J_A_for_4576QC_17_Jun_2015_00.docx_-__-_07-02-2015.docx

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING AUTHORITY:

This Justification and Approval to request authority of Other Than Full and Open Competition supports requirements generated for the Air Force Sustainment Center (AFSC), 638th Supply Chain Management Group (SCMG), 404th Supply Chain Management Squadron (SCMS) Robins Air Force Base, GA. The contracting activity for this requirement is AFSC/PZAAC. The purchase request number supporting this contracting action is FD2060-15-91510.

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

Due to the circumstances described herein, the activity requests authority to acquire the spares 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 contract which will be a firm-fixed price one-time contract with a basic ordering period and four additional ordering periods. This sole source requirement will be purchased from the following company:

Fluke Electronics Corporation 6920 Seaway Boulevard Everett, WA 98203-5829

CAGE: 4U744

Telephone: (425) 446-5401 Large Business

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS:

This effort is to establish a procurement contract for National Stock Number (NSN) 6625-01-565-4576QC, Part Number (P/N) A40B/AF, Nomenclature: Shunt Set, AC Current. This procurement is for a total quantity of 10 units valued at $568,291.11 for FMS and DOD requirements.

The Shunt Set, AC Current was last procured in 2012 under contract FA8517-12-C-0001 to fill an FMS requirement. The item will be procured as a commercial item. The Fluke Corporation is the Original Equipment Manufacturer (OEM) for the Shunt Set, AC Current and retains proprietary rights to the data. Currently, there are no other companies capable of meeting or exceeding the requirements describe in the technical requirements section as revealed through search of various websites and techniques used.

The total estimated cost of this acquisition, including all ordering periods, is $568,291.11. Estimated unit price for the basic contract is based upon a Rough Order of Magnitude Estimate from the contractor. The estimated unit price for the additional ordering periods is based upon previous year price with a 3% inflation factor.

This item has an AMC of 3Z, which implies direct procurement of a commercial item from the actual manufacturer, whether or not the prime contractor is the actual manufacturer.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION:

10 U.S.C. 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 or services available from only the above cited source, which possesses unique capabilities demonstrated as follows:

The 6625-01-565-4576QC Shunt Set, AC Current is used for calibration/verification of precision calibrators and current sources. Intended for broad coverage of current measurement applications, the A40B Set consists of 13 low inductance coaxial current shunts, leads, adapters and connectors, plus a rugged case for transit and storage. Together they cover a wide workload that includes electrical calibrators, electrical power standards, current sources, transconductance amplifiers, and more.

The FMS base PMEL’s are require to use the Shun Set, AC Current to support their AC power source. Reverse engineering for the Shunt Set, AC Current Calibrator is not an option as test procedures, software and calibration data which would be required for any reverse engineering cannot be obtained. Research for previous re-engineering efforts at the center have shown that costs run from 30 to 100 times the price of the item and results in an approximately 10% cost savings. The average is 65 times the unit price, high tech items have cost of re-engineering found to be more than the average of 65 times. The approximate cost to re-engineer the fluke Shunt Set, AC Current will be estimated at about 90 times the unit cost. The total re-engineering cost for this item would be estimated to be Obtaining a 10% cost savings would require the . The cost of re-engineering far exceeds any cost benefit and the units required over the next five years do not reach the quantity to produce substantive cost savings.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE:

This requirement will be synopsized in the Federal Business Opportunities (FedBizOpps) web as required by FAR 5.201. Although the government does not own data to support acquisition of this item from any other source, any source who responds to the government as a result of this synopsis will be identified to the prime contractor as a potential for subcontracting possibilities. Sources expressing an interest as a result of synopsis will be listed in the contract file.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE:

As described, price analysis will be accomplished by evaluation of pricing data and FAR Part 12 commercial pricing procedures. Contract price reasonableness will be determined using other than certified cost and pricing data and by conducting a detailed price analysis. In support of negotiations, the following sources of information/data along with any other relevant information and/or data shall be utilized:

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 as required by FAR 10.001 and 10.002. Market Research was conducted on April 12, 2015. Market Research techniques were utilized; such as, search of Hub Zones, Service Disable Veteran Small Business Owned, 8(a) and Women Owned Business was conducted using the Dynamic Small Business search engine from the Small Business Administration (http://dsbs.sba.gov/dsbs.dsp_dsbs.efm). No other company manufactures comparable instruments for this market segment that meet the levels, accuracy and precision of the Shunt Set, AC Current. There is no potential opportunity for small business set side and direct award opportunity. A search of the Dynamic Small Business Search (DSBS) database reveals no sources.

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

The government has little leverage in this market and procures a small percentage of these items; contact with the Fluke Corporation determined their unwillingness to sell their data rights to the government and research has revealed the Fluke Corporation as the only previous source that meets the minimum performance requirements with no opportunity for small business inclusion. Sole source procurement is recommended.

Fluke’s local representative Mr. Dennis Brockway was contacted on May 12, 2015 to gauge their interest in selling their data rights; at this time Fluke is not willing to release or sell their data or the rights to the government.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE ACQUISITION:

See Sections II and IX 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:

The Fluke Corporation is the Original Equipment Manufacturer (OEM) for the Shunt Set, AC Current and retains proprietary rights to the data. Fluke was contacted on May 12 2015 to gauge their interest in selling their data rights and according to Fluke’s Government Contracts Administrator, Leslie Woo “Fluke does not sell or release its data and/or data rights to the government for commercial items developed at private expense”. Reverse engineering is not an option as mentioned above and in paragraph V. Test, software and calibration data which would be required for any reverse engineering cannot be obtained. Based on cost estimates received from engineering on similar items the high risk, low margin and relative long time for a “break even” condition makes reverse engineering unfeasible since the return on investment (ROI) for manufacturers poses great risks and ties up too many resources. As such, the government will continue attempts to procure data by elevating at a higher level within the company; should a proposal be provided the Program Office will budget for the funds to procure data. Additionally, the Government will further review the market for viable competitors that may be able to provide a similar or better Shunt Set, AC Current.

XII. CONTRACTING OFFICER CERTIFICATION:

The contracting officer’s signature on the Coordination and Approval Document evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION:

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.