J A_PR_FD2020-16-50018.pdf

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

11/18/2015

11/23/2015

11/24/2015

11/25/2015

Choose the funding level for this J&A Document:

< $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: AFLCMC / EBHKB

Purchase Request / Local ID Number: FD2020-16-50063 & Various

Program / Project (and PE, if applicable): United States Air Force (USAF) and/or Foreign Mil itary Sales (FMS) T-37, OA-37, F-15, B-52, U-2 Seat back Rocket Motor; Rotary Actuator; Catapult;

Aerial Refuel ing Receptacle Cartridge; Actuator Seat/Foot Retractor

Program Type (PEO or Other Contracting): PEO – non ACAT

Authority (include full title): 10 U.S.C 2304(c) (1), as implemented by FAR6.302-1, Only One Responsible Source

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

COORDINATION (A F F A R S 5 3 0 6 . 3 0 4 ( a) )

APPROVAL (A F F A R S 5 3 0 6 . 3 0 4 ( a) )

I. Contracting Activity.

United States Air Force (USAF)

AFLCMC/EBHKB

6033 Elm Lane, Bldg 1247 Hill AFB UT, 84056-5805 Contracting Officer: Glen Munk

DSN: 775-3298

PR Number: FD2020-16-50063 & Various

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

A. Upon approval to use other than full and open competitive procedures, the USAF will issue a new contract(s) to procure the items listed in Section III below for use in the egress system in United States Air Force (USAF), National Aeronautics and Space Administration (NASA), Foreign Military Sales (FMS) T-37, OA-37, F-15, B-52, U-2 Aircraft to:

Nammo Talley 4051 N Higley Rd Mesa, AZ 85215-1210 CAGE Code 12116

B. Contract Type & Structure: Several new supply contracts to procure and estimated quantity of 362 units with an anticipated Firm-Fixed-Pricing arrangement will be issued. The estimated award date(s) will between February to Aug 2016.

C. Estimated value is

D. Type J&A: Class. This J&A will be used to award an estimated four (4) contracts to Nammo Talley, CAGE Code

12116

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

A. Under the contemplated contract(s), Nammo Talley will provide Items 1 – 4 considered as new; Seat Back Rocket Motor; Actuator, Rotary; Catapult; Cartridge, Impulse; Aerial Refueling Receptacle Cartridge are part of the T-37, OA-37 egress systems and F-15 Aerial Refueling system. This Federal Stock Class includes safety-in-flight explosive items consisting of a quantity of propellant (either encased in a cartridge or in molded form) and 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 specific functions that allow the aircrew emergency egress should an ejection event occur.

B. Under the contemplated contract(s), Nammo Talley will provide Items 5 – 7 as “remanufactured” defined by FAR 22.1003-6(a)(1) – Repair Distinguished from Remanufacturing of Equipment. These items will be torn down, reworked, reassembled to furnish a totally rebuilt item; items will follow similar manufacturing processes; items are restored to original life expectancy; work performed in facility owned/operated by the contractor.

L/I NSN Noun USAF Est FY 16 Qty

NASA Est FY16 Qty

FMS Est FY16 Qty

FMS Est FY17 Qty

Est Unit Price Est Total

1 1377011376052ES Seat Back Rocket Motor 20 50 2 1377011376041ES Actuator, Rotary 4 15 3 1377008916319ES Catapult 8 15 4 1377002615371ES Cartridge, Impulse 45 50 5 1377008916310ES Actuator, Rotary 100

6 1377015193359ES Actuator Seat/Foot Retractor 25 4 7 1377015193360ES Actuator, Rotary 16

8 Data LATR, ATP, FAR/CAR 1 9 Data ADC 1

C. The period of performance will be from contract award (estimated Jan 2016) through estimated delivery of parts in December 2018. Approval request is for more than one fiscal year. There are no feasible actions that can be taken to promote competition during the period of the acquisition as described in Section V of this document.

