J A Final Redacted 10132011.pdf

FD2020-11-50704

6 June 2011

COORDINA nON AND APPROVAL DOCUMENT

Contracting Activity: OO-ALC/GHMK Purchase Request Number. FD2020-11-50704 Program Name: T-38 and 1'-5 Sustaining Engineering Services Estimated Program Cost: $12.000,000.00 Type Program: AFPEO/CM Authority: 10U.S.C.2304{c) (I), as implemented by FAR 6.302-1 Only One Responsible Source, No other Supplies or Services Will SatisfYAgency Requirements Type J&A: Individual

COORDINA nON:

JUSTIFICATION FOR OTHER

THAN FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY:

United States Air Force

OO-ALC/GHMK

6072 Fir Ave, Bldg 1233 Hill AFB UT 84056 Contracting Officer:

DSN: 775-2097

PR Nwnber: FD2020-11-50704

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

A. Upon approval to use other than full and open competition procedures, the Air Force ",~ll issue a follow-on Indefmite Delivery, Indefinite Quantity (IDIQ) contract to procure engineering and technical services from Northrop Grumman Technical Services (NGTS).

This requirement is for support of the T-38/F-5 Maturing and Proven Aircraft (MAPA) program and will be used by the T-38/F-5 System Program Office (SPa). Contract will be awarded to NGTS, 1412 South Legend Hills Drive, Suite 210, Clearfield, UT 84015, and Cage Code OJRCl.

B. Contract Type and Structure: A new service contract to procure engineering and related services utilizing Firm Fixed Price (FFP) and Cost-Plus Fixed Fee (CPFF) CLINs. Tasks placed on this contract will be, but are not limited to definable engineering tasks that are in transition from aT &M contract type but may not yet be fully developed for FFP.

Activities such as but not limited to travel, RM&S activities, and Time and Materials (T&M) tasks such as crash investigation, Safety of Flight, and over and above activities where other contract types will not work will also be placed on contract. The previous contract was primarily T&M; the target is to limit T&M to 10 percent or less. Based on historical information and activities we are better able to dcfine future requirements.

Additionally the contract strategy includes cost reimbursable line items, making it possible to transition away from T&M. However, there are potential activities such as RM&S, Safety of Flight or accident investigation, at the time of placing this order, that make it impossible to estimate accurately the extent or duration of the work or to anticipate costs 'Withany reasonable degree of confidence. The contract period of performance is from date of award through 30 Sep 2015. The ordering period for this contract will be two (2) years beginning September 2011 ending September of2013 with an optional six (6) month extension on the ordering period which will end March of2014.

The Delivery order performance will be negotiated with each order. The option to extend services clause (FAR 52.217-8) will be included and evaluated in the resulting contract and the contractor will evaluate all options (FAR 52.217-5).

C. Type J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REOUIRED MEETING THE

AGENCY'S NEEDS:

A. Under the contemplated contract, NGTS will provide the following engineering services in sustainment of the T-38/F-5 SPO. It is estimated 45,000 engineering hours will be required each year to maintain the structural base line data to ensure the Safety of Flight capabilities for the airframe. Requirements to be placed on this contract will fall into one of the following categories: Aircraft Structural Integrity Program (ASIP) or Systems Engineering (SE). This approval request is for more than one fiscal year; there are no feasible actions that could be developed for future competition during this timeframe as described in Section V below.

B. The cohtract period of performance is from date of award through 30 Sep 2015. The ordering period for this contract will be two (2) years beginning September 20 II ending September of 2013 with an optional six (6) month extension on the ordering period that will take us out to March of2014. Delivery order performance will be negotiated with each order.

C. Total Estimated Cost: $12,000,000.00 includes optional ordering period. This estimate is based on historical comparison to a prior IDIQ contract, FA8202-05-D-0004 with a $30M ceiling, and projected ASIP and SE related requirements. Estimate of required engineering hours from projected annual funding is, FYII, 55.5K hrs.and FYI2, 34.5K hrs., with a total 2 year effort to be approximately 90K hrs. This is based on the historical annual funding received in the past 5 years for ASIP and SE efforts.The current effort hours estimates are FYII (ASIP = 43K SE= 12.5K ); FY12 (ASIP = 22K SE= 12.5K). This action is using appropriated funds such as specifically allocated to engineering services_ The basic contract will contain line items for both ASIP and SE requirements for each contract type; Specific line items and contract types will be determined at the task order level.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

10 USC 2304 (c) (I) as implemented by FAR 6.302-1 - Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

V. DEMONSTRATION THAT THE CONTRACTOR'S UNIQUE OUALIFICATIONS

OR NATURE OF THE ACOUISITION REQUIRES THE USE OF AUTHORITY CITED

ABOVE (APPLICABILITY OF AUTHORITY):

A. The above authority was selected because this contract is for highly specialized services.

The contractor possesses trade secrets, engineering processes, historical data, and airframe specific tests. Only NGTS has access to the aero-dynamic and base line aircraft structure da includin ears of data enhancements associated with the ASIP ro am.

