J&A_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: FD2060-19-00045

Program / Project (and PE, if applicable): HH-60G / Control Display Unit

Program Type (PEO or Other Contracting): Other

Authority (include full title): 0 U.S.C. 2304(c)(1)

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

COORDINATION (AFFARS 5306.304(a) )

Date

14 Aug 2019

Contracting Officer

Howard Carroll

AFSC/PZAAA, 468-0152

Signature

Date Logistics Manager

Chris Boarman

411 SCMS/GULAB, 468-2730

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

14 Aug 2019

Contracting Officer

Howard Carroll

AFSC/PZAAA, 468-0152

Signature

I. Contracting Activity.

This Justification and Approval is to request authority for Other Than Full and Open Competition supports requirements generated for the Air Force Sustainment Center (AFSC), 638th Supply Chain Management Group (SCMG), 411th Supply Chain Management Squadron (SCMS)/GULA. The contracting activity for this requirement is AFSC/PZAAA. The purchase request number supporting this contracting action is FD2060-19-00045

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

Due to the circumstances described herein, this activity requests authority to contract repair 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 (FFP), Requirements Indefinite Delivery Contract (IDC), with a basic year plus four one-year ordering periods. The validity period for the IDC is projected to be Oct 2019 through Oct 2024.

This sole source repair source requirement will be purchased from the Original Equipment Manufacturer (OEM) CMC Electronics Inc, CAGE:38753, formerly know as Canadian Marconi Corporation, via a contract through Canadian Commercial Corporation (CCC) at the address listed below. However, CCC is an intermediary agency for Government contracts with Canadian companies.

Canadian Commercial Corporation (CCC) 50 O'Conner Street, Suite 1100 Ottawa, ON K1A 0S6 Canada Cage: 98247 Large Business

CMC Electronics Inc.

600 Dr. Frederik Philips Blvd.

Ville Saint-Laurent Quebec, Canada H4M 2S9 Cage: 38753

Basic Period NSN BEQ Unit Price Extended Price

5895-20-010-9425 TT&E 14

5895-20-010-9425 BER 0

5895-20-010-9425 NFF 1

5895-20-010-9425 Minor Repair 12 5895-20-010-9425 Major Repair 1

TOTAL

1st Ordering Period NSN BEQ Unit Price Extended Price

5895-20-010-9425 TT&E 14

5895-20-010-9425 BER 0

5895-20-010-9425 NFF 1

5895-20-010-9425 Minor Repair 12 5895-20-010-9425 Major Repair 1

TOTAL $102,151.92

2nd Ordering Period NSN BEQ Unit Price Extended Price

5895-20-010-9425 TT&E 14

5895-20-010-9425 BER 0

5895-20-010-9425 NFF 1

5895-20-010-9425 Minor Repair 12 5895-20-010-9425 Major Repair 1

TOTAL

3rd Ordering Period NSN BEQ Unit Price Extended Price

5895-20-010-9425 TT&E 14

5895-20-010-9425 BER 0

5895-20-010-9425 NFF 1

5895-20-010-9425 Minor Repair 12 5895-20-010-9425 Major Repair 1

TOTAL

4th Ordering Period NSN BEQ Unit Price Extended Price

5895-20-010-9425 TT&E 14

5895-20-010-9425 BER 0

5895-20-010-9425 NFF 1

5895-20-010-9425 Minor Repair 12 5895-20-010-9425 Major Repair 1

TOTAL

Grand Total =

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

This requirement is to acquire contractor depot level repair for the HH-60G Control Display Unit (CDU), NSN 5895-20-010-9425, Part Number 100-602653. The CDU is used on the HH-60G SOF/CSAR aircraft and is used in military aircraft operations. The CDU provides centralized control and monitoring of navigational, sensor, fire control and armament functions on aircraft via the 1553B data bus. It displays mission data and permits operator entry and modification of mission data. It provides information exchange between flight crew and navigational systems.

The repair will require the contractor to restore the un-serviceable assets to serviceable condition using contractor developed repair acceptance test procedures. The extent of repair required to ensure a serviceable end item shall be determined by the induction inspection, test, and required disassembly, and shall conform to the Original Equipment Manufacturer (OEM) data and specifications. Under the contemplated contract, the contractor will provide the repair as depicted above in Section II of this document, which are required to support the HH-60G Pave Hawk Helicopter in sustainment of the USAF Special Operation Forces (SOF) program. The total estimated contract value for this effort is

The estimated Unit Repair Cost (URC) is based on a Request For Information (RFI) response from the Original Equipment Manufacturer (OEM) on 9 March 2018 for URC. A inflation factor was added to the out year Ordering Periods. This will be funded with 4930 Working Capital Funds. The planned Period of Performance for this effort is Oct 2019 through Oct 2024. The delivery schedule for repair(s) is 5 each per month beginning 90 calendar days after receipt of assets. Early delivery is acceptable.

The Repair Method Code/ Repair Method Suffix Code (RMC/RMSC) is R4/D. The RMC 4: Repair, for the first time, directly from the actual manufacturer. RMSC D: If the data needed to complete contract repair is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the repair for a competitive solicitation.

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 supplies or services available from CMC.

The CDU uses technology that is proprietary to CMC. CMC possesses unique capabilities demonstrated as the OEM having proprietary rights. As such, CCM is the only authorized and capable repair source for the

HH-60G CDU.

