J A_Redacted.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 Air Force Sustainment Center, 638 Supply Chain Management Group (SCMG), 408 Supply Chain Management Squadron (SCMS)/GULA. The contracting authority for this requirement is AFSC Robins/PZABB. The purchase request number supporting this contracting action is FD2060-13-01328.

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

Due to the circumstances described herein, the activity requests authority to acquire the repair 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 new firm-fixed price, requirements type contract with a basic and four, one-year ordering periods in which additional quantities may be ordered. This sole source requirement will be purchased from the following company:

Crane Electronics, Inc.

84 Hill Ave NW Fort Walton Beach, FL 32548-3858 CAGE Code: 09062 Tel: (850) 275-8113 Fax: (850) 664-0546 Large Business

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

Under the contemplated contract, Crane Electronics, Inc. (previously Signal Technology (Keltec) ) will screen, repair, and modernize/repair the Band 3 High Voltage Power Supply (HVPS), Band 4/5 HVPS, and R/P Low Voltage Power Supplies (LVPS) which are required to support sustainment of the AN/ALQ-131 Electronic Countermeasures (ECM) Pod. funding will be utilized for this requirement.

The total estimated cost for this acquisition, including maximum quantities for all ordering periods, is . This estimate was developed using the actual costs from the previously awarded, sole-source repair contract FA8540-08-D-0007 with Crane Electronics, Inc.

. The quantities are based on actual demand

BEQ URC Total BEQ URC Total

6130-01-492-4527EW 40 5

6130-01-042-9844EW 60 25

6130-01-620-4346EW 1 0 -$ -$

6130-01-620-4346EW 0 -$ 0 -$

6130-01-565-7448EW 0 -$ 0 -$

6130-01-565-7448EW

6130-01-603-6656EW 0 -$ 0 -$

6130-01-603-6656EW

Noun CLIN Description Input NSN Output NSN

FY14 FY15

6130-01-492-4527EW 6130-01-492-4527EW 37

Band 3 HVPS

TT&E/RTOK 6130-01-492-4527EW

TT&E/RTOK 6130-01-042-9844EW

Repair 0 -$ -$

Qualification Data 6130-01-620-4346EW

Modernization/Repair

6130-01-492-4527EW

6130-01-042-9844EW

6130-01-620-4346EW

Test Assets 6130-01-620-4346EW 6130-01-620-4346EW 2

6130-01-620-4346EW 0

TT&E/RTOK/CONDEM 6130-01-620-4346EW

0 -$ 30

Band 4/5

HVPS

TT&E/RTOK/CONDEM 6130-01-565-7448EW

Repair 6130-01-565-7448EW 0

-$ 0 -$ Repair 6130-01-620-4346EW

R/P DC Power Supply

TT&E/RTOK/CONDEM 6130-01-603-6656EW

Repair 6130-01-603-6656EW

-$ 0 -$

-$ 0 -$ 0 DATA CDRLs ALL ALL 1

FY14 TOTAL $ FY15 TOTAL $

BEQ URC Total BEQ URC Total

6130-01-492-4527EW 2 2

6130-01-042-9844EW 8 8

6130-01-620-4346EW 0 -$ -$ 0 -$ -$

6130-01-620-4346EW 0 -$ 2

6130-01-565-7448EW 0 -$ 4

6130-01-565-7448EW

6130-01-603-6656EW 0 -$ 1

6130-01-603-6656EW

DATA CDRLs ALL ALL

Band 4/5

HVPS

TT&E/RTOK/CONDEM 6130-01-565-7448EW

Repair 6130-01-565-7448EW

R/P DC Power Supply

TT&E/RTOK/CONDEM 6130-01-603-6656EW

Repair 6130-01-603-6656EW

Band 3 HVPS

TT&E/RTOK 6130-01-492-4527EW

TT&E/RTOK 6130-01-042-9844EW

Repair 6130-01-492-4527EW 6130-01-492-4527EW Test Assets 6130-01-620-4346EW 6130-01-620-4346EW

