on the expectation that there will be multiple task/delivery orders generated from the basic contract. The task/delivery orders will be authorized by the basic contract and the orders will be for in-scope work. The goal is to obtain a new follow-on, firm-fixed price, requirements-type contract for repair of the B-1 Vertical Situational Display Unit (VSDU) and Fully Integrated Data Link (FIDL) from Rockwell Collins Inc., Commercial and Government Entity (CAGE) code 84TF1. Previous interim contract support was provided by Boeing who subcontracted to Rockwell Collins. In accordance with (IAW) Federal Acquisition Regulation (FAR) Part 16, a requirements-type contract with a one-year basic contract and four one-year options are considered to be appropriate for this acquisition. This repair service is non-commercial and is not a bridge action. The estimated total value of this award is with an estimated award date of 30 Dec 2023.

Previous Contract Number: FA8107-19-D-0001 Date of Award: 01 Jan 2020 Completed Date: 31 Mar 2024 Contractor: Boeing Company Basis of Award: Sole-Source

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET

AGENCY’S NEEDS (INCLUDING THE ESTIMATED VALUE)

Under the contemplated contract, Rockwell Collins, Inc will provide repair services for the sustainment of the following National Stock Numbers (NSN) and corresponding Part Numbers (PN).

Contract Summary Year Estimated Dollars Estimated Period of Performance Basic 0 30 Dec 23 - 29 Dec 24 Option 1 30 Dec 24 - 29 Dec 25 Option 2 30 Dec 25 - 29 Dec 26 Option 3 30 Dec 26 - 29 Dec 27

Option 4 30 Dec 27 - 29 Dec 28 O&A 30 Dec 23 - 29 Dec 28 Total Contract 30 Dec 23 - 29 Dec 28

PR Line Item 0001: Repair

Input NSN: 6610-01-591-4374 / Input PN: 822-3143-001 Output NSN: 6610-01-591-4374 / Output PN: 822-3143-001 Noun: VSDU Application: B-1 Item Description and Function: The VSDU is an eight-inch by six-inch color Primary Flight Information Multi-Functional Display that provides situational awareness information from the aircraft’s FIDL.

Repair

Year Estimated Quantity Unit Price

Estimated Dollars

Estimated Period of Performance

Basic 12 each 0 30 Dec 23 - 29 Dec 24 Option 1 12 each 30 Dec 24 - 29 Dec 25 Option 2 12 each 30 Dec 25 - 29 Dec 26 Option 3 12 each 30 Dec 26 - 29 Dec 27 Option 4 12 each 30 Dec 27 - 29 Dec 28

Type of Appropriation: 97X4930 Total Estimated Dollars for PR Line Item 0001:

PR Line Item 0002: No Fault Found (NFF)

Input NSN: 6610-01-591-4374 / Input PN: 822-3143-001 Output NSN: 6610-01-591-4374 / Output PN: 822-3143-001 Noun: VSDU Application: B-1 Item Description and Function: The VSDU is an eight-inch by six-inch color Primary Flight Information Multi-Functional Display that provides situational awareness information from the aircraft’s FIDL.

Type of Appropriation: 97X4930 Total Estimated Dollars for PR Line Item 0002: 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. As a result, a cost estimation is not provided.

PR Line Item 0003: Repair

Input NSN: 6610-01-603-0703 / Input PN: 822-3142-001 Output NSN: 6610-01-603-0703 / Output PN: 822-3142-001 Noun: FIDL Application: B-1

Item Description and Function: The FIDL is a six-inch by eight-inch primary flight information multi-functional display that provides a permanent Link 16 and Beyond- Line-of-Sight capability and supports installation of a new ethernet data bus and peripherals to support network centric operations.

Repair

Year Estimated Quantity Unit Price Estimated Dollars

Estimated Period of Performance

Basic 8 each $27,286.00 $218,288.00 30 Dec 23 - 29 Dec 24 Option 1 8 each $29,196.00 $233,568.00 30 Dec 24 - 29 Dec 25 Option 2 8 each $31,240.00 $249,920.00 30 Dec 25 - 29 Dec 26 Option 3 8 each $33,427.00 $267,416.00 30 Dec 26 - 29 Dec 27 Option 4 8 each $35,767.00 $286,136.00 30 Dec 27 - 29 Dec 28

Total Estimated Dollars for PR Line Item 0003:

PR Line Item 0004: NFF

Input NSN: 6610-01-603-0703 / Input PN: 822-3142-001 Output NSN: 6610-01-603-0703 / Output PN: 822-3142-001 Noun: FIDL Application: B-1 Item Description and Function: The FIDL is a six-inch by eight-inch primary flight information multi-functional display that provides a permanent Link 16 and Beyond- Line-of-Sight capability and supports installation of a new ethernet data bus and peripherals to support network centric operations.

