JUSTAPPR_Redacted.pdf

Justification and Approval (J&A) 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

FD2060-16-00014.

II. Nature and/or description of the action being processed.

Due to the circumstances described herein, the requiring activity requests authority to acquire 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. The current contract, FA8522-15-C-0013, provides contract coverage for FY-16. The primary purpose of this effort is to provide engineering and technical support services to AN/ALM-246 Tactical Electronic Warfare System (TEWS) Intermediate Support Station (TISS) in support of the AN/ ALR-56C Radar Warning Receiver (RWR) Test Program Sets (TPS). The new contract will support AFSC, United States Air Force (USAF), United States Air Force Reserve (USAFR), United States Air National Guard (USANG) and Foreign Military Sales (FMS). This action will result in the award of a Cost-Plus Fixed-Fee (CPFF) five year contract (one year basic and four, one year options). This sole source requirement will be purchased from the following company:

THE BOEING COMPANY

6200 JS McDonnell Blvd

Saint Louis, MO 63134

CAGE Code: 0PXV4

Large Business

III. Description of supplies/services required to meet agency needs.

A. The primary purpose of this effort is to provide engineering and technical support services to AN/ ALM-246 Tactical Electronic Warfare System (TEWS) Intermediate Support Station (TISS) in support of the AN/ALR-56C Radar Warning Receiver (RWR) Test Program Sets (TPS). This effort will help minimize intermediate/depot tester downtime and identify opportunities for significant improvement to the Unit Under Test (UUT) test strategies and methodologies. The contractor will assist in resolving AN/ALR-56C/TISS TPS Deficiency Reports (DRs), target hardware/Test Program Sets (TPS) anomalies, test verticality issues, and provide on-call system expertise. Due to

Boeing's unique expertise, problems have been solved and improvements have been incorporated, resulting in a more efficient use of the workforce. The engineering services provided by the contractor/OEM shall be accomplished at the contractor's facility.

B. The services in this acquisition will provide analysis, problem investigation, problem resolution and testing concerning the AN/ALR-56C TPSs on the TISS. This action will result in the award of a five year contract where the Boeing Company is the only responsible source.

C. Requirement:

D. The total estimated cost of this acquisition is This amount is based on a Rough

Order of Magnitude (ROM) provided by the contractor. This requirement will be funded with Consolidated Sustainment Activity Group (CSAG) working capital funds (Fund Code 64). The Period of Performance will be 5 years (September 2016 - September 2021).

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 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).

A. Originally developed in 1987, the ALR-56C RWR continues to be used today. Although there have been some redesigns to the system to avert obsolescence, similar parts are constantly being incorporated as the original parts become harder to find or purchase for the rest of the system. This results in a system that performs its function on the aircraft, but occasionally tests differently due to minor part characteristic deltas. These deltas result in test/fault isolation issues with the TPS. The ALM-246, or TISS, is the Line Replaceable Unit (LRU) tester used both in the field and at the Depot in order to maintain the ALR-56C. The TISS has had some major hardware/software upgrades. Both the TISS hardware and the TPS were developed and upgraded by the Aircraft Integrator, Boeing Company. Thus, Boeing has maintained its expertise. Warner Robins Depot also repairs the Shop Replaceable Units (SRU) and uses a multitude of test stations. Many of these stations are being replaced by a newer test station called the VDATS resulting in the rehost of the SRU TPS. The introduction of new test equipment sometimes requires a new approach to how a specific test is performed resulting in changes to a TPS. These approaches are checked thoroughly, but as with any change there are asset limitations which limit the amount of TPS testing that can be performed and may not represent a true SRU/LRU characteristics distribution. As a result, parameter limits and/or test approaches have to be changed. Between new parts, major upgrades and TPS rehosts, testing issues have come about resulting in Deficiency Reports (DRs). Warner Robins Depot is currently poised to maintain the TPSs for the Depot test stations but not for the TISS resulting in a void that must be filled with a contractor. As a result Warner Robins will establish a contract with Boeing to assist in solving target hardware DRs, target hardware/TPS anomalies, and test verticality issues. By taking advantage of their expertise, problems can be solved and improvements can be incorporated quickly, resulting in a more efficient use of our workforce. Boeing is the only qualified source for this highly specialized service which requires extensive knowledge of the system design and functionality.

B. The agency's minimum needs can only be satisfied by the unique services available from the above cited source, which possesses the unique capabilities demonstrated as follows: There are no commercial opportunities for this particular service. The expertise required is only available from Boeing since the TISS is consistently in flux due to redesigns brought about to overcome obsolescence, and the potential combinations of hardware versions thereof, it is virtually impossible to have another vendor develop expertise by reverse engineering.

