J A_Redacted.pdf

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

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Contracting Activity: AFLCMC/WNKAAB

Purchase Request / Local ID Number: FD2060-16-67128

Program / Project (and PE, if applicable): T-38 Electrical Test Set

Program Type (PEO or Other Contracting): PEO

Authority (include full title):

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

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

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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.

Date

19 Aug 2016

Project Lead / Program Mgr / Requiring Activity

Signature

19 Aug 2016

Contracting Officer

23 Aug 2016

Local Legal Reviewer

23 Aug 2016

Competition Advocate

Note 1: See guidance at the end of this document for completing the following sections.

Note 2: Each field will expand automatically if additional space is needed.

I. Contracting Activity.

This Justification and Approval (J&A) is a request for Other Than Full and Open Competition in support of requirements generated for the Air Force Life Cycle Management Center (AFLCMC)/Support Equipment and Vehicles Division/WNZCA. The contracting activity for this requirement is AFLCMC/WNKAAB.

The purchase request number supporting this contracting action is FD2060-16-67128.

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

Due to the circumstances described below, this activity requests authority to acquire the T-38 aircraft electrical test set 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 action will result in the award of a new, firm fixed price (FFP) contract, with one (1) basic year with three (3) options. This sole source requirement will be purchased from the following company:

Source: Testek Inc.

28320 Lakeview Drive

Wixom, MI 48393-3157

Cage: 06659

Small Business

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

The Test Set, Electrical, National Stock Number (NSN) 6625-01-643-4117RN, Part Number (PN)

904J038-4 is used in support of the T-38 aircraft. The tester is designed to provide a method of checking the T-38 aircraft electrical power system on a GO-NO-GO basis. This system tester is used for monitoring, troubleshooting, and functional testing of the aircraft's 320 to 480 cycle systems. The test set checks the fault isolation of the protection panel on the T-38 aircraft. This test set is also capable of isolating a fault within the aircraft's electrical power system to a specific component mounted within the aircraft. The test set is limited in its application to the testing of the T-38 aircraft AC electrical power system, installed within the aircraft.

Overall Unit Dimensions:

- Width: 14.750”

- Length: 15.750”

- Height: 11.000”

- Weight: 49 lbs.

The estimated cost of this acquisition, including all options and maximum quantities, is $2,683,323.00 which is based on current projected costs for supplies and derived from escalation factors applied to historical prices. Escalation factors are developed and standardized by the Office of Management and

Budget and are subsequently loaded into the Equipment Requirements Systems. The type of appropriation for this requirement is 3400 Operation and Maintenance (O&M) funds. Exercise of option(s) may include

Air Force, other Department of Defense (DoD) agencies, or Foreign Military Sales (FMS) funds.

PERIOD: ESTIMATED QUANTITY: ESTIMATED

UNIT COST:

TOTAL:

BASIC:

Option 1:

Option 2:

Option 3:

Estimated Total Contract Value:

Estimated delivery date: 180 days After Receipt of Order (ARO)

Period of Performance (PoP): basic and three option years - Total four years

This NSN has been screened and assigned Acquisition Method Code (AMC)/Acquisition Method Suffix

Code (AMSC) of 3H. AMC 3: Acquire, for the second or subsequent time, directly from the actual manufacturer. AMSC H: The Government physically does not have in its possession sufficient, accurate, or legible data to purchase this part from other than the current source(s). This code is applicable only to parts under immediately buy requirements and only for as long thereafter as the deficiency is under review for resolution and appropriate recoding. This code is only assigned at the conclusion of limited screening, and it remains assigned until the full screening process resolves physical data questions and results in assignment of a different AMSC.

IV. Statutory authority permitting Other than Full and Open Competition.

10 USC 2304(c)(1), as implemented by FAR 6.302-1, Only One Responsible 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 available from the above cited source, which possesses the unique capabilities demonstrated as follows. The approval of this J&A will allow for continued production procurement of this specialized equipment. The current contract, FA8518-14-C-0008 was awarded to Testek on 30 Sep 2014 for NSN 6625-00-786-8986JX, P/N 904J038-3.

This contract required the delivery/approval of a first article. The approved first article is considered a production article. Due to configuration change, the NSN and P/N were revised to NSN

6625-01-643-4117JX and P/N 904J038-4. First Article was approved and accepted on 3 Dec 2015. The compatibility testing for the revised configuration was completed on 22 Mar 2016. This follow-on production effort is for the current configuration NSN 6625-01-643-4117RN; P/N 904J038-4. The NSN extension was changed from JX to RN because of going from First Article prototype to production.

As described in Section III, this electrical power test set is a highly specialized piece of equipment limited in its application to the testing of the T-38 aircraft AC electrical power system installed within the aircraft.

This is considered to be militarily unique and supports the T-38 aircraft.

