J_and_A_rev_1(2)_Redacted.pdf

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

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 6

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.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: AFSC/PZAAA

Purchase Request / Local ID Number: FD2060-18-01930

Program / Project (and PE, if applicable): Primary Navigation Display, Sandel 3500

Program Type (PEO or Other Contracting): Other Contracting

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

06 Jun 2018

Project Lead / Program Mgr / Requiring Activity

Signature

Date

09 Aug 2018

Contracting Officer

APPROVAL (AFFARS 5306.304(a) )

Date Chief of the Contracting Office (COCO) [ Official Signature Block ]

March 2018 FOR OFFICIAL USE ONLY Page 2 of 6

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), 638th Supply Chain Management Group (SCMG), 411th Supply Chain Management Squadron (SCMS)/GULAB. The contracting activity for this requirement is AFSC/PZAAA. The purchase request number supporting this contracting action is FD2060-18-01930.

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

Due to the circumstances described herein, the activity requests authority to acquire the repair services listed in the 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 new contract, which will be a Firm Fixed Price requirements contract with a basic one-year plus four (4) one-year Ordering Periods. The period of performance (PoP) is projected to be 11 January 2019 through 10 January 2024. This sole source requirement will be purchased from the following company:

Sandel Avionics, Inc.

2401 Dogwood Way Vista, CA 92081 760-727-4900

CAGE: 3T1Z4

Small Business POC: Tana Hofmann E-mail: t.hofmann@sandel.com

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

This requirement is for the repair of the UH-1N Helicopter Primary Navigation Display, Sandel 3500. The planned acquisition is a five year contract including a basic one year period and four one year ordering periods with an estimated value of . The Primary Navigation Display, Sandel 3500 is used on the UH-1N Helicopter in the United States Air Force (USAF). The end of service life for the UH-1N is 2030.

National Stock Number (NSN) 6605-01-597-4616, Part Number (PN) SN3500-0101N is the Primary Navigation Display, Sandel 3500. The Screening Analysis Worksheets indicated Repair Method Code (RMC)/Repair Method Suffix Code (RMSC) 4/Z for this NSN. The RMC R4 indicates repair for the first time directly from the actual manufacturer. The RMSC indicates this part is a commercial/non-developmental/off-the-shelf item. Commercial item descriptions, commercial vendor catalog or prices lists or commercial manuals assigned a technical manual number apply.

The total estimated amount of this acquisition based on best estimated quantity (BEQ) is .

The estimated cost is based on pricing data from the Sandel Avionics, Inc. website. The out-year ordering period(s) unit prices are not inflated due to no actual repair quote and repair history for this item. Deliveries are expected to begin 30 days After Receipt of Order (ARO), or delivery of assets, whichever is later.

March 2018 FOR OFFICIAL USE ONLY Page 3 of 6

Basic NSN Part Number Quantity Price Total Price

6605-01-597-4616 SN3500-0101N 18

Total

Ordering Period I

6605-01-597-4616 SN3500-0101N 18

Total

Ordering Period II

6605-01-597-4616 SN3500-0101N 18

Total

Ordering Period III

6605-01-597-4616 SN3500-0101N 18

Total

Ordering Period IV

6605-01-597-4616 SN3500-0101N 18

Total

Total Value

Depot Maintenance Interservice (DMI) document #14-035A was issued on 25 January 2016. The DMI decision designated the workload as core repair. In May 2017 via the DMI template, the candidate depot (Ogden ALC) indicated their inability to sustain the Primary Navigation Display, Sandel 3500, NSN 6605-01-597-4616, PN SN3500-0101N. Therefore DSOR 17-096F August 2017 is shifting this specific workload to contract repair and will not considered part of core workload capability. Government records indicate no previous repair on this component.

This effort will be funded with Materiel Support Division dollars.

IV. Statutory authority permitting other than full and open competition.

10 U.S.C. 2304(c) (1), as implemented by FAR 6.302-1, required by FAR 6.303-2(b) (4).

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).

Sandel Avionics, Inc. is a small business based on the number of employees for NAICS 811219.

Sandel Avionics, Inc. owns all data required to meet the Government requirement. No other company has access to the data.

