18-31631_JA.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 8

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: AFLCMC/WLMK

Purchase Request / Local ID Number: FD2060-18-31631

Program / Project (and PE, if applicable): C-17 Ground Handling Cradle

Program Type (PEO or Other Contracting): PEO

Authority: 6.302-2 – 10 USC 2304(c)(2), Unusual and Compelling Urgency

Estimated Contract Cost (including options): $2,640,000.00 J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) ) Sign and Save Procedure

** The text in the signature blocks below is editable, including the title.

** To remove a row, click the "X" next to the signature block. CAUTION: Once removed, it can only be restored by downloading the BLANK FORM again.

Date

26 Apr 2018

Project Lead / Program Mgr / Requiring Activity Amanda T. Hardy

AFLCMC / WLMBB 472-3254

Signature

X

Date

27 Apr 2018

Contracting Officer Alexander H. Comportie

AFLCMC / WLMK 472-2672

Signature

X

Date

26 Apr 2018

Local Legal Reviewer Warner J. Worthan

78 ABW/JA / 472-0572

Signature

X

APPROVAL (AFFARS 5306.304(a) )

Date

30 Apr 2018

Competition Advocate Elizabeth F. Kennedy

AFSC/PZCA / DSN 472-1102

Signature

March 2018 FOR OFFICIAL USE ONLY Page 2 of 8

I. Contracting Activity.

This Justification and Approval is to request authority for Other Than Full and Open Competition supporting requirements generated by Air Force Life Cycle Management Center (AFLCMC)/ WLMBB, C-17 Program Office Logistics Sustainment Section. AFLCMC/WLMK is the contracting agency. The purchase request number supporting this contracting action is FD2060-18-31631.

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

Due to the circumstances described herein, the activity requests authority to acquire Ground Handling Cradles necessary to meet engine cradle requirements listed in this document for the C-17 Globemaster III, using Other Than Full and Open Competition (OTF&OC) prescribed by FAR 6.302-2, Unusual and Compelling Urgency. Unusual and Compelling Urgency is requested to support a critical C-17 Globemaster III program operational need date of no later than 05 Dec 2018. To meet this need date, a contract must be awarded by 07 Aug 2018. This action will result in the award of a new definitive firm-fixed-price (FFP) contract. The contract delivery schedule is 120 days after receipt of contract.

This sole source requirement will be awarded to the following company:

D&D Machinery and Sales, Inc.

2420 WR Larson Rd San Antonio, TX 78261-2200 CAGE Code: 1Y128 Small Business

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

This requirement is for Ground Handling Cradle, National Stock Number (NSN):

1730-01-250-9737BA, P/N: 17G230005-1, which is peculiar support equipment for the F117-PW-100 (F117) engine used on the C-17A Globemaster III.

The Ground Handling Cradle consists of a horizontally oriented main frame from which four posts rise vertically. At the end of two posts are the Ground Handling (GH) adapters which interface with the engine Ground Handling Pads (GHPS), two forward and two aft. Each of the GH adapters is attached to a short section of post which separates from the engine cradle near the top of the main post. This design allows the GH adapters to be attached to the engine and then that assembly is mated to the engine cradle. Some freedom of movement is built into each short post section through use of a self-aligning male post socket plug.

The bottom of the main frame has four roller adapters. These adapters mate with the I-beam rails of the engine trailer. Each roller adapter has two locking pins to secure the engine cradle to the rails. In addition, each roller adapter has a rail grip or a jam locking device to further restrict unwanted movement.

The urgent requirement is as shown below:

March 2018 FOR OFFICIAL USE ONLY Page 3 of 8

NSN

1730-01-250-9737BA QTY UNIT COST TOTAL

Critical 33 $80,000 $2,640,000.00

The estimated cost was derived from historical data. This effort will be funded with Central Procurement (CP) investment 3010 BP13 funds.

Due to the critical need for 33 Ground Handling Cradles, a contract must be awarded by 07 August 2018 or further degradation of the F117 engine effort will be impacted Air Force-wide. The number of aircraft that have been added to the C-17 fleet, along with an additional 58 Life-of -Type Buy spare engines procured near the end of aircraft production, has driven a much higher need for engine trailers than originally envisioned. As the last of the engines are made serviceable, the strain on available engine trailers has increased. The increased demand for trailers is driven by the increased aircraft, the addition of new aircraft locations, and engine depot efficiencies that reduce the amount of time the engines spend in repair. All of this drives an increased need for trailers to support spare engine availability to meet AMC and Virtual Fleet spare engine requirements. Because complete spares trailers are not available, increased movement of engines to and from storage stands drives manpower requirements higher and reduce spare engine availability because an engine must be on a transportation trailer to be considered serviceable and available for use worldwide. We have maximized use of engine stands to make transportation trailers available for engines leaving depot repair. However, we have reached saturation point at which we can no longer free up trailers to receive a repaired engine from depot without inducting unserviceable engines into repair. This forces repairs at a rate higher than necessary, driving up program costs to repair engines that may not be required at that time. This impacts contract activities managed by Tinker AFB and the cost to their contract.

