JA_For_UCA_CDGPS_Battery_-_17_Jan_14 _Redacted.pdf

PR# FD2020-14-50537

17 Jan 14

JUSTIFICATION FOR OTHER

THAN FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY:

United States Air Force AFNWC/PZB Systems Division (AFNWC/PZB ICBMSD) Directorate of Contracting 6014 Dogwood Ave, Bldg 1258 Hill AFB UT, 84056-5802 Contracting Officer: Gena B. Black, AFNWC/PZBA

DSN: 777-3115

Purchase Request Number: FD2020-14-50537

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

A. Upon approval to use other than full and open competition procedures, the Air Force (AF) will enter into a new contract to procure Command Destruct Global Positioning System (CD/GPS) Batteries for use on the LGM-30G Minuteman III Intercontinental Ballistic Missile (ICBM) to: BST Systems Incorporated, 78 Plainfield Pike Road, Plainfield, CT. 06374, cage code 62399. The estimated award date is 21 Jan 14. The proposed value of this acquisition is not to exceed $985,000.

B. Contract Type and Structure: An Undefinitized Contract Action (UCA) will be awarded for this urgent requirement NLT 21 Jan 14. The definitized effort will be a supply contract and the anticipated pricing arrangement will be Firm Fixed Price. The government cost for this effort is estimated at

. This cost is based on a contractor-supplied Rough Order of Magnitude (ROM).

Approximately staff hours (labor) will be acquired for this effort. The appropriation funding type is AF Appropriation Code 3020 BP25 Spares.

C. Type J&A: Individual.

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S

NEEDS:

A. Under the contemplated contract, and based on the AF mission requirements, the purpose of this effort is to procure a total of 27 CD/GPS batteries, NSN 6135-01-532-5043, AF Specification Control Drawing (SCD) 200211147. This includes: 3 First Article Units (CLIN 0001) for a total of $514,000, 12 Engineering Units (CLIN 0002) for a total of $162,000, and 12 Production Units (CLIN 0003), for a total of $309,000. First Article Test Report and the first articles (3 units) will be delivered NLT 25 Nov 14. 12 Engineering Units will be delivered 30 Sep 14. 12 Production units are scheduled to be delivered 21 May 15.

B. The estimated award date will be NLT 21 Jan 14, and the contract period of performance will be 22 Jan 14 through 21 May 15. This is considered a consumable sustainment item.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

The statutory authority that permits other than full and open competition for this acquisition is 10 U.S.C.2304 (c)(2), as implemented by FAR 6.302-2, Unusual and Compelling Urgency.

1282883755C Typewritten Text

1282883755C Typewritten Text

1282883755C Typewritten Text

1282883755C Typewritten Text

1282883755C Typewritten Text

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS OR

NATURE OF THE ACQUISITION REQUIRES THE USE OF AUTHORITY CITED ABOVE

(APPLICABILITY OF AUTHORITY):

A. The CD/GPS Batteries are comprised of silver-oxide and zinc plates. The plates are assembled dry leaving the battery not energized. The battery is manually activated by adding potassium hydroxide electrolyte into the dry cells to start the chemical reaction of the plates. The cell plates are comprised of silver and zinc powder that are processed on screen mesh to formulate the plates. The manufacturing of silver-zinc batteries is extremely labor intensive. Deviations and problems can occur during any of the numerous, hand built steps of fabrication. This acquisition is for highly specialized customized equipment for the Minuteman III ICBM and BST is currently the only source able to meet the AF’s requirements. The Minuteman III ICBM has exacting size, weight and power restrictions, that if not met would adversely affect the center of gravity and mass for test launches.

BST is the only qualified source available to meet the AF’s needs. BST is the Original Equipment Manufacturer of the current CD/GPS Batteries. The AF requires CD/GPS Batteries for the current test launch schedule. Though a new battery specification has been developed and provided to industry no source can provide this new battery in time to support the current launch schedule. It takes approximately 6-9 months to manufacture the batteries, which entails ordering material, assembly/fabrication and testing.

