16-00484_CAD_JA_V4_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: AFMC AFSC/PZAAA

Purchase Request / Local ID Number: FD2060-16-00484

Program / Project (and PE, if applicable): Electro-Mechanical Actuators and Electronic Control Amplifier

Program Type (PEO or Other Contracting): Other Contracting

Authority (include full title): 10 U.S.C. 2304(c)(1), FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): $1,072,949.81 J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

Date

23 Dec 2016

Date

23 Dec 2016

APPROVAL (AFFARS 5306.304(a) )

Date 23 Dec 2016

Signature

I. Contracting Activity.

This Justification and Approval (J&A) 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) / GULD. The contracting authority for this requirement is 638th Supply Chain Management Group (SCMG) / PZAA. The purchase request number supporting this contracting action is FD2060-16-00484.

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

Due to the circumstances described herein, the activity requests authority to acquire the repair service listed in this document using Other Than Full and Open Competition (OTF&OC) as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements. This effort is for MC-130H Combat Talon II aircraft Electro Mechanical Actuator repair services. This action will result in the award of a follow-on Firm-Fixed Price (FFP) five-year contract (One-year basic plus four twelve-month ordering periods), FY17 through FY22 Requirements contract. This sole source requirement will be purchased from the following company:

MPC Products Corporation DBA: Woodward 6300 W Howard Street Niles, IL 60714-3406 Large Business Cage Code: 19710

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

This contract is to obtain repair services for Electro-Mechanical Actuators: National Stock Numbers (NSNs): 3010-01-305-3340SO, 3010-01-305-5346SO, 3010-01-309-1204SO, 3010-01-456-4269SO, 3010-01-480-9008SO, 3010-01-500-9244SO and Electronic Control Amplifier NSN:

5996-01-306-2074SO, used on MC-130H Combat Talon II aircraft. This is a follow-on contract to FA8538-13-D-0009. The current contract will expire 20 Dec 2017. See J&A Table 1 for list of NSNs and BEQ Quantities.

Total estimated maximum cost of this acquisition is $1,072,949.72. Basis for the estimated cost for this acquisition is from the Forecast Unit Price on the Sep 2015 D200. Summary computation, with a 3% escalation factor added to Ordering Periods 1 through 4. This effort will be funded using 4930 Working Capital Funds. The Period of Performance (PoP) for this effort is 21 Dec 2017 through 20 Dec 2022.

The Repair Method Code (RMC)/Repair Method Suffix Code (RMSC) for this item is 3/R.

This RMC/RMSC means to acquire, for the second or subsequent time, directly from the actual manufacturer. The Government does not own the data or the rights to the data needed to purchase this part from additional sources. This code is assigned when the Government did not initially purchase the data and/or rights.

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 needs can only be satisfied by the unique services available from only the cited source, which possess the unique capabilities demonstrated as follows:

Woodward is the Original Equipment Manufacturer (OEM) and the only known source that has the technical repair data, unique system test equipment, Test Program Set (TPS), and expertise to perform depot-level maintenance on this system. The Source of Repair (SOR) must be capable of repairing the system as well as maintaining configuration control. Since Woodward is the only known source of the repair data, this will ensure that the configuration control on this system will not be compromised.

The depot-level technical repair data and associated support test equipment required for this effort were not purchased by the Government at the time of the acquisition of the MC-130H. The Government does not possess, or have access to any technical expertise, test equipment or TPS's for the depot-level repair of the Line Replaceable Units (LRUs) and Shop Repairable Units (SRUs).

The Electro-Mechanical Actuators repairs is for sustainment of the APQ-170 Radar System and the next higher assembly, (i.e. the USAF/AFSOC MC-130H Combat Talon II aircraft).

The APQ-170 is a Multi-Mode Radar which was designed and developed for the United States Air Force.

The Radar was designed to support Terrain Following (TF) and Terrain Avoidance (TA) capabilities specifically for use on the Special Operations Forces (SOF) MC-130H Combat Talon II Aircraft. It also provides controlled flight at very low levels and is capable of ground mapping, weather detection, and beacon navigation. Contractor depot repaired assets will be used in support of the APQ-170 Radar System.

For the APQ-170 system components to be repaired by an aftermarket source, they must meet OEM specifications and current United States Air Force (USAF) technical specifications. The APQ-170 system performance parameters are military unique radar operational characteristics.

The APQ-170 is currently installed on eighteen (18) operational MC-130H Combat Talon II aircraft;

accordingly, the required support is for 18 shipsets of the radar system. The APQ-170 Radar is not scheduled to be replaced with a modified or upgraded system; it is projected to be the operational radar system until the MC-130H aircraft itself is retired from active service in 2025.

All of the NSNs listed in this document are used exclusively by the Government as these items were specifically designed for the radar system. Because of the environment the radar is used in and what it is designed to do, no commercial item would be able to meet the users' requirements. They are considered system critical for APQ-170 radar system.