The delivery requirements for this acquisition is 120 days after receipt of contract.

This NSN was screened and assigned Acquisition Method Code (AMC)/ Acquisition Method Suffix Code (AMSC) of 1/G:

AMC 1. Suitable for competitive acquisition for the second or subsequent time.

AMSC G. The Government has rights to the technical data, the data package is complete, and there are no technical data, engineering, tooling or manufacturing restrictions.

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

10 U.S.C. 2304(c) (2), as implemented by FAR 6.302-2, Unusual and Compelling Urgency.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

Background: A source selection is in the planning stages for soliciting the remaining requirement of sixty-one (61) each non-critical needs with a small business set-aside competition. Boeing is the

March 2018 FOR OFFICIAL USE ONLY Page 4 of 8

Engineering Authority for the C-17 Globemaster III. Stanley Aviation was the Original Equipment Manufacturer (OEM) of the ground handling cradle. In 2005, Eaton Corporation acquired Stanley Aviation. The Government acquired the technical data package (TDP). This lead to a full and open competitive acquisition in 2006. As a result of that competitive effort, U.S. Aeroteam Inc. was awarded contract FA8526-06-C-0014 on 4 May 2006. The next acquisition was a competitive 100% small business set-aside. As a result, FA8526-08-C-0020 was awarded to D&D Machinery and Sales, Inc. on 02 Jun 2008. In 2011, the next acquisition was another 100% total small business set-aside.

As a result, contract FA8526-12-C-0017 was awarded to Turbine Aviation on 16 Feb 2012. The contractor was unable to comply with delivery of the first article in accordance with the contract schedule. The contract was subsequently terminated in March 2017. Another 100% total small business set-aside competition acquisition was initiated 08 Sep 2016 but subsequently cancelled 06 Mar 2017 due to issues with the TDP. The Government has since resolved the TDP issues and a 100% total small business set-aside competition source selection acquisition is in the planning stages for the remaining 61 each non-critical requirements. The solicitation is planned for release in Jun 2018.

A complete F117 engine trailer set includes:

• Engine Trailer (Part Number [P/N] TT90-F-507) (hereafter, “trailer”)

• Cradle, Ground Handling Equipment C-17 Aircraft Engine F-117-PW-100 (P/N 17G230005-1)

(hereafter, “cradle”)

• Maintenance Platform, Engine Cradle (P/N 17G230010-1) (hereafter, “platform”)

This is not an ACAT program. The cradle is a build-to-print item defined by a complete technical data package (17G230005 drawing, supporting drawings, notes lists, parts lists, media and specifications). The cradle is peculiar to the C-17A aircraft. The cradle must interface with the other peculiar C-17 F117 engine trailer components. The engine is removed with the inlet and thrust reverser attached, which are C-17 peculiar. The Ground Handling Cradle must be able to interface with two different sets of trailers. The PT90-F-507/509/511 Engine Lift Trailers and the TT90-F-507 Engine Transport Trailer. Because of the multiple interface requirements between all these items and the weight of the engine, the cradle has the most complicated and extensive first article test requirements of any of the C-17 peculiar support equipment items. This item is specifically designed to support the C-17 requirements for engine removal, installation, ground handling, and transportation (ground and air) of the F117 engine. The engine cradle is designed specifically to mate with the F-117 engine and engine trailers employing S6 x 17.25 I-beam rails on 90 inch centers. Brakes and trailer shipping lock mating features further characterize the cradle. No commercial alternative exists that meets all the applicable system requirements.

Each Main Operating Base (MOB) and Enroute location that supports C-17 missions must have an empty sets of trailers on hand to support engine changes. MOBs that operate large numbers of C-17s must have multiple empty trailer sets to support multiple engine changes concurrently to reduce aircraft downtime. Currently, the Government does not have sufficient quantities of cradles for a complete trailer set to transport engines from one base location to another.

