63_Redacted_J&A_Rodelco_Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Choose the funding level for this J&A Document:

< $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: AFSC/PZABB

Purchase Request / Local ID Number: FD2060-15-01067

Program / Project (and PE, if applicable): ALQ-184

Program Type (PEO or Other Contracting): Other Contracting

Authority (include full title): 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(ii)

Estimated Contract Cost (including options): J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

08 May 2017

Project Lead / Program Mgr / Requiring Activity

408 SCMS/GULA, 478-222-4672

Signature

Date

08 May 2017

Contracting Officer

AFSC/PZABB, 478-926-7161

Date

09 May 2017

Local Legal Reviewer

78 ABW/JA, 478-222-0569

APPROVAL (AFFARS 5306.304(a) )

Date Competition Advocate

AFSC/PZCA, 478-222-1090

I. Contracting Activity.

This Justification and Approval requests authority for Other Than Full and Open Competition to support 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

FD2060-15-01067.

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

Due to the circumstances described herein, the activity requests authority to acquire the spares 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 (FFP) 5-year Delivery Protection Program (DPP) Indefinite Delivery / Indefinite Quantity (ID/IQ) type contract for production of AN/ALQ-184 Coaxial Microwave Drive Control, National Stock Number (NSN) 5865-00-007-6950EW. The contract will consist of a two year basic and production option; and, three out-year options.

A. Special Features: DPP procedures will be utilized for this acquisition. This requirement will be a competitive effort with DPP terms. If the proven source is the successful overall best offeror, the Government will award one ID/IQ type contract with the Mission Essential Quantity (MEQ), Production option, and Out-year option(s) to the proven source. If an unproven source is the best offeror, the Government will award one ID/IQ type contract with the MEQ, Production option, and Out-year option(s) to the proven source and one ID/IQ type contract with the first article requirements, Production option, and Out-year option(s) to the unproven source.

B. Definitions:

1. DPP is a contractual vehicle which provides the Contracting Officer (CO) a means of competing the maximum practical quantity of a requirement while mitigating risk through acquiring the MEQ from a proven source to ensure continued mission support during production capability and validation from an unproven source. These items have been determined of such complexity and/or so critical that first article/preproduction testing measures are required for all unproven sources. Also, the Government has determined that a break in coverage would jeopardize support to the mission capability of operational units. In addition, the item has an Acquisition Method Code (AMC) of 1 assigned. An AMC of “1” means suitable for competitive acquisition for second or subsequent time.

2. A proven source is an offeror who has previously satisfactorily provided the identical item to the Government or who proposes to provide an item manufactured by the prime manufacturer or the prime manufacturer's vendor (when there is no value added by the prime manufacturer).

3. An unproven source is an offeror who has not previously satisfactorily provided the identical item to the Government and who proposes to provide an item manufactured by other than the prime manufacturer or the prime manufacturer's vendor (when there is no value added by the prime manufacturer).

4. MEQ is the quantity of an item needed during the time it takes to produce, test, and approve the first article. The MEQ provides a buffer to span the time while the first article is produced, tested and approved/disapproved.

5. Production option is the quantity that will be supplied by the proven source or the unproven source, depending on whether or not a conforming first article was submitted on schedule.

6. MEQ options are utilized as a contingency plan for handling requirements that are not known at the time. This option is to be utilized to protect against supply shortages until a new source becomes proven.

7. Out-year options are used for future requirements needed after the MEQ and Production option quantities are received. Exercise of Out-year options require reapproval by the local Competition Advocate.

The proven source for this effort is:

Rodelco Electronics Corporation 111 Haynes Court Ronkonkoma, New York 11779-7221 Cage Code: 59926 Small Business

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

This requirement is for the spares purchase of the AN/ALQ-184 Electronic Attack (EA) pod Coaxial Microwave Drive Control, NSN 5865-00-007-6950EW, part number 578R611H04.

The operational environment for the pod is extremely rugged and includes excessive wind buffeting, engine and acoustic noise vibrations, mechanical shock, and fuel & hydraulic fluid contamination. The drive control regulates the balance of gain for the RF (Radio Frequency) output for the AN/ALQ-184. The drive controller is critical to the successful performance and operation of the AN/ALQ-184 EA pod.

