13-01604_-_JA_20131021_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 (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 FD2060-13-01604.

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

Due to the circumstances described herein, the activity requests authority to acquire the services listed in this document using Other Than Full and Open Competition as prescribed by FAR 6.302-1(a)(2), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This action will result in a new Firm Fixed Price (FFP), IDIQ contract with an estimated award date of 1 March 2014 and an estimated total dollar value of

This sole source requirement will be purchased from:

Northrop Grumman Technical Services, Inc.

2411 Dulles Corner Park STE 130 Herndon, VA 20171-3431

CAGE: 0JRC1

Facility Code:

Northrop Grumman Technical Services, Inc.

101 Industrial Park Blvd Warner Robins, GA 31088

CAGE: 1LTU5

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

This requirement is for the major repair of the Pod System Processor Replacement (PSPR) Circuit Card Assembly (CCA), NSN: 5998-01-518-0328EW, P/N: 862820-10 for the AN/ALQ- 184 Electronic Countermeasure (ECM) Pod. Additionally, a data package for the PSPR’s memory board will be procured. 4930 Working Capital Fund appropriations will fund this effort.

FY14 FY15 FY16

URC

QTY

MIN MAX MIN MAX MIN MAX

25 175 25 75 25 75 Sub Total Drawing Package Grand Total

The total estimated cost for this acquisition is This estimate was developed using the actual costs from the previously awarded, sole-source contract with Northrop Grumman to repair the PSPR CCA. Actual costs from this contract were utilized and inflated to the appropriate year using a 3% factor. The quantities are based on the Sep 2012 computation cycle.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 2304(c), as implemented by FAR 6.302-1 (a)(2), 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 AN/ALQ-184 is a self-protect Electronic Counter Measures (ECM) Electronic Warfare (EW) pod with widespread use in It provides electronic countermeasures against

. The PSPR executes the system Operational Flight Program (OFP) which dictates primary system functions and responses within the operational environment. The PSPR contains a modern high speed processor capable of storage and operation for the OFP.

Northrop Grumman Corporation (NGC) is qualifying as a source of repair on the existing Cost Plus Fixed Fee (CPFF) sole-source contract FA8522-12-M-0003 awarded 20 Dec 11 and later modified 5 August 2013. This contract will expire 28 February 2014 and includes the repair of 19 ea assets.

The work performed by NGC is highly specialized in nature; as the OEM they retain the historical knowledge, engineering expertise, and facilities required to repair the PSPR.

According to the AFMC Form 762, Contract Repair Screening Analysis Worksheet, special tools/test equipment and special facilities are required, all of which NGC currently possesses.

Also, the PSPR uses proprietary software known as RePLACE Emulator produced by TRW, who was bought by Northrop Grumman Corporation (NGC), to allow different microprocessors to be emulated in a common framework to allow standardized methods of controlling emulation.

NGC advised the Government on 28 Jan 2013 that they are unwilling to sell this software.

Therefore, this acquisition is for continued performance of a highly specialized service.

The ALQ-184 Program Office believes that award to any other source would result in unacceptable delays in fulfilling the Air Force’s requirements. Based on Program Office and Engineering experience with similar acquisitions, it would take approximately four years for another vendor to obtain the necessary tools/equipment and facilities, provide first articles and acceptance test procedures, and deliver repaired assets. This is assuming that they are able to somehow replicate or purchase the required software, which is proprietary to NGC.

These delays are unacceptable because the PSPR is currently unsupportable with 78 ea backorders, 50 ea of which are MICAPs. Without this contract the PSPR will remain unsupportable. The overall mission capable rate of the AN/ALQ-184 fleet will be detrimentally impacted, as will the aircraft they support. Accordingly, NGC is the only firm capable of http://www4.law.cornell.edu/uscode/html/uscode10/usc_sec_10_00002304----000-.html http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/06.htm providing the supplies and services described in Section III above without the U.S. Air Force experiencing 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 website (FedBizOpps.gov) as required by FAR 5.201, citing conditions which preclude full and open competition. Sources expressing an interest as a result of the synopsis will be investigated for their capabilities to perform on this and/or future requirements.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The anticipated cost will be considered fair and reasonable based upon FAR 15 negotiation procedures using price and cost analysis. The contractor will be required to submit certified cost or pricing data in accordance with FAR 15.403-4. A comprehensive analysis will include a technical evaluation of the proposed effort and recommendations by Defense Contract Management Agency and expert technical personnel supporting the program.

