16-95081_CAD_Adobe_J_and_A_Final.pdf

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

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.

Choose the funding level for this J&A Document:

< $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: AFLCMC/WWQK

Purchase Request / Local ID Number: FD2060-16-95081

Program / Project (and PE, if applicable): Passive Attack Display Interim Contractor Support Repair Contract

Program Type (PEO or Other Contracting): PEO

Authority (include full title):

10 USC 2304(c)(1)-FAR 6.302-1, 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

25 Jul 2016

Project Lead / Program Mgr / Requiring Activity

Zachary Matthews, 1LT, USAF

AFLCMC/WWQAC/DSN 497-3929

Signature

Date

26 Jul 2016

Contracting Officer

Scott Brindus

AFLCMC/WWQK/DSN 468-0883

Signature

Date Local Legal Reviewer

Jennifer Leavengood, NH-04

AFMC/JA/DSN 472-0570

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

28 Jul 2016

Competition Advocate

Kim McDonald

AFSC/PZC/DSN 472-1088

Signature

MATTHEWS.ZACHARY.

JACKSON.1385312381

Digitally signed by

MATTHEWS.ZACHARY.JACKSON.1385312381

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=MATTHEWS.ZACHARY.JACKSON.1385312381 Date: 2016.07.25 17:14:17 -04'00'

BRINDUS.SCOTT.E.

1079195649

Digitally signed by BRINDUS.SCOTT.E.1079195649 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=BRINDUS.SCOTT.E.1079195649 Date: 2016.07.26 07:10:46 -04'00'

LEAVENGOOD.JENN

IFER.B.1277380451

Digitally signed by

LEAVENGOOD.JENNIFER.B.1277380451

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=LEAVENGOOD.JENNIFER.B.1277380451 Date: 2016.07.27 10:28:39 -04'00'

MCDONALD.KIMB

ERLY.1229900508

Digitally signed by

MCDONALD.KIMBERLY.1229900508

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=MCDONALD.KIMBERLY.1229900508 Date: 2016.07.28 13:38:03 -04'00'

I. Contracting Activity.

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated for the Air Force Life Cycle Management Center, (AFLCMC) F-15 Division, Program Management Branch, AFLCMC/WWQA. The contracting authority for this requirement is AFLCMC/WWQK. The purchase request number supporting this contracting action is FD2060-16-95081.

II. Nature and/or description of the action being processed.

Due to the circumstances described herein, the activity requests authority to acquire the repair listed in this document using Other Than Full and Open Competition as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This action will result in the award of a new repair contract for the F-15C/D Passive Attack Sensor System's (PASS) Passive Attack Display (PAD), which will be a Firm-Fixed Price (FFP) Indefinite Delivery Indefinite Quantity (IDIQ) contract with a one year basic plus three one-year options and a six-month extension of services clause. This sole source requirement will be purchased from the following company:

Industrial Electronics Engineers Inc. (IEE) (Cage Code: 05464) 7723 Kester Ave, Van Nuys, CA 91405-1136

Small Business

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

This requirement is for the repair of the PAD, NSN: 7025016517225FX / Part Number: OL70810-01, in the F-15C/D PASS modification which is required to support the weapon system on the F-15C/D aircraft.

This modification is actively being performed through Contract Field Teams (CFTs) and will continue through July 2018. Repair services include teardown, analysis, overhaul, testing, and procurement of spare sub-components, packaging/handling, storage, transportation, as well as data collection, engineering support and services. Currently there are 98 PAD's that are awaiting repair by the Original Equipment Manufacturer (OEM), IEE. Among the Non-Mission Capable (NMC) PAD's, 73 of those will be required by Dec 2016 to meet the aircraft modification schedule. Because the warranty for the entire PAD lot expired January 2016, there is a critical need for these PADs to be repaired.

The total estimated cost for this acquisition, including maximum estimated quantities of 32ea for each ordering period, is . The estimated repair price for the basic period is based on a proposed repair plan provided by IEE that originally estimated a quantity of 12 PAD's repaired per year. Due to the infancy of the fielding, the failure rate of the PADs has been ~300% higher than the 5,000 hours Mean Time Between Failures (MTBF) that was originally estimated. The quantity requested by the United States Air Force (USAF) of 32 ea. represents the failure rate we have seen to date as well as the projected PADs projected for repair over the next four years.

BASIC - FY2017

Element Range Unit Price Total

OPTION 3 - FY2020

General Engineering Support

Period of Performance (POP) for this effort will be 48 months with an additional 6 month extension of services clause dating from November 2016-May 2021. Funding for this effort is estimated to be in FY15 3010 funds with future fiscal year funding planned but not yet funded. Full funding requirements are estimated to be based on Rough Order of Magnitude (ROM) provided by IEE. This cost estimate accounts for PADs currently awaiting repair under the Over and Above in the Base Year.

This repair effort was screened resulting in a Repair Method Code (RMC)/Repair Method Suffix Code (RMSC) of R4D. RMC 4 means to acquire, for the first time, directly from the actual manufacturer. RMSC D means the data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation.

IV. Statutory authority permitting Other than Full and Open Competition.

10 USC 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 the authority cited above (applicability of authority).

The agency's minimum needs can only be satisfied by the unique supplies and services available from the above cited source. This source possesses unique capabilities demonstrated as follows:

The Air Force's critical need to fill high priority backorders, 98 NMC PADs, and anticipated Mission Capables (MICAPs)/Surge requisitions can only be satisfied by the unique supplies and services available from IEE. IEE offered full disclosure in the two design reviews. IEE provided a set of drawings that showed the commercial off the shelf (COTS) parts they bought and the associated wiring connecting them. We don't however have the firmware or program files, which are proprietary to IEE and necessary for the PAD to function in the F-15 in its current configuration.