Qualification Data 6130-01-620-4346EW

Modernization/Repair 6130-01-492-4527EW 6130-01-620-4346EW

6130-01-042-9844EW

TT&E/RTOK/CONDEM 6130-01-620-4346EW

Repair 6130-01-620-4346EW 6130-01-620-4346EW

Noun CLIN Description Input NSN Output NSN

FY16 FY17

0 -$ -$ 0 -$ -$ -$ 0 -$ -$ 0 -$

10 10

-$ 2 0

-$ 4 0

0 -$ 1

FY16 TOTAL $ FY17 TOTAL $

1 1

BEQ URC Total

6130-01-492-4527EW 2

6130-01-042-9844EW 8

6130-01-620-4346EW 0 -$ -$

6130-01-620-4346EW 2

6130-01-565-7448EW 4

6130-01-565-7448EW

6130-01-603-6656EW 1

6130-01-603-6656EW

R/P DC Power Supply

TT&E/RTOK/CONDEM 6130-01-603-6656EW

Repair 6130-01-603-6656EW

DATA CDRLs ALL ALL

6130-01-042-9844EW

TT&E/RTOK/CONDEM 6130-01-620-4346EW

Repair 6130-01-620-4346EW 6130-01-620-4346EW Band 4/5

HVPS

TT&E/RTOK/CONDEM 6130-01-565-7448EW

Repair 6130-01-565-7448EW

Noun CLIN Description Input NSN Output NSN

Band 3 HVPS

TT&E/RTOK 6130-01-492-4527EW

TT&E/RTOK 6130-01-042-9844EW

Repair 6130-01-492-4527EW 6130-01-492-4527EW Test Assets 6130-01-620-4346EW 6130-01-620-4346EW

Qualification Data 6130-01-620-4346EW

Modernization/Repair 6130-01-492-4527EW 6130-01-620-4346EW

FY18

0 -$ -$ 0 -$ -$

GRAND TOTAL

FY18 TOTAL $

These items currently have a combined total of backorders, of which are MICAPs. The delivery requirements necessary for this acquisition require screening actions to be completed within 30 days and repair and repair/modernization actions to be completed within 60 days.

According to the Contract Repair Screening Analysis Worksheet, the RMC/RMSCs for these items are R3/B and R3/C. R3/B states that this part must be repaired by a source(s) specified on a source control or selected item drawing

. Suitable technical data, Government data rights, or manufacturing knowledge is not available to permit repair by other sources. Although, , altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained.

R3/C states that repair, for the second or subsequent time, directly from the actual manufacturer. This part requires engineering source approval by the design control activity in order to maintain the quality of the part.

Existing unique engineering skills, and repair knowledge by the qualified source(s) require repair of the part by the approved source(s). The approved source(s) retain repair knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. An alternate source must qualify IAW the design control activity's procedures, as approved by the cognizant Government engineering activity. The qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION

10 USC 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 USE OF THE AUTHORITY CITED ABOVE

These items are peculiar to the AN/ALQ-131 ECM Pod . The power supplies convert aircraft power, volts alternating current, , Hertz, into various levels of carefully conditioned, direct current power for use by the Pod’s threat signal receiver and signal processing computer sub-systems. These items must comply with precise weight and dimensional constraints, must endure harsh temperature, altitude, and vibration conditions while in-flight, and are required to mate with existing pod mechanical, electrical, and cooling interfaces.

Approximately devices, components and subcomponents are powered directly or indirectly by these power supplies. The requirements for stable precision operation are ever present and the power supplies are designed to meet these requirements despite the rugged environment. These items are critical elements of the AN/ALQ- 131 ECM Pod.

Crane Electronics, Inc. has repaired/modernized these power supplies on sole-source contracts;

repair/modernization actions are currently being accomplished by Crane on the sole-source contract FA8540- 08-D-0007 which awarded 22 Sep 2008 and expired 22 Sep 2013. Therefore, this acquisition is for continued performance of a highly specialized service.

The services to be procured under this proposed contract are highly specialized in nature; Crane Electronics, Inc. retains all proprietary technical data, material processes, parts and wire lists, parts specifications, source and supplier information, assembly and work instructions, manufacturing and test fixtures, test plans, procedures, piece-part and end-item pass/fail criteria, and troubleshooting and rework procedures. Additional system level requirements and undocumented engineering knowledge of device operation is owned by the device manufacturer.

Only incomplete technical requirements are contained in the Government owned drawings and The Government does not own the proprietary technical data required to repair/modernize these items; the data was developed by, and is proprietary to, Crane Electronics, Inc. The Government was advised via email on 11 March 2013 that Crane Electronics, Inc. is unwilling to sell the proprietary technical data (or the rights to the data) required to repair/modernize these items. Additionally, according to the AFMC Form 762, AMC/AMSC Screening Analysis Worksheet Reports, Special Tools/Special Test Equipment is required, all of which Crane Electronics, Inc. currently possess.

The ALQ-131 Program Office believes 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 and unacceptable delays in fulfilling the Air Force’s requirements. Because Crane Electronics, Inc. is unwilling to sell the proprietary data required to repair/modernize these items, awarding to any other source would require reverse engineering efforts to develop internal technical data packages which would essentially duplicate the existing proprietary technical data owned by Crane Electronics, Inc. Based on the Air Force’s engineering staff’s experience and engineering project data with similar projects, reverse engineering efforts for these power supplies would expose the Air Force to unnecessary cost risk, schedule risk, and technical risks associated with any new design effort of an unqualified source. It would take approximately three to four years for another vendor to obtain the necessary Special Tools/Special Test Equipment, complete the reverse engineering effort, identify and rectify any obsolescence issues, deliver a technical data package, deliver qualification reports, provide repaired Test Assets for the Government’s review, and begin deliveries.

