Attachment 2 - Justification and Approval.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: FD20201901228

Program / Project (and PE, if applicable): F-16 DOH/WAC Electronic Module Assembly

Program Type (PEO or Other Contracting): Other Contracting

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 Project Lead / Program Mgr / Requiring Activity

Signature

Date Contracting Officer Tiffany L. Gardner

AFSC OL:H/PZABB DSN 775-6982

Signature

Date

22 Aug 2019

Legal Reviewer

APPROVAL (AFFARS 5306.304(a) )

Date

27 Aug 2019

Competition Advocate

March 2018 FOR OFFICIAL USE ONLY Page 2 of 5

I. Contracting Activity.

United States Air Force

AFSC OL:H/PZABB

6050 Gum Lane, Bldg 1215 Hill AFB, UT 84056-5825 Contracting Officer: Tiffany Gardner Phone Number: DSN 775-6982 PR Number: FD20201901228

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 non-commercial Indefinite Delivery/Indefinite Quantity (IDIQ) repair services contract, to replace prior contracts' FA8251-17-P-0086 and FA8251-17-P-0087, to procure repairs of the Electronic Module Assemblies (EMAs) for both the Diffractive Optics Holographic (DOH) NSN 5998-01-577-5206 and the Wide Angle Conventional (WAC) Heads-Up Display (HUD) NSN 5975-01-576-1361, used for the F-16 Fighter Pilot Display System. Contract FA8251-17-P-0086 was awarded on 21 September 2017 and contract FA8251-17-P-0087 was awarded on 25 September 2017. Both contracts were awarded sole-source and are complete.

Contract will award to: International Enterprises, INC 108 Allen St Talladega, Alabama 35160-1302 CAGE Code: 50218

B. The estimated dollar value is This will be an Indefinite Delivery/Indefinite Quantity (ID/IQ) Contract with a five (5) year ordering period. A Firm Fixed Price (FFP) pricing arrangement is anticipated. The estimated award date is 30 September 2019. The ordering period will be 30 September 2019 through 29 September 2024. The government estimates all deliveries will occur within one year after contract end date, however performance will continue until receipt of all assets has occurred.

C. Type: Individual

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

A. This is a new follow on non-commercial IDIQ repair services contract for repairs of the EMA for both the DOH HUD and WAC HUD used for the F-16 Fighter Pilot Display System by the US Air Force. The HUD pilot display is made up of the EMAs and an optic unit and is used to present information to the pilot without the pilot looking down.

B. The Air Force estimated unit price, quantity, and extended price are shown below:

LINE NSN Item Qty

0001 5998-01-577-5206WF DOH EMA 100

0002 5975-01-576-1361WF WAC EMA 100

C. Total Estimated Cost This estimate is based on D200 computation. The contracting action will use 4930 CSAG-S Working Capital funds.

D. Approval is requested for more than one fiscal year, as there are no feasible actions that can be taken to develop future competition during the course of this contract.

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

10 USC 2304(c)(1), as implemented by the 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 the requirement is for continued repair of highly specialized assets. They are highly specialized because, the EMA is an intricate sub-assembly of the Pilot Display Unit which uses Surface Mount Technology to reduce the total system volume. A failure in the EMA could cause the pilot to lose situational awareness endangering both aircraft and pilot. A repaired EMA must be able to undergo testing under conditions it is likely to encounter in flight as part of the F-16 fighter aircraft. It is essential that the unit be able to operate reliably under high and low temperature, high and low pressure, high G-force, and random vibration. Therefore, this acquisition will be for the continued repair of highly specialized assets.

B. The EMA is designed specifically for the F-16 aircraft. A redesign of the EMA was presented to the Air Force as part of a Value Engineering Change Proposal (VECP) from International Enterprises Inc. (IEI). The redesign was required due to Diminishing Manufacturing Sources (DMS) issues. The Air Force purchased the new EMA and retrofitted them on the HUD optics to create a more reliable and maintainable HUD. The government was provided with a Technical Data Package (TDP) from IEI, but the rights to the data are limited to government use only. In addition, IEI is the only known source with the specialized equipment and test stands required to repair both the DO and WAC EMA. On 17 April 2019, IEI indicated that they are not interested in selling any the rights to the technical data package that are needed for competition to the U.S. Air Force.

C. The government estimates the cost to reverse engineer the EMAs to be in excess of $1M. The reverse engineering process would be lengthy given the fact that a new repair source would need to redesign the EMA and create a new TDP for review by the U.S. Government. Due to the criticality of this part, the U.S. Government would have to complete extensive review and testing to ensure the repair data is of the highest quality. If the TDP was determined acceptable, the source would then have to develop test benches and a test set along with repair procedures to identify failure modes and ensure proper repair of each asset. Calculations show that the break even time is approximately 58 years , which far exceeds the estimated service life of the aircraft. As previously stated, on 17 April 2019, IEI indicated that they are not interested in selling any of the rights to the technical data package since it would be detrimental to their competitive advantage.

D. Accordingly, IEI is the only firm capable of providing the repair services. The 416 SCMS believes that award to any other source would result in substantial duplication of cost that could not be expected to be recovered through competition and there would be a high likelihood of unacceptable delays in fulfilling the Air Force's requirement.

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

A. Sources Sought Synopsis: The sources sought synopsis was posted under FA8251-19-F16EMA on 17 April 2019 in FEDBIZOPS and closed on 17 May 2019. The requirement is for repair and testing of approximately 200 F-16 Electronic Module Assemblies (EMAs).

B. The only response received from the Sources Sought Synopsis was from BAE of Roy, Utah 84067. BAE does not have the technical data and would need to partner with the OEM or complete a reverse engineering effort. BAE advised they are not going to pursue this effort.

C. Synopsis - this requirement will be synopsized in FEDBIZOPS as a notice of contract action IAW FAR 5.201.

D. Other Actions: None.

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E. 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 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, has been conducted by synopsis of the proposed acquisitions, advising industry of the pending acquisition and soliciting inquiries from interested parties.

B. In accordance with FAR part 10, and in addition to ongoing market surveillance performed by the integrated product team, acquisition specific market research has been conducted by 416 SCMS on 15 May, 2019. The Market Research Strategy focused on gathering information to support the efficacy of establishing additional repair sources for the F-16 EMA. Research included vendor surveys, commercial opportunities evaluation, product data and data rights evaluation, review of past and current terms and conditions of repair, performance requirements, engineering skills and techniques required, repair history, additional and existing sources for the system. Additionally, internet based searches were conducted via Google, Thomas Net, IQS Directory, marketresearch.com, AcqNet, and by other Actions by USAF pursuant to FAR Part 10.0019(a)(2)(v).

C. Market research concluded that there are no alternate/additional sources capable of meeting the government's requirement at this time and IEI (Cage Code 50218) is the only known company capable of satisfying the government requirements.

D. The F-16 EMA is unique to the F-16 fighter aircraft and does not have commercial off-the-shelf sources of manufacture. No commercial or non-developmental items are available with similar form, fit, or function parameters that can be used or modified to satisfy the agency's need.

E. The F-16 EMA is currently not a candidate for organic repair due to the high cost of depot stand-up. The government does possess government uses only data rights that will allow for organic repair stand-up at the end of the warranty period.

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.

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.

IEI is the only source that owns the data required to repair these items. The required data for this configuration is not

March 2018 FOR OFFICIAL USE ONLY Page 5 of 5 available from any other source. The government will annually request to purchase the rights to the data needed to repair 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 (FAR 6.303-2(a)(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 herein, which is their responsibility, is both accurate and complete (FAR 6.303-2(b)).