Redacted JA.pdf

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

CUI

March 2023 CUI Page 3 of 8March 2023 CUI Page 3 of 8

I. Agency and Contracting Activity.

This Class Justification and Approval (J&A) requests authority for Other Than Full and Open Competition and supports requirements generated by the Air Force Special Operations Command (AFSOC) in support of Air Force Life Cycle Management Center (AFLCMC) Special Operations Forces / Personnel Recovery (SOF/PR) Fixed Wing engineers (AFLCMC/WIUE). The Contracting activity responsible for this proposed contracting action is AFLCMC/WIUKA. The purchase request number supporting this contracting action is FD2060-23-33442.

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

Due to the circumstances described herein, the activity requests authority to acquire the engineering services 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 follow-on contract which will be a 5-year Cost Reimbursement No Fee (CRNF) Indefinite Delivery Indefinite Quantity (IDIQ) contract. The IDIQ will be structured with a 12-month basic and four additional 12-month options. Based on the anticipated contract award date, orders can be issued 22 July 2024 through 21 July 2029, if all options are exercised.

This sole source requirement will be purchased from the following vendor:

Mercer Engineering Research Center (MERC) 135 Osigian Blvd.

Warner Robins, GA 31088-7810

CAGE: 0AC45

Non-Profit Educational Institution

This contract will be awarded as a single award Indefinite Delivery Indefinite Quantity contract based on FAR 16.504(c)(1)(ii)(B)(1) in which this J&A provides supporting rationale.

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

This requirement is for support of all SOF/PR C-130 aircraft. While multiple activities are identified, each are interrelated to the sustainment program for this unique airframe. In accordance with Air Force Policy Directive 63-1, these activities support the mandated integrity programs: Mechanical Equipment and Subsystems Integrity Program (MECSIP) and Avionics Integrity Program (AVIP). These programs focus on cyber support, analysis of modifications, repair, design and analysis, reverse engineering of components, testing through laboratory and field methods, continued development, and support of MECSIP and AVIP through the use of reliability assessment teams, analyses and quick-turn prototyping aimed at increasing aircraft reliability, and availability, sustainability, and maintainability across the SOF/PR C-130 fleet. This requirement is to support SOF/PR C-130 engineering for sustainment and update the SOF/PR C-130 MECSIP and AVIP master plans that cover the SOF/PR-related C-130 subsystems. These plans identify all subsystems and equipment that are to be covered by SOF/PR C-130 MECSIP and AVIP, establish analysis prioritization, develop a SOF/PR C-130 unique subsystem Reliability Centered Maintenance (RCM) analysis schedule and detail how SOF/PR C-130 RCM analyses are to be coordinated with the Tactical Airlift C-130 RCM analyses (which is under the responsibility of AFLCMC/WLN). MERC will continue to update the MERC Global C-130 Finite Element Model (FEM) using the contractor-owned Computer Assisted Design (CAD) files.

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252.227-7030, Technical Data - Withholding of Payment

252.227-7037, Validation of Restrictive Markings on Technical Data

252.246-7001, Warranty of Data

The overall program acquisition strategy is supported by the conclusion of this J&A to support future sustainment by establishing Open Architecture configuration(s) so there are opportunities to support competitive acquisition.

In accordance with FAR 16.504(c)(1)(ii)(B)(1), only one contractor is capable of providing performance at the level of quality required because the supplies or services are unique or highly specialized, and therefore a single award IDIQ contract was determined to be the most effective and efficient vehicle to procure the supplies and services necessary given the Government cannot predetermine the precise quantities of supplies and services within a definite period.

IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above.

The agency's minimum needs can only be satisfied by the unique services available from MERC. They are the only vendor (institution) with the technical expertise and CAD software tools needed to sustain the testing and evaluation required to maintain FEM in support of sustainment of SOF aircraft. MERC is the only uniquely qualified vendor with expertise and capability to support these specialized service requirements, therefore this acquisition will be a follow-on contract for the continued provision of highly specialized services.

MERC developed proprietary tools solely at their expense to generate and/or validate complex finite element models and CAD software tools. The CAD software tools are used to manipulate and account for all FEM modifications. The Government does not own or have Government purpose rights to the CAD software tools. The CAD software tools offer a unique capability to generate detailed local meshes within the C-130 FEM and analyze modification, repair, and damage impact to the aircraft using the design loads at a level of detail superior to the Global C-130 FEM currently available to any other contractor.

This is a follow-on contract to FA8509-20-D-0015. This contract was awarded sole source to MERC on 22 July 2020. The contract expires on 21 July 2024.

The Government inquired with MERC in December 2023 on their interest in selling the contractor-owned CAD software tools used to update the MERC Global C-130 FEM, IP. MERC denied the Government's IP request to sell.

The SOF Fixed Wing Program Office has determined that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition.

