JA_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: FD70301396118 Program Name:

Estimated Contract Cost: $4,686,207.00 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

FOR OFFICIAL USE ONLY

APPROVED:

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 Long Range Thermal Imagers (LRTI), Display Control Units (DCU), and Joystick Control Units (JCU);

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 and 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 Long Range Thermal Imagers (LRTI) inventory, to include availability of replacement electronic sub-components and replacement component.

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 repairs to be procured are highly specialized and only one responsible source can satisfy agency requirements is explained in Section V.

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

AGENCY’S NEEDS

A. Under the contemplated contract, General Dynamics Global Imaging Technologies (GDGIT) will provide maintenance repair support for the following items:

1) Item: Long Range Thermal Imager w/ Pan & Tilt Head (LRTI w/ PTH) P/N: 22951-600 Annual Best Estimated Quantity: 15 Total Best Estimated Quantity: 75

Estimate Average Repair Cost per Unit: Redacted Estimated Cost at BEQ: Redacted

2) Item: Long Range Thermal Imager w/ Pan & Tilt Head (LRTI w/ PTH) P/N: 23164-600 Annual Best Estimated Quantity: 25 Total Best Estimated Quantity: 125 Estimate Average Repair Cost per Unit: Redacted Estimated Cost at BEQ: Redacted

3) Item: LRTI Display and Control Unit (DCU) P/N: 31211 Annual Best Estimated Quantity: 7 Total Best Estimated Quantity: 35 Estimate Average Repair Cost per Unit: Redacted Estimated Cost at BEQ: Redacted

4) Item: LRTI Joystick Control Unit (JCU) P/N: 31230 Annual Best Estimated Quantity: 5 Total Best Estimated Quantity: 25 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 up to 8 units per month. The contracted equivalent would be exercising the entire quantities in one year, should a surge be required. That capacity exists at

GDGIT.

C. The estimated total cost of this contract including all items and options is $4,686,207.00. 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 and two (2) 1-year Option Periods with (6) six month option to extend service. The estimated period of performance is from 1 SEP 2014 through 31 Aug 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 January 2020.

D. 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 HQ Air Force/A7S for the to include the workload. The at Lackland AFB, TX and at Shaw AFB, SC both have support contracts with the Cryptologic and Cyber Systems Division to provide DEPOT level sustainment for the suite of equipment. The AFSFC has final approval for all and fielded equipment.

B. The LRTIs, DCUs, and JCUs are AFLCMC/HBUU and AFSFC authorized items, as approved by HQ USAF/A7S in a memorandum dated 6

February 2013 and signed by the Deputy Director of Security Forces, which are sites to provide . In order to interface with equipment, LRTIs, DCUs, and JCUs must be tested and qualified by the AFLCMC/HBU and AFSFC Test facility for providing rapid deployment of equipment to meet tactical requirements. The LRTIs must be qualified to provide required viewing distance, span and control through the annunciator network suite as well as meet minimum requirements for thermal image processing. The DCUs and JCUs must be qualified to interface with remotely deployed power sources and signal conversion equipment, quickly and accurately control and power the LRTI from remote areas back to a central monitoring station. Based on past repair performance, GDGIT was utilized as the previous repair activity on the Contractor Logistic Support (CLS) contract with L-3 Communications. GDGIT maintains a proven record for performing competent repair of these assets considering the quantity of items that are being returned on a re-occurring basis from field sites. In addition, GDGIT is the original equipment manufacturer (OEM) and maintain data rights for the requirement and currently has no other authorized repair facilities. Based on market research, GDGIT has been identified as the only endorsed vendor with the technical expertise, data, tooling, and test fixtures required to repair and test these items.

Currently, there are no other vendors endorsed by and or in the endorsement process to repair these items.

