J_and_A__Redacted.pdf

Justification and Authorization (J&A) For Other than Full and Open Competition

Contracting Activity: Air Force life Cycle Management Center/Cryptologic and Cyber Systems Contracting Division, San Antonio, Texas

Purchase Request: FD70301396117 Program Name: Tactical Automated Security Systems (TASS) Estimated Contract Cost: $878,187.00 Type Program: Program Executive Office for C3I&N Authority: 10 U.S.C. 2304(c) (1) as implemented by FAR 6.302-1 Type J&A: Individual

COORDINATION:

Program Manager: ________________________________ __________ Date Signed

Intel & Force Protect ________________________________ __________ Branch: Date Signed

Contracting Officer: __________________________________ __________ Date Signed

Legal Reviewer: ____________________________________ __________ Date Signed

Chief of Contracts: _________________________________ __________ Date Signed

APPROVED:

FOR OFFICIAL USE ONLY

Competition __________________________________ __________ Advocate: Date Signed

I. CONTRACTING ACTIVITY

United States Air Force, Air Force Life Cycle Management Center, Cryptologic and Cyber Systems Contracting Division, San Antonio, Texas.

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

A. This is a new contract for repair and sustainment services for the Rechargeable Battery Module (RBM) and Communications Module Converter (CMM). These are equipment used by warfighters worldwide.

B. is the Inventory Control Manager for and therefore is tasked with the management, sustainment and depot repair of equipment. Due to the age of this equipment, the majority of the original equipment manufacturer (OEM) warranties have expired.

This necessitated a repair contract be created to provide timely sustainment and depot level support of this equipment.

C. In an effort to provide long-term repair services, requests a Firm Fixed Price (FFP) IDIQ contract with a three (3) year Base Ordering Period, two (2) 1-year Option Periods with (6) six month option to extend service. The period of performance of (5 ½) five and a half years is based on anticipated supportability life of RBM inventory, to include availability of replacement electronic sub-components and replacement rechargeable batteries (a component of the RBM).

D. In accordance with Federal Acquisition Regulation (FAR) 52.217-8 “Option to Extend Service” the Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor within 60 days before the contract expires.

E. A detailed technical perspective as to why the repair to be procured are highly specialized and only one responsible source can satisfy the agency’s requirements is explained in Section V.

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

A. Under the contemplated contract, SECHAN Electronics, Inc. of Lititz, PA will provide maintenance repair support for the following items:

1) Item: Rechargeable Battery Module P/Ns: 858206, 858206-1, or 5-670-TASS-1008 Annual Best Estimated Quantity: 300 Total Best Estimated Quantity: 1500 Estimate Average Repair Cost per Unit: Redacted Estimated Cost at BEQ: Redacted

2) Item: Rechargeable Battery Module II

P/N: TASS-1800

Annual Best Estimated Quantity: 225 Total Best Estimated Quantity: 1125 Estimate Average Repair Cost per Unit: Redacted Estimated Cost at BEQ: Redacted

3) Item: Rechargeable Battery Module Revision E Upgrade Annual Best Estimated Quantity: 100 Total Best Estimated Quantity: 500 Estimated Average Cost per Unit: Redacted Estimated Cost at BEQ: Redacted

4) Item: Communications Module Converter II

P/N: TASS-1900

Annual Best Estimated Quantity: 3 Total Best Estimated Quantity: 15 Estimate Average Repair Cost per Unit: Redacted Estimated Cost at BEQ: Redacted

B. GFP estimate is based on government establishing the necessary organic surge capability, which would equate to 6 units per day. The contracted equivalent would be exercising the entire quantities in one year, should a surge be required. That capacity exists at SECHAN.

B. The estimated total cost of this contract including all items and options is $878,187.00. The estimated period of performance is from 25 Aug 2014 through 31 May 2019, if all options are exercised. The 6 month extension if exercised total cost is Redacted and the Period of Performance would be through 30 November 2019.