The Government owns top level drawings for the cataloging and reference purposes only. The Government used commercial manuals and retitled the documents with a technical manual number.

March 2018 FOR OFFICIAL USE ONLY Page 4 of 6

The OEM maintains configuration control of the component. Government data are insufficient for repair, testing and troubleshooting purposes. The technical manuals address component operation and use only.

The current estimate to reverse engineer the Primary Navigation Display, Sandel 3500 is estimated to cost . The basis of estimate is a like item Indicator used in the URC-107. A large portion of the estimate is based on engineering labor which is to build the technical data package and create repair procedures. Tester procurement or adaption is expected to cost while required Test Program Set (TPS) development and technical publication cost an estimated . Based on a projected yearly requirement at , the Government would recoup the investment in approximately 32 years. Since the current UH-1N platform retirement schedule is CY2030, the Government would not recoup the expected investment prior to retiring the platform.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

The requirement will be synopsized in Federal Business Opportunities (FedBizOpps) in accordance with 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 repair effort 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 subcontracting possibility.

The Government requested Sandel Avionics provide or sell the required data to repair and test this component on 17 May 2018 via e-mail. Sandel Avionics declined the Government's request via e-mail on 21 May 2018.

Request for Information (RFI) FA8524-18-R-0020 was posted to FedBizOpps on 21 June 2018 with a response date of 6 July 2018. The RFI requested responses from potential sources that possess the expertise, capabilities, and experience to meet qualification requirements to repair the UH-1N Primary Navigation Display, Sandel 3500. There were no responses to the RFI.

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. The contract price will be negotiated in accordance with the procedures in FAR Part 12 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, in accordance with FAR Part 10.002, was conducted for this repair effort. The following methods were used: Engineering examined the available technical data and determined that the AF does not own a complete data package for the Primary Navigation Display, Sandel 3500 suitable to conduct a competitive acquisition. In addition, the IPT conducted Internet searches of IHS (Haystack) and FEDLOG searches to determine if the item was available from different vendors.

Additional research was conducted via Google, trade journals and ILSmart. The key words used in these searches included the part number, the NSN and the noun `Primary Navigation Display, Sandel 3500.'

March 2018 FOR OFFICIAL USE ONLY Page 5 of 6

System for Award Management (SAM at Website: https://www.sam.gov) was searched to obtain company information. SBA Dynamic Small Business (SDSB Website: http://dsbs.sba.gov) search was conducted as well. The results of this search yielded ten companies (See Attachment III). The North American Industry Classification System code (NAICS) was confirmed by searching the NAICS. The resulting code is 811219.

A Request for Information (RFI) FA8524-18-R-0020 was posted on 21 June 2018 and closed 6 July 2018. There were no responses to the RFI.

Sandel Avionics is a small business and is the Original Equipment Manufacturer (OEM) of this item.

The Government requested Sandel Avionics provide or sell the required data to repair and test this component on 17 May 2018 via e-mail. Sandel Avionics declined the Government's request via e-mail on 21 May 2018. The OEM maintains proprietary right to the Primary Navigation Display, Sandel 3500.

ThomasNet yielded six possible vendors but none were qualified due to no access to proprietary repair and test data. Only one vendor, Sandel Avionics, was located via Google using the NSN, PN and Noun.

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.

Despite fleet retirements in 2030, the Government will continue market research searching for other vendors. As part of market research, the Government will conduct RFIs annualy and will perform market research for any follow on contract action. In addition, the Government will request all necessary data from the OEM.

The fleet of 68 UH-1N Helicopters are retiring and will be replaced by a new weapon system through competition. Retirement of the UH-1N fleet is estimated to begin CY2018, and continue draw down to zero AF inventory by CY2030. By CY2025, 36 of Air Force Global Strike Command's fleet of 41 UH-1N Helicopters are schedule to retire. This will result in a rapid and steady increase in asset availability with more Primary Navigation Display, Sandel 3500 supporting fewer helicopters (minimizing or eliminating need for future production). The remaining 32 UH-1N helicopters are scheduled to retire by CY2030.

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

March 2018 FOR OFFICIAL USE ONLY Page 6 of 6 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.