Type of Appropriation: 97X4930 Total Estimated Dollars for PR Line Item 0004: 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. As a result, a cost estimation is not provided.

PR Line Item 0005: Non-recurring expense

Long lead material supporting the repair of PR line item 0001 for the purpose of depot activation.

Year Quantity Unit Price Estimated Dollars Estimated Period of

Performance Basic 1 lot 30 Dec 23 - 29 Dec 24

Total Estimated Dollars for PR Line Item 0005: $318,207.00

PR Line Item 0006: Non-recurring expense

Long lead material supporting the repair of PR line item 0003 for the purpose of depot activation.

Year Quantity Unit Price Estimated Dollars Estimated Period of

Performance Basic 1 lot 30 Dec 23 - 29 Dec 24

Total Estimated Dollars for PR Line Item 0006:

PR Line Item 0007: OVER AND ABOVE (O&A)

Is negotiated on an as needed basis. O&A is estimated at 10% of total estimated repair dollars based on historical requirement.

Type of appropriation: 97X4930 Total Estimated Dollars for PR Line Item 0007:

PR Line Item 0008: DATA

Not separately Priced Data IAW DD 1423 Control Data Requirements List (CDRL)

Commercial Asset Reporting (CAV-AF) Reporting

Total PR Estimated Dollars:

The unit prices were derived from the average repair cost recorded on the previous contract plus a 5% inflation factor. The Contract Line-Item Number (CLIN) structure will not include separately priced CLINs for intellectual property (IP) or IP rights. The preceding IP rights strategy is consistent with the Acquisition Strategy as approved by the appropriate authority.

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

Due to a defined Source Approval Request (SAR) process, it is considered appropriate to seek approval for more than one year of requirements. If other qualified or approved sources become known at any time during the life of this contract, full and open competition will be considered and utilized to the maximum extent practicable.

IV. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE

USE OF THE AUTHORITY CITED ABOVE (APPLICABLE OF AUTHORITY)

The FIDL and VSDU provides highly specialized visual displays and an enhanced communication system to the B-1 integrated battle station, thus requiring a qualified source to ensure continuity. The Original Equipment Manufacturer (OEM), Rockwell Collins Inc., Cage Code: 84TF1 developed and designed these NSNs and has been providing this service since Jan 2020 on contract FA8107-19-D-0001. They are the only contractor determined to have the capability to perform this service at this time.

Performance of this service requires prequalification IAW Air Force Materiel Command Instruction (AFMCI) 23-113. Therefore, this is a follow-on contract for the continued performance of a highly specialized service.

This repair service is subject to FAR Part 9 compliant qualification requirements and as such any contract award is limited to suppliers that have been deemed an approved source conditioned upon the SAR process prescribed in AFMCI 23-113. The Small Business Office was contacted on 3 Jun 2023, and at this time there were no SAR evaluations in process nor have any new SAR packages been submitted. Consistent with regulation and guidance, no vendor is a viable source until such time they submit a SAR package, are evaluated, and receive approval, thus becoming a qualified and approved source.

Currently, Rockwell Collins Inc, Cage Code: 0EFD0, is the only approved source for performance of this service.

The critical performance requirements, which the repair must meet, are outlined in the OEM documentation. The data is owned by Rockwell Collins Inc and the Government will not initiate any pre-challenge information requests or formal challenges regarding ownership of the data. Additionally, the data cannot be acquired in the commercial market sector. There are no drawings on file, and neither is there any repair information or other documentation available that may provide technical data. Although the Government realizes that it has unlimited usage rights to form, fit, and function data as well as data related to operation, maintenance, installation, and training, such rights to the data are insufficient to meet the Government’s need for this acquisition. The contractor is currently performing repair of the FIDL and VSDU on contract FA8107-19-D-0001, initiated by the B-1 System Program Office (SPO). The Government did not acquire IP or IP rights on the current repair contract. Additionally, there were no IP clauses in the current contract, nor was the Deferred Ordering Clause, DFARS 252.227-7027 included.

The most recent attempt by the Government to acquire IP or IP rights to the repair data occurred on Jul 19, 2022. The 422 Supply Chain Management Squadron (SCMS) sent Rockwell Collins Inc, a request to provide a rough order of magnitude for the sale of rights regarding technical, manufacturing, and maintenance data for the B-1 FIDL and VSDU. They subsequently declined to sell the requested data rights to the Government.

