16-51307,_16-51308_J_A_post_to_FBO.pdf

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

B. The period of performance will be for an Indefinite Delivery, Indefinite Quantity (IDIQ) multiple year firm-fixed price contract award, estimated to be issued on or before 30 September 2017. The ordering period for this IDIQ will be from contract award through a five (5) year ordering period. Deliveries could be accepted through an additional 24 months following the final delivery order. Deliveries will be based on the requirements by line item in the contract for each respective NSN with each country being a sub-line item. Procurements will be delivered as orders for future requirements with an estimated negotiated delivery of 12-months (or less) after receipt of orders. 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.

C. Theestimatedcost is$11,923,555.00. This estimate isbasedonpreviouscontracts (1) FA8213-13-D-0002,dated15May 2013, for

,withUPCO/UTAS, for identicalDTA's for the F-16 aircraft; (2) FA8213-12-C-0040, dated 19 April 2012, for withUPCO/UTAS,for identicalDTA's for the B-1 aircraft. Thisaction willuseappropriated3011fundsand FMSfunds.

All FMS requirements are based on Letters of Offer and Acceptance (LOA) provided through Air Force Life Cycle ManagementCenter, Munitions Sustainment Division, International Branch, Hill Air ForceBase, Utah. TheFMS countries needing these requirements have an LOA on file to procure Cartridge Actuated Devices/Propellant Actuated Devices (CAD/ PAD). All LOA requirements are identified on a Blanket Order LOA Line with a corresponding Military Article Service List (MASL) allowing procurement of items within the1375, 1376, and 1377 Federal Supply Class (FSC). All FMS countries in this procurement do not direct a source.

D. Other DoD and US Government agencies (National Aeronautical and Space Administration (NASA), National Science Foundation (NSF), National Weather Service (NWS), etc.) that fly the F-16 as part of their mission may utilize this IDIQ contract to procure any of the items listed in Section III, as long as the ceiling has not been reached at the time of procurement.

E. FMSbuysarefor thecountriesof Bahrain, Belgium, Denmark, Greece, Egypt, Indonesia, Iraq, Jordan, Netherlands, Norway, Pakistan, Poland, Portugal, Romania, Singapore, South Korea, Thailand, Taiwan, Turkey, and UnitedArabEmirates. This is not a country-directed buy and is being purchased for named countries in accordance with current LOA’s. However, additional FMS countries with a current LOA may utilize this IDIQ contract to procure any of the items listed in Section III, as long as the ceiling has not been reached at the time of procurement.

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

10USC2304(c)(1)asimplementedbyFAR6.302-1,OnlyOneResponsibleSourceandNoOtherSuppliesorServicesWill Satisfy Agency Requirements.

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.The above authority was selected because this contract is for continued production of a major system of the F-16 and B-1 aircraft. The prime vendor, Lockheed Martin, has identified UPCO/UTAS as the only authorized vendor to manufacture these parts. In addition, UPCO/UTAS was selected because the F-16 and B-1 DTA’s require an engineering source approval by the design control activity in order to maintain the quality of the part. The USAF and FMS minimum needs can only be provided by UPCO/UTAS because they have the proprietary design on the test equipment, the detonating tip formulation, and the explosive charge where their process of extruding explosive permeated plastic tubing, with the only military approved egress application qualified to build these F-16 and B-1 DTA’s. UPCO/UTAS because they have the proprietarydesign on the explosivecharge,test equipment,andspecificdetonationtipformulation tobuildtheseF-16 and B-1 DTA's. The government does not have sufficient data or the data license rights to allow for full and open competition for this requirement. Therefore, this acquisition will be a follow-on contract for the continued production of a major system.

B. As a result of the Sources Sought Synopsis (SSS) posted to FEDBizOps (FBO) April 28, 2016 and closed May 30, 2016 to identify potential sources over the last 3 years having knowledge, experience in engineering, manufacturing, inspection, and testing to manufacture Detonation Transfer Assembly (DTA) Lines used on the F-16 and B-1 aircraft, no responses were received other than from the qualified source. Therefore award to any other source, other than the qualified source, is not an option at this time. The CAD/PAD Joint Program Office (CAD/PAD JPO) believes that an effort to qualify another source, should one become interested, would result in substantial duplicationofcost to the government that isnot expected to be recovered through competition. Additionally, unacceptable delays in fulfilling USAF and/or FMS requirements would be inevitable.

1. The government estimates that any reverse engineering efforts along with system level testing would cost the government approximately $3M and would take approximately four (4) years to complete. The USAF has limited service return assets to provide interested potential second source suppliers for reverse engineering efforts. The government cannot accept any service returns from FMS countries. Potential second source would need to self-invest in order to become a qualified source.

2. Based on a CAD/PAD JPO twenty-five (25) year history of qualification programs, a typical qualification process can take three (3) to four (4) years to complete. Reverse engineering of similar components used in the F-16 and B-1 aircraft took three (3) months to determine overall dimensions, explosive material, and entire sub-component assemblies. The requirements document must be established, which consists of collecting specifications from the aircraft platform requirements, requirements from the specification documents for performance, reverse engineering to establish form, fit, and function, and determine requirements from other interfaces encountered in the overall aircraft system. This process can take an additional five (5) months. The vendor must provide a preliminary design for a complete review of every phase of the design; develop a program test plan which explains how all phases of the qualification program will be performed. The vendor must also perform a critical design review, build at least one (1) unit after completion of the design to be used as a fit check unit to ensure all connections, interfaces, and devices fit in the aircraft. In addition to ensuring proper configuration management of the new part, the creation of engineering drawings needed to manufacture a reverse engineered part took an additional nine (9) months. In summary, it would take seventeen (17) months to reverse engineer and a minimum of thirty-six (36) to forty-eight (48) months to qualify a new supplier. Additionally, during initial production, all suppliers must submit an inert fit-check unit which is required to be installed on an actual platform to ensure their preliminary design does not have any interface or configuration problems in the overall system interface. This process normally drives a 15-20 percent redesign effort that results in a fit-check unit that is acceptable. Delay awarding this contract could put the USAF and/or FMS countries in a non-support situation, resulting in the use of items listed in Section III, currently installed in aircraft, beyond their assigned shelf and/or service life which may cause catastrophic results to the aircrew if an ejection attempt is initiated.

C. Accordingly, UPCO/UTAS is the only firm capable and qualified to provide the items described in Section III above without the USAF and/or FMS experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling requirements

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

A. Sources Sought Synopsis: A Sources Sought Synopsis (SSS) FD2020-15-51048 was posted to FEDBizOps (FBO) April 28, 2016 and closed May 30, 2016 to identify potential sources over the last 3 years having knowledge, experience in engineering, manufacturing, inspection, and testing to manufacture Detonation Transfer Assembly (DTA) Lines used on the F-16 and B-1 aircraft. The Sources Sought Synopsis indicated a company must have access to all appropriate data and it states the government does not possess or have the rights to use the data required to manufacture the components. No responses were received other than the qualified source.

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. Should another source express interest in bidding for this requirement, they would be required to go through a complete qualification effort and show the capability to perform the necessary actions to manufacture these sequencers.

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 contact 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 May 2016 query from the AFLCMC/EBHJ vendor base, industry summits and workshops, and SSS identified in Section VI Paragraph 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 F-16 and B-1 aircraft CAD/PAD Integrated Product Teams revealed that UPCO/UTAS 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 CAD/PAD JPO is in continuous market research with vendor base through annual technical interchange meetings, technical workshops, and annual conferences to determine vendor capabilities. The CAD/PAD JPO submits annual requests to determine if a specific vendor is interested in selling their data rights.

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)).