D. Total Estimated Cost: This estimated is based on history from contract FA821313C0005, FA821311C0052, FA821310C0075, FA821311C0100, FA821314C0067. Contracts containing NASA and/or FMS actions are NASA and/or FMS funded requirements. All FMS requirements are based on Letter of Offer and Acceptance (LOA) provided through Hill Air Force Base Life Cycle Management Center Munitions Division International Branch. The FMS countries needing these requirements have a LOA to procure Cartridge Actuated Device/Propellant Actuated Device (CAD/PAD). All LOA requirements are identified on a Blanket Order LOA Line with corresponding Military Article Service List (MASL)'s allowing procurement of items within the 1375, 1376 and 1377 Federal Stock Class. The following LOA(s) UY-D-CAF, 07 Oct 2014; do 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 the authority cited above (applicability of authority).

A. USAF, NASA, FMS minimum needs can only be provided by Nammo Talley because they are the only approved source that has demonstrated the unique design capability, manufacturing knowledge, or technical data required to manufacture these items. 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 and escape system. Therefore, this acquisition will be for continued production of highly specialized equipment.

B. Nammo Talley provided top level drawings for cataloging purposes only; cataloging is for assigning a National Stock Number (NSN). The United States Government (USG) has limited data rights. The last attempt to obtain the data from Nammo Talley was via email on 22 Jul 2015 by the program manager. Nammo Talley informed the USAF it is not willing to sell the government purpose data rights.

C. The CAD/PAD Joint Program Office (CAD/PAD JPO) 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 and unacceptable delays in fulfilling FMS requirements.

1. The estimated cost to reverse engineer the items in Section III is and would take approximately four years to complete. The USAF is not authorized to spend USG funds in support of second source efforts on items used solely by FMS. The USAF has limited service returned assets to provide potential second source suppliers for reverse engineering activities. Potential second source would need to self-invest in order to become a qualified source.

2. Based on a CAD/PAD JPO twenty five year history of qualification programs, a typical qualification process can take three to four years to complete. Reverse engineering of similar components used in the ACES II & Northrop ejection seat took 9 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 took an additional 9 months. It would take 18 months to reverse engineer and minimum of 36 months to qualify a new supplier. In addition, during initial production, all vendors must submit an inert fit check unit which much be installed on 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 that results in a fit check unit that will be acceptable. Delay in awarding this contract could put the USAF, NASA, 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.

D. Accordingly, Nammo Talley is the only firm capable of providing the items described in Section III above without USAF, NASA, FMS experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

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

A. Sources Sought Synopsis: Sources Sought Synopsis FD2020-16-50063 posted to FEDBizOps (FBO) 17 Aug 2015 and closed 01 Sep 2015; FD2020-16-50075 posted 16 Sep 2015 and closed 30 Sep 2015 requesting information to identify potential sources possessing the engineering and manufacturing knowledge for items identified in Section III above used on USAF, NASA, FMS T-37, OA-37, F-15, B-52, U-2 Aircraft. No Responses were received.

B. This requirement will be synopsized in the FBO as a Notice of Contract Action IAW FAR 5.201. All sources that request a solicitation will be provided one. 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 if the value of an individual contract exceeds $700,000. 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 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 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 conducted IAW FAR Part 10 included a July 2015 query from the AFLCMC/EBHJ vendor base, industry summits and workshops, and SSS identified in Section VI Para A.

C. The items listed in Section III are not available commercially nor is any modified commercial item available that will meet the government's requirement. However this requirement is a non-developmental item (NDI) and will satisfy the government need at this time.

D. The current T-37, OA-37, F-15, B-52, U-2 Integrated Product Teams revealed that Nammo Talley is the only vendor that currently has all of the required data and claims rights to the data needed to produce the items identified in Section III.

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 Government will continue to pursue the government purpose data rights, in addition to researching other sources who may be able to compete.

XII. Certification by the Contracting Officer.

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

XIII. Certification by the technical/requirements personnel.

As evidenced by their signatures on the Coordination and Approval Document, 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)).

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