F-16_SCRIU_Overhaul_JA_Redacted.pdf

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

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 5

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! )

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

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

Contracting Activity: OL:H/PZABB

Purchase Request / Local ID Number: FD20201900636

Program / Project (and PE, if applicable): F-16 SCRIU Overhaul

Program Type (PEO or Other Contracting): Other Contracting

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

Estimated Contract Cost (including options): $6,000,000.00 J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

26 Mar 2019

Program Manager

416 SCMS/GUMAC, 801-5

Signature

Date

27 Mar 2019

Contracting Officer

AFSC OL:H/PZABB, 5

Date

09 Apr 2019

Local Legal Reviewer

AFSC 75 ABW/JA, 801-5

APPROVAL (AFFARS 5306.304(a) )

Date

11 Apr 2019

Competition Advocate

AFMC OL_H/PZC, 801-7

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I. Contracting Activity.

United States Air Force

OL:H/PZABB

6050 Gum Lane, Bldg 1215 Hill AFB, UT 84056-5825 Contracting Officer:

PR Number: FD20201900636

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 issue a new non-commercial repair service contract in support of F-16 Special Carry Remote Interface Unit (SCRIU). The contract will include testing, repairing, and replacing of components within the SCRIU to bring it to a like new condition. These repair services will be provided to the government by:

Elbit Systems of America (ESA/EFW) 4700 Marine Creek Parkway Fort Worth, TX 76179

CAGE 0WEC9

B. A new repair service contract is contemplated a with estimated dollar value of $6,000,000.00, utilizing a Firm Fixed Price (FFP) arrangement. The estimated award date will be 03 Apr 2019 with a long lead time for purchasing materials of 8 to 11 months and a repair Period of Performance (POP) not to exceed twelve months.

C. Estimated value is: $6,000,000.00

D. Type J&A: Individual

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

A. This is a new non-commerical repair service contract for the repair of F-16 SCRIUs. This Line Replaceable Unit (LRU) from the F-16 platform. This LRU provides strike capabilities for missions.

The estimated field and depot supply is not sufficient to meet USAFE's requirements. A quantity of 100 serviceable assets are needed immediately in order to reach mission capability.

B. The Air Force estimated unit repair and quantities for 1 year are shown below:

Line Item NSN 1 yr QTY 0001 Special Carry Remote Interface Unit, validation repair assets 5998-01-244-0696WZ 10 0002 Special Carry Remote Interface Unit, Repair 5998-01-244-0696WZ 90

C. Total Estimated Cost: $6,000,000.00. The estimated total cost is based on a ROM received from the contractor dated 15 Jan 2019.

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

10 U.S.C. 2304(c)(2) as implemented by FAR 6.302-2, Unusual and Compelling Urgency

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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. The above authority was selected because of the unanticipated increase in failures of line replaceable units (LRUs) in the F-16, resulting in Air Force inability to meet USAFE mission requirements. This LRU s from the F-16 platform. This LRU provides strike capabilities for missions.

B. This asset relies on field testing prior to use on aircraft. Once the SCRIU asset is tested and fails, a Deficiency Report (DR) is created which indicates that an evaluation and repair is necessary. The number of deficiency reports increased exponentially from 9 to 38 in 2017, and is currently at 63 for 2018.

USAFE averages a monthly demand rate of 4.3 condition "A" serviceable assets. The most recent request for shipment was for 40 assets which was shipped in January. Currently, serviceable assets remain in depot supply; leaving Hill AFB deficient in supply for future requests. The 416 SCMS estimated a nine month lead time for components, necessary to repair the SCRIU. A demand rate of 4.3 assets and a nine month lead for components will result in a minimum deficit of assets for USAFE.

C. This shortage creates a compelling urgency for the United States Air Force. A sustained deficiency results in reduced or no mission capability of the F-16 fleet. This is in direct violation to causing serious injury to alliance relationships with Breaching our obligation to maintain our mission capability results in state department intervention with longterm damage to integrity and trust in the United States.

D. No other entity possesses the data required to thoroughly perform this investigation. Award to any other source would result in unacceptable delays in fulfilling Air Force requirements and meeting mission capabilities.

E. Accordingly, the unusual and compelling circumstances, including delay of USAFE critical mission capability and the unexpected increase of DRs, require the award of this contract to ESA in order to prevent a breech of contract with

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

A. Per FAR 5.202 (a)(2), awards issued under the authority of FAR 6.302-2, unusual and compelling urgency, are exempt from providing notice of proposed contract actions. However, there is an ongoing action to evaluate the potential competition for a follow-on contract. A Sources Sought Synopsis (SSS) was issued 28 November 2018 through 28 December 2018 for the purpose of conducting market research. Requesting offers to demonstrate their capabilities with regard to troubleshoot and overhaul to National Stock Number (NSN) 5998-01-244-0696WZ form, fit, function and interface specifics.

B. Three responses were received, one from ESA, the OEM, second from BAE systems, and third from from PHT Aerospace. On 06 December 2018, BAE requested the Government to provide technical information. Government responded to BAE systems on 10 December 2018 in an email stating there was no technical data available for release.

BAE did not respond thereafter. PHT Aerospace requested technical information from the Government on 28 December 2018. Government responded on 02 January 2019 that there was no technical information to provide and reverse engineer would add unnecessary time and risk to this repair services contract.

C. Exempt from synopsis

D. Other Actions: none

E. Qualify 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

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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 Acquistion Institute and the Air Force Institute of Technology. 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, in accordance with FAR Part 10, market research has been conducted by sources sought synopsis of the proposed acquisitions, advising industry of the pending acquisition and soliciting inquiries from interested parties.

B. IAW FAR Part 10, and in addition to ongoing market surveillance performed by the integrated product team, acquisition specific market research was conducted by 416 SCMS engineers, on 17 Jan 19. The Market Research Strategy focused on gathering information to support the efficacy of establishing additional overhaul sources for the F-16 SCRIU item. Research included vendor surveys and commercial opportunities.

C. Market Research concluded that there are no alternate/additional sources capable of meeting the government's immediate need and ESA (Cage Code: 0WEC9) is the only known company capable of satisfying the government requirements.

D. The SCRIU is unique to the F-16 fighter aircraft and does not have commercial off-the-shelf source of manufacture.

No commercial or non-developmental items are available with similar form, fit, or function parameters that can be used to satisfy the agency's need.

E. The SCRIU is currently not a candidate for organic repair as the government does not possess data rights sufficient for organic repair stand-up.

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

No further information

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

N/A

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.

Elbit Systems of America is the only source that owns the data required to overhaul these items. The required data for this configuration is not available from any other source. The government will annually request to purchase the rights to the data needed to overhaul this item from the OEM.

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.

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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.