Currently, the fleet is critically short 33 engine cradles required to support the engines in Inventory. Engine cradles are required to support the warfighter capability around the world to stock, store, issue, transport, overhaul engines and conduct engine changes. This degraded support has driven the program to a one for one exchange of equipment used to move

March 2018 FOR OFFICIAL USE ONLY Page 5 of 8 unserviceable engines into the depot and back to the field. With the decrease in engines going into overhaul and the increase of unserviceable engines in storage, this has jeopardized the readiness of the entire C-17 fleet. While the quantity of spares helps to mitigate impact to aircraft availability, the fact that this engine is no longer in production means that each engine is vital to the C-17 mission and is required by AMC to support mission needs. If an engine is mishandled during the transfer from a trailer to a stand, or vice versa, and is damaged beyond repair, the fleet loses that capability without replacement. More importantly, the risk of injury to persons increases with the high level of transfers from trailer to stand and back to trailer.

Currently, there are one hundred fifty (150) engine trailer sets available. At any given time, as many as seven (7) are unserviceable or undergoing inspection, leaving one hundred forty-three (143) serviceable trailer sets. There are ninety-four (94) serviceable trailer sets required to support engine changes not only at supporting bases, but also at austere locations around the world where the C-17 operates. The Government has one hundred ninety-six (196) spare engines in inventory. It is expected that at any given time about forty-six (46) engines will be Work In Progress (WIP) at engine depots, so the Government must have one hundred fifty (150) serviceable trailer sets for the inventory of F117 engines not in WIP. Adding the ninety-four (94) empty trailer sets for engine changes, a minimum total inventory of two hundred forty-four (244) serviceable engine trailer sets are required to fully support the C-17.

Engines Ground Handling Cradles Avg Depot WIP 46 94 Serviceable for engine changes Cond A Spares + 150 + 150 For Cond A Spares

TOTAL ON-HAND = 196 = 244 TOTAL PROGRAM REQUIREMENT

150 For Cond A Spares

- 7 Unserviceable/Inspection

= 143 TOTAL SERVICEABLE

244 - 143 = 101 LONGTERM NEED

68 engine bucks Approved deviations

101 101 - 68 = 33 CRITICAL NEED

101- - 68 = 33 CRITICAL NEED

The agency's urgent minimum needs can only be satisfied by the unique supplies or services available from D&D Machinery and Sales, Inc. as they are the only company that can meet the Government's immediate requirement and qualify for a first article waiver. They recently produced the cradles for Boeing Corporation to fulfill Foreign Military Sales (FMS) countries C-17 requirements under direct commercial sales with a final deliveries in Nov 2017. Other potential vendors do not meet the 60 month maximum time period of last Ground Handling Cradle delivery to qualify for waiver to first article. Other potential vendors would be required to complete first article production and testing.

This unique cradle is significantly complex in detail and based on past experience is expected to take an estimated 445 days to complete first article production and testing. This urgent requirement is mission critical for C-17 Program Office to meet the support posture, response time, and engine maintenance based on engine repair and delivery schedules. This will allow the C-17 Program Office to fulfill Site Activation and MOB requirements.

Without the engine cradles, there will be a critical shortage of thirty-three (33) each. Sixty-eight (68) engine bucks were purchased to hold engines in storage due to non-availability of engine cradles required to make a complete trailer set to transport. However, these engines are only partially mission

March 2018 FOR OFFICIAL USE ONLY Page 6 of 8 capable because the Government cannot transport the engine to an operational unit for installation on an aircraft due to lack of a full combination trailer set. With the current situation, there are a tremendous amount of man-hours swapping engines from trailers to bucks to trailers as needed to support requirements. As the quantity of engine swaps from trailer to stand to trailer has increased, it has driven higher manpower costs to the program; hours and dollars that should be directed to support other tasks. Since this additional cost is not programmed, the hours are either redirected form other tasks or the using commands have to provide additional dollars to maintain program support. The greatest risk is the increased potential for personnel injury during the swaps.

Without complete trailer sets, the engine depots will begin shutting down, due to lack of engine inductions, or converting to commercial use. As experienced in 2015, it takes several months to regain access to the repair lines at the commercial facilities and six (6) or more months to regain capacity at the Heavy Maintenance Center (HMC) at Tinker AFB. Furthermore, the Engine Sustainment Services contract at Tinker may be charged storage fees for completed engines that we cannot transport/ship without a complete trailer set, which includes the transport trailer, engine cradle, and engine platform.