C. Funding for this requirement will be 3400 O&M appropriations.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 2304(c) (1), Only one responsible source as implemented by FAR 6.302-1 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 (APPICABILITY OF AUTHORITY)

A. The Cryptologic and Cyber Systems Division is operating under a Program Management Directive from Force Protection Section for the to include the workload. The at Lackland AFB, TX and at Shaw AFB, SC both have support agreements with the Cryptologic Systems Division to provide depot level sustainment for the suite of equipment. The has final approval for all and fielded equipment.

B. The Rechargeable Battery Module (RBM), RBM II, Communications Module Converter II (CMC) are approved and endorsed security items that are used at both detection. Before interfacing with , RBMs and CMCs must be tested and certified by the as rapid deployment field equipment to meet stringent tactical requirements. Specifically, the RBMs must be certified to provide reliable and trustworthy recharging capability and power to remotely deployed sensors and communication equipment. Further, the CMCs must be tested and qualified before interfacing with remotely deployed power sources and sensors to quickly and accurately convert signal communications from sensors back to a central monitoring station ( Annunciator).

C. has identified that SECHAN Electronics, the original equipment manufacturer (OEM), as the only endorsed repair source for this requirement. The research and development cost of these items latest revisions were totally funded by SECHAN Electronics, and therefore, owns all the rights to the proprietary data and drawings. The Air Force does to compete this requirement since SECHAN Electronics is .

The 9-12 month delay for re-qualification is driven by test agency schedules and priorities, test personnel, site, and equipment availability. A 9-12 month delay would be unacceptable due to Ops-Tempo as the RBM is utilized in active combat support and interrupted flow of repaired assets to warfighter would not be tolerated by . Currently there are no other vendors endorsed to repair these items. Based on market research, SECHAN Electronics is identified as the only qualified repair source with the technical expertise, data, tooling and test fixtures required to accomplish this repair effort.

D. To determine the feasibility of developing competition or performing the work organically, the Requirement Activity conducted a Cost Impact Analysis and found that the amount of duplicated costs will probably not be recovered through competition. Additionally, does not have the required square footage available for increased organic repair processes available in . The Government Furnished Property (GFP) estimate was based on establishing the necessary organic surge (maximum need) capability, which would equate to 6 units per day. The contracted equivalent would be exercising the entire quantities in one year, should a surge be required. That capacity exists at SECHAN. In accordance with directive the , , and workloads have floor space filled to capacity. Based on analysis, the cost to promote competition is estimated to be more than $1.2 million dollars not including the additional floor space. The following breakout provides further detail of this analysis:

The following Government Furnished Equipment would be required to support the effort to repair an average of up to 6 units per day:

Items _______________________________________________ _____________ Estimated Cost

Spectrum Analyzer (4 line repair positions required) Redacted RF Millivoltmeter (4 line repair positions required) Redacted Oscilloscope (4 line repair positions required) Redacted Batteries, RBM I Redacted Batteries, RBM II Redacted Multimeter, Digital (4 line repair positions required) Redacted Solar panels (4 line repair positions required) Redacted Solder station (4 line repair positions required) Redacted Cables, RBM & CMC Redacted Estimated Cost for Government Furnished Equipment: Redacted 4 Electronics technicians with solder certification (per tech) Redacted

Estimated Cost for Government Furnished Technicians (Manpower) Redacted

The following is an engineering cost estimate to develop Test Program Set Software:

Government Furnished Test Program software to test items IAW AFSFC requirement $500,000.00

Total Estimated Cost Impact: Redacted

E. Based on the Cost Impact Analysis, it would be cost prohibitive to develop competition for the RMBs and CMCs with other vendors. In order to develop repair capability, a potential vendor would need to invest this much capital that would not be recouped for a contract of this small amount. No alternative RBM has been developed by another company. Therefore, the Government would have to provide the costly GFE and furnish Test Program Set Software in order to promote competition. In addition, a prospective vendor would have to acquire propriety repair data and drawings, which the OEM stated they are not for sale. Accordingly, SECHAN Electronics is the only firm capable of meeting the Government’s minimum requirement without the Government experiencing substantial duplication of cost that will not be recovered through competition. Failure to obtain this repair services from SECHAN Electronics will have a negative impact on HNCBW’s ability to support TASS Program Office’s mission and the warfighter’s critical wartime operations.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