C. To determine the feasibility of developing competition, the Requirement Activity conducted a Cost Impact Analysis and found that the amount of the duplicated costs will not be recovered through competition. Additionally, AFLCMC/HNCBW does not have the required square footage available for increased organic repair processes available in . In accordance with directive the , , workloads have floor space filled to capacity. The lack of complete specifications, schematics/drawings and parts lists prohibits the use of full and open competition procedures. 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 is utilized in and interrupted flow of repaired assets to would not be tolerated by . Based on analysis, the cost to promote competition is estimated to be $2.375 million. The following breakout provides further details of this analysis:

The following Government Furnished Equipment would be required to support the effort to repair an average of up to 8 units per month:

ITEMS _____________________________________________ _____________ Estimated Cost

Operator Tools & Equipment Redacted Includes wrenches, solder stations, and specialized hand tools

Reference Equipment Redacted Includes power supplies, controllers, cables and model specific operating equipment

Optical Test Station Redacted Includes EO test system, optical table, targets, computer w/ GDGIT software

Leak and Purge Station Redacted Includes specialized hand tools and dry nitrogen station

Noise Equivalent Temperature Difference Test and Calibration station Redacted Includes test bench, blackbody, power supplies, dedicated computer/ specialized software

Temperature Test Station Redacted Includes Environmental Test Chamber, power supplies, dedicated computer w/ specialized software

Vibration Test Station Redacted Includes elliptical mechanical shaker, accelerometer, dedicated computer w/ specialized software

Estimated Total Cost for Required Equipment: $1,460,000.00

PERSONNEL Estimated Cost

4 Electrical Technicians or Engineer (Approx. salary per year)

1 Optician (Approx. salary per year)

Personnel Training & Certification (per person)

Redacted

Redacted

Redacted

Estimated Annual Cost for Required Personnel: Redacted

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

Government Furnished Test Program software to test items IAW $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 LRTI, DCU, and JCU 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. 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, GDGIT 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. Awarding to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and will cause 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 DEEMED PRACTICABLE

A. Due to the unique and specialized requirement identified in Section V, only one source, GDGIT, is known to have the capability to meet the Government’s needs. At this time, there are no companies working through the process for the repair of these particular items.

B. A Notice of Proposed Contract Action (NOPCA) was posted on 18 June 2014 utilizing Federal Business Opportunities. No responses were received.

C. For future requirements, every feasible effort will be made to promote competition whenever practical considering technical requirements, cost, and security restrictions noted above.

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

A. In accordance with FAR Part 10, market research was conducted to determine whether there are any viable repair sources that will meet the Government’s mission requirement. Market Research included, but was not limited to, NOPCA posted on 18 June 2014 and closed on 28 June 2014 with no responses. The synopsis of the government’s proposed acquisition advised industry of the pending acquisition and soliciting inquiries from interested parties. In addition, information regarding potential sources is gained through review of periodicals, professional publications, internet search, and through direct communications with possible sources. Further, no other repair sources were found in the AFSFC endorsed repair source database.

B. GDGIT maintains the technical expertise, data, tooling, test fixtures, and performance characteristics required by the LRTIs, DCUs and JCUs. Information regarding potential sources was gained through direct communication with AFLCMC/HSS, AFSFC, and previous CLS provider (L-3). No other repair sources were found that can repair these items in the timeframe required to meet mission requirements on a re-occurring basis to the required specifications.

Market research and past performance reveals that GDGIT is the only source capable of meeting the LRTI repair levels in the timeframe required. See paragraph VI.

C. Based on market research, GDGIT has been identified as the only responsible source capable of meeting the Government’s minimum requirement.

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

OPEN COMPETITION

The AFSFC 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. Approving a new repair source would cause unacceptable delay and severely impact the mission.

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

A. 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 to purchase technical data, drawings, and test fixtures from GDGIT. However, the OEM has not been responsive as to offer procurement details as these details are proprietary. Only in the event that repair demand increases and if economically feasible, another inquiry or request to purchase a data package and test equipment will be included upon initiation of a purchase request for further repairs.

B. For future repair requirements, every feasible effort will be made to promote competition whenever practical considering technical data, cost and security constraints. Currently, GDGIT is projecting end of production for the 23164-600 (EOSS 250) LRTI for end of year 2015 and will continue service for 5 years after until end of life is reached. This time period would coincide with the end of this projected contract. Therefore, an expending of excessive man hours to research alternate sources for competition may not be beneficial to the Air Force and may not be required to promote competition.

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).