Serv_18-103_REFORM_2018_justification_and_approval_redacted_Redacted.pdf

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

For Official Use Only

For Official Use Only

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Choose the funding level for this J&A Document:

Contracting Activity: AFSC/PZIMC

Purchase Request / Local ID Number: F3YCEB8221A109

Program / Project (and PE, if applicable): Serv 18-103 Reform BTG Annual Maintenance PM/RM Renewal

Program Type (PEO or Other Contracting): Other Contracting

Authority (include full title): 10 USC 2304(c)(1) As Implemented at FAR 6.302-1(a)(1) Only One responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

14 Aug 2018

Contracting Office

AFSC/PZIMC/ 739-5819

Signature

Date

14 Aug 2018

Program Manager

OC-ALC/OBCA / 734-1067

Signature

APPROVAL (AFFARS 5306.304(a) )

MONTGOMERY.KRIST

EN.MAE.1259846451

Digitally signed by

MONTGOMERY.KRISTEN.MAE.12598464

Date: 2018.08.14 09:04:49 -05'00' r

For Official Use Only

For Official Use Only

I. Contracting Activity.

Department of the Air Force

AFSC/PZIMC

3001 Staff Dr, Ste 2S76 Tinker Air Force Base, OK 73145-5990

II. Nature and/or description of the action being processed.

This is an individual justification and approval for a new commercial contract for preventive and remedial maintenance of 76 Propulsion Maintenance Group's (PMXG) secondary High Speed Grinder (HSG). The previous contract was a sole source award to Reform Maschinenfabrik of Fulda, Germany (CAGE C4533) on FA812515C0020.

Period of performance was 1 Sep 2015 - 31 Aug 2018. The estimated value of the current requirement is

Resultant award will be a purchase order with a base year and four option years, beginning 1 Sep 2018. Estimated award date is 30 Aug 18.

III. Description of supplies/services required to meet agency needs.

This acquisition is a service to provide remedial and preventive maintenance and repairs to the HSG. Maintenance includes annual service visits, telephone and onsite support and over-and-above repairs, if needed. This acquisition will be funded by Working Capital (4930) funds. CLIN structure is:

CLIN 0001 (base year) Preventive and remedial maintenance 1 Lot CLIN 0002 (base year) Onsite technical support 1 Lot CLIN 1001 (opt year I) Preventive and remedial maintenance 1 Lot CLIN 1002 (opt year I) Onsite technical support 1 Lot CLIN 2001 (opt year II) Preventive and remedial maintenance 1 Lot CLIN 2002 (opt year II) Onsite technical support 1 Lot CLIN 3001 (opt year III) Preventive and remedial maintenance 1 Lot CLIN 3002 (opt year III) Onsite technical support 1 Lot CLIN 4001 (opt year IV) Preventive and remedial maintenance 1 Lot CLIN 4002 (opt year IV) Onsite technical support 1 Lot FAR 52.217-8 ext 1 Lot 0 Contract Total

IV. Statutory authority permitting Other than Full and Open Competition.

The authority for this action is 10 U.S.C.2304 (c)(1) as implemented by FAR 6.302-1 (a)(2)(iii) when the supplies or services required by the agency are available from only one responsible source, and no other type of supplies or services will satisfy agency requirements, and full and open competition is therefore precluded.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

REFORM is the OEM (Original Equipment Manufacturer) for the HSG. As the OEM, REFORM has the experience, equipment and training to be able to perform service on the HSG. REFORM holds the data rights for the software that operates this highly specialized, LASER-guided machine. They are located in Germany and send technicians around the world from there to service REFORM machines. They have no authorized US service partners and will

For Official Use Only

For Official Use Only not license or sell their data to a third party repair source. Therefore, this acquisition is for continued performance of a highly specialized service.

The Government does not have the data rights to accomplish repair and maintenance of the equipment. The Government does not have the source code data such as machine parameters and machine original specifications.

Award to any other source would result in inadequate maintenance of the HSG and lead to loss of machine serviceability and unacceptable delays in fulfilling the requirements of the Air Force. A non-OEM source would need to subcontract to the OEM to get data rights, which could lead to duplication of effort, and potential increase subcontracting costs and delays. The anticipated extra costs would run between 10-15% of the estimated price, resulting in approximately $70,000 in extra costs to the Government. Accordingly, REFORM is the only firm capable of providing (the supplies or 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.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

A Sources Sought Synopsis (SSS) was published on Federal Business Opportunities (FBO) along with the draft Performance Work Statement (PWS), from 6 Jul 18 to 20 Jul 18. No responsible companies responded to the notice. A Presolicitation notice was posted to FBO with the PWS on 24 Jul ending 6 Aug 18, and received no response from interested sources. The lack of responses, along with market research, support the sole source nature of this requirement.

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. 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.

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

Market Research was conducted beginning 27 Jun 18. IAW FAR 10.002, and detailed in Section VI, a SSS was issued on FBO. A review of Government databases, such as GSAAdvantage, Dynamic Small Business Search and System for Award Management (SAM) was conducted. Based on the market research, the sole source strategy is appropriate.

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

The government realizes that it has unlimited rights to form, fit, and function data, including source code data, as well as data related to operation, maintenance, installation, and training. However, such rights are insufficient to satisfy the current need. Access to drawings, manuals and software is necessary to accomplish the tasks for this acquisition. Efforts by the government to acquire a license from the OEM have been unsuccessful. The most recent attempt by the government to acquire the data or rights to the data occurred on 14 Aug 18, when the contracting officer sent an inquiry to REFORM. The OEM declined to release their rights to their proprietary data.

X. List of sources, if any, that expressed interest in the acquisition.

REFORM Maschinenfabrik Adolf Rabenseifner GmbH & Company, KG Weserstr. 24 u. 26 36043 Fulda, Germany Cage Code: C4533

Mike Kish Service and Aftermarket Sales 412 N.Redbud Ave., Broken Arrow, OK 74012 405-249-3082

For Official Use Only

For Official Use Only

Due to the risk of nonperformance by a third party, driven by REFORM's exclusion of authorized third party vendors, and the reasons stated in this justification, no other sources are considered at this time.

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.

As a result of continued refusal by the Sole Source contractor to provide or license data as well as the duplication of cost or unacceptable delay (pick applicable one) of developing additional sources per Sections 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.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

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