JA_9_Sept_20016_Redacted.pdf

Sole Source PR2060-16-00018

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 FD2060-16-00018.

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

Due to the circumstances described herein, the activity request authority to acquire the repair listed in this document using Other Than Full and Open Competition as prescribed by FAR 6.302-1, Only One or Limited Number Responsible Sources and No Other Supplies or Services will Satisfy Agency Requirements. The drawings, maintenance manuals and acceptance test procedures for the Circuit Card Assemblies are proprietary to the manufacturer, Raytheon. This action will result in the award of a new contract, which will be a firm-fixed price repair contract.

This repair requirement is for a one time repair of current “F” condition assets as listed below to provide bridge repair coverage until these NSN’s are added to the Raytheon Corporate Contract.

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

Name:

Raytheon Company DBA: Raytheon

1230 Carl Vinson Pkwy Warner Robins, GA 31093-1427 Cage Code: 4D494 Type: Large Business

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S

NEEDS

This effort is for a Firm Fixed Priced One-Time repair contract for depot level repair of the Circuit Card Assemblies listed below for the AN/APQ-180 Target Radar System on the AC- 130U Gunship aircraft. This effort will be funded using 4930 Working Capital Funds and have a one-year Period of Performance.

Repair CLIN NSN P/N Unit Cost REPS Total Cost

0001AA 5998-01-528-3314 5144070-15 1

0001AB 5998-01-528-3314 5144070-15 2

0002AA 5998-01-528-3316 5097690-5 1

0002AB 5998-01-528-3316 5097690-5 4

0003AA 5998-01-462-9093 5129350-5 1

0003AB 5998-01-462-9093 5129350-5 2

Sub-total

Total

The total estimated cost of this acquisition is .

The Repair Method Code (RMC) for this item is R3; Repair, for the second or subsequent time directly from the actual manufacturer. The Repair Method Suffix Code (RMSC) for this item is R; The Government does not own the data or the rights to the data needed to purchase 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 manufacture this item, AMCs 3, 4, or 5 are valid.

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 or limited number of Sources 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 from only the cited source(s), which possesses the unique capabilities demonstrated as follows.

The capabilities to fill this particular requirement are only available from Raytheon because no one else has the data to properly repair and test these Circuit Card Assemblies. Raytheon has sole proprietary rights to the data for these units. In order to maintain Operations, Safety, Suitability and Effectiveness (OSS&E) and Configuration Control, the Government’s need cannot be met by any source other than Raytheon.

The APQ-180 is used by the AC-130U Gunship and these three Circuit Card Assemblies (CCA) are Sub-Replaceable Units (SRUs) installed in the APQ-180 System. These V(1) Configuration CCA’s are also used by the APG-63 V (1) Fire Control Radar on board the F-15A/B/C/D Eagle fighter. These CCA’s are under the configuration control of Raytheon Corporation. The Government was not able to purchase the full and complete technical data package or the rights to the data for these items when they entered the Government inventory due to Raytheon proprietary information. There have been no relevant changes to the marketplace since the previous contract was awarded.

http://www4.law.cornell.edu/uscode/html/uscode10/usc_sec_10_00002304----000-.html http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/Far/06.htm#P104_15338

The APQ-180 Radar System is mission essential equipment for the AC-130U Gunship. These CCA’s are part of the Analog to Digital Converter (ADC) and convert continuous signals to discrete digital numbers for the APQ-180 Radar. The Data Rights for these ADC CCA’s were purchased by Raytheon Company and Raytheon owns configuration control of these items. The ADC CCA’s are essential to the proper functioning of the APQ-180 Radar. Raytheon is the only approved source for repair of these items. On 14 March 2016, the PM sent an e-mail to the Raytheon Contracting office to inquire their willingness to sell data rights to the Government.

The contractor responded negatively stating they are presently not open to considering any offers to sell the data rights to the SRU or any other assembly.

A reverse engineering project is possible, however it would take approximately 3 – 4 years to co m p l e t e . This reverse engineering time frame is a conservative estimate based off a reverse engineering project (Contract FA8504-08-G-0001-0005) for the HH-60G Fuel Quantity Indicator which is similar in complexity to these CCA’s. The FQI reverse engineering took 6 years and cost a total of when it completed.

