FA852022D0002_MAU_12_JA_Final_Redacted.pdf

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

CONTROLLED UNCLASSIFIED INFORMATION

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This Justification and Approval (J&A) is to request authority for Other Than Full and Open Competition (OTF&OC) to support requirements generated for the Air Force Life Cycle Management Center (AFLCMC), Air Force Program Executive Office - Weapons. The contracting activity for this requirement is the Armament Contracting Branch (AFLCMC/EBK). The purchase request number for this acquisition is FD2060-20-31096.

Due to the circumstances described herein, the activity requests authority to utilize OTF&OC procedures as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies and Services Will Satisfy Agency Requirements, to procure MAU-12 Bomb Rack Ejectors for the United States Air Force (USAF) and Foreign Military Sales (FMS) customers that do not source direct their requirement in the Letter of Offer and Acceptance (LOA). The proposed action will result in a new, sole-source, Requirements Indefinite-Delivery Contract (IDC), with a one-year basic ordering period and nine one-year ordering period options. The award date is anticipated to be in FY21. The contract will include Firm-Fixed-Price (FFP) and Not Separately Priced (NSP) contract line item numbers (CLINs). Delivery orders can be issued from date of award through expiration date in FY30.

This sole source requirement will be awarded to:

Marvin Engineering Co., Inc. (MEC) DBA Marvin Group, The 261 W. Beach Ave.

Inglewood, CA 90302-2904 CAGE Code: 32067 Small Business

This effort is for the procurement of MAU-12 (NSN: 1095-01-398-7497 / PN: 69J13060-9) for the USAF and FMS customers.

The total estimated cost of this acquisition is which is based on previous pricing for the MAU-12, to include FY20 MAU-12 acquisitions. This assumes a 5% per annum escalation rate, a Best Estimated Quantity (BEQ) of 200 assets in FY21, and BEQs of 125 each for FY22-30 are utilized. The proposed BEQs are based on anticipated quantities necessary to support F-16 production buys for USAF and FMS customers. Orders will be placed using country specific funding for FMS buys and Operation & Maintenance 3400 for USAF buys.

This requirement consists of a one-year basic ordering period and nine one-year ordering period options. The anticipated lead-time for production of these assets is 24 months with a delivery schedule of 7 MAU-12 units/month.

Delivery orders can be issued on the Requirement IDC contract from the date of award in FY21 through the expiration date in FY30. This J&A covers the ordering period of the Requirement IDC, completion of all delivery orders, and any increases beyond the estimated BEQs.

Nomenclature CLIN TYPE Appropriation QTY U/P Sub Total (est) MAU-12 Bomb Rack, Year 1 0001 FFP Various 200 MAU-12 Bomb Rack, Year 2 1001 FFP Various 125

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MAU-12 Bomb Rack, Year 3 2001 FFP Various 125 MAU-12 Bomb Rack, Year 4 3001 FFP Various 125 MAU-12 Bomb Rack, Year 5 4001 FFP Various 125 MAU-12 Bomb Rack, Year 6 5001 FFP Various 125 MAU-12 Bomb Rack, Year 7 6001 FFP Various 125 MAU-12 Bomb Rack, Year 8 7001 FFP Various 125 MAU-12 Bomb Rack, Year 9 8001 FFP Various 125 MAU-12 Bomb Rack, Year 10 9001 FFP Various 125 $ Data List NSP N/A N/A NSP NSP

GRAND TOTAL

The Acquisition Method Code (AMC)/Acquisition Method Suffix Code (AMSC) is 1/G, which means the item is screened to be competitive and the data is technically suitable and legally clear.

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.

Founded in 1963, Marvin Engineering Company is currently one of the leading manufacturers of stores carriage and release systems. This includes ejector racks, missile launchers, aircraft pylons and other auxiliary equipment.

The United States Government (USG) has the data rights to the engineering technical drawing package (TDP); however, any contractor other than MEC will be required to perform First Article Testing (FAT).

Additionally, the new contractor would need to develop the special tooling and other necessary internal processes required to produce, assemble, and test the ejection system. Based on discussions with USAF engineers, the expected lead time to develop and perform FAT would be approximately 4 years, with costs estimated to exceed $3.3M.

The set-up of special tooling and training is estimated to take approximately 12 months ($1.2M), as well as an additional 2 months to assess the TDP ($100,000). It is estimated it would approximately 18 months, at a cost of $425,000, to produce the 6 initial units for FAT and flight testing. Fat would cost approximately $100,000 and take 6 months to complete. Flight testing would take place over 6 months and cost approximately $1.5M.

