FA8524-21-D-0019 Redacted JA.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. Contracting Activity.

This Justification and Approval is to request authority for Other Than Full and Open Competition supporting requirements generated for the Air Force Sustainment Center (AFSC), 638 Supply Chain Management Group (SCMG), 411th Supply Chain Management Squadron (SCMS)/GULAA. The contracting activity for this requirement is AFSC/PZAAA. The purchase request number supporting this contracting action is FD2060-21-00034.

II. Nature and/or Description of the Action Being Processed.

Due to the circumstances described herein, the activity requests authority to repair the items 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 follow-on Requirements Indefinite Delivery Contract (IDC), which will be Firm-Fixed-Price (FFP), Not Separately Priced (NSP) with a one-year Basic plus four (4) additional one-year options. The period of performance is projected to be 22 Sep 2021 through 21 Sep 2026, if all options are exercised.

This sole-source requirement will be purchased from the following company:

Communications & Power Industries LLC DBA: CPI Beverly Microwave Division 150 Sohier Rd Beverly Ma 01915-5536 CAGE Code: 88236 Large Business

III. Description of the Supplies/Services Required to Meet Agency Needs.

This requirement is for depot level repair of AN/APQ-170 Multi-Mode Radar (MMR) X-Band Magnetrons, Ku-Band Magnetrons and Servo Control Modules assets used on the MC-130H Combat Talon II aircrafts. The extent of repair work required shall be determined by the initial inspection/bench check and repair disassembly to return this item to a serviceable end item. This requirement is for repair and return of assets to the Government in serviceable condition while executing approved Acceptance Test Procedures (ATP), promptly maintain Turn-Around-Time (TAT) in calendar days while meeting the delivery schedule for all requirements, track and correct Product Quality Deficiency Reports (PQDRs).

The requirements are listed in the table below:

NSN P/N NOUN

5960-01-454-6982SO VMX-1872 (881203-2) X-Band Magnetron 5960-01-457-0157SO VMU-1630A (881303-3) KU Band Magnetron 5960-01-537-8161SO VMU-1630S (881303-4) KU Band Magnetron (Use 881303-3 until exhausted)

5841-01-305-1053SO 339065-4 (881206-4) Servo Control Module

The Requirement IDC Best Estimated Quantities (BEQs) for each National Stock Number (NSN) is as follows:

NSN PN Noun BEQ 3% Esc URC Total Basic 5960-01-457-6982SO 881203-2 X-Band Magnetron 10 0.0 $22,838.00 $228,380.00 5960-01-457-0157SO 881303-3 Ku-Band Magnetron 1 0.0 $20,907.00 $ 20,907.00 5960-01-537-8161SO 881303-4 Ku-Band Magnetron 12 0.0 $20,907.00 $250,884.00 5841-01-305-1053SO 881206-4 Servo Contl Module 7 0.0 $ 9,536.00 $ 66,752.00 Total $556,923.00

Option 1 5960-01-454-6982SO 881203-2 X-Band Magnetron 8 3.0 $23,523.14 $188,185.12 5960-01-457-0157SO 881303-3 Ku-Band Magnetron 1 3.0 $21,534.21 $ 21,534.21 5960-01-537-8161SO 881303-4 Ku-Band Magnetron 10 3.0 $21,354.21 $215,342.10 5841-01-305-1053SO 881206-4 Servo Contl Module 5 3.0 $ 9,822.08 $ 49,110.40 Total $474,171.83

Option 2 5960-01-454-6982SO 881203-2 X-Band Magnetron 6 3.0 $24,228.82 $145,372.92 5960-01-457-0157SO 881303-3 Ku-Band Magnetron 1 3.0 $22,180.24 $ 22,180.24 5960-01-537-8161SO 881303-4 Ku-Band Magnetron 10 3.0 $22,180.24 $221,802.40 5841-01-305-1053SO 881206-4 Servo Contl Module 3 3.0 $10,116.74 $ 30,350.22 Total $419,705.78

Option 3 5960-01-454-6982SO 881203-2 X-Band Magnetron 4 3.0 $ 24,955.70 $99,822.80 5960-01-457-0157SO 881303-3 Ku-Band Magnetron 1 3.0 $ 22,845.64 $22,845.64 5960-01-537-8161SO 881303-4 Ku-Band Magnetron 6 3.0 $ 22,845.64 $137,073.84 5841-01-305-1053SO 881206-4 Servo Contl Module 2 3.0 $ 10,420.24 $20,840.48 Total $280,582.76

Option 4 5960-01-454-6982SO 881203-2 X-Band Magnetron 1 3.0 $ 25,704.37 $ 25,704.37 5960-01-457-0157SO 881303-3 Ku-Band Magnetron 1 3.0 $ 23,531.01 $223,531.01 5960-01-537-8161SO 881303-4 Ku-Band Magnetron 1 3.0 $ 23,531.01 $ 23,531.01 5841-01-305-1053SO 881206-4 Servo Contl Module 1 3.0 $ 10,732.85 $ 10,732.85 Total $ 87,499.24 Grand Total $1,828,882.61

The total estimated cost of this acquisition is $1,828,882.61, which includes a one-year Basic and four (4) one-year options. The total estimate was developed based on actual repair costs from prior repair contracts FA8538-11-D-0018 and FA8524-16-D-0019 and adding a 3% escalation factor to each out-year option. In addition, the basis of the estimated cost was validated from by review of the Forecast Unit Price on the March 2020, D200 Summary computation. BEQs are based on historical average repairs in a typical year and accounts for reduction in requirements due to pending MC-130H Talon II retirement. If an asset is determined to be No-Fault-Found (NFF) or Beyond Economical Repair (BER), the incurred cost will be accounted for under a NFF/BER contract line item. The repair delivery schedule is anticipated to be 60 workdays after receipt of task order at a rate of three (3) per month.