The U.S. Government acquired 275 PADs from IEE to support the PASS modification for the USAF F-15 C/D fleet. The government owns Level II engineering drawings specifications for the PAD minor repair actions, which allows F-15 Engineering to respond to field inquiries as it relates to the basic structure and wiring of the PAD in the cockpit. During the initial acquisition (FA8505-13-D-0002), the complete data package was not acquired by the government. This proprietary data (software/BIOS/firmware) is NOT owned by the government as IEE refused to sell it to the government. The F-15 SPO again requested to purchase the data on 22 Oct 2015; to which IEE declined as they consider it proprietary to their company.

The life of the PAD is considered to be 4-6 years due to incoming aircraft modifications that will be replacing the Display System. Because of critical need, there is not adequate time to pursue a re-engineer effort for the PAD.

Qualifying a new source would include new supplier startup, performing qualification, first article testing, acceptance testing, and flight test. Similar efforts, i.e. the current F-15 PAD, the F-15 Flat Panel Color Display Variant, and the F-15 Flat Panel Control Indicator, have exceeded five million dollars and over three years due to the acquisition process and the safety of flight concerns due to avionics nature of the part, resulting in an extended Developmental and Operational Testing effort. This delay would be unacceptable and would put the active fielding of the modification at a standstill, resulting in decreased aircraft availability and the loss of approximately in CFT funding appropriations that is committed through FY18. Due to the critical demand, limited schedule and cost, and the fact that the Government does not own the data for this repair, it is not in the Government's best interest to develop another qualified source through reverse engineering. Market research identified IEE as the sole source because they are the only company with the capability to repair this item. The Government does not possess the detailed engineering information that would enable a new vendor to successfully repair this item without incurring substantial duplication of cost and effort.

IEE has previously repaired PADs under warranty. They possess in depth knowledge of the part and have the capability to complete repairs as needed. The required data and data rights for this item are not in the Government's possession and cannot be economically obtained. Any source other than IEE would have to reverse engineer the item, create a drawing package, and incur associated cost for qualification and testing which would be cost prohibitive due to the redesign and schedule prohibitive due to the amount of PADs that currently need repair for the fleet to be fully functional. The life cycle of the current PAD, 4-6 years, driven by the upcoming modification, F-15 Advanced Display Core Processor (ADCP-II), replacing the current PAD with PAD-II, also developed by IEE, makes any schedule delay unacceptable.

Although there are other vendors who can manufacture PADs, the proprietary nature of the software in each PAD precludes the use of another vendor for repair. The PAD software is a specialized software that is only used for military applications.

Accordingly, IEE 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 that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

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

This requirement will be synopsized on the Federal Business Opportunities (FedBizOpps) web page as required by FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. The sources who responded to the Government as a result of this synopsis will be identified to the prime contractor as a potential for subcontracting possibilities.

A Request for Information (RFI) was posted (FA8505-PAD-SUSTAINMENT) to FedBizOps on 25 March 2016 for 15 days with an official closing date of 15 April 2016. No responses were received

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The overall cost of this acquisition will be fair and reasonable to the Government. In accordance with FAR 15.403-4, the contractor will be required to provide certified cost or pricing data to be used in supporting the Government's evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types and quantities of material, other direct costs, and direct and indirect rates will be negotiated by the Government based on recommendations from the Defense Contract Management Agency (DCMA) and expert technical personnel supporting the program. The contract price will be negotiated in accordance with the procedures in FAR Part 15 ensuring the ultimate cost to the Government is fair and reasonable.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

Market research was conducted Dec 2015-17 Jun 2016 as outlined by FAR 10.002 using the following methods: internet searches, RFI, and industry knowledge possessed by the PASS Integrated Product Team (IPT) and Engineering staff.

Internet searches were conducted using Thomasnet.com and Google.com. Thomasnet.com produced 14 sources from a search “LCD Repair Services.” Out of the 14 companies none had the capability or past performance dealing with military aircraft. Google.com produced hundreds of potential Display Repair Services who could potentially repair the hardware portion of the PAD, but would not be able to complete the repair of the PAD in its entirety due to the lack of the proprietary software.

A RFI was posted on FedBizOpps website under NAICS Code 334511 “Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing” in accordance with FAR 5.202(a) (2). There were no responses to the RFI outside of the submittal by IEE.

The market research concluded, although companies with a repair service can be found in large quantity, the proprietary nature of the PAD limited USAF's ability to identify companies that could meet the requirement in a manner that would benefit the U.S. Government.

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.

During the initial acquisition, the complete data package was not acquired by the government.

This proprietary data (software/BIOS/firmware) is NOT owned by the government as IEE refused to sell it to the government. The F-15 SPO again requested to purchase the data on 22 Oct 2015; to which IEE declined as they consider it proprietary to their company.

The life cycle of the PAD, 4-6 years, makes any schedule delay of reverse engineering and re-fielding the PAD unacceptable (2 years to reverse engineer and 3 years to field). The F-15 System Program Office will be transitioning the Passive Attack Display Hardware Workload to Sustainment following the award of the repair contract. This will be a partnership between the USG and IEE and with this transition, the United States Air Force will potentially provide organic repair to all non-software related failures. This will reduce the cost of having a repair contract in the future. The F-15 System Program Office will continually reach out to IEE and elevate the request within their company regarding the purchase of proprietary data for the PASS PAD. If the proprietary data were offered for purchase and funding available to acquire the data, the F-15 SPO would have the capability to transition the PAD to organic repair.

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.

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.