JA_FD20601430950.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated for the AFLCMC/WNAAC. The contracting authority for this requirement is the AFLCMC/WNKBBA. The purchase request number supporting this contracting action is FD2060-14-30950.

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 firm-fixed price Requirements type contract with a basic plus four (4) options in which additional quantities may be ordered. This sole source requirement will be acquired from the following company:

BAE Systems Information and Electronics Systems Integration 6500 Tracor Lane Austin, TX 78725-2151

CAGE: 19397

Large Business

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET

THE AGENCY’S NEEDS

Under the contract, BAE Systems will provide for the repair of unserviceable assets, ALM-288 Countermeasures Test Set, P/N 188110-7001, National Stock Number (NSN)

4920-01-423-4674EW.

The AN/ALM-288 is used to support AN/ALE-40/45/47 Countermeasures Dispense Systems (CMDS) installed on 42 aircraft platforms, supporting all Air Force Major Commands (MAJCOMs) as well as the Army, the Navy, other government agencies and some foreign countries. Platforms include, but are not limited to the A-10, C-5A/B/C/M, C-17A, C-130H, MC-130, F-15, F-16 and HH-60. The repair will be a performance based effort.

BAE Systems Information and Electronics Systems Integration is the Original Equipment Manufacturer and the only known source capable of meeting this requirement in support of weapon systems listed above. The AN/ALM-288 Countermeasures Dispenser Tester (CDT) is the only viable options for the check and test of the defensive weapon AN/ALE-40/45/47 flare and chaff dispenser system. This tester is critical to the safety of both the flight crew, and the ordinance loaders.

The AN/ALM-288 flight line testing of the f l a r e a nd c ha f f d i s p e ns e r s y s t e m is an organizational level test conducted for functional operation and checking for stray voltage to ensure safety during ordinance loading.

The government does not possess any of the technical data, drawings or test equipment required for the repair of this item. Per SORA 11-242 this test set has been determined to be core, and is to be organic repair, but that capability is still 3-5 years away. At this time, the technical data is proprietary to BAE.

Prior to 2013 BAE had told the government on several occasions that the data was not for sale. On 8 Jan 2014, BAE said they would sell the data, test equipment, and provide the necessary training to the government, but would not provide an estimate without a formal ROM request from a government contracting office. The cost of data was requested in Mar of 2014, on 2 May of 2014 a ROM for was received but only for Operational and Intermediate (O&I) level repair. On 5 May 2014, a follow-on request was submitted to BAE for Depot level repair data. On 11 July 2014 a second ROM was received for a cost of A review by the technical team still did not feel it contained detailed enough drawings required for component level repair. A third request was sent on the 25th of July for clarification of the ROM. A follow-up request was sent on 29 Aug; no response as of 15 Sep 2014.

BAE has recently agreed to allow field level repair of this test set for non-operational failures. This should reduce the number of assets requiring contractor repair by an estimated 70% by 2015.

It would take a minimum of three years to transition from contractor repair to organic repair; this estimate is based on funding availability, and the need to procure the required test equipment. Only the OEM possesses the unique and specialized equipment and expertise required for repair of the above item. Therefore, competition amongst other sources would result in unacceptable delays. Although Lockheed Martin is listed as a source on the 762 document they are only functioning as a prime contractor and will purchase the needed support equipment from the OEM contractor

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

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. Although the Government does not own data to support acquisition of the AN/ALM-288 from any other source, any source who responds to the Government as a result of this synopsis will be referred to the prime contractor for subcontracting possibilities.

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 and 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 Audit Agency (DCAA) and/or 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 and is fair and reasonable.

VIII. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE

RESULTS OR A STATEMENT OF THE REASONS MARKET

RESEARCH WAS NOT CONDUCTED

A detailed market research was conduc ted in May of 2014 as required by FAR

10.001 and 10.002. Since 2012, the program office has participated in technical symposiums and has conducted internet searches; such as, www.gsaadvantage.gov, www.testmart.com and www.eem.com with keyword searches of countermeasures dispenser tester and stray voltage tester. Another method was to search for companies that manufacture equipment related to the ALM-288. None of the techniques provided additional sources for the ALM-288 other than BAE, the OEM for this item.

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

The firmware is proprietary to BAE and is considered extremely difficult to decipher and would require at least a 3 year effort to duplicate. Based on experience with similar engineering projects, the reverse engineering cost is estimated at $20 million dollars and over three plus years. Subject matter experts in Electronic Warfare and Automatic Test Systems Policy groups have stated that without data, they consider the ALM-288 too complicated to successfully reverse engineer. The life of the program is estimated to end by 2040, however due to the approval of field level repair for hardware failures, depot level repairs are expected to decrease by 70%. The result of this decrease is the estimated cost for depot repair over the next 26 years will generate only $3.5M in repairs. Based on the estimated life cycle cost, reverse engineering is not a considered a cost savings option.

Currently this repair is sole source to the OEM, BAE Systems Inc., because the government does not have rights to the proprietary data required to compete the repair.

SORA 11-242 was completed, and the workload was determined to be core and is to be repaired at WR-ALC. The DMAWG is working to bring the work in-house. The government will continue by elevating the request to upper management within BAE to overcome barriers to competition for future acquisitions.

XII. CONTRACTING OFFICER’S 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 (FAR 6.303-2(b)(12)).

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 (FAR 6.303-2(c)).