This data, used in conjunction with evaluation of ASIP data, is critical to Safety of Flight issues. Therefore, this acquisition is for performance of a highly specialized service.

B. The government estimates award to any other vendor would result in unacceptable delays in fulfilling the agency's requirements to train our future pilots. Not having this engineering support in place would force the Air Force to remove this aircraft from the inventory due to incalculable changes in the aircraft's structural integrity, due to constant changes in mission flight characteristics. The Systems Program Office (SPO) estimates it would take a minimum of 15 years to develop and replace the existing data owned by NGTS. Waiting to develop new usable technical data to replace what is currently owned by NGTS would result in removing this training aircraft from service. Doing so would halt pilot training causing the Air Force to lose qualified pilots to fulfill USAF missions this creates a back log of pilot training qualification. Currently Air Education Training Command (AETC) trains approximately 2,000 pilots per year. Over this 15 year period it is estimated the Air Force would miss out on qualifying approximately 30K pilots_ To determine the number of pilots that would miss out on training; we took the number of pilots going through training in a year and multiplied that times the number of years the aircraft would be unavailable to illustrate the effect it would have on our war fighting capability. This back log would dramatically reduce the Air Force's war fighting capabilities by reducing the number of qualified pilots available to perform the mission.

C. The program office has determined 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. NGTS has exclusive rights to data necessary to perform the required ASIP and SE services. To enable competition, such data would have to be reverse engineered for over 150 proprietary systems that are on the T-38/F-5 aircraft.

The SPO has estimated it would cost approximately $1.5B to duplicate the necessary qualified technical data for the aircraft.

D. The last attempt to obtain the data rights was December 2010 by the T-38 SPO and contracting office. NGTS declined to sell any portion of their rights that would have fostered competition.

E. Accordingly, NGTS is the only firm capable of providing the services, described in Section III above, without the government experiencing unacceptable delays in fulfilling engineering service requirements and 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 DEEMED PRACTICABLE: -

A. Sources Sought Synopsis (SSS): A SSS (FA8202-R-AAAC) was issued 27 September 2010 requesting how interested vendors would acquire access to OEM data. None of the responses adequately addressed how the company would acquire or obtain rights to the necessary data from the OEM. Teclmical data and base line aircraft configurations required for ASIP and SE services use trade secrets, engineering processes, historical data and airframe specific tests to perform these services in support of the T-38 and F-5 SPO.

NGTS responded to the SSS by stating, "NGTS owns the data in question and has not made any arrangements to make that data available to other parties in support of their competing bids for this T-38/F-5 Engineering Services contract".

The following is a list of responding vendors from the SSS:

C. Other actions: None

D. QualifYingCountry Sources: None

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR Al'm REASONABLE:

The following steps will be taken to ensure that the anticipated cost of this acquisition will be fair and reasonable. The contracting officer will comply with the procedures and criteria contained in Federal Acquisition Regulation (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 appropriate. Additional steps to ensure price reasonableness will be under the guidance of the Contract Pricing Reference Guides, jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology. The contracting office will obtain certified cost and pricing data lAW FAR Subpart 15.403, when required. The fmal step is to include the Price Negotiation Memorandum (pNM). This detailed documentation and justification of price reasonableness will be disclosed in the official PNM, to be prepared 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:

A. As described in Section VI above, market research, in accordance ",ith FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.

B. lAW FAR Part 10, engineering has determined that there are not any commercial items or non-developmental items available that could be modified to satisfYthe program's needs.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL Al'm

OPEN COMPETITION:

None

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

ACOUISITION:

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

SUBSEOUENT ACOUISITIONS FOR THE SUPPLIES OR SERVICES REOUIRED:

None

XII. CONTRACTING OFFICER'S CERTIFICATION:

The contracting officer's signature on the Coordination and Approval Document evidences that he has determined this document to be both accurate and complete to the best of his knowledge and belief (FAR 6.303-2(a)(12).

XIII. TECHNICALIREOUIREMENTS PERSONNEL'S CERTIFICATION:

As evidenced by their signatures on the Coordination and Approval Document, thc technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete (FAR 6.303-2(b)).