Engine repair depots are designed in stages, or gates, that must be completed before it moves to the next gate. As more engines are inducted to free up trailers to take on completed engines, the quantity of engines build up within the repair depot and will reach a point where the gates are at surge capacity and accept no additional engines until some pass to the next gate. When gate one reaches surge capacity, the depot will stop inducting engines. Since the repair of F117 engines is contractor managed, the contractor is required to manage throughput to maximize efficiency of the repair line.

Inducting engines solely to provide a trailer for an outgoing engine is inherently inefficient so they will simply wait to induct until Gate One is capable of efficiently inducting another engine. This will result in engines stacking up at Gate Four, the final gate, until there is no longer storage for additional engines in Gate Four. That creates a domino effect through all the previous gates until the contract simply cannot repair engines. The HMC would likely experience the blockage first, and rather than allow technicians to stand idle, the employees will be moved to other repair lines as has occurred in the past. Once the F117 line begins to move again, personnel have to be redirected to the F117 line, and the startup time for those employees is as much as six months to update training and recertify on the F117 engine. At the commercial depots, they will simply redirect commercial workload to the lines and we will have to wait to regain access to those lines, depending on the contract arrangements they have in place.

Without these cradles, the Government's operational risk increases between hoisting of engines from shipping bucks, production trailers and Commercial Off The Shelf (COTS) trailers. This has the potential to incur millions of dollars in damages due to the risk of engines being dropped during the transfer process without proper Cradle, Ground Handling equipment.

Based on the above, D&D Machinery and Sales, Inc. is the only firm capable of providing the requirements without the U.S. Air Force experiencing unacceptable delays in fulfilling its requirements. The agency's need for the supplies or services is of such an unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to solicit and award to the qualified source. Delay in award of a contract would result in serious injury, financial or other, to the Government.

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

Due to the urgency of need, this requirement will not be synopsized on the Federal Business

March 2018 FOR OFFICIAL USE ONLY Page 7 of 8

Opportunities (FedBizOpps) website in accordance with exception at FAR 5.202(a) (2).

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 determined 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 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 total 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 conducted and completed 26 Jan 2018 in accordance with FAR Part 10.001 and

10.002. In addition to system knowledge, the C-17 Systems Engineering team used the following market research tools to determine the buy history of the item: Support Equipment Tracking Solution (SETS) which is used to track all C-17 requirements and contracts that are used to pull history to determine dollar value and validate current year requirements; Purchase Request Process System (PRPS) which is used for the creation of the Screening Analysis Worksheet (Form 751), First Article (Form 260), and the Quality Assurance (Form 807); Master Item Identification Data Base (DO43) which is used to interrogate the NSN/PN (linked NSN's, budget codes, fund codes, demil codes, etc.);

and Dynamic Small Business Search (DSBS) Query which is used to search for procurement information (federal certifications, business type, quality certifications, etc.).

The DSBS query produced the following results: Two hundred twenty-four (224) small businesses of which nine (9) are 8(a) certified, seventeen (17) are HUBZone certified, eleven (11) are service-disabled veteran-owned (SDVOSBs), and fifty-four (54) are woman-owned small business (WOSBs).

Out of 224 small businesses, the DSBS query showed eight businesses that were not capable. Review of SETS, PRPS, and other databases did not produce any viable sources other than those vendors previously identified.

Commercial Opportunities: The engine cradle is designed specifically to mate with the F-117 engine and engine trailers employing S6 x 17.25 I-beam rails on 90 inch centers. Brakes and trailer shipping lock mating features further characterize the cradle. No commercial alternative exists that meets all the applicable system requirements.

The market research concluded that in a competitive environment, this acquisition could be set-aside for small businesses based upon the high number of the capable sources that were in the small business category. However, due to the unusual and compelling urgency of this limited quantity of 33 each engine cradles, D&D Machinery and Sales, Inc. is the only qualified source that can meet our critical requirement.

March 2018 FOR OFFICIAL USE ONLY Page 8 of 8

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.

The engine cradle is a build-to-print item defined by a technical data package (17G230005 drawing, supporting drawings, notes lists, parts lists, media and specifications). The Government has rights to the complete technical data package and there are no technical data, engineering, tooling or manufacturing restrictions.

This is a one-time acquisition to address critical material requirements in the current fiscal year (FY18). All future, non-critical acquisitions for these materials will be competitively sourced, starting with a long-term, noncritical requirement for 61 additional engine cradles, with an estimated award date in FY19.

XII. Certification by the Contracting Officer.

As evidenced by his/her signature, the contracting officer has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by their signatures, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.

