JA_FA8524_15_D_0004__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), 411th Supply Chain Management Squadron (SCMS)/GULA. The contracting authority for this requirement is AFSC/PZAAA. The purchase request number supporting this contracting action is FD2060-14-00243.

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

Due to the circumstances described herein, the activity requests authority to acquire the services listed in this document using Other Than Full and Open Competition as prescribed by FAR 6.302-1(a)(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, contract with a basic year plus four one year ordering periods. This sole source requirement will be purchased from the following company:

Cobham Aerospace Communications 6400 Wilkinson Drive Prescott, AZ 86301-6164

CAGE: 1WZE2

Large Business

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

AGENCY’S NEEDS

This requirement is for the major repair of the Radio Frequency, National Stock Number (NSN):

5821-01-474-2547, Part Number (P/N): 153-040047-01, Radio Set Control NSN: 5821-01-474- 2548, P/N: 31300-0201-1200, Transceiver NSN: 5821-01-474-2550, P/N: 400-015525-0501, Radio Receiver NSN: 5821-01-552-8993, P/N: 400-015525-0101, Direction Control NSN: 5826- 01-552-8996, P/N: 400-047552-0100, Audio Controller NSN: 5895-20-004-4014, P/N: N301A- 067 and Alarm-Monitor NSN: 6340-01-553-3324, P/N: 611 for the TH-1H Special Operation Forces (SOF)/ Personnel Recovery. Expected award date is 31 March 2014.

This contract will contain a basic year plus 4 year ordering periods. The contract is for repair of 87 assets in the basic year and 330 assets in the four (4) year ordering periods with a total estimated cost of $1,231,046.00.

Repair requirements for National Stock Number (NSN):

Basic NSN Noun Unit Price BEQ Cost 5821-01-474-2547 Radio Turner 2 5821-01-474-2548 Radio Control 25 5821-01-474-2550 Radio Transmitter 8 5821-01-552-8993 Radio Receiver 6 5826-01-552-8996 Direction Control 10 5826-01-553-2003 Radio Receiver 2 5895-20-004-4014 Audio Control 32 6340-01-553-3324 Alarm Monitor 2

Ordering Period 1 NSN Noun Unit Price BEQ Cost 5821-01-474-2547 Radio Turner 2 5821-01-474-2548 Radio Control 26 5821-01-474-2550 Radio Transmitter 8 5821-01-552-8993 Radio Receiver 6 5826-01-552-8996 Direction Control 8 5826-01-553-2003 Radio Receiver 3 5895-20-004-4014 Audio Control 24 6340-01-553-3324 Alarm Monitor 2

Ordering Period 2 NSN Noun Unit Price BEQ Cost 5821-01-474-2547 Radio Turner 2 5821-01-474-2548 Radio Control 25 5821-01-474-2550 Radio Transmitter 8 5821-01-552-8993 Radio Receiver 6 5826-01-552-8996 Direction Control 8 5826-01-553-2003 Radio Receiver 3 5895-20-004-4014 Audio Control 25

Ordering Period 3 NSN Noun Unit Price BEQ Cost 5821-01-474-2547 Radio Turner 2 5821-01-474-2548 Radio Control 27 5821-01-474-2550 Radio Transmitter 9 5821-01-552-8993 Radio Receiver 6 5826-01-552-8996 Direction Control 8 5826-01-553-2003 Radio Receiver 3 5895-20-004-4014 Audio Control 26

Ordering Period 4 NSN Noun Unit Price BEQ Cost 5821-01-474-2547 Radio Turner 2 5821-01-474-2548 Radio Control 29 5821-01-474-2550 Radio Transmitter 10 5821-01-552-8993 Radio Receiver 7 5826-01-552-8996 Direction Control 8 5826-01-553-2003 Radio Receiver 3 5895-20-004-4014 Audio Control 28

Grand Total $1,231,046.00

The estimated cost for this repair is based on the last repair contract, which is the ICS contract, FA8530-08-D-0008-0003 with a 4% increase. The last repair contract for the TH-1H sustainment has been with Lockheed Martin under the ICS contract.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 2304(c)(1), as implemented by FAR 6.302-1(a)(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

The agency’s minimum needs can only be satisfied by the unique supplies or services available only from the above cited source, which possesses unique demonstrated as follows;

The TH-1H is a refurbished Bell UH-1H helicopter with an installed Huey II kit, which includes a more powerful engine, new dynamic components, a new nose and tail boom. The cockpit and mission equipment upgrades include a digital cockpit, and crashworthy seats. These modifications transform a legacy aircraft into a state-of-the-art training platform compatible with future operational aircraft.