The nominal Contract Line Item Numbers (CLINs) anticipated for this acquisition are as follows:

CLIN Description Cost Total BEQ Units X001 Repair – 5960-01-454-6982 FFP 29 Each X002 Repair – 5960-01-457-0157 FFP 5 Each X003 Repair – 5960-01-537-8161 FFP 39 Each X004 Repair – 5841-01-305-1053 FFP 18 Each X005 NFF/BER FFP *TBD Each X006 Contract Data Requirements List NSP

*To Be Determined

These NSN’s were screened and assigned Repair Method Code (RMC) of R3; Repair, for the second or subsequent time, directly from the actual manufacturer. The Repair Method Suffix Code (RMSC) is R; The Government does not own the data or the rights to the data needed to contract repair of this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to repair this item, RMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to repair this item, RMCs 1 or 2 are applicable.

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 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 needs can only be satisfied by the unique supplies or services available only from Communications & Power Industries DBA: CPI Beverly Microwave Division, which possesses unique and highly specialized capabilities demonstrated as follows:

Repair of these components require specialized test fixtures (proprietary test assets not available to the commercial sector) and technical data was not purchased by the Government back in the 1970’s when the items were originally procured. CPI is the only vendor with the capability to perform the depot level repairs on these items. These assets are specifically designed and built components for the APQ-170 Terrain Following Radar system, which enables low-level flight missions of the MC-130H Combat Talon II aircraft to provide infiltration, exfiltration, and resupply of special operations forces and equipment in hostile or denied territory. These APQ- 170 assets are critical components of the APQ-170 Receiver-Transmitter. They are designed to transmit and receive at specific frequencies in the APQ-170 Terrain Following Radar system to ensure successful flights during low-level Terrain Following missions. CPI is the Original Equipment Manufacturer (OEM) with in-depth expertise, knowledge, and equipment required to perform the testing and repair of these radar components. They were contacted on 24 Sep 2019 to determine their willingness to provide the Government intellectual proprietary rights to the technical repair data. CPI responded on 25 Sep 2019 stating they were not interested in selling the data rights to the Government at this time. CPI stated they would maintain repair capability should the Government require additional support if the replacement schedule changes.

Previous repair contracts include FA8538-11-D-0018, awarded 28 Sep 2011, and FA8524-16-D- 0019, awarded 22 Sep 2016 which expires 21 Sep 2021. Both contracts were five-year FFP and sole-source to CPI.

In accordance with the Air Force Special Operations Command (AFSOC), the MC-130H is scheduled to be phased out of service and replaced by the MC-130J. AFSOC plans to retire 2 (two) out of the fleet of 16 MC-130H aircraft by CY20 and continue drawing down until completely out of Air Force inventory by CY24. The MC-130J will include new radar system AN/AAS-54 Multi-Spectral Targeting System (MTS). The Government plans to procure Depot Level Repair technical data for the AN/AAS-54 MTS. Sustainment of the system will be organic repair by the Fleet Readiness Center South East (FRCSE) Jacksonville Naval Air Station (NAS), FL.

Reverse engineering these NSNs would be impractical because of the scheduled MC-130H Talon II retirement. A full and open competition for repair of these items requires a complete Technical Data Package (TDP). Since CPI is unwilling to sell or provide access rights to the repair TDP, a reverse engineering would be required for development of the TDP. A reverse engineering effort is estimated to take 6 to 7 years to complete at an estimated cost of $6M.

Based on the scheduled retirement date of the MC-130H Talon II, a reverse engineering effort is not considered a viable strategy. The retirement will result in a rapid and steady increase in asset availability (from Aerospace Maintenance and Regeneration Group stored aircraft) with more components supporting fewer aircraft (eliminating or minimizing the need for future repair).

Contracting to a new source would require test data development; first article testing, flight testing, training and qualifying personnel to operate the equipment. The average time required to develop and award a reverse engineering effort is 24 months. Delivery of drawings and TDP is estimated to take an additional 4 to 5 years. Another 18 to 24 months could be required for the contractor to develop the capability, acquire test stations/test plan and then an additional 18 to 24 months to repair test assets, flight test and qualify those test assets, and deliver the First Article.