Remove the Guidance pages below. Remove the IACR pages below.

March 2018 Page of International Agreement Competitive Restrictions (IACR) Page of March 2018 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?

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan?

Funding level for this acquisition:

J&A Type:

COORDINATION (AFFARS 5306.304(a)) ** The text in the signature blocks below is editable, including the title.

** To remove a row, click the "X" next to the signature block. CAUTION: Once removed, it can only be restored by downloading the BLANK FORM again.

APPROVAL (AFFARS 5306.304(a)) NOTE: A signature block will appear here based on the funding level selected above.

(See "Specific Guidance for Completing this Template" below.)

I. Contracting Activity.

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

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

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

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

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

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

X. List of any sources that expressed, in writing, an interest in the acquisition.

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.

XII. Certification by the Contracting Officer.

XIII. Certification by the technical/requirements personnel.

Specific Guidance for Completing this Template ( For general guidance, refer to the J&A Preparation Guide. )

I. Contracting Activity.

Fully identify the contracting agency and organizational activity responsible for the proposed contracting action.

II. Nature and/or description of the action being processed. (FAR 6.303-2(b)(2))

State whether the action will be awarded as a new contract or by modification to an existing contract (identify contract number) and identify the type contract planned (e.g., firm-fixed-price, cost-plus-incentive-fee, etc.). If exception 2 is cited (unusual or compelling urgency), state date of UCA/contract/modification issuance and amount.

An individual J&A cannot be used to support more than one contract irrespective of the quantities or the dollar value stated therein. If a proposed contract will contain unpriced options (including NTE prices), those options must be supported by a separate J&A prior to option exercise or the J&A supporting the basic contract must be a Class J&A. For Class J&A situations (covers more than one contract) where the number of contracts in the class can be identified: (1) Provide a brief general description of actions; (2) identify the supplies and services that are being acquired; and (3) for each contract in the class identify the contractor, estimated value, type of contract and rationale for contract length, and estimated award date. Where the same information applies to more than one contract within the class, it need only be stated one time.

III. Description of the supplies/services required to meet agency needs. (FAR 6.303-2(b)(3))

Specifically describe the supplies and/or services to be acquired, the total estimated value of the acquisition - including options (provide cost estimate by year and, for class J&AS, by contract action), and the estimated delivery dates/periods of performance If commodities are being procured, provide quantities. All contract line items (CLINs) e.g., technical data, support equipment, support services, etc., should be listed. If all of the ancillary requirements associated with a particular item are not specifically described in the J&A, those ancillary requirements cannot be included in the resulting contract and would require a second J&A. Also, state the type of appropriation (e.g., 3600, 3010, and 3400) that will be used to fund each requirement listed.

If approval for more than one fiscal year requirement is needed, give the rationale for this request. Generally, the scope of these actions is limited to current requirements only, so that actions may be taken to facilitate competition for out-year requirements.

In some cases, there are no feasible actions that could develop future competition, and it is reasonable to seek approval for more than one fiscal year's requirements.

For ID/IQ or requirements contracts, use the maximum dollar value of the total estimated orders as the estimated J&A dollar value.

IV. Statutory authority permitting other than full and open competition. (FAR 6.303-2(b)(4))

10 USC 2304(c)(?) (see Note 1 below), as implemented by FAR 6.302-? (see Note 2 below), and required by FAR 6.303-2(b)(4).

Note 1: Complete the 10USC 2304(c) citation with the statutory subparagraph cited in the (a) Authority (1) Citations portion of the Competition exception used for your J&A.

Note 2: Complete the FAR citation with the appropriate subparagraph.

Note 3: For class J&As, all contracts within the class should fall within the same statutory authority. Where a different authority must be used for any contract action, a separate J&A should be prepared.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority). (FAR 6.303-2(b)(5))

Provide, in narrative form, a detailed explanation supporting and clearly relating to the conditions described by the FAR for using the particular authority cited. This section is normally the most detailed part of the justification as the essence of the justification is presented here. For acquisitions that include both supplies and services, separately justify the use of the authority for the services and supplies.

Contracting without providing for full and open competition shall not be justified on the basis of lack of advance planning by the requiring activity or concerns related to the amount of funds available (e.g., funds will expire) (FAR 6.301(c)). To assist you, the following information is provided:

A. Only One Responsible Source (FAR 6.302-1)

When using this authority, thoroughly describe the contractor's unique/highly specialized capabilities and/or qualifications (e.g., facilities, personnel, special tooling acquired), and why no other type of supplies or services will satisfy the agency requirements. This authority shall be used, if appropriate, in preference to the authority in FAR 6.302-7. This authority shall not be used when any of the other authorities apply.

