Redacted_JA _ACM_RM.pdf

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

CONTROLLED UNCLASSIFIED INFORMATION

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PR LINE ITEM 0002

Over and Above: To Be Negotiated (TBN) Total Estimated Dollars:

Type of Appropriation: 97X4930

PR LINE ITEM 0003

Data: Not Separately Priced (NSP), IAW Commercial Asset Visibility Air Force (CAV AF) Reporting Total Estimated Dollars: N/A Type of Appropriation: 97X4930

Unit pricing was derived from return of an Request For Information (RFI) from on 21 Sep 22 and confirmed via multiple email correspondence for market research purposes. Over and Above pricing was derived using standard 10% above total repair pricing. CLIN structure will not include separately priced CLINs for IP or IP rights. The preceding IP rights strategy is consistent with the Acquisition Strategy as approved by the appropriate authority.

This J&A will cover a three year PoP. This is considered appropriate to provide the ability to reestablish the repair line after a lengthy time in between requested repair and last repair. This also provides material lead time.

Due to the highly specialized repair service required for the ACM as will be described in the sections below, the government owns no data in which to create competition. The AGM086 Weapon System (WS) has a service life set to expire in 2030. The previous contracting actions, meant to sustain the ACM until end of service life, were thought to be the last, however, it was recently discovered that upwards of 120ea ACMs were still in need of this specific repair. Due to previous thought and short service life expectancy, no further actions were taken to create competition after completion of contract. During and after completion of this contemplated contracting action, there will be no need to develop future competition as all assets will be confirmed to have been repaired and no further actions will be necessary. For this requirements type contract, the Best Estimated Quantity (BEQ) will be for 120ea with a maximum value of all CLINs being estimated as

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

This new anticipated contract will be for the repair of the AGM086 ALCM ACM. The input NSN will be 1420-01-098-7555MW and the output NSN will be 1420-01-576-5265MW. The output NSN is required in order to make quick determination that the repair was completed on the ACM and not to be confused with ones that do not require the repair. The purpose of this requested repair is to repair and extend the service life of the ACM to reach the service life of the AGM086. This highly specialized service has been determined by the cognizant engineering team to be beyond the scope of what the government is capable of performing. While the government does in fact hold certain form, fit, function and repair and testing rights to the ACM, holds the proprietary process of repairing the internal bearings inside the ACM.

has successfully performed this function previously and remains the only company with the special tooling/equipment, personnel and technical data to satisfy the Air Force's minimum need. Therefore, this new acquisition is for the continued performance of a highly specialized service.

the only company that has the necessary detailed process data, drawings, bill of materials and specialized tooling/equipment, personnel and technical/software data to perform the requested repair of the internal bearings of the

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ACM. Market Research, IAW FAR Part 10, was started on 29 Aug 22. An RFI was sent to on 29 Aug 22 requesting potential sale of repair data and pricing information. RFI was returned on 21 Sep 22.

denied the request for sale of data, however, did provide pricing data for the potential repair as detailed in section III above.

While the government does maintain form, fit, function and certain repair and testing data, the specific repair of the internal bearings is not a function the government can perform. As such, the cognizant engineer has determined that is the only vendor capable of performing this highly specialized service.

The 424 SCMS believes that award to any other source would result in substantial duplication of cost to the government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Air Force's requirement. Due to the small number of assets requiring the repair and the short service life of the ALCM set to expire in 2030, it is not feasible to expect return on investment with an engineering project to obtain the repair data for the internal bearings. An engineering project would require a minimum of two years for approval with a potential to require upwards of in funding necessary to complete the project. The time to award a project, reverse engineer the specific repair and obtain the data and qualify new vendors would take an estimated three years or more. This puts the WS within it's sunset period where no funding can be spent on sustainment by the user of the WS as draw down of assets would begin. There would be no way for supply chain to recover the funding paid out at that time. Additionally, the assets are required to support the WS through the remainder of it's life and should delays happen, real world operational requirements could not be met.

Accordingly, is the only firm capable of providing the services described in section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling it's requirements.

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.

Market Research, IAW FAR Part 10, was started on 29 Aug 22. An RFI was sent to on 29 Aug 22 requesting potential sale of repair data and pricing information. RFI was returned on 21 Sep 22. denied the request for sale of data, however, did provide pricing data for the potential repair as detailed in section III above. The Sources Sought Synopsis (SSS) was posted on the Sam.Gov website on 17 Nov 22 under FD2030-23-00472; Remanufacture of Air Launched Cruise Missile (ALCM) Air Cycle Machine (ACM) and closed on 2 Dec 22 with no responses received showing interest in the acquisition.

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. The Contracting Officer will request a technical evaluation from the Defense Contract Management Agency (DCMA) to aid in the evaluation of the contractors proposal if necessary. 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.

Market Research, IAW FAR Part 10 was started on 29 Aug 22 and completed on 5 Sep 23 and remains within the 18 month standard. Various methods and the past satisfactory contracting actions were used to arrive at the current market research findings. This research was conducted by the Contract Buy Team consisting of the Supply Planner, Logistic Management Specialist, Engineer, and Equipment Specialist. The team conducted market research consisting of a review of Haystack, Google (using the same and similar words "Air Cycle Machine" and "Enviromental Cooling Machine"), Thomas Register, and similar item manufacturer’s websites. It was determined through this research and current and previous engineering research that this was not a commercial item, but military unique. The Market Research ultimately revealed there were no other approved sources capable of fulfilling this requirement.

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

No further information.

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

No other sources expressed interest in this acquisition.

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 contractor to provide or license data as well as the duplication of cost and substantial delay of developing additional sources per Section 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.

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.