Finally, it could take an additional year before the new contractor could deliver the first repaired serviceable asset. Due to the current hostile world environment and high military demand for these specialized combat aircraft, the expected wait time for an MC-130H Combat Talon II flight test aircraft to be available for system flight testing will be 1 to 2 years. These APQ-170 assets are complex operational hardware that would need to be flight tested on MC-130H Combat Talon II configured for these specific part numbers. Reverse engineering these assets would require highly skilled and seasoned software and hardware engineers. It will require the next higher assembly (NHA) APQ-170 Receiver/Transmitter Line Replaceable Unit (LRU) as well as the entire APQ-170 system drawings and technical data which are proprietary to other manufacturers. The repair data for these assets, magnetrons and servo control module is proprietary to CPI.

Accordingly, CPI is the only firm capable of providing the services described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling the Air Force’s requirements.

VI. Description of Efforts made to ensure that Offers are solicited From as Many Potential Sources as Practicable.

A Sources Sought (SS)/Request for Information (RFI) synopsis was posted to Federal Business Opportunities (FedBizOpps.Gov) web site on 21 Oct 2019 with a response date of 20 Nov 2019 under Solicitation Number FD2060-21-00034. The SS/RFI requested responses from interested vendors that possess the expertise, capabilities to meet qualification requirements for this effort.

No vendors responded to the SS/RFI.

The requirement will be synopsized in Federal Business Opportunities (FedBizOpps.Gov) web site in accordance with 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 subcontracting possibility.

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 Contracting Officer will require the submission of other than certified cost or pricing data. Price analysis or cost analysis may be based on “information other than certified cost or pricing data” to examine and evaluate the proposed prices to determine fair and reasonable pricing. Price analysis techniques include comparison of proposed prices to historical prices paid for a same or similar item; comparison with published price lists, offered catalog prices and prices obtained through market research for a same or similar item; comparison of proposed prices with independent Government estimate; or analysis of data other than certified cost or pricing information.

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 during Mar 2020 and completed on 1 Apr 2020 in accordance with FAR Part 10.001 and 10.002. The market techniques used are as follows:

As described in Section VI above, a SS/RFI synopsis was posted to Federal Business Opportunities (FedBizOpps.Gov) web site advising industry of the pending acquisition and soliciting inquiries from interested vendors. The SS/RFI was posted on 21 Oct 2019 under Solicitation Number FD2060-21-00034. No one responded to the SS/RFI.

Queries were conducted by the multi-functional team within Government data bases and various internet Search Engines: Thomas Register, Google, Government Commercial market place, the OEM, and Small Business Dynamic Small Business Search (DSBS) engine. Search terms include APQ-170, radar, magnetron, receiver, transmitter, servo control module, and repair.

Available resources were utilized below to research potential sources of repair:

Thomas Register: No results

Small Business DSBS: No results

Google: Radio-Research Instrument Co., Inc.

(www.radioresearch.thomasregister.com) 584 North Main Street Waterbury CT 06704

Although Radio-Research Instrument Co., Inc. listed the APQ-170 on their website as a system they have repaired in the past, phone and email requests for details and repair history on the APQ-170 were never answered. Therefore, they are not considered a capable vendor.

OEM: Communications & Power Industries (CPI), Inc.

607 Hansen Way Palo Alto, CA 94304

CPI is OEM of these radar components and is the current repair source for these items as well.

For the APQ-170 magnetrons, the OEM repair source is a division of CPI Inc. known as Beverly Microwave Division (BMD).

Beverly Microwave Division (BMD) 150 Sohier Road Beverly, MA 01915 USA

The AN/APQ-170 does not fit the definition of a commercial item as defined in FAR Part 2.101.

This item is defined as military unique and is not customarily used by the general public or by non-Governmental entities. The Government requires parts that meet an exact form, fit, and function as determined by the specific mission. There are no aircraft in the commercial market with the same or similar components.

Market research concluded that Communications & Power Industries is the only company capable of fulfilling the Government’s requirement.

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.

Data rights were not pursued in the 1970’s when the system was initially acquired. This system has multiple obsolescence issues and is being replaced with a new radar system AN/AAS-54 MTS with fielding of new MC-130J by CY24.

CPI was contacted on 24 Sep 2019 to determine their willingness to provide the Government intellectual proprietary rights to the technical repair data. CPI responded on 25 Sep 2019 stating they were not interested in selling the data rights to the Government at this time.

A reverse engineering effort is estimated at $6M and take 6-7 years to complete. In addition, 3-4 more years for a new vendor to develop capability and complete first article qualification testing.

Based on MC-130H retirement, this is not a feasible plan to support the MC-130H.

There are no plans to remove or overcome barriers to competition. The Government will not request data rights in the future nor pursue reverse engineering the current AN/APQ assets due to the pending retirement of the MC-130H.

The prior J&A plan to remove barriers to competition was to continue to survey the market for vendors through the posting SS/RFI synopsis for follow-on repair efforts. In addition, pursue procurement of the data with CPI. This plan was completed, therefore higher level approval of in accordance with DFARS PGI 206.304 (a) (S-70) (ii) for this instant J&A is not required.

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. Technical/Requirements Personnel’s Certification.

As evidenced by our signatures, we certified that any supporting data contained herein, which is our responsibility, is both accurate and complete.