This authority also applies to the use of restrictive brand name descriptions in requirements documentation. An acquisition that uses a brand name description or other purchase description to specify a particular brand name, product, or feature of a product peculiar to one manufacturer does not provide for full and open competition regardless of the number of sources solicited. If a brand name will be used, you must justify it and clearly explain why a specific brand produced by a single company is required, as opposed to allowing full and open competition. The justification should indicate that the use of such descriptions in the acquisition is essential to the Government's requirements, thereby precluding consideration of a product manufactured by another company. (FAR 6.302-1(c)) Brand-name or equal descriptions do not require justifications and approvals to support their use.

In the case of a follow-on contract for continued development or production of a major system or highly specialized equipment/services, the rationale must first justify the supplies/services as being a “major system” or “highly specialized.” The rationale must then justify “either” substantial duplication of cost to the government that is not expected to be recovered through competition, or unacceptable delays in fulfilling the agency's requirements, whichever situation applies. If both of these situations apply, the rationale can be based on either of these two situations, or both. Justifications for follow-on contracts should be organized as below:

Subsection 1

(a) Describe the system or support element to which supply/service to be procured under the contemplated acquisition relates in terms of its purpose and its capabilities. Describe how the contemplated acquisition relates to that system or support element. Describe the previous acquisition history, to include a description of the work the contractor has been performing. Additionally, include the current contract number, basis of award for that contract (competitive/sole source), when the contract was awarded, and when the contract will expire. If the work the contractor will perform under the contemplated acquisition is being done under an ACAT I or II program, state that designation. If the work will not be done under an ACAT I or II program, provide a detailed explanation from a technical perspective as to why the supplies/services to be procured are “highly specialized.” This section must summarize your justification by including the main point(s) of the justification.

(b) If the planned acquisition is a “bridge” effort, which contains options, so state and explain why options are necessary.

(c) Add a concluding sentence to the end of this paragraph, suitably tailored; e.g., “Therefore, this acquisition will be a follow-on contract for the continued production of a major system,” or “Therefore, this acquisition will be a follow-on contract for the continued development of highly specialized equipment,” or “Therefore, this acquisition will be follow-on contract for the continued development of a major system,” or “Therefore, this acquisition will be a follow-on contract for the continued production of highly specialized equipment,” or “Therefore, this acquisition is for continued performance of a highly specialized service.”

Subsection 2

Begin with the following sentence, as applicable: "Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition” or “Award to any other source would result in unacceptable delays in fulfilling the Air Force's requirements” or “Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Air Force's requirements.” Then, discuss either or both of the following situations (although only one of these situations is needed; if the facts exist to support both, then provide that information):

(a) When the rationale is based on substantial duplication of costs, estimate the amount of duplicated costs and offset that by the amount of cost savings that are likely to be generated by competition, if feasible. Include the rationale for the amount of cost that would be duplicated (e.g., training required so that another source could acquire the skills necessary to perform the effort, equipment, facilities) and how the estimates were derived (e.g., development costs incurred by the Government under the existing contract or similar programs). (FAR 6.303-2(b)(9)(ii))

(b) When the rationale is based on unacceptable delay, provide the length of the anticipated delay, state how long it would take another source to obtain this capability (e.g., months, years) and why (if applicable), provide a description of exactly what is being delayed, and provide a detailed explanation of the impact or problem caused by the delay. For example, the impact of not adding additional quantities of launch support services staff-hours to an existing contract might cause a launch to not occur as scheduled, thus delaying the operational use of a spacecraft, thus reducing the constellation's operational availability - and thus reducing (or precluding) the ability of the war fighter to accomplish specific missions.

Subsection 3

Include one of the following sentences, whichever is applicable:

(a) “Accordingly, XYZ Corporation 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.”

(b) “Accordingly, XYZ Corporation 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.”

(c) “Accordingly, XYZ Corporation 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 and unacceptable delays in fulfilling its requirements.”