A Notice of Proposed Contract Action (NOPCA) was posted on Federal Business Opportunities announcement, number FA8307-14-R-0039 on 3 June 2014. To date, only one perspective vendor, Texas Management Associates (TMA), inquired about the synopsis. At the request of the Government, TMA submitted a Source Approval Request package that was subsequently determined by technical staff not to be a viable qualified source for this repair effort.

CCSD contacted TMA (Bob Parks, Vice President) to inquire about their approval progress and they have decided against pursuing qualification and expressed a desire to return the assets loaned to them for test and evaluation from CCSD. provided a technical review of TMA capabilities, which included a site visit to TMA by technical personnel. TMA’s lacked necessary technical expertise in the requisite level of electronic repair. Their lacked of adequate personnel for handling anticipated quantity of RBMs. Their lacked of test equipment, data, and physical infrastructure to handle anticipated throughput of material. The sources solicited on this requirement have been limited due to the unique nature of this acquisition as explained in Paragraph V above. SECHAN Electronics is identified as the only endorsed repair source that can satisfy the US Government’s minimum needs and therefore, will be the only one solicited at this time.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

A. A fair and reasonable price will be determined in accordance with Federal Acquisition Regulation 13. 106-3 (a) (2), through market research, comparison of the proposed prices found reasonable on previous purchases, comparison to an independent Government estimate, the contracting officer’s personal knowledge of the item being purchased and subsequent negotiations. This requirement is considered to be a commercial service as defined by FAR2.101. Cost or pricing data will not be required.

B. The following price/cost analysis techniques will be used for these repair acquisitions:

1) Technical evaluation of the proposal will be conducted.

2) Price analysis including price comparison of previous repairs.

3) Review of direct and indirect rates as recommended by Defense Contract Management Agency (DCMA).

4) Profit factor will be established utilizing DD Form 1547, Weighted Guidelines.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED

In accordance with FAR Part 10, market research was conducted to determine whether there are any other viable repair sources that will meet the Government’s mission requirements. Market Research included, but was not limited to, synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. In addition, information regarding potential sources is gained through review of potential endorsed sources of repair and companies, trade shows, review of periodicals, professional publications, internet research, and through direct communication with possible sources. Further, no other repair sources were found in the endorsed repair source database for this requirement. Based on our market research, SECHAN Electronics has been identified as the only source capable of meeting the Government’s minimum requirement.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION

The endorsed security items will require testing by the at . Any non-endorsed OEM repaired items have to be scheduled through for test at prior to being placed back into service. This qualification/endorsement process normally takes 9-12 months.

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 ACQUISTIONS FOR THE SUPPLIES OR SERVICES REQUIRED

In analyzing the possibility of promoting competition and developing additional sources for this repair acquisition, several factors have to be considered: technical data, schematics, test stations, and security requirements. An inquiry was made in regards to purchasing technical data, drawings, and test fixtures from SECHAN Electronics. However, the OEM stated the propriety repair data and drawings are not for sale. Only in the event that repair demand increase considerably and if economically feasible, another inquiry or request to purchase the data package and test equipment will be included upon initiation of a purchase request for new procurement. For future requirements, every feasible effort will be made to promote competition whenever practical considering technical data, cost and security constraints.

XII. CONTRACTING OFFICER’S CERTIFICATION

The Contracting Officer’s signature on the Coordination and Approval Document evidences that he has determined this document to be both accurate and complete to the best of his knowledge and belief in accordance with FAR 6.303-2(a) (b) (12).

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidence 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, both accurate and complete in accordance with FAR 6.303-2(b).