The Band 4/5 HVPS was recently redesigned on the five-year, sole-source spares procurement contract SPRWA1-11-D-0039 with Crane Electronics, Inc. . The cost for another vendor to reverse engineer this item would cost no less than to redesign the item. Based on an Economic Analysis the cost of a reverse engineering effort could not be recouped until which is well past the expected life cycle end date of the AN/ALQ-131.

The R/P DC Power Supply will also be redesigned on a five-year, sole-source spares procurement contract with Crane Electronics, Inc.

The estimated cost for the redesign effort is As with the Band 4/5 HVPS, the cost for another vendor to reverse engineer this item would cost no less than the estimated it will cost Crane Electronics, Inc. to redesign the item. Based on an Economic Analysis the cost of a reverse engineering effort could not be recouped until which is well past the expected life cycle end date of the AN/ALQ-131.

Based on the redesign effort accomplished of the Band 4/5 HVPS and the forthcoming redesign effort of the R/P DC Power Supply, it is expected that the cost for another vendor to reverse engineer the Band 3 HVPS would be no less than Based on an Economic Analysis the cost of a reverse engineering effort could not be recouped until which is well past the expected life cycle end date of the AN/ALQ-131.

Furthermore, the power supplies are essentially unsupportable as the current, sole-source repair/modernization contract to Crane Electronics, Inc. only yields minimal assets and has recently expired. These items are carcass constrained which results in minimal assets being inducted for repair; the majority of the assets inducted for repair are identified as Beyond Economical Repair due to obsolescence issues. Additionally, deliveries from spares procurement contracts will occur no earlier than Sep 2014. The delays associated with award to another vendor are unacceptable because the backorders and MICAPs would continue to accrue during the new contractor’s reverse engineering effort, build, test, qualification, manufacturing start-up, and delivery phases.

The overall mission capability of the AN/ALQ-131 would be detrimentally impacted, as would the aircraft they support. Accordingly, Crane Electronics, Inc. is the only firm capable of providing the supplies and services described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

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 the proprietary manufacturing and production drawings to support acquisition of these AN/ALQ-131 power supplies 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.

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 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 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

Market research was conducted October 2013 as outlined in FAR Part 10 by reviewing the Original Equipment Manufacturer’s drawings, a review of the procurement/repair histories of the items using IHS produce “Haystacks”, internet searches on companies identified in the procurement/repair histories that are not identified as sources in the OEM drawings, and a search for small business opportunities for “power supply repair”.

Internet search sites include: www.Google.com, www.sam.gov, and http://dsbs.sba.gov.

The government owned drawings list Keltec (Cage: 09062) as the approved source for each of the components associated with this contract. Keltec was acquired by Crane Electronics Inc. (Cage: 09062) in 2003 (http://www.craneae.com/AboutUs/Keltec.aspx).

The IHS product “Haystacks” identified the OEMs as the source control authorities and designated Crane Electronics as the prime supplier. No other suppliers were identified.

Highlights from the small business search engine http://dsbs.sba.gov are as follows:

86 results for power supplies 3 results for power supply repair

All three business descriptions indicated that each of these companies worked with power supplies in the computer and industrial electronics. There was no indication of working with military weapon systems or aircraft which have significantly more strenuous environmental requirements than industrial equipment.

Therefore, market research identified Crane Electronics Inc., CAGE code 09062, as the only source available with the technical and historical experience, expertise, equipment, and facilities to satisfy the government’s requirements. There is currently no commercial application for these specific items or commercial equivalents.

The Government does not possess the proprietary technical data for this device nor are they available for purchase from the manufacturer.

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

Crane Electronics, Inc. is unwilling to sell the proprietary technical data required to manufacture this item.

Reverse engineering projects are not only uneconomical to pursue, but would also result in unacceptable delays.

Again, such efforts would be considered high risk from a technical standpoint with no guarantee of success.

Additionally, because Crane Electronics, Inc. has continually met the AN/ALQ-131 power supply needs, through various sole-source contracts, the likelihood of obtaining the funds required for reverse engineering project are unlikely.

It is anticipated that there will be follow-on repair requirements, and as such, the Program Office will continue their attempts to procure data by asking at a higher level within the company; should a proposal be provided, the Program Office will budget for the funds to procure data if it makes economic sense to do so. The Program Office will also further explore the feasibility of pursuing clean-sheet redesign or reverse engineering efforts.

Additionally, the future Pod Upgrade Program (PUP), will significantly reduce the number of AN/ALQ-131 pods in service and consequently reduce the need for these items

. The potential return on investment of a clean-sheet redesign or reverse engineering project will decrease as demand decreases.

If completely funded, PUP may eventually replace all legacy ALQ-131 pods. If this occurs, these power supplies will be removed from Air Force inventory as they are not utilized in PUP. If PUP is not completely funded, the legacy AN/ALQ-131, as well as the power supplies in question, is expected to be in use

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)).