Based on current engineering estimates, industry will require two years or more to design, assemble/fabricate, test and qualify the new battery specification before production would commence.

Accordingly, the AF is using the current specification (SCD 200211147) for the current requirement.

This will bridge the AF’s needs until such time as the new battery specification can be provided by industry. BST is the only qualified source for the current battery and can meet the AF’s need as they already have an approved and qualified design specifically for the AF’s application. Waiting to procure the batteries using the new battery specification requires testing and qualification of sources and will result in unacceptable delays in meeting upcoming test launches.

Additionally, any new source would be required to develop and qualify a charging and conditioning system – required test equipment to activate the batteries. Currently, the charging and conditioning system the AF uses is specifically for the BST battery design (old specification), and not likely to be used for a battery other than the BST batteries.

B. The AF does not possess the required detailed manufacturing drawings needed to manufacture the CD/GPS batteries. The AF owns the SCD, 2000211147, which is a top level specification, but not sufficient to manufacture the CD/GPS batteries. The detailed information, piece parts internal to the CD/GPS battery and the manufacturing knowledge and procedures required to build the CD/GPS batteries are unique to BST. Another vendor would have to develop their own design that meets the requirements of the AF SCD 200211147. BST is the only source with a qualified design that meets the AF requirements. The Government only possesses limited rights in the BST design data.

C. Award to any other source would result in unacceptable delays in fulfilling the AF's requirement.

The Minuteman III ICBM performs test flights, referred to as a Force Development Evaluations (FDE), and if the CD/GPS batteries are not available the FDE mission will be severely disrupted, delayed and/or terminated. FDE missions provide fleet wide assessment and certification of the ICBM Weapon System for mission capability and mission readiness. CD/GPS batteries are required to install on the Minuteman III ICBM 90 days prior to the launch date. These batteries are needed NLT Sep 14 for the Glory Trip (GT)-214 launch scheduled for Dec 14.

In parallel, the Air Force Sustainment Center (AFSC) is conducting a competitive acquisition for new CD/GPS Batteries which will be of a brand new design (SCD 201227469-1). Based on current engineering estimates, this new design will require two years or more to design, assemble/fabricate, test and qualify before production would commence; therefore, additional batteries are being procured to support launch efforts through FY16.

ICBM FDE missions are paramount to maintaining the qualification of the ICBM Weapon System and performing its mission of nuclear deterrence. Any delay in meeting the AF ICBM FDE mission requirements is unacceptable. With the immediate need of Sep 2014 and because a new source may require at least one year longer to design to the old specification (SCD 200211147), fabricate, test, qualify and begin production of the CD/GPS batteries compared to BST, the AF is going to the only qualified source for the old specification of CD/GPS Batteries.

D. Accordingly, BST is the only firm capable of providing the supplies and services described in Section III above without the AF experiencing unacceptable delays in fulfilling requirements.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED

FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE:

IAW FAR 5.202(a)(2), the proposed contract action is made under the conditions described in 6.302-2, Unusual and Compelling Urgency. It has been determined that the Government would be seriously injured if the agency complies with the time periods specified in 5.203.

A. Initially AFSC Sources Sought Synopsis FD2020-13-01122 dated 5 Feb 13 notified interested contractors of the Government’s need to procure 50 each of the Squib Actuated Battery (NSN 6135- NCE522803/Part Number 201227269-1). The synopsis was based on a new battery specification which would require testing and source qualification. Only one contractor BST (cage 62339) responded to the source sought synopsis. The Sources Sought Synopsis FD2020-13-01122 closed on 7 Mar 13.

B. On 20 Feb 13, contacted the Air Force (AFSC) via the phone with regards to the Sources Sought Synopsis FD2020-13-01122. was informed that the AF was looking for additional sources to meet their requirement for CD/GPS silver zinc batteries and if was interested in being a source, they should reply to the Sources Sought Synopsis as an interested company. A reply from was not received.