The repair of the CDU is considered highly specialized. The CDU provides centralized control and monitoring of navigational, sensor, fire control and armament functions on aircraft via the 1553B data bus.

It displays mission data and permits operator entry and modification of mission data. It provides information exchange between flight crew and navigational systems.

The Government engaged the OEM, and requested they provide a Rough Order of Magnitude (ROM) to acquire a full Technical Data Package (TDP) for the CDU. CMC provided a Rough Order of Magnitude (ROM) on 7 February 2018 to the Government Contracting Officer and WIU Program Manager on sell of data to the Government for that would enable Depot Level Maintenance Repair capability. After receiving the ROM from CMC, the Government assessed that a Return on Investment (ROI) could not be achieved by the time the HH-60G fleet begins retiring in 2021 and completing by 2029.

This new repair effort is required in order to provide repair coverage of this asset once flight testing completes and initial installations begin currently estimated to begin Jan 2019.

A strategy to reverse engineer in order to allow Full and Open competition would take an estimated three and a half years before a technical data package and First Article Test (FAT) Report could be delivered.

The first repaired assets from a Full and Open competed repair source would not likely produce until CY2026, and potentially CY2027. The estimated end of life cycle for the this CDU, NSN 5895-20-010-9425 is CY2029. Conversely, a 5 year sole source repair contract to the OEM is estimated to award by CY2020; and, it would maintain repair coverage for the system until CY2025. By CY2025 half the HH-60G fleet is estimated to be retired, resulting in a rapid and steady increase in asset availability with more CDUs supporting fewer helicopters.

CMC has sole proprietary rights of the data for this item and has offered to to sell technical data to the

Government that could enable Depot Level Maintenance Repair capability for an estimated Government assessment concluded that a Return on Investment (ROI) could not be achieved by the time the HH-60G fleet begins retiring in 2021 and completes by 2029.

Accordingly, CMC is the only firm capable of providing the supplies and services described in Section III above without the U.S. Air Force experiencing 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/Sources Sought Synopsis (RFI/SSS) with Solicitation # HH60G- CDU-19-00045 was posted to the Federal Business Opportunities web site on 18 Jul 2018 in an attempt to identify any sources interested and capable of meeting the Governments requirement. No responses were received from any vendor as of the close out date on 6 Aug 2018.

The requirement will be synopsized in FedBizOpps in accordance with FAR 5.201. Although the Government does not own data to support the repair effort from any other source, any source that expresses interest 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.

IAW DFARS 215.403-1(c)(4)(C), DoD has waived the requirement for submission of cost or pricing data for the Canadian Commercial Corporation and its subcontractors. Data other than certified cost or pricing data is necessary to permit a determination by the U.S. Contracting Officer that the proposed price is fair and reasonable will be obtained.

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 pursuant to FAR 10.001 and 10.002. Market research tools were utilized by the government program management and engineering team. The team members searched the internet using Thomasnet.com (http://www.thomasnet.com/) using key word “Aircraft Display” for any potential vendors that may possess the capability to perform this effort. Two companies were identified in the Thomasnet.com search; Valley Precision Metal Products in Valnecia, CA and Apexx Omni-Graphics, Inc in Maspeth, NY. However, due to lack of proprietary data neither of these companies can meet this Government requirement.

Additionally the team members searched the Small Business Administration (SBA) web site at http:// dsbs.sba.gov/ using key word “Aircraft Display” and NAICS Code 811219 for any potential small businesses that may possess the capability to perform this effort and no businesses were identified that had the capability and necessary technical data.

As stated above, a Request For Information/Sources Sought Synopsis (RFI/SSS) with Solicitation # HH60G-CDU-19-00045 was posted to the Federal Business Opportunities (FBO) web site on 18 Jul 2018 in an attempt to identify any sources interested and capable of meeting the Governments requirement. No responses were received from any vendor as of the close out date on 6 Aug 2018.

Market Research also included checking for any available data for this asset from the Joint Engineering Data Management Information Control System (JEDMICS) repository at https://jedmics.af.mil/ webjedmics/index.jsp. Results showed that the Government does not own any data to allow competing this effort or to establish an Organic Depot Level repair capability.

In conclusion, there is currently only one source who is capable, equipped, and qualified to successfully accomplish the objectives of this requirement. Based on available data, engineering knowledge of the item and the aerospace industry the only viable recommendation is to seek a sole source acquisition of this capability with the OEM, CMC Electronics Inc, CAGE 38753, through CCC.

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 possess the TDP for the HH-60G CDU to support full and open competition. An inquiry for sell of the TDP was sent to the OEM, CMC Electronics, in Jan 2018 and CMC Electronics responded with a Rough Order of Magnitude (ROM) on 7 February 2018 to the Government Contracting Officer and WIU Program Manager. The ROM stated CMC Electronics was willing to sell technical data on the CDU to the Government for $20M that would enable Depot Level Maintenance Repair capability.

After receiving the ROM from CMC Electronics, the Government assessed that a Return on Investment (ROI) could not be achieved by the time the HH-60G fleet begins retiring in 2021 and completes by 2029 when it will be replaced with a new weapon system, the HH-60W. This asset will not be installed in the

HH-60W.

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.