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 (AFSC), 638 Supply Chain Management Group (SCMG), 408 Supply Chain Management Squadron (SCMS) / (GULB). The contracting authority for this requirement is AFSC/PZABB. The purchase request number supporting this contracting action is FD2060-14-00008. FY14 funds will be used.

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

Due to the circumstances described herein, the activity requests authority to acquire the engineering 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 a new predominantly Cost Plus Fixed Fee (CPFF) C- type engineering services contract with a 36-month basic period, and no options or ordering periods, FY14-FY17. The sole source requirement will be obtained from the following source:

Exelis Inc.

77 River Road Clifton, NJ 07014

CAGE: 28527

Large Business

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

AGENCY’S NEEDS

Under the contemplated engineering services contract, the contractor will provide the following services to the United States Air Force (USAF) for NSN 5985-01-497-6973TG, which is required to support the ALQ-172 Weapon System that is installed on the MC-130H and AC- 130H aircraft. The contractor will analyze system specification requirements for the antenna, design a form, fit, function, and interface prototype, successfully test prototypes at the system and aircraft level, and deliver a total of four prototypes once this effort is completed.

TOTAL ESTIMATED CONTRACT VALUE $2,000,000

Prices for these engineering services and prototype development and fabrication were based on previous engineering projects submitted and funded by the Government for similar items. The ALQ-172 office did not have an internal example of a Defense Logistics Agency item that had been redesigned for the ALQ-172 before or a similar item.

This contract will require delivery based upon contract negotiations and performance parameters in Section 2.0 of the Performance Based Work Statement.

The anticipated type of appropriation that will be used to fund this effort is the General Support Division Sustaining Engineering (GSD-SE).

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 2304(c), 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 THE USE OF

THE AUTHORITY CITED ABOVE (APPLICABILITY OF AUTHORITY)

Research has identified Exelis, Inc. (CAGE 28527) as the currently qualified source available with the unique experience, expertise and relationships to satisfy the Government’s requirements of this highly specialized item. Exelis Inc. is the original equipment manufacturer for the ALQ- 172 system and is the only vendor with the technical data to support the form, fit, function, and interface redesign of the Dash 12 antenna. Exelis Inc. The AN/ALQ-172 Electronic Warfare

Month Basic

CLIN

Pricing Type Units

Estimated Unit Price

FY14 Total Estimated

Cost

FY15

Total

Estimated

FY16 Total Estimated

Cost

FY17 Total Estimated

Cost

0001 CPFF NRE 1 LOT

0002 CPFF

Prototypes/ First Articles 4EA

0003 CPFF DATA 1 LOT

0004 CRNF

Travel/Per

Diem 1 LOT

Esitmated 15 trips at 5 per year

$ 2,000,000.00 TOTAL ESTIMATED CONTRACT VALUE

System is on the B-52 aircraft as well as the various models of the C-130 aircraft used by Air Force Special Operations Command. System design features include full automation, multiband coverage, simultaneous multiple threat recognition and jamming, digital computer control, "advanced" jamming techniques, a "high" effective radiated power value, threat re-programmability, a high-gain antenna array, a threat warning display, and "extensive" built-in test capabilities.

The ALQ-172 Dash 12 antenna was originally redesigned by UB Corporation. UB Corporation funded the redesign with their internal funds. A successful Government test was performed in 2004. Even though UB Corporation originally designed the Dash 12 antenna, the company indicated in an email dated 5 Aug 13 that they would no bid on the redesign requirement because they didn’t want to give rights to the Government. Since UB Corporation is no longer interested in the requirement, Exelis, Inc., the original system designer, is the only vendor that can support the form, fit, function, and interface redesign of the Dash 12 Antenna.

Exelis Inc. is the original designer and manufacturer for the ALQ-172 system and is the only vendor with the technical data to support the form, fit, function, and interface redesign of the Dash 12 antenna. Exelis Inc. is the only vendor with the expertise and equipment that can meet the specialized requirements of the Dash 12 antenna. Due to the failure of several sources to qualify as a supplier and the no bid from UB Corporation, the only other source that can meet the frequency requirements of the antenna is the ALQ-172 original system designer, Exelis, Inc. This effort will require an evaluation of the frequency requirements of this antenna and the delivery of four prototypes. Exelis established the original requirements for the Dash 12 antenna. As the system OEM, Exelis is the only company with the knowledge, specialized equipment, and capablity to determine and provide a recommendation to the Government on the parameters for the Dash 12 antenna, as well as, provide prototypes to validate the frequency specifications.