1. Lead time for Reverse Engineering

a. Lead time to deliver Drawings / Technical Data = 18 ~ 24 months

b. Lead time to deliver test specification and repair data = 18 ~ 24 months

c. Total estimated Reverse Engineering Lead Time = 36~48 months

2. Lead time for repair services

a. Lead time contractor developed ATP and Test Stations = 18~24 months

b. Lead time contractor produced First Article Test Report = 6 ~ 12 months

c. Lead time contractor to repair and deliver first assets = 6 ~ 12 months

d. Total estimated repair services Lead Time = 30 ~ 48 months

3. Total time deliver repairs (Reverse Engineer + deliver first repaired assets) = 66 ~ 96 months

Therefore, the time required to develop and deliver a Technical Data Package including test specifications and depot level repair procedures would take an estimated 3 to 4 years. Another estimated 18 to 24 months would be required to develop repair capability, acquire test stations/test plan and then an additional 6 to 12 months to repair test assets and deliver the First Article Test Report. Finally, it could take an additional year before a Contractor could begin production and deliver the first repaired asset. Another contractor may or may not be able to successfully repair to serviceable condition the assets.

Projected Retirement of all 16 AC-130U Gunship Aircraft by CY2022 6 Retire 3 Retire 3 Retire 4 Retire

18~24 Months 36~48 Months 54~72 Months 66~96 Months

CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23

18~24 Months Deliver Tech Data Package 18~24 Months

Deliver Test Specification and Repair Data, 18~24 Months Develop ATP and Test Stations 6~12 Mths

Deliver FA Test Report 6~12 Mths Deliver first repaired asset

Any attempts at reverse engineering is not expected to yield serviceable assets within the expected CY2022 service life of the fleet of 16 AC-130U Gunship aircraft and would cause substantial delays in accomplishing AFSOC requirements.

The fleet inventory of AC-130U Gunship is extremely shallow with only 16 aircraft and high demand for the mission capabilities of this unique Special Operations Forces (SOF) weapon system worldwide.

Market Research/data analysis has shown that these CCA's are not commercial items. The CCA’s are complex in design and in their repair process with performance critical to the USAF Gunship SOF missions. The AC-130U Gunship fleet is scheduled to retire from USAF inventory by CY2022. As presented above, the time required to develop a repair capability does not yield benefit to the warfighter but rather would cause considerable negative impact to their mission.

Therefore the recommendation for repair of these assets is through a sole source acquisition to Raytheon. Raytheon possesses the corporate knowledge, expertise, Technical Data and legacy capability to support these requirements since 2003.

A competitive strategy for this Government requirement is not a viable option. Competition for these requirements would involve unnecessary logistical and technical risks. The Non-Recurring Engineering (NRE) involved would drive excessive schedule delays. The Government is carcass constrained for serviceable spares of these CCAs and any additional delays in seeking a second source of repair would be detrimental to the sustainment of the AN/APQ-180 Strike Radar within the USAF AC-130U Gunship MDS fleet.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED

FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

A Request For Information (RFI) was posted on the Federal Business Opportunities (FedBizOpps.Gov) web site at https://www.fbo.gov/?s=main&mode=list&tab=list on 20 Jan 2016 to further survey the market for any potential capable repair sources for these assets. The RFI closed out on 9 February 2016 with no responses from any sources. Although the Government does not own data to support acquisition of these Circuit Card Assemblies from any other source, any source who responds to the Government as a result of the RFI posting to FedBizOpps.Gov 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 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 the Defense Contract Audit Agency (DCAA) and/or Defense Contract Management Agency (DCMA) and expert technical personnel supporting the program. The contract price will be negotiated in https://www.fbo.gov/?s=main&mode=list&tab=list accordance with the procedures in FAR Part 15, ensuring the ultimate price 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 conducted in accordance with FAR Part 10.001 and 10.002 and was completed 12 April 2016. The multi-functional team was involved in conducting and documenting the market research effort. The team performed internet searches using Search Engines Thomas Register and the Small Business Administration's Dynamics Small Business Search (DSBS). Results from these search efforts produced no potential candidates because the Government does not possess a full and complete TDP which, as stated above would take an estimated 3 to 4 years to produce through a reverse engineering effort since the OEM is not willing to sell the TDP to the Government. Additionally an RFI, (request for information), was posted to FedBizOps on 20 January 2016 in an effort to identify any potentially capable sources interested in repairing the assets. The RFI closed out on 9 February 2016 with no responses from any sources.

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. 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

On 14 March 2016, the PM contacted Raytheon to inquire their willingness to sell data rights to the Government. The contractor responded negatively stating they are presently not open to considering any offers to sell the data rights to the SRU or any other assembly.

This repair requirement is for a one time repair of current “F” condition assets as listed above to provide bridge repair coverage until these NSN’s are added to the Raytheon Corporate Contract.

The Raytheon Corporate Contract will provide the repair coverage until CY2022 at which time the Fleet of 16 each AC-130U aircraft are projected to be retired from inventory, ending the requirement for repair of these AC-130U assets by CY2022.

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.

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.