The 422 SCMS believes that award to any other source would result in unacceptable delays in fulfilling the USAF’s requirements. Delays in the repair

In addition, Mission Incapable Awaiting Parts situations will occur. To date, the government has . Based on forecasting, it is expected that to provide additional parts. If deliveries do not begin by . Based on similar workloads it’s estimated that it would likely take 3-

5 years for another source to obtain the necessary capability, resulting in The development of an additional source to produce this item is not feasible within the scope and timeframe of this repair. The OEM has the potential to approve and license other suppliers for its products. However, no additional suppliers have been identified by the OEM.

Additional information can be found in Section IX. In addition, reverse engineering is an opportunity to develop some of the requisite detailed production level technical data;

however, completion of a reverse engineering program of this highly specialized item will take a minimum of five years through the Consolidated Sustainment Activity Group Sustaining Engineering program. This timeframe includes the budget request period, purchase request processing, contract negotiation and award, period of performance qualification testing, and source qualification. A cost estimate to conduct reverse engineering for this NSN has not been generated due to lack of historical project cost information for similar equipment and scope of qualification testing, which is required to ensure no change to the item’s approved technical baseline and airworthiness certification. Finally, reverse engineering is considered a high-risk endeavor for highly specialized end-items requiring unique contractor skill sets and considerable Government resources to provide items for inspection and destructive analysis.

Accordingly, Rockwell Collins Inc, is the only source capable of providing the services without the USAF 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

On 2 May 2022, a Source Sought Synopsis (SSS) was posted on www.sam.gov website under FA8117-22-SS-0018. The SSS included the NSNs listed in Section III, part numbers and quantities in support of market research to identify potential sources for repair of the NSNs. Additionally, any potential sources that are interested in this acquisition were advised to submit a SAR package IAW the instructions and procedures called out in the 848-RQR posted on sam.gov. The SSS closed on 2 Jun 2022, with no responses having been received. IAW FAR Part 5.201, this requirement shall be synopsized, and the Request for Proposal will post to www.sam.gov website.

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 to aid in the evaluation of the contractor’s proposal. The Contracting Officer will seek audit assistance from the Defense Contract Audit Agency if necessary.

VII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS

NOT CONDUCTED

Market research, IAW FAR Part 10, was conducted by a multi-functional team consisting of the Item Manager, Equipment Specialist, Logistics Officer, and Engineer. Market Research began 2 May 2022 and closed 11 May 2023. The Market Research included an SSS, and inquiries into internet sites, SAM.gov, and Government Databases (FPDS-NG, FAPISS, SBA Database, etc.). There are no other potential repair sources. Due to the complexity and criticality of the items, only pre-approved sources meet USAF requirements. Further, this requirement cannot be modified nor be satisfied with non-development items that are commercial off-the-shelf. These items are military unique, with no equivalent commercial products or services within the current marketplace. This research did not reveal any other qualified sources available to fulfill the requirement. As a result, Rockwell Collins Inc, Cage Code: 84TF1, is currently the only approved source to meet this requirement and is identified on the Contract Screening Analysis Worksheet.

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

OPEN COMPETITION

The Government has taken action to encourage competition by synopsizing the qualification requirements IAW FAR Part 9, and further action will be taken when and if potential vendors elect to submit source approval requests (SARs). The Government acknowledges that the existing SAR process, prescribed by AFMCI 23-113 due to the repair qualification requirements in place for these parts, is a barrier to competition. As such, the government has undertaken actions to streamline the SAR evaluation process to the degree allowed under current USAF policy and regulation, as well as develop tools to create more visibility around SAR submission and its benefit. Additionally, work has begun to develop tools and guidance aimed at providing greater assistance to industry in the actual preparation and submission of SAR packages. Until such time as these initiatives yield results, the Government will continue to synopsize the requirements to potential sources regularly and monitor, at least annually, for any additional submitted SAR packages.

To ensure that we are maximizing competition where possible, prior to the issuance of any task/delivery order under this requirements contract, the Government will verify whether any additional sources have been approved for this repair service. If another source submits a SAR and is approved as a qualified source for this repair during the life of this contract, the Government will immediately pursue full and open competition and discontinue use of this J&A for this repair upon a competitive award. Until such time as additional vendors elect to submit SAR packages, we will only have one approved source.

Due to the circumstances described in Sections IV and IX, there are no immediate actions that could be taken to develop competition. Therefore, it is considered appropriate to seek approval for more than one year of requirements. If other qualified or approved sources become known at any time during the life of this contract, full and open competition will be considered and utilized to the maximum extent practicable.

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

ACQUISITION

Rockwell Collins Inc 400 Collins Rd NE Cedar Rapids, IA 52498-0503 Telephone 319 310 5777

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

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 Section IV, there are no known additional actions which can be taken to remove barriers to competition and therefore, specific actions and milestones cannot be established. However, the Government will continue to synopsize the requirement, rescreen the item, and attempt to acquire the data necessary to qualify additional sources with requests of ROMs to acquire the data usage rights.

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 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.