If award of this requirement was made to another vendor, the Government estimates that it would take three years to bring the vendor up to speed on the ALQ-172 system before the vendor can begin to redesign the item based on the complexity of the ALQ-172 system and the frequency bandwidth the antenna is required to meet. The Government estimates it would take another four years to complete the redesign based on the difficulty of other vendors without ALQ-172 expertise to qualify and meet the specifications of the antenna. The vendor would also require a significant amount of Government Furnished Equipment, which is unavailable. This is an unacceptable delay due to current depleted stock and the 7 MICAPS already on order for these antennas. The Dash 12 antenna is currently unsupportable and any other schedule delays will result in high priority backorders, MICAPS, and grounded aircraft.

Therefore, the research of available market information supports that the form, fit, function, and interface redesign should be accomplished by the original system designer, Exelis, Inc.

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. Any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential source 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), 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

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 Report was conducted October 2013.

Internal knowledge possessed by the AN/ALQ-172 engineering staff was queried. Engineering is actively engaged in component product sustainment, staying current with industry developments by reviewing industry reports, trends and product developments, talking with field personnel, reviewing applicable company portfolios on a regular basis, and maintaining an active dialog with the sustainment parts suppliers. Review of several industry-wide searches on the Internet, using the following Acquisition Center of Excellence (ACE) recommended component search engines:

• http://www.aerospace-technology.com/contractors/index.html,

• http://www.electrobase.com/app/flC/niprd/wsprdall,

• http://www.electronics-oems.com/products.html,

• http://www.datasheetlocator.com/,

• http://www.globalspec.com/ProductFinder,

• http://www.eem.com/,

• Review of Govt-proprietary component product data-base (Haystack)

The only other source identified through Market Research was UB Corporation. In April 2004, UB Corporation successfully demonstrated their redesigned Dash 12 Antenna for the ALQ-172.

The ALQ-172 Systems Engineering team approved of the design and it was stock listed and managed as a Defense Logistics Agency (DLA) item. The Government does not own any drawings and only has the specifications and outline drawings for the antenna. Since UB Corporation developed the Dash 12 Antenna with their internal funds the Government has no rights to the data. DLA has attempted to procure the antenna three times without NRE efforts since 2005 (full and open competition) and two production contracts were awarded then cancelled. The first contract was won by another company and delivered first articles, but they failed first article test. DLA then solicited again and another company won that effort, but also failed first article test. The third solicitation did not receive any bids. The OEM chose not to bid due to the previous solicitations being awarded to other companies.

Therefore, Exelis, Inc. is the only source that can support the form, fit, function redesign of the asset due to the failure of several sources to qualify as a supplier on the current configuration and the lack of interest from the OEM.

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

OPEN COMPETITION

The Government does not have a technical data package that would be sufficient to support a form, fit, function, and interface redesign at another vendor other than Exelis, Inc. The Government only has the specifications and outline drawings.

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

This effort requires the delivery of a full technical data package and technical order redlines. The Defense Logistics Agency will be responsible for competing future production requirements after the prototypes have been technically accepted by the Government. UB Corporation’s data would not be useful to the Government because their design would require several waivers to the system requirement and the Government really wouldn’t be able to utilize the design. This item will be in use until 2025. It would take three years for another vendor to become familiar with the ALQ-172 system before the vendor could begin development. The vendor would also require several Government Furnished Equipment items, which are unavailable. This delay would be unacceptable because supply has already been depleted and the Dash 12 antenna has not been procured in over three years. There are currently 7 MICAPS for this item. Going to another vendor will result in high priority backorders, MICAPs and grounded aircraft. Therefore, the only vendor that can meet the Government’s requirements and schedule is Exelis, Inc.

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)).