Redacted_J A.pdf

PR: FD2060-12-30271

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Other Contracting

I. CONTRACTING ACTIVITY

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated for the Air Force Sustainment Center (AFSC), 638 Supply Chain Management Group (SCMG), 408 Supply Chain Management Squadron (SCMS)/GULA.

The contracting authority for this requirement is AFSC/PZABB. The purchase request number supporting this contracting action is FD2060-12-30271.

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

Due to the circumstances described herein, this activity will acquire the following repair services listed in this document using Other Than Full and Open Competition as prescribed by FAR 6.302-1(a)(2), only one or a limited number of responsible sources and no other type of 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 (FFP) requirements contract with a basic year plus four option periods in which additional quantities may be ordered. This sole source requirement will be purchased from the following company:

L-3 Communications Corporation (L-3) 960 Industrial Road San Carlos, CA 94070-4116 Phone: 650-486-5548 Cage 80080 Large Business

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

A requirement exists to repair components that support the AN/ALQ-131 Electronic Countermesasure Pod. The inability to accomplish this repair would jeopardize mission accomplishment and safety of aircraft and crew.

PR

Line Item

Noun Action NSN P/N 5 Year BEQ IGE Pricing

Output 5996-01-419-9748EW 581R278H05 Input 5996-01-045-6754EW 581R278H02 Input 5996-01-310-4959EW 581R278H03 Input 5996-01-419-9748EW 581R278H05

3 Radio Frequency Amplifier 30 $88,424.22 4 Radio Frequency Amplifier 10 $54,574.74 5 IAW DD1423s IAW DD1423s NSP

$885,276.27

$742,277.31

Total Estimated Contract Price

Radio Frequency Amplifier

Data

RTOK

Condemnation

A. TT&E and Repair

Year BEQ Estimated Unit Price Estimated Total Price Basic 12 Option 1 12 Option 2 14 Option 3 12 Option 4 13

Estimated TT&E and Repair Total $742,277.31

B. Re-Test Okay (RTOK)

Year BEQ Estimated Unit Price Estimated Total Price Basic 6 Option 1 6 Option 2 6 Option 3 6 Option 4 6

Estimated RTOK Total $88,424.22

C. Condemnation

Year BEQ Estimated Unit Price Estimated Total Price Basic 2 Option 1 2 Option 2 2 Option 3 2 Option 4 2

Estimated Condemnation Total $54,574.74

D. Data

Year BEQ Estimated Unit Price Estimated Total Price Not Separately Priced 1 LT NSP* NSP*

E. Independent Government Estimate and Total Configuration

Estimated TT&E and Repair Total $742,277.31 Estimated RTOK Total $88,424.22

Estimated Condemnation Total $54,574.74 Estimated Data Cost NSP

Estimated Total for Contract $885,276.27

The total estimated cost of this acquisition is $885,276.27. Basic year prices were derived using Option 4 pricing from the most recent L-3 repair ontract (FA8540-07-D-0005) inflated by 3%.

Each option period price is calculated by using each previous option price inflated by 3%.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 U.S.C. 2304 (c)(1) as implemented by FAR 6.302-1(a)(2), only one or a limited number of responsible sources, and no other types of supplies or services will satisfy agency requirements.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNQUE QUALIFICATIONS OR

NATURE OF THE ACQUISITION REQUIRES USE OF THE AUTHORITY CITED

ABOVE

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

The Air Force has neither internal drawings nor internal engineering data for this device with which to facilitate repair by another source; all of that information is proprietary to the one manufacturer, L-3.

The technology employed by this custom-made, high-precision, MIL-SPEC item is not similar to that of commercial applications and is unique and highly specialized. Commercial applications are not designed to withstand the extreme operational envelope that this device must withstand while maintaining the performance precision critical to mission success. L-3 is the only qualified source who can satisfy the Government’s requirement for this proprietary L-3 device.

The data in the Government’s possession is not adequate to enable another source to repair the internal component parts or to successfully endeavor to become qualified to do so.

VI. EFFORT TO ADD ADDITIONAL SOURCES/SOLICIT FROM AS MANY

SOURCES AS POSSIBLE

This requirement will be synopsized on the Federal Business Opportunities (Fed Biz Ops) web page as required by FAR 5.201 citing conditions which preclude full and open competition. It is anticipated that there will be no effective competition due to the lack of technical data to provide to any potential source. If a small business contacts the Government Contracting, the small business will be redirected to contact L-3 for possible subcontracting opportunities.

VII. DETERMINATION BY THE CONTRCACTING 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, the contractor will be required to provide a firm, fixed price proposal with 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 Defense Contract Management Agency (DCMA) for appropriate field pricing assistance 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

As described in Section VI above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. Market Research techniques included: reviewing industry reports, trends and product developments; discussions with industry representatives;

internet searches; and industry knowledge possessed by EA Pods Engineering Staff. It has been determined that no commercial equivalents exists which could fit our needs.

L-3 should be treated as the sole source for this item until purchasing the data or reverse engineering or upgrading the item is a feasible and economical option.

L-3 Communications Corporation is the original equipment manufacturer (OEM). In addition to being the OEM, there are no approved, alternate sources for this item. Alternate equipment which might fill the need with only minor modifications were considered. However, this was determined not to be technically feasible due to the technical requirements and compatibility issues with the ALQ-131 Pods system as a whole.

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

OPEN COMPETITION

There has been only one qualified repair source for this specific item, L-3. There is no commercial application for this specific NSN, nor commercial equivalent.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTERST IN THE ACQUSITION

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 SERVICS REQUIRED

L-3 Communications Corporation was contacted via email in February 2013 about selling all technical data and rights required for the repair of the ALQ-131 Band 3 Drivers. L-3 responded on the 7th of February 2013 with a Rough Order of Magnitude (ROM) price of . With the purchase of the data and rights, the Government could pursue a competitive contract. A new vendor would be required to qualify as a repair source. Engineering has evaluated the complexity of this item and determined that there is a high risk of failure and no guarantee of success.

An economic analysis has been conducted to determine the feasibility of pursuing a competitive acquisition with the following assumptions:

The estimated time to qualify a new vendor as a repair source and begin receiving repaired items is two to three years

A three (3) year sole-source contract to L-3 will still have to be awarded to cover the time required to standup a new repair source

Cost to qualify a new vendor as a repair source is Total cost for this effort (data/rights and qualification) is Requirements will decrease because of the Pod Upgrade Program (PUP) - this acquisition program will significantly reduce the number of ALQ-131 pods in service which will reduce the need for these assets by approximately 50% by FY18

Competition will result in a 25% reduction of the estimated Unit Repair Cost

With these assumptions, the economic analysis shows that the Government will not be able to recoup the required to develop and approve a new source until FY42. Based upon this information, the AN/ALQ-131 Program Office has determined that pursuing a competitive acquisition is not economically feasible. It is anticipated that there will be follow-on purchases, however the timeframe and quantities are unknown at this time. When known, we will make another attempt to procure data; if that is not successful, we will explore the feasibility of reverse engineering the item(s).

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 in accordance with FAR 6.303-2(c).