ESII_JA_9_May_18_signed_02_July_18_Redacted.pdf

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

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NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

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

Contracting Activity: AFLCMC/WLDK

Purchase Request / Local ID Number: F2DCCP7278B101

Program / Project (and PE, if applicable): T-38/F-5 Engineering Services Contract

Program Type (PEO or Other Contracting): PEO

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

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

COORDINATION (AFFARS 5306.304(a) )

Date

09 May 2018

Project Lead / Program Mgr / Requiring Activity

Date

14 Jun 2018

T-38 Program Manager

20 May 2018

Contracting Officer

Date Local Legal Review

01 Jun 2018

Chief of Contracting Office (COCO)

18 Jun 2018

Competition Advocate

0'

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APPROVAL (AFFARS 5306.304(a) )

Date PEO / Head of Procuring Activity / Designated Alternate

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I. Contracting Activity.

United States Air Force Ogden Air Logistics Center (AFMC)

AFLCMC/WLDK

6072 Fir Ave, Bldg 1233 Hill AFB UT 84056 Contracting Officer:

DSN:

PR Number: F2DCCP7278B101

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

A. Upon approval to use other than full and open competition procedures, the Air Force will issue a new follow-on Indefinite Delivery Indefinite Quantity (IDIQ) contract to procure engineering services and technical support from:

Northrop Grumman Technical Services (NGTS) Cage Code: 0JRC1

NAICS: 541330

1412 South Legend Hills Drive, Suite 210 Clearfield, UT 84015.

The prior contract was FA8211-13-D-0001. This was a 5 year contract with a ceiling which expires in September 2018.

This contract and the services described below are required to ensure mission readiness, reliability, maintainability, and overall sustainment of all configurations of the T-38 and F-5 aircraft. AFLCMC/ WLD is responsible for providing support to the USAF, Foreign Military Sales (FMS) countries, and other Government agencies that operate these specific aircraft.

B. Contract Type & Structure: A services contract that is IDIQ with anticipated Firm Fixed Price (FFP), Cost-Plus Fixed Fee (CPFF), and Cost Reimbursable No-Fee (CRNF) pricing arrangements. The ordering period for this contract will be five (5) years from the date of award plus up to an additional six (6) months (per FAR 52.217-8) if the Option to Extend Services is exercised, with delivery expected within 1 year of the last order for a possible total of 6 ½ years. The estimated award date is March 2019 with performance and delivery expected through September 2025.

C. Type J&A: Individual

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

A. The primary goal of this effort is to have NGTS provide engineering services and technical support for all configurations of the T-38 and F-5 weapon systems, which will include RF/F-5A/B/E/F and the

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T-38A/B/C models. Approximately 30,000 engineering hours will be acquired each year to maintain the structural baseline data of the aircraft to ensure safety of flight capabilities of the avionics and mechanical systems on board the aircraft. The performance outcome of this contract is for NGTS to improve the sustainment of the aircraft assigned by resolving problems and issues identified by the aircraft sustainment Program Offices (PO) for the T-38 and F-5. AFLCMC/WLD program management and engineering have identified four major categories of engineering services support required by NGTS. Listed below are the categories requiring engineering services and support for all configurations of the T-38 and F-5 aircraft weapon systems. Funding shown is based on the current POM and any funding needed for additional requirements such as increased pilot production, will be obtained via out of cycle requests up to the ceiling.

1. Reliability, Maintainability, and Sustainability (RM&S)

2. Finite Element Modeling (FEM)

3. Flight Load Data Recording (FLDR)

4. Technical Data

CLIN 1 CLIN 2 CLIN 3 CLIN 4

RM&S FEM FLDR Tech Data TOTAL

FY19

FY20

FY21

FY22

FY23

FY24

GRAND TOTAL:

B. Total Estimated Cost: The approved ceiling for this contract is . This estimate is based on prior years contracting efforts and independent Government estimate. This requirement is for one five (5) year ordering period with the option to extend services for a period of up to six (6) months per FAR 52.217-8. With an additional year to deliver, this results in a possible six and a half (6½) year contract period. Task orders will use mainly 3400 appropriated funding with the option to use 3010, and 3600 funding if future requirements mandate their use.

C. Request approval for more than one fiscal year because this is a 5 year effort and there are no feasible actions that could develop future competition.

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

10 U.S.C. 2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(iii), Only One Responsible Source and No Other Supplies or Services Will 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 highly specialized technical services.

