J&A.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): FD2030-18-00262

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, requirements-type, firm-fixed price, sole source contract.

The contemplated contract will be with March Electronics Inc., Commercial and Government Entity (CAGE) code 8F056, for the purchase of Umbilical Connectors applicable to the AGM- 086 Training Missile.

March Electronics is the only authorized distributor for Cooper Interconnect (CAGE 99447).

G&H Technologies, the original OEM, was acquired by Cooper in 2006. Cooper is now the only known manufacturer of this item. Cooper Industries, the parent company for Cooper Interconnect is incorporated outside the U.S. In an email from December 2010, Cooper stated they were no longer able to do business with the government due to their change in corporate structure and declined further orders based on their view of the tax law during that time. In the same email, Cooper suggested the material be obtained through their authorized distributor, March Electronics. In 2011, March Electronics was added as an approved source with Cooper listed as the OEM on the updated screening documentation. In 2012, Cooper was acquired by the Eaton Corporation. Eaton is domiciled in Dublin, Ireland.

Eaton Corporation was contacted in November 2016 and asked if they would be willing to sell the data rights of the connector to the government. Additionally, they were asked if they would be willing to deal directly with the government. Eaton was unwilling to accommodate on both accounts citing that the Eaton/Cooper corporate structure would result in tax penalties in selling directly to a U.S. customer. Once again they specified that March Electronics was the authorized distributor and all orders should be sent through them. On 3 January 2018, the Logistics Management Specialist emailed a Request for Quote to Eaton requesting to purchase the design rights for the Umbilical Connector. Response received on 22 January 2018 from Eaton stated they were not willing to sell design rights and, therefore, no bid the RFQ. In another email dated 23 January 2018, Eaton reiterated they could not accept orders directly from the government and to please continue to work with March Electronics as their authorized distributor. They declined to provide further explanation. Since the government does not own the necessary information to manufacture this asset, the connector must continue to be purchased from March Electronics (Cage: 8F056).

In accordance with FAR part 16, a one-year basic and two one-year options is considered appropriate for this non-commercial acquisition. The maximum estimated total value of this award is $1,297,788.00 with an estimated award date of April 2018.

Previous Contract Number: FA811915D0005 Date of Award: 28 Sept 2015 Date Completion Date: 28 Sept 2018 Basis of Award: Sole Source

Contract Summary Estimated Dates Estimated Dollars Basic Apr 18 – Mar 19 $340,669.65 Option Year 1 Apr 19 - Mar 20 $259,557.60 Option Year 2 Apr 20 - Mar 21 $259,557.60 Total Contract Apr 18 – Mar 21 859,784.85

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS.

Under the contemplated contract, March Electronics will provide the following New Manufacture:

Noun: Umbilical Connector

NSN: 1420-00-185-3487GF

P/N: 817-800-021

AMC/AMSC: 3P

Item Description and Function: The Umbilical Connector is 4 inches long X 4.5 inches wide X 3 inches high. Weight 4lbs. The item material is Aluminum and attaches to the high pressure turbine and provides drive power for the high pressure compressor, which provides an interface between the B-52 Bomber Common Strategic Rotary Launcher (CSRL), or the B-52 Bomber Pylon, and the AGM-086 Training Missile.

Type of Appropriation: 97X4930 Total Maximum Estimated dollars for PR line item 0001 over life of the contract:

$ 1,297,788.00 Total Maximum Estimated quantity for PR line item 0001 over life of contract:

80ea Total Estimated Period of Performance: Mar 2018 – March 2021

Due to the circumstances described below in Section V, 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’s requirements.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 2304(c)(1), as implemented by FAR 6.302-1.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS OR

NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED

ABOVE (APPLICABILITY OF AUTHORITY

A) This contemplated contract will be for the continued performance of the new manufacture of Umbilical Connectors required for the AGM086 Training Missile. This item is considered a highly specialized component of an air-to-ground training missile and provides an interface between the training missile and the B-52 Bomber Common Strategic Rotary Launcher (CSRL) and/or the B- 52 Bomber Pylon Assembly. Munition technicians are tasked with rigorous training requirements and maintaining specific certifications, both Nuclear and Non- Nuclear, throughout their career relating to the loading and unloading of the AGM086 onto the B-52 Bomber. To meet the requirements set forth by their career field, Global Strike Command (GSC), and U.S. Strategic Command (USSTRATCOM), technicians must constantly practice loading and unloading training missiles on and off the CSRL or the Pylon to simulate real world actions when handling either the active Nuclear or the Conventional/Non-Nuclear version of the AGM086. The training missile has the same fit and form as the active missile, however, there is no software inside the trainer that tells the technician if it has been loaded correctly onto the CSRL or Pylon. The Umbilical Connector is intricately and specifically designed to be inserted into the top of the training missile and provides a specialized software interface that confirms proper or improper installation on and off the CSRL or Pylon. During removal of the training missile from the CSRL or Pylon, the phenolic top (cookie) frequently pops off and the connector is no longer considered serviceable and due to the specific design, cannot be repaired. If the Umbilical Connector becomes unavailable, or procurement is delayed, training requirements will not be met and technicians will become uncertified and unqualified to load active missiles should a real world situation arise. This can and will lead to the AGM086 being grounded, which would significantly impact the operational readiness of the AGM086 mission as dictated by USSTRATCOM. Cooper Interconnect is the only known manufacturer with data and drawing rights, and the only company with the special tooling, equipment, personnel, software and technical data to satisfy the Air Force’s need. Due to Cooper being the only known manufacturer of this asset and being unwilling to sell design rights and/or deal directly with the Government, as detailed in Section II above, it is necessary to contract with their authorized distributor, March Electronics.