The Government has repeatedly requested data rights/access from the OEM. An e-mail was sent on 18 Feb 2016 and again on 31 Oct 2016 to the Global Account Manager of Woodward to determine if they would be willing to grant or sell the Government unlimited data rights for the identified NSNs. The Global Account Manager responded on 31 Oct 2016 with, “We do not have interest in granting or selling the Government unlimited data rights.”

Without the repair data rights utilized on the special test equipment, the Government would have to pursue a reverse engineering (RE) effort for the development of the tester(s) hardware, TPS's, Integrated Test Adapters, Tech Data, and repair procedures.

The Government performed cost analysis for pursuing a reverse engineering effort on 25 Oct 2016. It was determined not feasible at this time due to the extensive cost (~$8M), and time (approx. 48 months or longer). The time-interval encompasses the following but not limited to electronic, mechanical, structural, aerospace, environmental and systems engineering to complete a reverse engineering effort. Funding for this type of RE effort has not been projected in the Future Year Defense Program event, moving the Program Objective Memorandum, at a minimum, two years to the right. Based on the expected service life of 9 years with 4 years to reverse engineer the assets, it is estimated to produce a Saving/Investment Ratio of 0.13 return on every dollar invested. The Government anticipates a 20% cost saving due to competition, however due to the low quantity demand for these parts as projected by the D200A planning system, to recoup the invested dollars, the estimated Payback period is 195 years.

Therefore, substantial duplication of costs that could not be recovered through competition would occur, as well as unacceptable delays in meeting the Government's requirement.

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 by 2025. These NSNs will not be utilized in the MC-130J model and the APQ-170 Radar is not scheduled to be replaced with a modified or upgraded system. It is projected to be the operational radar system until the MC-130H aircraft is retired from active service in 2025.

These are critical safety items and failure would render the MC-130H Combat Talon II aircraft Non- Mission Capable. The MC-130H would lose terrain following and/or terrain avoidance capabilities needed for its special operation missions. Special Operation Forces (SOF)/Personnel Recovery would not be able to provide expanded combat search and rescue capability, internal personnel and facility security, and covert night operations.

Accordingly, Woodward is the only firm capable of providing the supplies and services described in Section III above without the USAF experiencing substantial duplication of cost that could not be expected to be recovered through competition and 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) was posted on the Federal Business Opportunities (FedBizOpps) web page under Solicitation Number, FA8524-16-R-00484, on 19 Feb 2016 with a response date of 05 March 2016. It solicited responses from potential contractors that believed they had the capability to repair these parts. There were no responses received from the RFI.

This requirement will be synopsized on FedBizOpps web page as required by FAR 5.201. It is anticipated that sources having interest in subcontracting may be identified through this synopsis. Any source who responds to the Government as a result of the synopsis will be identified to the prime contractor as a potential source for subcontracting.

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 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 completed 31 Oct 2016. The market research techniques utilized were RFI, Internet Searches, Inter-Agency Inquiries (Navy and Marines), past experience with similar contracts, and discussions with other Government personnel leading similar efforts. In addition, reviewed available technical data and ran queries in Thomas Register, Haystack, DO43, and System for Award Management, and Google internet searches.

Internet Searches: http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm was performed using the North American Industry Classification System (NAICS) codes: 811219 - Other Electronic and Precision Equipment Repair and Maintenance.

Inter-Agency Inquiries: Navy and Marines

The Joint Engineering Data Management Information and Control System (JEDMICS) was checked to see if the Government had ownership of the appropriate data. The JEDMICS site verified that the Government does not own any data for repair of these items.

The Small Business Administration web site was searched using “Aircraft radar Electromechanical Actuator” search criteria at http://dsbs.sba.gov/dsbs/search/dsp_quicksearch.cfm and produced zero results.

Commercial Opportunities: There are no commercial sources with the engineering and technical data IP required to perform these repairs.

The market research concluded Woodward is the only source capable of performing these repairs due to use of their technical repair data, unique system test equipment, TPS, and in-depth knowledge of these radar components.

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 Government does not own or have access rights to the technical data. On 31 Oct 2016, Woodward declined to offer the data package for sell to the Government.

As discussed in Section V, to reverse engineer these assets would be extremely difficult and uneconomical.

Based on the expected service life of 9 years (2025) with a minimum of 4 years to reverse engineer the assets, it is estimated to produce a Saving/Investment Ratio of $0.04 return on every dollar invested. To recoup the invested dollars, the estimated payback period is 195 years.

The 411 SCMS will continue attempts to procure technical data prior to each annual ordering period. If Woodward agrees to sell the technical data, the Logistics Program Manager will work with the System Program Office to budget for the funds to procure data where it makes economic sense to do so.

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.