JA_1702545_(CoFo)_(V4).pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

Materiel Support Contracting Division

AFSC/PZA

3001 Staff Drive Tinker AFB, OK 73145

Purchase Request (PR): FD2030-17-02545

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

This Justification and Approval (J&A) authorizes the use of Other Than Full and Open Competition procedures to obtain a non-commercial Firm Fixed Price (FFP) performance based service requirements type contract from Northrop Grumman Corporation (cage code OJRCI). This is an Individual J&A to support Other Contracting. In accordance with (IAW) FAR Part 16, a one-year basic contract with four, one-year options is considered to be appropriate for this acquisition.

Total estimated value of this acquisition is $1,500,000 with an estimated award date of 30 Jun 18.

Previous Contract Numbers: FA8222-12-D-0018 (FA8119-16-F-0052) Dates of Award: 1 Jun 16 (FA8119-16-F-0052) Dates of Completion: 30 Nov 17 (FA8119-16-F-0052) Bases of Award: Sole Source

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET

THE AGENCY’S NEEDS

Under the contemplated contract, Northrop Grumman Corporation will provide B-2 collaborative forecasting integrator support contract for 448 SCMW managed B-2 end items and to support the development and implementation of the B-2 Co- Forecasting program. The integrator will be responsible for compiling, assembling, analyzing, and disseminating B-2 collaborative forecasting data and actions to Planning & Execution (P&E) Groups across the Wing, and coordinating semi-annual B-2 Co-Forecasting conferences with B-2 customer and supply chain stakeholders. The integrator will be responsible for utilizing and integrating B-2 OEM historical failure data and projected future failures based on OEM engineering and logistics data and analysis.

Contract Summary Year Dates Estimated Dollars Basic Year Jun 18 – Jun 19 $300,000 Option I Jun 19 – Jun 20 $300,000 Option II Jun 20 – Jun 21 $300,000 Option III Jun 21 – Jun 22 $300,000 Option IV Jun 22 – Jun 23 $300,000 Total Contract Jun 18 – Jun 23 $1,500,000

PR line item 0001

Engineering Service:

Noun: B-2 collaborative forecasting integrator support Item description/function: Acquisition, analysis, disseminating, and collaboration of B-2 forecasting data and actions.

Appropriation: 97X4930 Total estimated dollars for PR line item 0001: $1,500,000

Year Dates Qty Unit Price Estimated Dollars Basic Year Jun 18 – Jun 19 1 $300,000 $300,000 Option I Jun 19 – Jun 20 1 $300,000 $300,000 Option II Jun 20 – Jun 21 1 $300,000 $300,000 Option III Jun 21 – Jun 22 1 $300,000 $300,000 Option IV Jun 22 – Jun 23 1 $300,000 $300,000

PR line item 0002

Data - Not Separately Priced (NSP)

IAW DD 1423 CDRL

Appropriation: 97X4930 Total estimated dollars for PR line item/CLIN 0002: $0

Total estimated dollars for contract: $1,500,000

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

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 THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES

THE USE OF THE AUTHORITY CITED ABOVE (APPLICABILITY OF

AUTHORITY)

The contemplated acquisition provides for B-2 Collaborative Forecasting Integrator support and implementation of the B-2 Co-Forecasting Program. The Co- Forecasting process ensures that all user and supply chain stakeholder are made aware of future requirements and have the opportunity to add fidelity to the requirements and develop needed execution strategies lead time in advance of the requirement. Northrop Grumman is the only source capable of providing this unique and highly specialized service at the level of quality required by the Government.

The Original Equipment Manufacturer (OEM), Northrop Grumman, is the only known contractor that has the engineering and configuration data and expertise necessary to develop supply chain forecasts based on historical (low density) failure data and future failure projections based on OEM reliability and maintainability data necessary to meet the Government's needs.

The data (i.e. detailed platform and LRU configuration, engineering reliability and maintainability data, and detailed historical LRU failure 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 B-2 platform configuration (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.

Government efforts to purchase the data use rights have been unsuccessful. Because the design data is owned by Northrop Grumman, all potential changes to aircraft configuration must be reviewed by Northrop Grumman Engineering. This condition precludes the use of engineers from other businesses being able to access and analyze projected future failure data based on platform configuration.