C. Boeing is the only qualified source able to support this requirement. System expertise with the ability to reach back to the designer resides only with the OEM. It would take any other vendor approximately 5 years and to develop the expertise to meet this requirement. The timeline is based on Engineering experience with other F-15 Electronic Warfare TPSs. Knowledge on issues that result from interactions of redesigned subassemblies can only be developed by exposure to those issues. The system designer is more likely to resolve these in a shorter period of time because of their expertise. To develop the expertise in a second source would require the following:

Five Test Program Sets (TPS) that are used to test the ALR-56C LRUs

Any delay in awarding this contract would negatively impact support of the ALR-56C RWR system and is unacceptable to the Government. Boeing is currently the only source of sustainment for the TISS; any delay would result in a lack of sustainment support. This would lead to increased backorders and MICAPs for the ALR-56C RWR system.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

This requirement was synopsized on the Federal Business Opportunities (FedBizOpps) web page on 28 July 2015 as required by FAR 5.201; it has exceeded 30 days (since 7/28/2015) without response. Request For Information number, Reference-16-00014 synopsis stated the requirement as being; Technical Engineering support services and deliverable products required by Boeing to investigate and resolve Deficiency Reports (DR) concerning the ALR-56C Test Program Set (TPS) which run on the AN/ ALM-246 TEWS Intermediate Support Station (TISS) and provide Test Program Set (TPS) updates. 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 for subcontracting possibilities. No responses to the Request For Information

(RFI) were received from any potential sources/vendors.

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 15.403-3, 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 proposed skill mix of labor, labor hours, 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; both cost analysis and price analysis techniques are planned to be used to ensure the ultimate price paid by 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.

In addition to the RFI addressed in Section VI above, market research was conducted January 2016 pursuant of FAR 10.001 and 10.002. The main method of market research conducted was internet searches using various search engines. Also utilized was the internal records and knowledge possessed by the F-15 Tactical Electronic Warfare System engineering and program management staff. Research identified through the Market Research that there is no commercial application available for the ALR-56C RWR portion of the F-15 TEWS. Engineering is actively engaged in component product sustainment, staying abreast of industry developments by reviewing industry reports, trends and product developments. The result of the market research identified Boeing as the only qualified source.

• Review of several industry-wide searches on the Internet, using the following AE-recommended component search engines:

http://www.aerospace-technology.com/contractors/index.html (Keyword: AN/ALR-56C TPS) http://www.globalspec.com/ProductFinder (Keyword: AN/ALR-56C TPS) http://www.eem.com/ (Keyword: AN/ALR-56C TPS) http://www.sam.gov/ (Keyword: AN/ALR-56C TPS) http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm (Keyword: AN/ALR-56C & NAICS code: 541330, Engineering Services)

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

Market surveillance continues through the monitoring of technical literature, discussion with other engineers, and attendance at expos for potential sources/suppliers.

Request For Information number, Reference-16-00014 synopsis stated the requirement as being; Technical

Engineering support services and deliverable products required by Boeing to investigate and resolve Deficiency Reports (DR) concerning the ALR-56C Test Program Set (TPS) which run on the AN/ ALM-246 TEWS Intermediate Support Station (TISS) and provide Test Program Set (TPS) updates. No responses to the Request For Information (RFI) were received from any potential sources/vendors.

This Sole Source action is the second order with Boeing Company. This engineering service makes use of the OEM's invaluable system corporate knowledge which cannot be easily transferred to and delivered in the form of documentation package. There are five TPS that exist to support the repair of the ALR-56C at the LRU Level.

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.

No additional sources other than the OEM have expressed an interest in this acquisition at this time. In the event a contractor expresses an interest during solicitation, then the procedures described in Section VI above will be followed.

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.

The ALR-56C is the Radar Warning Receiver (RWR) system on the F-15 jet. The F-15 hardware has been upgraded extensively to extend its usable lifetime to an estimated date of 2045. However, due to the projected Eagle Passive Active Warning Survivability System (EPAWSS) initial operating capability (IOC) implementation date of 2022, it remains unclear whether the ALR-56C TPSs will still be used for this system after this date. Any efforts to qualify another source at this time would be an unacceptable delay to the Government.

Based on experience and similar project data, TPS development and upgrades takes approximately for the current contractor to upgrade the LRU TPS. It will take another vendor 5 years and a cost of to gain the expertise to develop/upgrade the TPSs. A delay of 5 years is unacceptable and would cause harm to the Government. Since the Government does not possess this expertise, any delay would leave the Government without the ability to resolve software anomalies, hardware anomalies, and test verticality anomalies. The inability to resolve these deficiencies would reduce the number of repairable assets, leading to increased backorders and MICAPs.

Reverse engineering is not possible because this service requires the acquisition of tacit knowledge in the form of system experience and expertise embodied within the OEM. Although a previous Justification and Approval document identified potential organic support in FY17, to date this option has not been pursued.

It is not an option currently because of the time (approximately 5 years) it would take for government personnel to receive training. While the current Market Research indicates a sole source environment for this requirement, the Government will continue to assess the viability of competing this effort or establishing organic support in our planning of future follow-on contracts. The following are steps the Government will take to overcome barriers to competition for future acquisitions:

A. If technical data developed in the past or future becomes available and verified as suitable quality for the required services, the IPT will conduct a Business Case Analysis to determine if procuring data maximizes the life cycle sustainment related support options. The IPT will determine if any data has become available prior to the exercise of each option.

B. Continue to conduct market surveillance through the monitoring of technical literature, discussion with other engineers, and attendance at expos for potential sources/suppliers of the subject service. The IPT will conduct this surveillance on an annual basis.

C. Assess the possibility of establishing organic support prior to the exercise of each option.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.