FD2020-16-51934_J&A_posted.pdf

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

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I. Contracting Activity.

United States Air Force (USAF)

AFLCMC/EBHKB

6072 Fir Ave, Bldg 1233 Hill AFB, UT 84056-5805

PR Number: FD2020-16-51934

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

A. Upon approval to use other then full and open competition, the USAF will issue a new contract to procure the items listed in Section III below below to:

Pacific Scientific Energetic Materials Company (PSEMC), LLC.

3601 Union Rd Hollister, CA 95023-9635 CAGE Code 06331

B. Contract Type & Structure: A new supply contract to procure an estimated quantity of 16 units with an anticipated Firm- Fixed-Pricing arrangement will be issued. With and estimated delivery date of March 2018.

C. Estimated value is

D. Type J&A: Individual

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

A. Under the contemplated contract, PSEMC will provide the following supplies;

- Destructor, Initiator The explosive components perform specific functions for flight termination during function test flight operations of the Minuteman III ICBM. The quantities and costs listed in the table below are estimates only.

L/I NSN Noun Est QTY Est Unit Est Total Price 1 1375-00-482-2053 Destructor, Initiator 16 2 Data LATR, ATP, 1

FAR/CAR, ADC

TOTAL

B. The period of performance will be from contract award (estimated Apr 2017) through the estimated delivery of parts in 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.

C. Total Estimated Cost: This action is using appropriated 3020 funds.

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.

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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 minimum needs of this highly specialized item can only be provided by PSEMC because they are the only approved source that has demonstrated the unique design capability, manufacturing knowledge, and possess the technical data required to manufacture this critical safety-of-flight components. This highly specialized item is an unique combination of explosives, switches, thermal batteries, and ICBM system integration. This data and knowledge is essential to maintaining the quality of the parts and the approved source retains rights to the data.

B. PSEMC 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 PSEMC was via email on 16 July 2016 by a program manager. PSEMC informed the USAF it is not willing to sell the government purpose rights.

C. The CAD/PAD JPO believes that award to any other source would result in an estimated substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling USAF requirements.

D. Accordingly, PSEMC is the only firm capable of providing the items described in Section III above without the USAF experiencing substantial duplication of cost that could not be expected to be recovered through competition and an estimated four (4) to six (6) years in unacceptable delays 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: A Sources Sought Synopsis FD2020-15-99900 was posted to FEDBizOps (FBO) 26 July 2016 and closed 12 Aug 2016 requesting information to identify potential sources possessing the engineering and manufacturing knowledge for items identified in Section III above that are part of the ICBM destruct system. 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 contact exceeds $750,000. 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

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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 Feb 2016 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 ICBM Integrated Product Team revealed that PSEMC 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.

None. This is intended to be the last procurement action to allow time for the replacement flight destruct system to become qualified.

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 here in, which is their responsibility, is both accurate and complete (FAR 6.303-2(c)).