B. Unusual and Compelling Urgency (FAR 6.302-2, DFARS PGI 206.302-2)

Contracting Officers shall contact SAF/AQC at usaf.pentagon.saf-aq.mbx.saf-aqc-workflow@mail.mil as soon as practicable when contemplating an award under the authority cited in FAR 6.302-2 for J&As requiring SPE approval. Provide an explanation why (1) the supplies or services are needed at once because of fire, flood, explosion, or other disaster, or (2) essential equipment or repairs to that equipment are needed at once, e.g., to preclude impairment of launch capabilities or mission performance of missiles or missile support equipment, eliminate imminent grounding of the XX fleet crucial to what mission of the USAF and Defense of the Nation. In other words, identify the anticipated serious injury to the Government, the nature of the urgency, the reasons for it occurring and why it is “urgent and compelling” to preclude adverse impact to military readiness. Merely citing a Joint Urgent Operational Need (JUON), Force Activity Designator (FAD) rating, Program Management Directive (PMD)/Program Action Directive (PAD) guidance, or DX priority rating is not in and of itself sufficient reason to use this exception from the requirement to obtain full and open competition. Note that only the minimum quantity required to satisfy the unusual and compelling urgency qualifies for this exception; thus, this exception might not suffice to justify option quantities. For example, a JUON covering an entire program may not necessarily warrant a class J&A for all program requirements. The inclusion of future “unknown” requirements in class J&As proceeding on this basis is disfavored. In addition, actions covered by a relevant JUON should, a) cite the JUON, b) describe the nature of the need covered by the JUON, and c) describe the relationship between the JUON and the requirements contemplated under the J&A (e.g., whether the J&A includes requirements not covered by the JUON, whether the J&A covers just a portion of the JUON's scope, etc.). JUONs can provide important support for the J&A; however, the J&A is a stand-alone document and should not rely solely upon the fact that a JUON has been issued as a basis for approval. Activities are under a continuing duty to ensure maximum competition practicable under the circumstances, and JUONs do not automatically provide relief from that duty.

The exception for “unusual and compelling urgency” does not authorize a sole source contract. This exception only authorizes limitation to the greatest number of potential sources that can fulfill the requirement in the time needed. Therefore, the J&A should also describe the method and rationale for identifying the sources to which the solicitation will be limited. If the solicitation is to be limited to only one source, the J&A must be based on an exception that authorizes selection of a single source.

C. Industrial Mobilization; or Engineering, Developmental, or Research Capability (FAR 6.302-3)

The most important part of justifications citing this authority is demonstrating the need to maintain the capability possessed by the identified source(s). Some form of market survey may be critical in demonstrating the uniqueness of this capability.

D. Authorized or Required by Statute (FAR 6.302-5)

It is imperative to identify what is being acquired and the applicable statute authorizing other than full and open competition. Note: Some statutes do not require a written J&A.

E. National Security (FAR 6.302-6)

Provide the minimum essential information needed to establish validity of the justification. This information will make the J&A a classified document. Special handling procedures are required for processing such documentation to the approval authority. Only parties with a “need to know” and the proper level of security clearance should be permitted access to the documentation. Such acquisitions are also exempt from synopsis under FAR 5.202(a)(1).

This statutory authority requires that agencies shall request offers from as many potential sources as is practicable under the circumstances. This exception may be utilized to authorize limited competition in certain narrow circumstances; however, contracting officers may not authorize sole-source contracts solely through use of the national security exception unless disclosure of the agency's need to more than one source would compromise national security.

F. Public Interest (FAR 6.302-7)

(NOTE: Requires D&F in lieu of J&A.) This authority may only be used when none of the other authorities is appropriate and may not be made on a class basis. Provide detail addressing the reasons full and open competition is not in the public interest and why no other authority is appropriate for use.

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

(FAR 6.303-2(b)(6))

Describe all efforts taken (or to be to be taken) to ensure that offers are solicited from as many potential sources as practicable under the circumstances. Although Market Research is covered in Section VIII, the information in Section VI should correlate with the Market Research described in Section VI. The following issues should be addressed in this paragraph:

Sources Sought Synopsis (utilized as part of market research). If a sources sought synopsis was issued, state the date the synopsis was issued and a brief description of its content. If any responses were received, describe in detail the results of the screening process and the rationale for determining the unacceptability of any synopsis respondents. This is particularly important when citing the authority of 10 USC 2304(c)(1), “Only one (or a limited number of) responsible source(s)”, since it is this survey of the market place that confirms our assumptions regarding the capability of industry to meet our needs.

Specify whether this acquisition will require a Notice of proposed Contract Action (NOCA) IAW FAR 5.201. Include whether a NOCA was or will be publicized, and specify the dates or expected dates of publication of the NOCA. If the NOCA was not or will not be issued, cite the specific authority for not doing so (FAR 5.202) and the rationale for the NOCA exception. Note that, although a NOCA initiated pursuant to FAR 6.302-2 may not be required, use of this authority is not an automatic exemption from the NOCA requirement (FAR 5.202(a)(2)). If a NOCA is issued, the J&A cannot be signed until the required publicizing time IAW FAR 5.203 has been satisfied and the NOCA results have been included in the J&A package."