This undergraduate training platform develops multiple pilot skills and transitions those skills faster across multiple aircraft. The TH-1H advanced electronics provide expanded training opportunities and improved operational capabilities by upgrading the engine, transmission and rotor system. It has multi-function displays allowing for future upgrades and provides new aircrews with a seamless transition from the TH-1H to a follow-on rotary wing aircraft such as the CV-22 and the Combat Search and Rescue-X helicopters.

The avionics package consists of commercial off-the-shelf (COTS) items. These components have an AMC/AMSC of R4/R and R4/Z and R3/Z. NSNs 6650-01-553-0695, and 5826-01-553- 2003, RMC: R4; this item is to be acquired for the first time directly from the actual manufacturer rather than the prime contractor who is not the actual manufacturer. RMSC: 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. NSNs 6340-01-553-3324, 5831-20- 004-4014, RMC: R4; this item is to be acquired for the first time directly from the actual manufacturer rather than the prime contractor who is not the actual manufacturer. RMSC: Z;

this part is commercial/non-developmental/off-the-shelf item. Commercial item description, commercial vendor catalog or price lists or commercial manuals assigned a technical manual number apply. NSNs 5821-01-474-2550, 5821-01-474-2548, 5821-01-474-2547, 5821-01-552- 8993, and 5826-01-552-8996, RMC: R3; Repair, for the second or subsequent time, directly from the actual manufacturer. RMSC: Z; this part is commercial/non-developmental/off-the-shelf item. Commercial item description, commercial vendor catalog or price lists or commercial manuals assigned a technical manual number apply.

Cobham is the only qualified source for this highly specialized repair which requires extensive knowledge of the technical design techniques. The Program Office believes that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition as well as in unacceptable delays in fulfilling the Air Force’s requirements.

Awarding to any other source would require a clean-sheet redesign or reverse engineering project to develop a build-to-print technical and manufacturing data package which would essentially duplicate the existing drawings owned by Cobham. Based on the Air Force’s engineering staff’s experience with similar projects, such an effort would expose the Air Force to unnecessary cost risk, schedule risk, and technical risks associated with any new design effort with an unqualified source. Based on previous project data and contract efforts, it would take approximately three to four years and no less than $2.5 M for another vendor to complete the clean-sheet redesign or reverse engineering effort, deliver a technical data package and qualification reports, and provide First Article assets. This estimate assumes the new vendor possesses the required Federal Aviation Administration (FAA) special tools and FAA special test equipment; without this equipment, the estimated cost would be higher. Accordingly, Cobham is the only firm capable of providing the supplies and 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.

Currently there are 8 MICAPs and 34 Backorder on these items with the possibility of additional failures. This does not include any additional requirements that may develop in this time frame.

This is a mission essential critical item and the flight crew cannot perform its mission without a serviceable component.

Other actions taken have been contacting Cobham on 10 Oct. 2013 to request purchase of all internal data and repair data related to this repair. Cobham declined to sell this data as they consider their data proprietary.

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. Although the Government does not own data to support acquisition of this actuator from any other source, 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.

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 considered fair and reasonable based upon FAR 12 negotiation procedures using price and cost analysis. Methodologies to assure this will be commercial pricing techniques utilizing publicity offered catalogs, comparison to historical contractor sales and/or analysis of limited cost and pricing information which could be made available by the contractor. In the event that limited cost and pricing information is made available, the Governments negotiation objective will be developed using local technical analysis applied to direct and indirect rate factors recommended by DCAA/or DCMA.

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 as outlined by FAR 10.002 using the following methods:

reviewing industry reports, trends and product developments; discussions with industry representatives; internet searches; and knowledge possessed by EA Engineering Staff.

Engineering is actively engaged in component product sustainment, staying abreast of industry developments by reviewing industry reports, trends, and product developments.

Some of the sites used were:

http://dsbs.sba.gov/dsbs/

Each one of these vendors’ web-based product line or product history was reviewed to determine if the part(s) under consideration were being repaired, by that vendor if that vendor had information concerning associate contract agreements with Cobham to share or acquire the proprietary data for the specific part(s) under consideration

No small business and no small disadvantage business opportunities can be met concerning this acquisition. In the past, the Government attempted to establish an organic repair facility based on DMI study 11-026(L). It was determined that this workload should remain contractor repair.

Vendor Survey A search was made of IHS for Procurement History. The following was identified.

For the RF Tuner, 153-040047-01, IHS Procurement History showed this item was only purchased from:

Cobham Management Services Inc.

Chelton Avionics Inc. Division DBA Wulfsberg Electronics Division 10 Cobham Dr.

Orchard Park, NY 14127

CAGE 1B7G3

CCR shows Cobham is a large company for its three North American Industry Classification System (NAICS) Codes, below.

ILSmart showed sources of after-market parts, but no repair capability. A search on the part number in the SBA Website returned no results. See Appendix A.

For the Radio Set Control, 31300-0201-1200, IHS Procurement History showed this item was only purchased from:

EDMO Distributors, Inc.