These services are highly specialized because they require the use of manufacturing processes, trade

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FOR OFFICIAL USE ONLY13 Sep 2017 secrets, engineering data, historical databases and airframe specific test procedures critical to the maintenance of the T-38/F-5 airframe baseline. Only NGTS has access to the aero-dynamic and baseline aircraft structure data, including years of data enhancements associated with the Aircraft Structural Integrity Program (ASIP). This data is critical to evaluation of inspection criteria and methods. Therefore, this acquisition will be a follow-on contract for performance of a highly specialized service.

B. Northrop Grumman Technical Services (NGTS) owns and possesses relevant data to the T-38 and F-5 which includes proprietary manufacturing processes, trade secrets, engineering data, historical databases and airframe specific test procedures critical to the maintenance of the airframe baselines.

The last attempt to obtain sufficient data rights that could be used for competition was 27 February 2018 by the T-38 contracting office. NGTS responded on 1 March 2018, stating that they had "once again deemed the rights to be invaluable to its business and therefore cannot place a value on something that is deemed not for sale".

C. The data and manufacturing processes maintained by NGTS include all ASIP modifications, finite element modeling, and stress report updates since the aircraft was built. To try and recreate this data would take a tremendous amount of time, material, resources and manpower which would delay pilot training. Currently, Air Education Training Command (AETC) trains approximately 900 pilots per year. Over a 15 year period it is estimated the Air Force would miss out on qualifying approximately 13,500 pilots. This back log would dramatically reduce the Air Force's war fighting capabilities by reducing the number of qualified pilots.

D. Award to any other source would result in substantial duplication of costs to the Government that is not expected to be recovered through competition. To duplicate the required data that is currently in NGTS possession would require accomplishing many of the previously performed or simulated flight tests. This would require taking serviceable assets with minimal flight time on them and putting them through simulated flight tests, fatigue tests, and simulated landings. Based on cost data from past reverse engineering projects, it is estimated it would cost approximately and take 15 years to complete. With the aircraft expected to begin divestiture in 2026, the Air Force would be barely finished with testing and assembling of the data when the aircraft would be ready for divestiture.

E. Accordingly, NGTS is the only firm capable of providing the supplies and services described in Section III above without the government experiencing unacceptable delays in fulfilling sustaining engineering requirements. In addition, there will be substantial duplication of cost that could not be expected to be recovered through competition.

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

A. A Sources Sought Synopsis was issued on 28 September 2016 under Solicitation Number TF-2016-09-28. This solicitation directly addressed the matter of how potential offerors would obtain proprietary data from the Original Equipment Manufacturer (OEM) along with other detailed requirements. Since the Government does not own all of the data that is required to sustain the T-38 and F-5, NGTS was the only vendor to adequately address how proprietary data would be obtained given that they own the data rights. Other potential offerors are listed in Section X of this J&A;

further contact with them revealed that they would not be able to obtain the required rights to adequately support this requirement. A second Sources Sought Synopsis was issued on 16 January

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2018 under Solicitation Number FA8220-18-R-3000 and mirrored the requirements from the first Synopsis. Responses received from this synopsis were from Northrop Grumman and

. Following a review of submission, the technical team concluded that they did not possess the expertise in all required areas and would not be able to obtain the proprietary data needed to perform the required workload.

B. This requirement will be synopsized in FedBizOps (FBO) as a notice of contract action IAW FAR

5.201. If other sources express interest as a result of this action or other actions, 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 the 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 Contracting Pricing Reference Guides, jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology. The Government will obtain certified cost or pricing data IAW FAR Subpart 15.403, when required. The final step is to include the Price Negotiation Memorandum (PNM). This 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 soliciting inquiries from interested parties during the annual World Wide Review, Internet searches and interviews with subject matter experts to include engineering and program managers.

B. Additionally, a determination was made by AFLCMC/WLD program management and engineering that the OEM, NGTS, has the specific T-38 and F-5 technical and logistical expertise, experience and data that other potential sources lack. While others in the aerospace marketplace do have the general capabilities to provide some of the required support, only NGTS owns the proprietary data necessary to provide the comprehensive solutions required for the T-38 and F-5 specific issues.

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

See Section VI

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X. List of any sources that expressed, in writing, an interest in the acquisition.

The following is a list of vendors that responded to the first USAF RFI:

No parties had sufficient data to provide the services required except Northrop Grumman.

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.

Where possible, all other engineering services will be competed with the exception of the engineering tasks that pertain to the proprietary data owned by NGTS. During the course of the contract the Government will submit requests to the OEM to buy data on an annual basis.

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.