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 outlined by FAR 10.002 and a report was completed 24 Sep 2013. The following methods were utilized: reviewing industry reports, trends and product developments; discussions with industry representatives; internet searches (www.google.com) searches yielded zero relevant results); and knowledge possessed by EA Pods Engineering Staff.

Engineering is actively engaged in component product sustainment, staying abreast of industry developments by reviewing industry reports, trends and product specifications, attending annual symposiums, and maintaining an active dialog with manufacturers.

Due to the limited application of this unit (AN/ALQ-184 only), almost certain obsolescence issues, and the required knowledge of how the AN/ALQ-184 works internally, vendors capable of repairing this unit are currently non-existent.

The Government originally purchased an entire drawing package from NGC, but the drawings are outdated and inaccurate rendering them unusable in their current state. They reference obsolete components as well as components recently identified as containing latent defects. The drawings are currently under revision and will be delivered as redlined drawings by NGC on the current contract. Once the redlined drawing package has been delivered, the Government will take action to establish either an organic repair capability or a competitive contract, either of which is expected to be complete in FY17. Industry and system knowledge possessed by the Pod Engineering staff notes that due to these issues which are currently being worked with NGC and the AN/ALQ-184 Responsible Engineering Authority (REA) that it is not currently possible to perform repair on the circuit cards outside of the OEM.

Although NGC is unwilling to sell their RePLACE software, they are willing to sell the data package for the memory board utilized in their Acceptance Test Procedures. Although not http://www.google.com/ required to establish an organic repair capability or a competitive contract, this memory board data will increase the Government’s likelihood of developing another repair source as it will allow others to repair the PSPR without NGC’s proprietary RePLACE software. The data will be procured on this proposed contract.

Government depot is currently incapable of screening or repairing these assets due to thermal requirements required to detect possible faults. Government depot also lacks the ability to repair multiple components on the circuit card due to inadequate equipment and expertise. Lastly, the current drawing package has major issues which the REA is attempting to resolve on this contract. The Government is working to transition into organic depot repair in the future.

There is no commercial application for this specific NSN which prevents the Government from procuring an off-the-shelf equivalent. As previously stated, other vendors capable of repairing this unit are currently non-existent. Additionally, Government depots are also incapable of repairing these units due to inadequate test equipment and test specifications that currently exceed the Government’s capability. The OEM has the required knowledge to develop the correct Acceptance Test Procedure, knowledge of the design to avoid/resolve inevitable obsolescence issues, as well as the means to rapidly repair this item.

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

OPEN COMPETITION

Due to the large quantity of spares initially procured during the production phase of the PSPR, neither a repair capability nor a long-term support structure was ever developed until the sole source contract FA852212M0003 awarded 20 December 2011. A subsequent contract modification awarded 5 Aug 2013.

The AFMC Form 762, Contract Repair Screening Analysis Worksheet, states that the RMC/RMSC code for the PSPR is R3/Q. The RMC code of R3 indicates to “Repair, for the second or subsequent time, directly from the actual manufacturer”. The RMSC code of Q was selected because the Government does not have adequate data needed to contract repair of this part from additional sources.

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

Upon completion of resolving the obsolescence and latent defects issues, which will be accomplished on the current contract (expiring 28 February 2014), the drawing package will be updated accordingly. Additionally, the PSPR memory board data required to compete this requirement will be procured on this contract and expected to deliver during the first period of performance. This data will allow others to repair the PSPR without NGC’s proprietary RePLACE software. Once the drawing package has been updated and the data delivered, the

Government will take action to establish either an organic repair capability or a competitive contract, either of which is expected to occur in FY14.

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)).