C. On 5 Mar 13 BST expressed an interest with AFSC for the manufacturing of this battery and was a previously qualified source based on successfully developing, manufacturing, qualification testing and providing the battery to the Government under previous contract FA8204-06-C-0012.

D. This requirement was synopsized by AFSC as a proposed contract action on FEDBIZOPPS IAW FAR

5.201. A pre-solicitation notice was posted on 7 Aug 13, and the solicitation was posted on 17 Sep 13.

Shortly after solicitation, technical requirements for the CD/GPS Batteries were changed. The change in technical requirements drove the need to ensure qualification testing was accomplished. This design and these changes are a completely different battery than the CD/GPS Batteries discussed in Sections II, III, and V of this Justification and Approval. The change in requirements drove the design to be solicited again on FEDBIZOPPS. informed the contracting officer (AFSC) on 30 Dec 13 that they would like to compete on the requirement for the new battery.

E. The requirement for source qualification testing imposed a minimum 6 month delay in awarding the AFSC contract for the batteries (approximate contract award is no earlier than Jun 14). The anticipated competitive acquisition for the new battery cannot meet the required need date of Sep 14 for GT-214. To ensure no unacceptable delays in meeting the AF ICBM FDE mission requirements, the ICBM Systems Directorate is conducting this UCA to purchase the old specification CD/GPS Batteries from BST, the only qualified source. This is the only way to meet the required need date of Sep 14.

F. AFSC will continue efforts for a competitive acquisition for the new CD/GPS batteries based on the new and different design specification. The new specification for CD/GPS batteries is based on new requirements and will require design, assembly/fabrication, qualification, testing and production.

Based on current engineering estimates, this new design will require two years or more to complete;

therefore, additional CD/GPS batteries of the old specification are being procured to support launch efforts through FY16.

G. Qualifying Country Sources: None

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED

COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE:

The following steps will be taken to ensure that the anticipated cost of this acquisition will be fair and reasonable. These steps will be in accordance with the procedures and criteria contained in the FAR under Part 30 - Cost Accounting Standards, Part 31 - Contract Cost Principles and Procedures, Subparts

15.4 - Contract Pricing; to include technical evaluations and audits, as necessary. Additional steps to ensure price reasonableness will be performed using the guidance of the Contract Pricing Reference Guides, jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology.

The AF will obtain certified cost and pricing data IAW FAR Subpart 15.403. The final step is to prepare the Price Negotiation Memorandum (PNM) upon completion of negotiations.

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

A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT CONDUCTED:

Limited market research was conducted within the extremely short timelines available for the completion of this effort. One source was identified as able to complete this effort within the accelerated timeframe (need date Sep 14): it was determined by AFSC that BST could start manufacturing within the very short timeline available in an effort to meet upcoming flights. Given the immediate availability of its manufacturing facilities and its risk-reduction initiatives, BST is the only source available that can meet the short-notice and imposed deadline considering that they have already designed specifically for AF application in 2005 (old specification CD/GPS Batteries – SCD 200211147).

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

COMPETITION:

If BST is not awarded this unusual and compellingly urgent contract, the AF has no other engineering and manufacturing source available that has been proven to formally meet the accelerated timeline of this mandate. Accordingly, without BST, the defensive posture of the United States would be seriously jeopardized as failure to meet the test flights.

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

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:

By implementing this UCA, it will allow time for to participate in future acquisitions for a newly designed CD/GPS Battery with new requirements. AFSC will be posting a solicitation for additional CD/GPS batteries that will allow for increased competition in future procurements.

XII. CONTRACTING OFFICER’S CERTIFICATION:

The contracting officer’s signature on the Coordination Approval Document (CAD) is evidence that she has determined this document to be both accurate and complete to the best of her knowledge and belief.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION:

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