The Non-Recurring Engineering (NRE) costs for a new vendor would be entail increases of dedicated manpower, engineering, and material. Substantial startup costs coupled with an unknown future demand create a significant obstacles to competition; any competition would require an evaluation of the momentous start-up costs a company would be bid which immediately puts MEC in a price advantage who has already invested in these costs.

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FMS customers have not currently, nor will they likely include, funding for the development of alternative sources as their requirements will be "one-off" with no additional buys in the future. Furthermore, it is likely that all future FMS customers will source direct to MEC based on their proven record of performance.

Accordingly, MEC is the only firm capable of providing the requirements described in Section III above without the U.S. Air Force experiencing substantial duplication of cost for NRE and FAT prototypes and testing that could not expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

This requirement will be synopsized on the Beta.SAM website as required by FAR 5.201. Any sources having an interest in subcontracting may be identified through synopsis. Any source who responds to the Government as a result of the synopsis will be referred to MEC as a potential source of subcontracting opportunities.

A Sources Sought Synopsis (SSS) was posted to FedBizOpps (www.fbo.gov) on 23 Jan 2019, under Solicitation Number# NAICS 336413 and 332994, to identify potential sources that possess the expertise, capabilities, and manufacturing experience to manufacture the MAU-12 and TER-9/A. 2 NAICS were used: 332994 (Small Arms, Ordnance, and Ordnance Accessories Manufacturing) and 336413 (Other Aircraft Parts and Auxiliary Equipment Manufacturing). Five responses were received.

The market survey indicates MEC is the only current qualified manufacturer of the MAU-12 and has been the sole manufacturer.

The overall cost of this acquisition will be negotiated and determined, in accordance with the procedures in FAR Part 15, as 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 Government also has extensive data from previous contracts for the MAU-12 to perform price analysis.

The Defense Contract Audit Agency (DCAA), Defense Contract Management Agency (DCMA), and AFLCMC/EBW technical team will be utilized as necessary to assist in the evaluation of the submitted proposal and in the development of the Government objective.

In accordance with FAR 10.001 and 10.002, market research began on 23 Jan 2019 and was completed on 10 Jul 2019. The techniques employed in the market research included a market questionnaire via a SSS, discussion with industry experts, historical vendor review, and an extensive search of the Small Business

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Administration (SBA) Dynamic Small Business Search (DSBS) database.

A SSS was posted to FedBizOpps (www.fbo.gov) on 23 Jan 2019 under Solicitation Number# NAICS 336413 and 332994, to identify potential sources that possess the expertise, capabilities, and manufacturing experience to manufacture the MAU-12. 2 NAICS were used: 332994 (Small Arms, Ordnance, and Ordnance Accessories Manufacturing) and 336413 (Other Aircraft Parts and Auxiliary Equipment Manufacturing). 5 responses were received.

From responses received, other vendors potentially have the ability to manufacture these items. However, they would need to produce a FAT MAU-12 to a complex TDP and pass qualification testing. Nuclear certification for the MAU-12 also presents cost and safety risks as the contractor would be subjected to additional reviews and approval by the USAF safety board. Flight testing or other similar testing presents a very high risk acquisition strategy with regards to schedule and performance.

The MAU-12 does not meet the definition of a commercial item in accordance with FAR Part 2 as it is developed specifically for military use.

The market survey indicates MEC is the only current qualified manufacturer of the MAU-12 and has been the sole manufacturer. They produce complex carriage and release systems for the A-10, F-15, F-16, B-52, and C-130. MEC has the facilities, tooling, and maintains the complex internal manufacturing processes necessary to manufacture the MAU-12. The USG owns the TDP. Any potential new vendor(s) would be required to pass FAT to become a qualified source to manufacture the MAU-12. The technical risk of utilizing MEC is very low as MEC is the only supplier to have ever made these items and continue to maintain their technical and manufacturing expertise. Uncertain future requirements for the MAU-12 and substantial capital investment will be an additional limiting factor for the development of new vendors.

As such, the market research concluded MEC is the only vendor capable of fulfilling the Government's requirement.

None.

See Section VI above.

As the USAF does not currently contemplate future buys, the market potential for new MAU-12 procurement based solely on FMS F-16 aircraft buys may not be sufficient for industry investment in developing the unique manufacturing, testing and qualification facilities necessary to compete for these items. Furthermore, the first article qualification process will result in unacceptable delays in fulfilling future requirements.

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