FA821318C0041_J&A_Redacted.pdf

FOR OFFICIAL USE ONLY

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

FOR OFFICIAL USE ONLY March 2018 Page 1 of 6

Is this a new or amended J&A Document? New Amended (Prior to Award Only!)

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: < $700K >$700Kand <$13.5M >$13.5Mand <$93M >$93M

Contracting Activity: AFLCMC/EBHKB

Purchase Request / Local ID Number: FD2020-19-50040

Program / Project (and PE, if applicable): US Air Force (USAF) B-1B Shielded Mild Detonating Cord (SMDC)

Program Type (PEO or Other Contracting): PEO Non-ACAT

Authority: 6.302-2 – 10 USC 2304(c)(2), Unusual and Compelling Urgency

Estimated Contract Cost (includingoptions): $6,804,000.00 J&A Type: Class Individual

COORDINATION (AFFARS 5306.304 (a))

Date RICHARD P. VIGEANT, GS-12

Program Manager

AFLCMC/EBHJ / DSN: 777-5484

Signature

VIGEANT.RICHAR Digitally signed by

VIGEANT.RICHARD.P.10089407

D.P.1008940718 18

Date: 2018.07.26 16:53:45 -06'00'

Date SHAUNA A. H. LYON, NH-03

Contracting Officer

AFLCMC/EBHKB / DSN: 777- 4244

Signature

LYON.SHAUNA Digitally signed by

LYON.SHAUNA.A.1270943558

.A.1270943558 Date: 2018.07.27 07:28:53 -06'00'

Date SUMMER BROWNING, NH-03

Legal Reviewer

75ABW/JA / DSN: 777-7457

Signature BROWNING.SUMM Digitally signed by

ER.MICHELLE.126 BROWNING.SUMMER.MICHELL

E.1264568567

4568567 Date: 2018.08.01 16:24:36 -06'00'

APPROVAL (AFFARS 5306.304 (a))

Date JONNA L. HANCEY, NH-04

Competition Advocate

AFSC OL_H/PZC / DSN: 777-6549

Signature

HANCEY.JONN Digitally signed by

HANCEY.JONNA.L.1231511985

A.L.1231511985 Date: 2018.08.02 14:02:10 -06'00'

FOR OFFICIAL USE ONLY March 2018 Page 2 of 6

I. Contracting Activity.

United States Air Force

AFLCMC/EBHKB

6072 Fir Avenue, Building 1233

Hill AFB, UT 84056-5805

Contracting Officer: Shauna A. H. Lyon, DSN: 777-4244

PR Number: FD2020-19-50040

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

A. Upon approval to use other than full and open competitive procedures, the United States Air Force

(USAF) will award a new contract to manufacture/produce the explosive Cartridge Actuated Devices /

Propellant Actuated Devices (CAD/PAD) listed in Section III below for use in the egress system of

USAF B-1 aircraft to:

Pacific Scientific Energetic Materials Company

(PSEMC) 3601 Union Road

Hollister, CA 95023

CAGE Code 06331

B. Contract Type and Structure: A new firm fixed price supply contract will be issued to produce an estimated total quantity of 2,982 items utilizing an undefinitized contracting action (UCA) arrangement. This requirement is the quantity to meet the unusual and compelling requirement. These items will be used to satisfy the critical flight safety requirements created by a recent failure and investigative analysis. The estimated contract award date is July 2018. The period of performance is not to exceed 12 months.

C. Estimated value is: $6,804,000.00

D. Type J&A: Individual

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

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

- Shielded Mild Detonating Cord (SMDC)

These explosive components perform specific functions that allow aircrew the means to escape should a mishap occur and are part of the egress system of the B-1B aircraft. The quantities and costs listed in the table below are estimates only.

FOR OFFICIAL USE ONLY March 2018 Page 3 of 6

ITEM

NO.

NSN Dash #

816739-

Item

Name

USAF

QTY

DELIVERY

YEAR

EST. UNIT PRICE EST.

