J_&_A_Redacted.pdf

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

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FOR OFFICIAL USE ONLY13 Sep 2017

I. Contracting Activity.

This Justification and Approval is to request authority for Other Than Full and Open Competition which supports requirements generated for the Air Force Sustainment Center (AFSC), 638 Supply Chain Management Group (SCMG) and 408 Supply Chain Management Squadron (SCMS) / GULB.

The contracting office for this requirement is AFSC/PZABB. The purchase request number supporting this contracting action is FD2060-16-00761.

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

Due to the circumstances described herein, the activity requests authority to acquire repair services necessary to meet repair requirements for ALR-56M Power Supplies 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 follow-on contract that will be awarded as a Firm Fixed Price (FFP) Requirements Indefinite Delivery Contract (IDC). The contract will consist of a twelve month basic period and four (4) 12 month option periods. The period of performance (PoP) is anticipated to be April 2018 through April 2023, if all option periods are exercised.

This sole source requirement will be obtained from the following source:

ELDEC Corporation DBA: Crane Aerospace & Electronics 16700 13th AVE W Lynnwood, WA 98037-8503 Cage Code: 08748 Large Business

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

This requirement is for repair services for sustainment of the ALR-56M Weapon System. The ALR-56M is installed on the F-16C/D and C-130J aircraft. The repair services include the following ALR-56M power supplies: 6130-01-408-3805EW (any reference to 6130-01-408-3805 also includes 6130-01-407-5312 as an alternate); 6130-01-591-9810EW; 6130-01-362-0928EW.

The ALR-56M Advanced Radar Warning Receiver (ARWR) continuously detects and intercepts Radio Frequency (RF) signals in certain frequency ranges and analyzes and separates threat signals from non-threat signals. It displays threat signals to pilots on a priority basis and provides efficient and effective logistical support to the using command activities for the system. The power supplies covered under this effort are an integral part of the ALR-56M ARWR system.

The best estimated quantities (BEQs) for repair services of each national stock number (NSN) to support USAF and FMS requirements is as follows:

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6130-01-408-3805 6130-01-591-9810 6130-01-362-0928 BEQ Unit Price Cost BEQ Unit Price Cost BEQ Unit Price Cost

BASIC

64 10 8

Optio

64 11 7

Optio

62 8 7

Optio

63 9 8

Optio

64 8 6

USAF

Basic

0 5 0

Option 1

0 5 0

Option 2

0 5 0

Option 3

0 5 0

Option 4

0 5 0

FMS Total

0 0

The NSNs have been screened and assigned Repair Method Code/Repair Method Suffix Code

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(RMC/RMSC) of R3/B.

RMC R3: Repair, for the second or subsequent time, directly from the actual manufacturer.

RMSC B. This part must be repaired by a source(s) specified on a source control or selected item drawing as defined by the current version of ASME Y14.100, Engineering Drawing and Related Documentation Practices. Suitable technical data, Government data rights, or manufacturing knowledge is not available to permit repair by other sources. Although, by ASME Y14.100 definition, 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.

The Source Control Drawings (SCDs) list ELDEC and GE Aviation Systems LLC as sources.

However, ELDEC is the owner of those drawings. GE has been granted limited use of the drawings for production purposes only. ELDEC is currently the only qualified and proven repair source.

The contract will consist of a twelve month basic period and four (4) 12 month option periods. The period of performance (PoP) is anticipated to be April 2018 through April 2023, if all option periods are exercised. The estimated delivery schedule of the basic year is 10 per month, 50 days after receipt of order (ARO) or after receipt of asset (ARA), whichever is later. The anticipated type of appropriation for this effort is the Consolidated Sustainment Activity Group (CSAG) Defense Working Capital Fund (DWCF) 97X4930.

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).

The agency's minimum need can only be satisfied by the unique supplies available from the above cited source. Repair of assets for the ALR-56M system is governed by SCDs. The NSNs for this effort are source controlled items. These items are highly specialized unique/special components designed specifically for the ALR-56M system.

These power supplies were specifically designed to support the ALR-56M Advanced Radar Warning Receiver (ARWR) that continuously scans, detects and intercepts Radio Frequency (RF) signals in certain frequency ranges, and analyzes and separates threat signals from non-threat signals. Due to the unique military application these power supplies support and the system specificity of the power supplies themselves, services provided must meet Air Force user demands and performance requirements. Incomplete performance requirements are contained in the USAF's drawings 330454, Latest Revision. Additional system level performance requirements and undocumented engineering knowledge of device operation is owned by the device manufacturer, ELDEC. No commercial and/or

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FOR OFFICIAL USE ONLY13 Sep 2017 non-developmental items are available that meet the performance and environmental requirements of the existing item. The ALR-56M system life is projected through 2040.

This is a follow-on repair contract to FA8522-13-D-0004. This contract was awarded sole source to ELDEC on 29 March 2013 and expires 28 March 2018. ELDEC is the Original Equipment Manufacturer (OEM) of these power supplies. These items have been repaired on Government contracts by ELDEC Corporation since 29 February 2000.

The Government does not possess viable data on the power supply in its Joint Engineering Data Management Information and Control System (JEDMICS) repository, to include level III engineering drawings. The Government has configuration control but does not have an adequate data package for competition. The Government does not possess the detailed engineering information that would enable a new vendor to successfully develop a repair and testing methodology for these items.

Qualifying a new source would require extensive reverse engineering due to the complexity of the item(s) and the fact that the Government does not own internal drawings for the item(s) but merely a SCD of the form, fit and function requirements. ELDEC, the OEM, is currently the only source capable of repairing the power supply.

The Government contacted ELDEC via email on 6 May 2016 inquiring about their willingness to sell the Government the technical data package necessary to qualify another repair source. ELDEC's response was received on 10 May 2016 stating that the contractor is “not interested in selling technical data.”

