- JAQ - JA_JetScan_Redacted.pdf

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

CONTROLLED UNCLASSIFIED INFORMATION

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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.

Under the contemplated follow-on contract Rolls-Royce Corporation, will provide highly specialized services for the JetScan EHMS. The JetScan EHMS are sophisticated diagnostic systems employed at the field level to mitigate the high safety risk associated with engine bearing failures. Rolls-Royce is currently providing this support under contract FA8119-20-D-0006 which was awarded on 1 Jul 20 as a sole-source acquisition. The current contract option expired on 30 Jun 24 but an option to extend services was granted for a start date of 1 Jul 24. The contract expired on 31 December 2024.

All system software and hardware configuration of the JetScan units are proprietary to the Original Equipment Manufacturer (OEM), Rolls-Royce Corporation. All data required to service or repair this equipment is proprietary to the OEM. Rolls-Royce Corporation utilizes highly specialized personnel and specialized test equipment/tooling for the diagnostics, repair, and maintenance of the JetScan system.

AFLCMC/LPSZC believes there is no other available award to any other source. Any delay in contract award would result in unacceptable delays in fulfilling the Air Force's requirement. Failure to fund this service/repair requirement will result in unserviceable aerospace equipment, limiting or eliminating the capability to quickly and efficiently detect the health of the engine and potential hazards could result in engine failure. These inspections are mandated by technical guidance across multiple engines and could potentially ground aircraft if not adhered to. The effect would have a significant impact on aircraft availability and create a safety of flight if strict engineering directives are not followed and accomplished at the precise inspection interval.

Repair and troubleshooting for the subject JetScan units requires not only knowledge of the design & operation of the specific equipment but also of the proprietary software that operates and supports the system automation, diagnostics, and metal debris analysis functions. The Government does not have the technical expertise or technical data to troubleshoot/repair these critical machines due to proprietary hardware and software requirements. Rolls-Royce Corporation is the OEM and is the only firm capable of providing Repair and Sustainment of JetScan machines described in section III above without the U.S. Air Force experiencing unacceptable delays in fulfilling its requirements. There is no option or available vendor that can provide reverse engineering.

Rolls-Royce Corporation officially notified USG via correspondence on 28 Oct 2024 confirming that they are the sole proprietor and owner of JetScan machines and all associated data. USG has officially requested and inquired with Rolls-Royce Corporation concerning the sale or transfer of JetScan data. Rolls-Royce Corporation provided an official response dated 3 Mar 2025 that they will not or intend in the future to sell or grant data rights to USG.

For this reason, service/repair will be procured using other than full and open competition.

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.

A Sources Sought Synopsis was published in Federal Business Opportunities website on 15 May 24, for 30 days under number NSN 6650-01-486-7221 for the purpose of identifying sources capable of satisfying the Government's requirement, no potential sources responded to the synopsis.

This proposed contract action will be synopsized in Sam.gov as a notice of proposed contract action IAW FAR

5.201. Consideration of capability shall be given to any identified, potential sources prior to award. The projected

August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 5 of 6August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 5 of 6 solicitation for this effort is 18 February 2025.

VI. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer (CO) will ensure the items described herein are negotiated at a fair and reasonable price to the Government in accordance with FAR Part 12 procedures. The CO may request other than certified cost and pricing data to ensure prices are negotiated at a fair and reasonable price to the government and contractor. The CO may request a technical evaluation from the Defense Contract Management Agency (DCMA) and a field audit from the Defense Contract Audit Agency (DCAA) for the purpose of determining fair and reasonableness.

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

Market research in accordance with FAR 10.001 &10.002(b )(2), was conducted and the MRR was signed by the multi-functional team consisting of the Logistics Management Specialist, Engineer, Production Management Specialist, Program Manager and Procuring Contracting Officer. The conducted research consisted of Internet searches using key words "JetScan" "SEM/EDX", reviews of government data bases, reviews of results for similar market research requirements, a posting on Sam.gov, a Sources Sought Synopsis posting, and a draft Statement of Work. Market Research is current, Accurate and has been accomplished with in 18-months.

The market research revealed there is only one commercial source that can meet this requirement. Rolls-Royce Corporation is the only company that can meet the 24 hour telephone support requirement and is also capable of performing on-site repairs. Rolls-Royce Corporation possesses data and software that are proprietary to the JetScan machine.Market research in accordance with FAR 10.002(b )(2), was conducted by the multi-functional team consisting of the Logistics Management Specialist, Engineer, Production Management Specialist, and Procuring Contracting Officer. The conducted research consisted of Internet searches, reviews of government data bases, reviews of results for similar market research requirements, a posting on Sam.gov, a Sources Sought Synopsis posting, and a draft Statement of Work.

In Conclusion, The market research revealed there is only one commercial source can meet this requirement.

Rolls-Royce Corporation is the only company that can meet the 24 hour telephone support requirement and is also capable of performing on-site repairs. Rolls-Royce Corporation possesses data and software that are proprietary to the JetScan machine.

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.

Rolls-Royce Corporation, 450 S. Meridian Street, Indianapolis IN 46225

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 the duplication of cost and unacceptable delay of developing additional sources, there are no known additional actions which can be taken to remove barriers to competition.

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As Stated in Block IV, Rolls-Royce Corporation is the sole owner and proprietor of JetScan Machines and all applicable data. They will not and do not intend to sell JetScan data to USG or any Commercial Entity.

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 any stated actions to remove barriers to competition have been accomplished.

XI. Certification by the Contracting Officer.

As evidenced by my signature above, I certify 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 signature above, I certify any supporting data contained herein, which is my responsibility, is both accurate and complete.