TOTAL

PRICE

1377-01-232-

8271ES

93232

SMDC

LINE

66 FY19

1377-01-231-

6377ES

95040

SMDC

LINE

66 FY19

1377-01-232-

8275ES

94278

SMDC

LINE

66 FY19

1377-01-232-

6310ES

94237

SMDC

LINE

66 FY19

1377-01-220-

4098ES

95025

SMDC

LINE

396 FY19

1377-01-232-

4176ES

95036

SMDC

LINE

132 FY19

1377-01-220-

9127ES

95097

SMDC

LINE

132 FY19

1377-01-232-

6309ES

93291

SMDC

LINE

66 FY19

1377-01-232-

6302ES

94241

SMDC

LINE

66 FY19

1377-01-230-

8640ES

95089

SMDC

LINE

132 FY19

1377-01-230-

9490ES

95051

SMDC

LINE

132 FY19

1377-01-233-

2646ES

95078

SMDC

LINE

132 FY19

1377-01-229-

5797ES

95102

SMDC

LINE

132 FY19

1377-01-231-

1056ES

95095

SMDC

LINE

66 FY19

1377-01-233-

2702ES

95080

SMDC

LINE

132 FY19

1377-01-233-

2251ES

96015

SMDC

LINE

66 FY19

1377-01-231-

1075ES

96016

SMDC

LINE

66 FY19

1377-01-232-

4175ES

95035

SMDC

LINE

264 FY19

1377-01-221-

3744ES

95024

SMDC

LINE

132 FY19

1377-01-233-

2668ES

95101

SMDC

LINE

132 FY19

1377-01-231-

1074ES

96014

SMDC

LINE

66 FY19

FOR OFFICIAL USE ONLY March 2018 Page 4 of 6

1377-01-231-

1051ES

95099

SMDC

LINE

132 FY19

1377-01-233-

0982ES

95091

SMDC

LINE

132 FY19

1377-01-231-

1055ES

95087

SMDC

LINE

66 FY19

1377-01-233-

2245ES

96011

SMDC

LINE

66 FY19

1377-01-220-

4098ES

95025

FIRST

ARTICLE

26 FY19

1377-01-231-

6377ES

95040

FIRST

ARTICLE

26 FY19

1377-01-230-

9490ES

95051

FIRST

ARTICLE

26 FY19

Total 2982 Total $6,804,000.00

B. 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: $6,804,000.00. This action is using appropriated 3011 funds.

IV. Statutory authority permitting other than full and open competition.

6.302-2(a)(2), Unusual and Compelling Urgency

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 the parts identified in Section III are required in the most expeditious manner to mitigate a high safety risk to aircrew.

The B-1 aircraft is crucial to the bomber support mission of the USAF and critical to national defense.

B. The USAF minimum needs can only be provided by PSEMC for these highly specialized items.

They are highly specialized because they contain a unique combination of firing mechanisms and have precise interface requirements in the B-1 egress system. PSEMC is the only qualified and approved source capable of meeting the government's immediate mission critical need and has the unique design capability, manufacturing knowledge, and possesses the technical data required to manufacture these critical safety-of-flight components. This data and knowledge is essential to maintaining the quality of the parts and the approved source retains rights to the technical data package that would be required to compete this requirement.

C. 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 22 Jan 2018 by the program manager.

PSEMC informed the USG that they are not willing to relinquish, sell or enter negotiations for any data rights on PSEMC products.

FOR OFFICIAL USE ONLY March 2018 Page 5 of 6

D. 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 in the estimated amount of $4M that is not expected to be recovered through competition and unacceptable delays in fulfilling USAF immediate requirements.

E. Accordingly, PSEMC is the only firm capable and qualified to provide 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 three to four years in unacceptable delays to qualify a new source.

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

A. Sources Sought Synopsis: FAR 5.202(a)(2) provides an exception to posting a synopsis of proposed contracting action for contracting actions made under the circumstances described in

FAR 6.302-2. Due to the urgent and compelling nature of this requirement a SSS was not accomplished. PSEMC is the sole manufacturer of these items, and the government does not own the data or the rights to the design and manufacturing data needed to procure these parts from an alternate manufacturer.

B. This requirement will be synopsized in FBO as a Notice of Contract Action IAW FAR 5.201. All sources that request a solicitation will be provided one. If other 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 or 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 not conducted.

A. Market research was conducted IAW FAR Part 10 in May 2018 by the CAD/PAD Integrated Product Team. It has been determined that PSEMC is the only manufacturer that possesses the knowledge and proprietary data necessary to produce the items identified in Section III in the time necessary to meet the governments stringent and urgent time constraints.

FOR OFFICIAL USE ONLY March 2018 Page 6 of 6

B. Market research conducted IAW FAR Part 10 included as a result of a December 2017 query from the AFLCMC/EBHJ vendor base, as well as vendor site visits, and biennial industry summits.

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 B-1 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 and can meet the governments critical delivery schedule.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

None

X. List of any sources that expressed, in writing, an 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 PSEMC is interested in selling their data rights.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.