12830 E. Mirabeau Pkwy Spokane, WA 99216

CAGE 0Z3C6

CCR shows EDMO Distributors is a small company for 6 out of 8 NAICS Codes.

ILSmart showed sources of after-market parts, but no repair capability. A search on the part number in the SBA Website returned no results. See Appendix A.

For the Cobham Transceiver, 400-015525-0501, ILSmart showed sources of after-market parts, but no repair capability. A search on the part number and the NAICS Code, 334511, in the SBA Website returned two companies, below. IHS shows no procurement history for this item.

Applied Systems Engineering, Inc.

7510 Benbrook Pkwy Fort Worth, TX 76126

CAGE 3Z966

Projects Unlimited, Inc.

6300 Sand Lake Rd Dayton, OH 45414

CAGE 04597

These companies appeared as part of the SBA Website search for three Cobham part numbers, 400-015525-0501, 400-015525-0101 and 400-047552-0100.

On 20 Sep 2013, the SPO engineer talked with of Applied Systems Engineering, Inc. stated they make the Traveling Wave Tubes (TWTs) and Magnetrons in transceivers.

The conversation was followed up with an e-mail. replied with an e-mail stating they never purchased these items.

On 20 Sep 2013, the SPO engineer also talked with of Projects Unlimited Inc.

(PUI). stated the three Cobham part numbers do not appear in their system. This conversation was followed up with an e-mail. responded by e-mail saying their system does not show these part numbers, nor are they in their configuration control.

For the Cobham Radio Receiver, 400-015525-0101, ILSmart showed sources of after-market parts, and one repair source:

Aero Precision 30 Lindbergh Ave Livermore, CA 94551

CAGE 0ZTJ5

CCR shows Aero Precision is a large company for all 15 of it’s NAICS Codes. On 30 Aug 2013, the System Program Office (SPO) engineer left a message asking if Aero Precision repairs this Cobham radio. A search on the part number and the NAICS Code, 334511, in the SBA Website returned the same two companies, Applied Systems Engineering and Projects Unlimited.

For the Chelton Direction Control, 400-047552-0100, ILSmart showed no sources of after-market parts, and no repair capability. A search on the part number and the NAICS Code, 334511, in the SBA Website returned the same two companies, Applied Systems Engineering and Projects Unlimited. IHS shows no procurement history for this item.

For the Cobham Radio Navigation Receiver, 066-1105-00, ILSmart showed sources of after-market parts, but no repair capability. A search on the part number and the NAICS Code, 334511 in the SBA Website returned no results. IHS shows no procurement history for this item.

For the Northern Airborne Audio Controller, N301A-067, ILSmart showed no sources of after-market parts, and no repair capability. A search on the part number and the NAICS Code, 334511 in the SBA Website returned no results. IHS shows no procurement history for this item.

For the Northern Airborne Alarm-Monitor, 611, IHS Procurement History showed this item was purchased from Cobham, CAGE 1B7G3. For the NAT Alarm-Monitor, 611, ILSmart showed one source of after-market parts, but no repair capability. A search on the part number and the NAICS Code, 334511 in the SBA Website returned no results.

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

OPEN COMPETITION

In the past, the Government attempted to establish an organic repair facility based on DMI study 11-026(L). It was determined that this workload should remain contractor repair.

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

Qualifying a new source would require a clean-sheet redesign or an extensive reverse engineering project due to the complexity of the item and the fact that the government does not own the data rights. Estimated cost for a new vendor to redesign and/or reverse engineer these items, deliver a technical data package and qualification reports, and manufacture First Article assets would be no less than $2.5 M if they already owned the required FFA special tools/test equipment. The Government has determined redesign or reverse engineering efforts to be cost prohibitive and would also result in unacceptable delays. Again, it would take approximately three to four years and no less than $2.5 M for another vendor to complete such an effort. The Government will not recoup the minimum of $2.5 M required to develop and approve a new source any earlier than 2032.

It is anticipated that there will be follow-on repair requirements, and as such, the Program Office will continue their attempts to procure data by requesting at a higher level within the company;

should a proposal be provided, the Program Office will budget for the funds to procure data if it

Award Engineerin g Services Contract, 18-24 months

Deliver Drawing/Prototype, 18 ~ 24 months

Deliver Test & Repair Data, 12 ~ 15

Aircraft availability for Flight Testing, 24 ~ 36 months

Execute DT&E / OT&E Flight test, 6 ~ 9 months

24-36 months

54-72 months

48-63 months

36-48 months

Award F&O contract, 24 ~ 36 months

Deliver First Article, 36 ~ 48 months

Deliver Assets, 24 ~ 36 months

78-108 months

114-156 months

138-192 months makes economic sense to do so. We will also further explore the feasibility of pursuing clean-sheet redesign or reverse engineering efforts.

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(a)(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(b)).