JA_DMT_Approved_(Redacted).pdf

FD20201400590

9 April 2015

B. Total maximum estimated dollar value is $ . This estimate is based on the D200A requirement systems Jun 2014 computations repair cost. This action will utilize 4930 Consolidated Sustainment Activity Group-Supply (CSAG-S) Working Capital funds. Approval request is for more than one fiscal year. The government will continue to post the Repair Qualification Requirement during the period of performance of this acquisition.

C. Estimated dollar value and quantity by fiscal year:

FY15

FY16

FY17

FY18

FY19

FY15

FY16

FY17

FY18

FY19

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

10 U.S.C. 2304 (c) (1) as implemented by FAR 6.302-1 -- 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 AUTHORITY CITED

ABOVE (APPLICABILITY OF AUTHORITY):

A. The above authority was selected because the requirement is for the repair of highly specialized equipment/services. The F-16 C/D, APG-68 Fire Control Radar System DMT, operates a high power radar output signals are controlled by the Programmable Signal Processor (PSP) Line Replaceable Units (LRU). The DMT uses a driver Traveling Wave Tube (TWT) Shop Replaceable Unit (SRU) to develop low level or high level peak power radar transmit signals. Low and high power levels, produced by the DMT TWT, which operates at various pulse width and pulse repetition rate combinations. This allows a wide range of average power for each mode of operation that transmits RF energy from the Radar system into the target area and receives RF energy from the target area for Radar system processing. The amplified RF energy is applied to the antenna LRU for transmission. Without a new follow on repair contract the F-16 C/D APG 68 Fire Control Radar System would experience MICAPs within 4 months, grounding aircraft and impacting aircraft availability to the extent that the F-16 C/D would not be able to perform its intended mission. Therefore, this acquisition will be a new follow-on repair contract for continued performance of a highly specialized service.

B. The government has unlimited rights to Mil Standard Level 3 engineering drawings. The government doesn’t possess Gerber files which are the current standard for current engineering drawings. Because of the safety and importance of this DMT repair, an alternate source must qualify IAW the design control activities procedures, as approved by the cognizant government engineer.

C. Elbit and Northrop Grumman (NG) are currently the only sources on the source qualification list. NG is the Original Equipment Manufacturer (OEM) and is a qualified source. The contracting officer contacted NG on 20 March 2015 asking if they intended to compete in this acquisition. The contractor responded on 31 March 2015 that they will not be submitting a proposal.

D. It is the estimate of the design control activity that the contractor qualification process requires 1400 days or approximately 4 years. The government estimates that the capital infrastructure necessary to stand up the repair capability is approximately $23,445,000.00

E. Accordingly, Elbit is the only firm capable of providing the supplies and services described in Section III above without the U.S. Air Force experiencing substantial duplication of costs and unacceptable delays in fulfilling its requirements.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE:

A. Sources Sought Synopsis (SSS): A sources sought synopsis with Qualification Requirement was posted 1 Apr 2014, #FA825114DMT, and again 31 Oct 2014, #1270012383662repair, requesting potential repair sources.

B. Summary of Sources Sought Responses:

(1) US Dynamics Corporation (USD) responded to the 1Apr 2014 SSS

i. Requested a copy of all the drawings 11 Apr 2014

ii. Equipment Specialist provided drawing list 14 Apr 2014

iii. Email dated 30 Mar 2015, US Dynamics withdrew interest stating, “not within our current capabilities”.

(2) DuoTech Services, Inc (DSI) responded to the 1 Apr 2014 SSS

i. DSI responded 29 Apr 2014

ii. DMT Engineer sent DSI the Repair Qualification Statement 20 May 2014

iii. Loan Agreement FA8200-14-K-0003 was coordinated with small business 1 Jul

iv. Two DMTs sent to DSI 18 Aug 2014

v. During repair DuoTech found at least one TWT was inoperable. L-3 Communications granted approval to test TWT 12 Sept 2014. TWT was never sent to L-3 for repair

vi. 13 Feb 2015 DuoTech contacted government lead engineer and withdrew their interest in this effort.

vii. FA8200-14-K-0003 expired 20 Feb 2015.

C. This requirement will be synopsized in FedBizOps as a notice of contract action IAW Federal Acquisition Regulation (FAR) 5.201. If other sources express interest as a result of this synopsis or other action, they will be given an opportunity to qualify.

D. Other actions: None

E. Qualifying Country Sources: None

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE:

A. 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 FAR under Part 30 - Cost Accounting Standards, Part 31 - Contract Cost Principles and Procedures, Subparts 15.4 - Contract Pricing; to include technical evaluations from the appropriate technical experts as well as audits and support as appropriate from relevant resources such as DCMA and DCAA. Additional steps to ensure price reasonableness actions 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.

B. The Government will obtain certified cost and pricing data IAW FAR Subpart 15.403, when required. A Pricing Analyst will be consulted to assist in the determination of cost and pricing reasonableness. This will include an in-depth review of all costs proposed including overheads, material costs, labor costs, etc. Any costs considered to be irrelevant, unreasonable, unbalanced, or otherwise inappropriately allocated will be addressed with the Contractor directly via fact finding efforts and discussions in order to fully understand the nature of those costs. Costs wherein disagreement is found will be negotiated, mitigated, and adjusted such that the final agreement reflects fairness to all parties. The final step is to develop a 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 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. Internet searches were conducted using Google, Haystack, PRPS, ED On Line, and the Thomas Register. All that was found were a few parts locator and data services. No likely candidate vendors where identified. The findings included dgmarket.com listing our 2009 Source Qualification Notice; Duotech who cancelled their qualification effort, Jaco Aerospace, Aircraft products, Rocketsubmit.com, Aircraft Gunnery, ParTarget.com, and WB parts. With the exception of DuoTech discussed in section VI above, the vendors listed above did not respond to the sources sought posted on 1 Apr 2014 and again on 1 Oct 2014. In addition, none of these vendors are qualified sources.

C. No commercial items or services or non-developmental items (NDI) (see FAR Part2) are available. The requirements cannot be modified to permit the use of existing commercial items and or services or NDIs.

D. This workload is a 70% organic and 30% contract per DSOR decision. Organic repair alone has not met warfighter demand rate.

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:

Any interested sources will be provided a RQR, engineering data, an opportunity to become a qualified repair source. The item requires engineering source approval by the design control activity (416 SCMS/GUEAA) in order to maintain the quality of the part.

XII. CONTRACTING OFFICER’S CERTIFICATION:

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(a)(12)).

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERIFICATION:

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(b)).