Under the proposed contract, Rodelco Electronics Corporation will provide the MEQ to ensure continued mission support during the time allowed an unproven vendor to successfully complete the qualification of first articles. Consolidated Sustainment Activity Group (CSAG) Defense Working Capital Funds (DWCFs) 97X4930 will be utilized. The contract is projected to award December 2017. Based on this the period of performance is projected to be December 2017 through December 2022. The total estimated cost of this acquisition can be found in the table below:

NSN: 5865-00-007-6950EW PN: 578R611H04

Description Quantity Estimated Unit Cost Estimated Total Cost Min / Max First Articles (unproven source) $100,000.00 MEQ (proven source) $325,032.98 Production Option (proven or unproven source) $290,414.88 Out-year Option I $299,127.60 Out-year Option II $308,100.96 Out-year Option III $317,344.32 Total $1,640,020.74

This estimate was developed using a number of data sources, including the last actual procurement cost and the D200A Secondary Items Requirements System (SIRS) requirements computation system forecasted unit price calculations. Out-year estimated unit costs were developed using a 3% escalation factor. The quantities are based on actual demand as well as projections computed by the September 2016 D200A computation cycle.

The total estimated dollar value of this J&A is . This reflects the total of all maximum quantities, including first articles, MEQ, Production option, and all Out-year options.

The Coaxial Microwave Drive Control currently has eight (8) backorders and 0 serviceable assets in supply. The monthly demand rate for the drive control is currently four (4) per month. There are no assets due-in as the last delivery occurred on 1 August 2016. Historically, the qualification of vendors based on first article testing and Government approval required approximately 24 months. Use of DPP procedures will ensure there is no degradation in mission and operational supportability during the time required to qualify an unproven source.

The only currently qualified source for this NSN is Rodelco Electronics Corporation. Rodelco Electronics Corporation will provide the MEQ and potentially the Production Option to allow any unproven vendor adequate time to successfully complete the qualification of first articles.

IV. Statutory authority permitting Other than Full and Open Competition.

10 U.S.C. 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 the use of the authority cited above (applicability of authority).

This is a DPP type acquisition in accordance with AFMC MP5306.302-1(90). The Coaxial Microwave Drive Control is complex and critical to the AN/ALQ-184 EA pods. Without procurement of Coaxial Microwave Drive Controls from the approved source (while unproven sources are awaiting first article testing and approval), backorders and Mission Incapable Awaiting Parts (MICAP) requirements would accumulate. The MICAPs and backorders would most likely continue to accrue until a new contractor's first article testing and qualification is approved and production begins. The overall mission capable rate of the AN/ALQ-184 fleet would be detrimentally impacted, as would the aircraft they support.

This program satisfies the following DPP Criteria:

1. A break in supply would jeopardize support to operational units' mission capability

2. The item has an Acquisition Method Code (AMC) of 1.

3. First article testing measures are required to ensure that the new source is capable of producing a conforming part.

The AN/ALQ-184 is a self-protect Electronic Attack Electronic Warfare pod with widespread use in United States Air Force (USAF) combat aircraft.

The Coaxial Microwave Drive Control was previously designed and manufactured by the Original Equipment Manufacturer (OEM), Raytheon Company (Cage Code 06129) on contract F09603-97-C-006 (1996). Since 2006, Rodelco Electronics Corporation has provided assets to the Government. The Coaxial Microwave Drive Control is highly specialized in nature. It is military unique and used only in the AN/ ALQ-184 EA pods. It is a custom-made military specification device built to meet design requirements of Government drawing 578R611H04 Rev W. There are no commercial or non-developmental items that meet the requirements. The Coaxial Microwave Drive Control must be able to withstand an extremely rugged operating environment that includes excessive wind buffeting, engine and acoustic noise vibrations, mechanical shock, and fuel & hydraulic fluid contamination. The Government does not own the complete technical data package for the Coaxial Microwave Drive Control; however, the Government does have the specification control data which defines the footprint and envelope, inputs, and the outputs which would allow a manufacturer with RF knowledge and expertise to produce these units.

To mitigate the risk of increased backorders, MICAPs, and mission degradation to the AN/ALQ-184 EA pods and the weapons systems to which they are applicable, this procurement will utilize DPP procedures.

This J&A document provides the authority to acquire the AN/ALQ-184 Coaxial Microwave Drive Control under the following circumstances:

A. If the successful best value offeror is an unproven source, award will be made to the unproven offeror to qualify a first article. The MEQ will be awarded to the proven source and the DPP is activated.

B. If the unproven source is the successful best value offeror and an unexpected buy generates during the time the unproven source is qualifying the first article, MEQ Option(s) may be exercised to the proven source.

C. If the unproven source is the successful best value offeror and they qualify an acceptable first article within the time specified in the contract, the Production Option(s) will be exercised to the unproven source.