Other Actions. In this paragraph, discuss any other actions taken or planned to facilitate competition for this acquisition. The discussion should include actions tried or considered even if the actions were unsuccessful. If the efforts were unsuccessful, so state and describe why.

Qualifying Country Sources. If qualifying country sources have expressed interest, but are to be excluded, provide supporting rationale.

VII. Determination by the Contracting Officer that the anticipated cost to the government will be fair and reasonable. (FAR 6.303-2(b)(7))

Include a statement by the contracting officer that the anticipated cost will be considered fair and reasonable and provide the basis for this determination. The steps that will be taken to ensure the final contract price will be fair and reasonable are also described here. Describe the extent of cost or price analysis anticipated including the requirements for certified cost or pricing data, technical evaluations, and audits.

VIII. Description of the market research conducted and the results, or explain why market research was not conducted. (FAR 6.303-2(b)(8))

Discuss any market research conducted pursuant to FAR Part 10 and describe results of that research. Market research is any effort undertaken to determine if sources capable of satisfying the agency's requirements exist and to determine if commercial items or non-developmental items are either available or can be modified so that they will satisfy the agency's needs. Market research should be focused not only on identifying alternate sources, but also on alternate equipment or substitutes that might fulfill the Government needs with only minor modification. Regardless of the approach used, the results should provide a high level of confidence that no other qualified sources exist.

Generally, some form of market research should be conducted. But it is most critical when citing the authority of FAR 6.302-1. Under such circumstances, use the following sentence: “As described in Section VI above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.”

When other exceptions from the requirement to obtain full and open competition are relied upon, the market research might be limited to an examination of the acquisition history and experience with the marketplace under previous acquisitions for the same or similar items.

If no market research was conducted, so state and provide the rationale.

IX. Any other facts supporting the use of Other Than Full and Open Competition. (FAR 6.303-2(b)(9)(i))

Provide any other facts supporting the use of other than full and open competition, including an explanation of why technical data packages, specifications, engineering descriptions, statements of work, statements of objectives, or purchase descriptions suitable for full and open competition have not been developed, are not being developed, are not being used, or are not available. (FAR 6.302-1(b)(2) and 6.303-2(b)(9)(i)).

X. List of sources, if any, that expressed interest in the acquisition. (FAR 6.303-2(b)(10))

If a sources sought synopsis was done and all interested sources are included in Section VI, it is acceptable to state, “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. (FAR 6.303-2(b)(11))

Describe any actions taken or to be taken to foster competition for future acquisitions of the supplies or services being acquired. Describe potential actions that could be taken to remove the barriers to competition that have been identified in the justification and include a milestone schedule, where available, for accomplishing these actions. For example, if a follow-on competitive acquisition is planned, so state and provide the planned award date (FAR 6.303-2(b)(11)), or state that the Government will attempt to acquire rights in technical data and computer software sufficient to compete follow-on acquisitions as a priced option in the contract action that is the subject of this J&A, or (if applicable) state how the Government intends to challenge nonconforming markings on technical data and computer software delivered to it under previous contracts so those markings can be removed in order that the technical data and computer software may be used in support of a follow-on competitive acquisition, or describe plans to qualify additional sources.

Address efforts to ensure competition for future spare parts and maintenance in support of systems or equipment covered by the justification, even when these acquisitions will be accomplished by other organizations. Include a discussion on available breakout data.

If no actions are planned, so state and provide reasons. If approval is sought for more than one year, explain why a sole source effort is required for the planned time duration.

For a non-competitive follow-on acquisition to a previous award for the same supply or service supported by a J&A citing the authority at FAR 6.302-1, include a discussion of the actions planned to overcome barriers to competition established in the previous justification, the status of those actions, and the results of those actions. The approval authority shall determine whether the planned actions were completed. If the planned actions were not completed, the justification for the follow-on acquisition shall be approved by the approval authority one-level above the approval authority for the previous justification (see FAR 6.304). If the previous justification was approved by the Senior Procurement Executive (SPE), the approval remains at the SPE level.

[DFARS PGI 206.304(a)(S-70)(ii)] XII. Certification by the Contracting Officer. (FAR 6.303-2(b)(12))

As evidenced by his/her signature, the contracting officer has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

XIII. Certification by the…