B) Cooper Interconnect Inc. (CAGE: 99447) is the only known manufacturer of this item and the only source that possesses the special tooling, equipment, personnel, software and technical data required to satisfy the Air Force’s need. The government has no data and or drawings in which to organically manufacture this asset. Accordingly, Cooper Interconnect Inc. is the only firm that possesses the unique capabilities derived from knowledge and expertise gained from previous productions of this item. In recent delivery orders, technical problems have arisen with the molding forms used for the casing of the connector. Because of the expertise of the manufacturer, they were able to mitigate the problems quickly and put production back on track with no further issues. Additionally, due to the technical and unique function of the Umbilical Connector and the specific assets in which it connects with in support of the AGM086, there are no other configurations authorized to be used to obtain the data required.

Due to Cooper Interconnect being unwilling to sell the data rights to the Government, and also their unwillingness to work directly with the government, this item must be purchased from their authorized distributor, March Electronics Inc.

C) The 424 Supply Chain Management Squadron has determined that Cooper is the only firm capable of manufacturing the item described in Section III. The drawings necessary to manufacture this asset are not available in the Air Force drawing repository. The development of a fully competitive technical data package is expected to take a minimum of three years. This timeframe includes the development of requirements documentation, engineering project request process, purchase request and contracting actions, and period of performance to accomplish the necessary development work with further time required for testing, quality assurance and configuration control actions. It is expected that vendor interest in any investment of new item development would by very unlikely due to low demand for the Umbilical Connector. Due to the critical nature of the weapon system, configuration baseline be maintained. Any delays in conducting this new procurement for the Umbilical Connector have the potential for disrupting the ability of personnel to train and remain certified on the loading and unloading of the AGM086 Missiles. Possible decertification will occur due to the lack of training for Munition loaders and ultimately lead to the grounding of the Cruise Missile fleet with no one certified to load/unload. Also, an increase in Mission Impaired Capability Awaiting Parts (MICAPs) and other high priority backorders will result if assets are not immediately available. This will negatively impact the Air Force’s ability to meet critical mission requirements.

D) Accordingly, Cooper Interconnect, being the only known manufacturer of the Umbilical

Connector, and being unwilling to sell design rights and/or deal directly with the Government, it is necessary to contract with their authorized distributor, March Electronics.

March Electronics is the only firm capable of providing the item described in Section III above without the 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

A) A Sources Sought Synopsis (SSS) was posted to the Federal Business Opportunities

(FedBizOpps) website using the solicitation number FA8119-17-R-0034, on 1 August 2017, with a closing date of 31 August 2017 in an effort to solicit interested sources.

B) There were no responses resulting from the SSS.

C) In accordance with FAR 5.201, this requirement will be synopsized in the FedBizOpps as a notice of contract action.

D) No other actions were taken.

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. A detailed cost analysis and price analysis will be performed.

The Contracting Officer will request a technical evaluation from the Defense Contracting 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.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS,

OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED

A) FAR Part 10 requires market research to be conducted prior to developing requirement documents or soliciting offers for acquisitions.

B) Market Research techniques used included internet searches, queries of Government databases (FPDS-NG, FAPISS, PPIRS, CPS, GSA, SBA databases, etc.), WebFlis and IHS Haystack lists, which list CAGE 99447 as the only known manufacturer of the Umbilical Connector. Google search engine also returned zero results. Additionally, on 3 January 2018, the Logistics Management Specialist emailed a Request for Quote to Eaton (Cooper Interconnect) requesting to purchase the design rights for the Umbilical Connector.

Response received on 22 January 2018 from Eaton (Cooper Interconnect) stated they were not willing to sell design rights and, therefore, no bid the RFQ. In another email dated 23 January 2018, Eaton (Cooper Interconnect) reiterated they could not accept orders directly from the government and to please continue to work with March Electronics as their authorized distributor.

Other companies that manufacture similar items exist in the marketplace, however, they do not possess the data rights/equipment, or the specialized skills, tooling, or software required to meet the Governments specifications for this highly specialized part. Considering the uniquely specialized function of the Umbilical Connector, as described in Section V, Cooper Interconnect remains the only qualified source capable of meeting the requirement. Due to Cooper Interconnect being unwilling to sell design rights and/or deal directly with the Government, and their reluctance to name another distributor, it is necessary to continue to contract with their authorized distributor, March Electronics, CAGE 8F056.

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

COMPETITION

No further information except as noted in Section II and Section V.

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

March Electronics, being the authorized distributor for the manufacturer, Cooper Interconnect, and also the current vendor for contract FA811915D0005, has been in contact with the 424th concerning new requirements the AF may be soliciting.

March Electronics Inc. CAGE: 8F056 25 FeldLand St Bohemia, NY 11716 631-563-6000

NAICS: 336413

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

Per PGI 203.304(a)(S-70) - As indicated by signature on the Coordination and Approval Document, the previous J&A has been reviewed and all stated barriers to competition completed.

Per Section V above, there are no additional actions which can be taken to remove barriers to competition, and therefore, specific actions and milestones cannot be established.

XII. CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on the Coordination and Approval Document evidences that 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.

JUSTIFICATION FOR OTHER THAN