To develop an alternate source with the relevant technical experience equivalent to MERC would require an estimated 5-years. The Government estimates it would cost approximately $ for an alternate source to recreate the depth of FEM capabilities, system knowledge, testing capabilities, software/system support capabilities and the tracking tools for SOF C-130 Airworthiness, Configuration management, and Hazard Tracking (System Safety). The basis for the estimated amount was derived from historical costs and

March 2023 CUI Page 6 of 8 engineering support expertise. After completing a cost savings and benefit analysis it is estimated to take approximately 14.5 years ($ / $ annual competitive cost savings) to recoup those cost through competition. This would not be an economical investment for the Government because the C-130 aircraft would only have three years life cycle remaining and would be in the final phase of aircraft planned retirement inductions. In addition, during a transition phase to a new vendor, the Government would need to retain MERC on an advisory capacity to mitigate delays in fulfilling the Government's requirements.

The retention cost is estimated at $ over a 2-year period.

MERC has gained expertise over the past 20+ years through their support of the C-130. They have detailed knowledge, testing capabilities, software/system support capabilities and understanding of the C-130 airframe and systems as well as C-130 data systems and maintenance data requirements. Their expertise includes but is not limited to C-130 AFIRM and the associated tracking tools for SOF C-130 Airworthiness, Configuration Management, and Hazard Tracking (System Safety). To develop an alternate source with the relevant technical experience equivalent to MERC at this time would require a minimum of five years. This would cause an unacceptable delay in ongoing efforts to maintain aircraft availability, improve aircraft function, and reduce maintenance burden on the SOF C-130 fleet, which constitute low-availability/high-demand platforms.

Additionally, this effort is dependent on and leverages data from “Green Aircraft” engineering support with existing MERC contracts within AFLCMC/WLN. Utilizing a single contractor for both SOF aircraft and the basic C-130 aircraft prevents the duplication of effort by only having one 3D C-130 model (FEM) to update when there is a change. Current WLN contracts with MERC are listed below:

Green Fleet FMS AIRCAT for C-130 TCG FA8553-21-F-0001 2020-11-07 Green Fleet C-130 AIRCAT 2022 FA8504-22-F-0023 2022-05-30 Green Fleet C-130 FSIP 2023 FA8504-23-F-0011 2023-01-01

Accordingly, MERC is the only vendor (institution) capable of providing the services described in Section III above without the United States Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

V. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under

FAR 5.202 applies.

A Sources Sought (SS) /Request for Information (RFI) synopsis was posted to Sam.gov on 13 October 2023 under Notice ID FA8509 with responses due by 13 November 2023. The SS/RFI requested responses from interested vendors who are capable of providing the services required to satisfy the mission needs.

There following three vendors responded to the SS/RFI:

SRR International, Inc. (CAGE: 6CNX5) ) RV Global Solutions, Inc. (CAGE: 6TC84)

MERC (CAGE: 0AC45)

All vendors were evaluated, and MERC was determined the only capable vendor. SRR International, Inc.

and RV Global Solutions, Inc. were determined not capable based on no SOF C-130 nor any other C-130 experience.

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The requirement will be synopsized in SAM.gov in accordance with FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

VI. 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. MERC has the status of a non-profit educational institution. In accordance with DFARS 215.403-1(c)(4)(D), the Department of Defense has waived certified cost or pricing data requirements for nonprofit organizations (including educational institutions) on cost-reimbursement-no-fee contracts. The contracting officer shall require --

(1) Submission of data other than certified cost or pricing data to the extent necessary to determine price reasonableness and cost realism; and

(2) Certified cost or pricing data from subcontractors that are not nonprofit organizations when the subcontractor's proposal exceeds the certified cost or pricing data threshold at FAR 15.403-4(a)(1).

In addition to the above, the Contracting Officer will compare proposed pricing to past Government contracts for the same type of support.

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

Market research was conducted between 01 May 2023 through 20 November 2023 in accordance with FAR

10.001 and 10.002. The Market Research Report was completed on 27 November 2023. The market research techniques used were as follows:

Internet searches were completed using the Small Business Administration Small Business Dynamic Search engine, Webster's On-line Business Directory, and ThomasNet using keywords “Aerospace, Engineering, Research, Development and FEA.”

Google search using North American Industry Classification System (NAICS) code 541330.

As described in Section V above, a SS/RFI was posted to SAM.gov advising industry of the pending acquisition and soliciting inquiries from interested vendors. The SS/RFI was posted on 13 October 2023 under Notice ID Notice ID FA8509. Three interested vendors responded, including MERC. The vendors were evaluated for their capability and MERC was determined the only capable vendor.

These services are considered commercial services as defined in FAR 2.101.

The market research concluded MERC is the only vendor capable of fulfilling the Government's requirement.

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

None.

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

See Section V above

X. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

The plan to remove or overcome barriers to competition is to continuously monitor the market throughout the remaining lifecycle of the C-130 for potential capable vendors who can support this program. Inquiry will be sent to MERC prior to exercise of each option to determine if they are willing to sell the CAD software tool to the Government.

The prior plan to remove or overcome barriers to competition was to approach MERC about their willingness to sell the rights to the proprietary software used to update the FEM at the time of each option renewal. This plan was completed, therefore higher level approval is not required in accordance with DFARS PGI 206.304(a)(S-70)(ii).

XI. Certification by the Contracting Officer.

As evidenced by my signature above, I certify that this justification is accurate and complete to the best of my knowledge and belief.

XII. 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.