63_1377155JandA_Redacted.pdf

FD2020-13-77030 & Various

13 Sep 2012

12/20/2012

1/7/2013

1/9/2013

1/14/2013

COORDINATION AND APPROVAL DOCUMENT

Contracting Activity: AFLCMC/EBHKB

Purchase Request Number/Local Identification Number: FD2020-13-77030 & Various

Program Name: United States Air Force (USAF) & Foreign Military Sales (FMS) C-17, USAF

B-1 aircraft & AGM-86 cruise missile. Charge Assembly (Assy), Linear;

Impulse Cartridge (Ctg), Pin Puller; Impulse Ctg, Seat Ret Thr; Output Init, Seat Ret Thr; Panel, Explosive, Air; Cord Assembly Detonating; SMDC Line;

Retractor Pressure Cartridge; Actuator, Explosive; Union, SMDC; and Engine

Starter CTG

Estimated Program Cost:

Type Program: PEO

Authority: 10 U.S.C. 2304(c) (1), as implemented by FAR 6.302-1, Only One

Responsible Source

Type J&A: Class

COORDINATION:

APPROVED:

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY:

United States Air Force

AFLCMC/EBHKB

6033 Elm Lane, Bldg 1247

Hill AFB UT 84056-5805

Contracting Officer: Kevin Garduno

DSN: 777-0280

PR Number: FD2020-13-77030 & Various

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

A. Upon approval to use other than full and open competitive procedures, the Air Force will issue multiple contracts to procure; Charge Assembly, Linear; Impulse Cartridge, Pin Puller;

Impulse Ctg, Seat Ret Thr; Output Init, Seat Ret Thr; Panel, Explosive, Air; Cord Assembly

Detonating; SMDC Line; Retractor Pressure Cartridge; Actuator, Explosive; Union, SMDC; and

Engine Starter CTG for use on either the egress system for USAF & FMS C-17, USAF B-1 aircraft & AGM-86 cruise missile to Pacific Scientific Energetic Materials Company California

LLC (PSEMC) 3601 Union Rd Hollister, CA 95023-9635, CAGE Code 06331.

B. Contract Type & Structure: Several new contract(s) are anticipated to procure a total quantity of 920 units with an anticipated Firm-Fixed-Pricing arrangement with an estimated value of will be issued. The estimated award dates will begin Jan 2013 through Oct 2013.

C. Type J&A: Class. This J&A will be used to award approximately four (4) contracts to

PSEMC, CAGE Code 06331.

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS:

A. Under the contemplated contract, PSEMC will provide the following supplies; Charge Assy, Linear; Impulse Ctg, Pin Puller; Impulse Ctg, Seat Ret Thr; Output Init, Seat Ret Thr; Panel, Explosive, Air; Cord Assembly Detonating; SMDC Line; Retractor Pressure Cartridge; Actuator, Explosive; Union, SMDC; and Engine Starter CTG are part of the B-1 & C-17 egress systems or

AGM-86 cruise missile. This Federal Stock Class includes safcty-in-f1ight explosive items consisting of a quantity of propellant (either encased in a cartridge or in molded form) and a means of activation, designed to be inserted into or attached to one or more devices to provide the energy required to operate devices requiring a time delay, or not requiring a time delay, in their operating sequence. The below listed components perform aircraft/cruise missile specific functions that allow the aircrew emergency egress should an ejection event occur or for a missile to stay on target.

Item # NSN Name

USAF

Qty

FMS

Qty Price/Unit Ext. Price

0001 1377012363516ES CHARGE ASSY, LINEAR

0002 1377012363517ES CHARGE ASSY, LINEAR

0003 1377012797179ES IMPULSE CTG, PIN PULLER

0004 1377012797180ES

IMPULSE CTG, SEAT RET

THR

0005 1377012797181ES

OUTPUT INIT, SEAT RET

THR

0006 1377014866045ES PANEL, EXPLOSIVE, AIR

0007 1377014869700ES PANEL, EXPLOSIVE, AIR

0008 1377014870148ES PANEL, EXPLOSIVE, AIR

0009 1377014871952ES PANEL, EXPLOSIVE, AIR

0010 1377013812873ES

CORD ASSEMBLY,

DETONATING

0011 1377013812949ES CORD ASSEMBLY, DETON

0012 1377013812977ES CORD ASSEMBLY, DETON

0013 1377013812985ES CORD ASSEMBLY, DETON

0014 1377013812990ES SMDC LINE

0015 1377013820685ES SMDC LINE

0016 1377013820697ES

0017 1377013820700ES

0018 1377013820702ES

0019 1377013934790ES

RETRACTOR PRESSURE

CARTRIDGE

0020 1377013934792ES ACTUATOR, EXPLOSIVE

0021 1377014409150ES CORD ASSEMBLY, DETON

0022 1377014409151ES

0023 1377014418187ES CORD ASSEMBLY, DETON

0024 1377014418188ES CORD ASSEMBLY, DETON

0025 1377015095151ES SMDC LINE

0026 1377015095159ES SMDC LINE

0027 1377015095178ES SMDC LINE

0028 1377015095180ES SMDC LINE

0029 1377015095193ES SMDC LINE

0030 4730013758674ES UNION, SMDC

0031 4730013758676ES UNION, SMDC

0032 1377015266553ES ENGINE STARTER CTG

0033 1377015189681ES SMDC LINES (SHIP SET)

0034 Data 1 NSP

0035 Data 1 NSP

Total Total

B. The period of performance will be from contract award date in FY13 through estimated delivery of parts in December 2015. Approval request is for more than one fiscal year. There are no feasible actions that can be taken to promote competition during the performance of this acquisition as described in Section V of this document.