This knowledge and data is not available to anyone else except Northrop Grumman.

On 13 Nov 2013, Engineering sent the OEM an email requesting the current status of the sale/licensing of proprietary data to the Government. Northrop Grumman responded on 20 Nov 2013 again on 24 July 2015 that they were unwilling to sell technical data license rights to the Government. The marketplace has not changed and there is no probablility that continued requests will be answered in a positive manner.

The 448 SCMW believes that award to any other source would result in unacceptable delays in fulfilling the Air Force's requirements. Additional information can be found in Section IX.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

In accordance with FAR 5.201, this requirement shall be synopsized and the Request for Proposal will be posted to the Federal Business Opportunities website.

The Government is unable to qualify additional sources, as the OEM approves additional sources. A sources sought notice (FA8119-17-R-0024) was posted to FedBizOpps on 13 May 17, and to date Northrop Grumman Corporation is the only source to submit a response, which was received on 1 Jun 17.

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. The contractor will be required to provide certified cost or pricing data. A detailed cost analysis and a price analysis will be accomplished. The Defense Contract Management Agency and/or Defense Contract Audit Agency may be contacted to assist with the analysis, and will assist with post-award management throughout the life of the contract.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS 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 April 2016 and concluded in May 2016. Visits to Engineering websites such as Marine Systems Corporation, Oneida Total Integrated Enterprises, E.M. Norton Enterprises, Aging Aircraft Consulting, Bara Infoware Inc., and Summit Technologies & Solutions were made. These sites were searched for potential engineering support abilities. In addition, emails were sent to SDS International, Inc. and Seait LLC, Waltonen Engineering, Inc., Infinity Systems Engineering, Aero Thermo Technology, Inc., Evaluate Systems, Triton Services, Inc., and Trintek, Inc. seeking information as to whether the companies employ engineering personnel and whether they have the ability to generate engineering solutions. The consensus was that Northrop Grumman is the only source that has the electrical requirements data, data transmission information, etc. for these 848 SCMG-managed items.

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

AND OPEN COMPETITION

Due to the lack of configuration access and historical failure data and inability to forecast future failure rates with access to limited rights engineering data, the Government does not expect that another source could become qualified in time to avoid unacceptable delays in meeting the Government's requirement. An attempt to qualify another source would take approximately 30 years. This estimate is a result of the design data is solely owned by NG, all potential changes to aircraft configuration must be reviewed by NG engineering. This precludes the use of engineering from other businesses being able to approve material substitutions to solve obsolescence issues. This B-2 collaborative forecasting support is critical in achieving supply chain performance to meet B-2 aircraft availability requirements.

The B-2 OEM data and expertise is needed in conjunction with 448 SCMW supply chain data and processes, to mitigate the supply chain conditions associated with a low density platform. The supply chain performance issues must be resolved to reduce and avoid future Mission Incapable Awaiting Parts backorders of the affected airframe and thereby degrading the Air Force's combat capability.

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

ACQUISITION

Contractor Name: Northrop Grumman Corporation

CAGE: OJRCI

Contractor Address: 4601 S. Air Depot Blvd Contractor Address: Oklahoma City, OK 73135

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

No future additional measures can be taken as a result of the rationale provided in

Section V and IX above.

The previous acquisition was issued as a task order (FA8119-16-F-0052) under the

DESP III Contract (FA8222-12-D-0018). The J & A associated with the previous task order was a Class J & A encompassing assorted data deliverables of a wide variety of engineering services efforts. The data delivered under task order FA8119-16-F-0052 is proprietary forecasting data and while useful in reducing the number of contracting actions, the data is unusable for developing tech order or increasing competition.

In accordance with the requirements of DFARs PGI 206.304, the approval authority has determined by the signature on the Coordination and Approval Document that the previous planned actions stated in the Class J & A were a generalized statement not intended to be met with forecasting data, as such the requirements of PGI 206.304(a)(S-17)(ii) are considered complete.

XII. CONTRACTING OFFICER’S CERTIFICATION

The Contracting Officer’s signature on the coordination and approval document evidences the Contracting Officer has determined this document to be both accurate and complete to the best of the Contracting Officer’s knowledge and belief.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidenced by their signatures on the coordination and approval document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.

FULL AND OPEN COMPETITION