Due to schedule constraints for this instant acquisition, it was determined that reverse engineering to qualify a new source was not in the best interest of the Government. The timeline for qualification of a new source is estimated to take two (2) years to complete based on previous experience with a similar ALR-56C effort awarded in 2015. This similar effort consisted of multiple NSNs collectively known as “Exotics”, which serves the same function as the ALR-56M on a different aircraft platform. The ALR-56C is an analog version of the ALR-56M, and as such has slightly less complex components.

The Government has partial data packages for the components on the ALR-56C, so a full reverse engineering effort was not required. The contract for the ALR-56C established a 24 month delivery schedule based on the fact that the new vendor is to develop a technical data package (TDP). The TDP includes at a minimum: a parts list, functional block diagrams, outline drawings including reference designators, schematic diagrams (electrical, mechanical and electro-mechanical), Preferred Parts Selection List (PPSL), non-standard parts list, detailed troubleshooting and fault diagnostic procedures, detailed repair procedures, special materials and process guide, identification of special tooling and test equipment, environmental qualification procedures, Acceptance Test Procedures (ATP), and identification of any potential obsolescence issues. In addition to the qualification timeline of 2 years, an additional year is required for the Government to approve the source and begin procurement of the items. The same type TDP would apply to a reverse engineering effort for the ALR-56M, however the development and qualification time may be longer due to the complexity of the ALR-56M components. There are currently 70 each backorders on NSN 6130-01-408-3805 and 18 each backorders on NSN 6130-01-591-9810. A reverse engineering effort for purposes of this instant acquisition would result in unacceptable delays in meeting critical mission requirements for the

ALR-56M.

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Accordingly, ELDEC Corporation is the only company capable of providing the 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 practicable.

A Request for Information (RFI) for this effort was posted to Federal Business Opportunities (FedBizOpps) on 06 April 2016, under solicitation number RFI_ALR-56PowerSupplies_FY16, with a response date of 21April 2016. Two responses were received. The respondents were evaluated but both were determined not capable because they were not qualified sources in accordance with the SCD. The RFI requested responses from vendors capable of providing repair services for the ALR-56M Power Supplies. The RFI provided the system name, NSNs and part numbers of the assets for which repair is being sought. It further outlined that the repairs must be accomplished in accordance with SCD developed by the OEM and that the interested parties must have the capability to access pertinent technical data and support necessary to meet Government needs.

This requirement will be synopsized on the FedBizOpps web page as required by FAR 5.201. It is anticipated that sources having an interest in subcontracting opportunities may be identified through synopsis. Any vendors who respond to the synopsis will be identified to the prime contractor as 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 or 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 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 initiated in April 2016, completed April 2017, and reaffirmed October 2017.

Subsequent review to verify and validate the information in the MR was conducted in October 2017 and documented in an Addendum to Market Research Report memo for record. It was conducted pursuant to FAR Part 10.001 and 10.002. The Government performed several queries in the marketplace, as well as in databases listed on the approved Acquisition Center of Excellence (ACE) website. The ALR-56M Systems Engineering team searched the database and websites by NSN, part number, and/or item description. Research revealed that there is a single source capable of meeting Government needs because the Government does not possess the data required for accomplishment of this requirement by another vendor.

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A Dynamic Small Business Search was conducted using NAICS code 811219, Other Electronic and Precision Equipment Repair and Maintenance, at the following link: http://dsbs.sba.gov/dsbs/search/ dsp_dsbs.cfm. The searches, utilizing “56M power supply” and “ALR-56M” as keywords, returned 0 results.

The team conducted a review of several industry-wide searches on the Internet, using the following ACE-recommended component search engines. The key term used was: ALR-56M.

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

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

· http://www.eem.com/, As discussed in Section VI, RFI_ALR-56PowerSupplies_FY16 was synopsized on FedBizOpps 06 April 2016 with responses due 21 April 2016. Two responses were received and evaluated, but neither contractor had access to source controlled drawings required to fulfill this requirement, therefore were determined not capable.

These items do not meet the FAR Part 2 definition of a commercial item. There are no aircraft in the commercial market with the same or similar components. The Government requires these items to meet an exact form, fit, and function to meet specific military mission requirements.

The conclusion of the market research was that the Government does not possess enough data on these items to support a competitive award. ELDEC Corporation is the sole owner of the data package for these parts, which precludes repair of this item from alternate sources.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

None.

X. List of any sources that expressed, in writing, an 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 ALR-56M system life is projected through 2040. The Government evaluated the feasibility of a reverse engineering or qualification effort for this instant acquisition. Due to time constraints resulting from the immediate need for these assets to fill backorders, it is not in the best interest of the Government to pursue a reverse engineering effort. A reverse engineering effort is estimated to take two years to complete with an additional year for Government qualification approval.

An inquire was sent to ELDEC via email on 6 May 2016 asking about their willingness to sell the Government the technical data package necessary to qualify another repair source. ELDEC responded

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FOR OFFICIAL USE ONLY13 Sep 2017 they were “…not interested in selling technical data.”

Currently the Government is working towards overcoming barriers to competition. A separate procurement/production contract is expected to award in 2018 which includes the development of new power supplies for this system. This contract will provide the Government with two different configurations to find repair sources. Upon award in 2018, the Government can assess reverse engineering more accurately once these new configurations are created and qualified leading to the possibility of competition by the conclusion of this repair sustainment IDC in 2023.

The Government will continue to pursue acquisition of the technical data from ELDEC. The Government will contact ELDEC on an annual basis to inquire into their willingness to sell the technical data package to the Government. If ELDEC agrees, action will be taken to obtain funding for data acquisition provided that the cost is determined to be reasonable.

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) signatures above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.