C. Total Estimated Cost: . This estimate is based on history from contract

F42630-00-C-0290, F42630-02-C-0135, FA8213-04-M-0075, F42630-00-C-0290, FA8213-12-

C-0025, F33657-81-C-2109, FA8213-11-R-77073, FA8213-12-C-0032, and FA8213-12-C0047.

This action is using appropriated 3011, 3020 and FMS funds. Contracts containing FMS actions are FMS funded requirements, and a signed copy of The Letter of Offer and Acceptance (LOA) will be included in the procurement package for each contract awarded under this “Class” justification. The LOA(s) will not direct a source.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

10 USC 2304 (c) (1) as implemented by FAR 6.302-1, Only One Responsible Source.

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 USAF & FMS minimum needs can only be provided by PSEMC because they are the only approved source that has demonstrated the unique design capability, manufacturing knowledge, or technical data required to manufacture these items. This acquisition requires engineering source approval by the design control activity in order to maintain the integrity of the part. An alternate source must qualify in accordance with the design control activities.

Therefore, this acquisition will be for continued production of highly specialized equipment.

B. The Cartridge Actuated Device/Propellant Actuated Device (CAD/PAD) Program Office estimates award to any other vendor would result in unacceptable delays in fulfilling USAF and

FMS requirements. Based on a twenty-five year history of qualification programs, the

CAD/PAD office estimates that a typical qualification process can take three to four years to complete. Reverse engineering of energetic components used in egress systems generally takes four months to determine overall dimensions, explosive material, and entire sub-component assemblies. In addition, to ensure proper configuration management of the new part, the establishment of engineering drawings needed to produce a reproducible part takes an additional

6 months. It would take approximately 12 months to reverse engineer, and a minimum of 36 months to qualify a new supplier. As part of the qualification effort, all vendors must submit an inert fit check unit which must be installed on the actual platform to ensure their preliminary design does not have any interference or configuration problems in the overall system interface.

This process normally results in a 15-20 percent redesign effort to obtain a fit check unit that will be acceptable. Delay in awarding this contract could put the USAF and FMS in a non-support resulting in the use of items in Section III outside the service life which may cause catastrophic results to the aircrew.

C. The CAD/PAD Program Office 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. The estimated cost for a vendor to reverse engineer, develop drawing packages, hold design reviews, obtain required hardware, and complete qualification for the USAF B-1

CAD/PAD components is and would take approximately three to four years to complete. This estimate was provided by the CAD/PAD technical team based on previous qualification efforts for other similar ACES II seat components. Due to the substantial duplication of cost, the government has determined that it is not feasible to reverse engineer these explosive components to allow for competition.

D. The last attempt to obtain the data from PSEMC was via email on 13 Jan 2012 by the program manager. PSEMC informed the Air Force it is not willing to release data rights to the

USAF. Currently, PSEMC is the only source that has the all the data needed to manufacture all items listed in Section III. These parts are critical safety of flight components and require engineering source approval by the design control activity in order to maintain the integrity of the part.

E. Accordingly, PSEMC is the only firm capable of providing the supplies described in Section

III above without the USAF and FMS experiencing unacceptable delays in fulfilling the B-1, C-

17 and AGM-86 CAD/PAD requirement and substantial duplication of cost that could not be expected to be recovered through competition.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE:

A. Sources Sought Synopsis (SSS) FD202077777 was posted to FEDBizOps (FBO) on 06 Nov

2012 and closed 05 Dec 2012 requesting information to identify potential sources possessing the engineering and manufacturing knowledge for Items listed in Section III used on USAF and/or

FMS B-1 and C-17 Aircraft and/or AGM-86 cruise missile. No responses were received.

B. This requirement will be synopsized in the FBO as a Notice of Contract Action IAW FAR

5.201. If other interested sources express interest as a result of this synopsis or other action, they will be listed in the official contract file.

C. Other actions: None

D. 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. 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 IAW FAR Subpart 15.403 when applicable. The Final

Step is to include the Price Negotiation Memorandum (PNM). Detailed documentation and justification of price reasonableness will be disclosed in the official PNM, to be prepared upon completion of negotiations.

VIII. DESCRIPTION OF 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 with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties

B. Market research was conducted Apr 2012 by Air Force Life Cycle Management Center

(AFLCMC) AFLCMC/EBHJ. Market research consisting of a query of the AFLCMC/EBHJ vendor base, technical workshops with vendors, and SSS identified in Section VI determined that

PSEMC is the only source for this requirement. After review of industry sources, it was determined there were no alternate sources, equipment, nor substitution available to fill the government’s needs. IAW FAR Part 10, engineering has determined that there are no commercial items or non-developmental items available that could be modified to satisfy USAF and/or FMS needs.

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

OPEN COMPETITION:

None.

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:

The program office has the performance specification and will provide it to any interested vendor with a desire to develop its own cartridge design at its own expense. New potential sources must be approved by the system engineer prior to contract award.

XII. CONTRACTING OFFICER’S CERTIFICATION:

The Contracting Officer’s signature on the Coordination and Approval Document (CAD) evidences that he has determined this document to be both accurate and complete to the best of his knowledge and belief (FAR6.303-2(b) (12)).

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION:

As evidenced by their signature on this CAD, the 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(c)).