D. If the proven source is the successful best value offeror, all the Government's requirements will be awarded but exercise of Out-year option(s) require reapproval by the local Competition Advocate.

E. Production Options: If the unproven source fails to provide an acceptable first article within the time specified in the contract, the unproven source's contract may be terminated for default, then Out-year option(s) may be exercised with the proven source if they were the next lowest offeror.

Until the contract is terminated for default, Out-year options can only be exercised with the proven source after reapproval by the local Competition Advocate.

F. If the unproven source is the low offeror, the proven source is NOT the next lowest offeror, and the unproven sources does not qualify a first article, then Out-year options may be exercised with the proven source only after reapproval by the local Competition Advocate.

Consideration will be given to initiation of a new competitive buy for Out-year options should the unproven source fail to deliver the conforming first article on schedule, and the proven source is not the next low offeror.

The basis for this J&A and the DPP policy concept is that full and open competition will be achieved and an award will be made to the successful best value offeror, whether proven or unproven source.

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

AFSC/PZABB issued Request for Information (RFI) number FD2060-15-00167 on 03 August 2016 on Federal Business Opportunities (FedBizOpps). The RFI was open for 30 days and closed on 02 September 2016. There was one response received. The company that responded is an unproven source, but has the potential to qualify.

This requirement will be synopsized on FedBizOpps web page as required by FAR 5.201 and citing the DPP acquisition approach. The synopsis will include conditions which preclude full and open competition to acquire the MEQ and potentially the production quantity as discussed in Section V.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The CO will ensure that the supplies are acquired at a fair and reasonable cost to the Government. The CO anticipates cost will be considered fair and reasonable based on adequate competition under the DPP approach. For Alternative 1 (Complete Award), the unproven source(s) will submit proposals under Proposal Schedule A and the proven source will submit under Proposal Schedule B. Proposal schedules A and B contain quantities for the entire contract period and will allow price comparisons between proven and unproven sources for evaluation purposes. Transition to Alternative II will only occur if a proposal under Alternative I, Proposal Schedule A is considered to be the best overall value. Prices submitted under Alternative I and II will be evaluated for reasonableness, balance and total evaluated price. In the event that competition is not realized, meaning only one proposal is received under either Proposal Schedule A or B and not both, the contractor will be required to provide certified cost or pricing data in accordance with FAR 15.403-4. Cost and price analysis will be conducted and audits will be performed by Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA), as required. The contract price(s) will be negotiated in accordance with the procedures of FAR 15, ensuring the ultimate price(s) 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 concluded on 06 Feb 2017 in accordance with FAR Part 10. Thorough searches were conducted within Government data bases, combined with various internet searches (Thomas Registry, IHS Haystack, Google, etc.) for part numbers/national stock numbers, and manufacturers. A search for HUB zone and service disabled veteran owned businesses was conducted using the Dynamic Small Business Search (DSBS) engine (https://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm), using criteria consisting of keywords pertaining to the item description. A number of vendors were identified. Further research was conducted through a vendor survey to determine which vendors possess the capabilities necessary to meet the Government's requirements. An RFI was posted to FedBizOpps on 03 August 2016. One interested vendor responded to the RFI. The company that responded is an unproven source, but has the potential to qualify.

The results of the market research concluded that there is market interest and there are potential sources interested in production of the ALQ-184 EA pod Coaxial Microwave Drive Control to support a full and open competition effort. Based on market research, the program is pursuing full and open competition;

however; of the companies researched, it was determined that Rodelco Electronics Corporation is the only proven source. No other sources can provide the immediate and ongoing coverage needed during the basic period of performance of 24 months as covered under this J&A.

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.

The proposed competitive acquisition strategy will utilize DPP procedures to insure the continuation of mission support while a new source qualifies. It will allow for simultaneous award of ID/IQ contracts to the proven source, Rodelco Electronics Corporation, to satisfy immediate AFSC requirements and to an unproven source for first article and optional production requirements in the event an unproven source is the low offeror. If Rodelco Electronics Corporation is the best value, only a single production contract will be awarded. If the best value offeror is an unproven source and they cannot deliver in a timely manner, experience conformance issues, or fails first article testing, the Government has the ability to exercise option(s) to continue sustainment of the program with the proven source. Unless the unproven source's contract is terminated for default, exercise of Out-year options to the proven source requires re-approval by the local Competition Advocate.

There are no current barriers to competition. The Government owns the data required to manufacture this item. All future requirements will be competed using full and open competition procedures or the DPP procedures, as appropriate. The AN/ALQ-184 EA pod is expected to be in use through 2025.

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.