The Government does not own the technical data package (TDP), nor is the product under the configuration control of the Government. Testek is the sole teaming partner and licensee of Hamilton Sundstrand for this electrical test set. The Government owns specification control drawings for 2-76630 and Norair 3-60900.

These drawings require the electrical test set for P/Ns 904J038-1, 904J038-2 and 904J038-3. Both P/Ns

904J038-1 and -2 are no longer procurable due to obsolescence. The Government owns Operations and

Service Instruction Manual 33D2-4-30-1, Internal Parts List 33D2-4-30-4, and Calibration Manual

33K1-4-1107-1 for 904J038-1, 904J038-2, and 904J038-3. These specification control drawings and

Technical Orders (TOs) have distribution statement C, meaning distribution can be made to Government and its contractors. However, technical data package applicable to the measurements, parts breakdown, and wiring from Westinghouse design have not been provided to the Government. Several attempts were made to determine if Hamilton Sundstrand was interested in selling the proprietary data. Their responses were that they were not interested in selling the data for an item currently produced by them or a licensee.

Per communications with T-38 Avionics Systems Engineer, Hamilton Sundstrand bought the original design specification control drawings, 904J038, developed by Westinghouse. The design specification is proprietary to Hamilton Sundstrand. Phone calls were made and emails sent on 23 Jun 2016 to inquiry with

Hamilton Sundstrand on their interest in selling the proprietary data. As of 19 Jul 2016, Hamilton

Sundstrand has not responded to our request. There are no other known item(s) that can be modified to satisfy this requirement.

The Government estimates a reverse engineering effort would cost approximately and take up to two years to complete. This estimate is based on a reverse engineering effort for a similar item, 4920-01-292-2173, Temperature Control Test Set. That reverse engineering effort concluded it would take approximately two (2) years and cost to complete the design, testing, and production of this similar item. Both items are electronic, user portable testers of similar size and weight. Both have similar functions on different systems; one electronically verifies the environmental control systems on the C-130, and 6625-01-643-4117 electronically verifies faults on the T-38 aircraft.

On 20 Jul 2016, the FZC office conducted a cost analysis and provided a Business Case Analysis (BCA).

The projected timeline for aircraft service life is through 2029. Based on the BCA, the present value of the new investment is with a present value of savings from operations of . The savings/ investment ratio is which means for every dollar invested the return is only cents. Based on this analysis, the Government would not break even on the investment by year . The payback period is years.

AFLCMC/WNZCB believes award to any other source would result in substantial duplication of cost to the

Government that could not be recovered through competition due to non-recurring cost, preproduction units, travel, test reports, first article quality testing, manuals, design reviews, aircraft availability for test and at least 2 legacy units, one that will be cannibalized, another for side by side test once compatibility test is arranged.

This acquisition will be a follow-on contract for the continued production of highly specialized equipment.

Based on the above, Testek is the only firm capable of providing the supplies described in Section III above without the U.S. Air Force experiencing these substantial duplication of cost.

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

This requirement will be synopsized on the Federal Business Opportunities (FedBizOpps) as required by

FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Sources who respond to the Government as a result of this synopsis will be investigated for their capabilities to perform this and/or future acquisitions. These sources will be identified to the prime contractor for potential subcontracting possibilities.

Request for Information (RFI) FA8532-16-TESTSET was posted 27 Jun 2016 to www.fedbizzops.gov describing the T-38 Electrical Tester requirement and requested interested sources provide their expertise, capabilities, and experience to meet the requirement. Two companies replied to the RFI, including Testek.

Testek replied they would not respond to the RFI as they are listed as the current source.

The other respondent provided a voucher with a list of capabilities as an answer to the RFI. The voucher did not address working with power generator test sets for aircrafts or working with avionics support equipment. The company was deemed not capable of meeting the requirements of this acquisition.

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

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.

Background: Three (3) companies have manufactured this unit in the past: 1) Westinghouse manufactured

P/Ns 904J038-1 and 904J038-2 but no longer manufactures the unit. 2) Hamilton Sundstrand a United

Technologies Company (UTC) manufactured P/N 904J038-2. 3) Testek, Hamilton Sundstrand's licensee, manufactured P/N 904J038-3. United Technologies Aerospace Systems (Hamilton Sundstrand) is the current owner of the Westinghouse design, P/N 904J038-2. UTC bought the original design specification control drawings, 904J038, developed by Westinghouse. In 2012, UTC Aerospace Systems was formed by combining two industry leaders, Hamilton Sundstrand and Goodrich. Hamilton Sundstrand (73030) first produced the tester in 1972. Westinghouse sold the data to Hamilton Sundstrand and is no longer a source for this item. Testek still manufactures this test set.

Market research was conducted and completed 20 Jul 2016 pursuant to FAR 10.001 and 10.002. Market research techniques used were internet searches, email communication, and phone communications with the previous source. Haystack was reviewed to identify previous sources, part numbers, previous contracts, and NAICS codes. A Small Business Dynamic Search (SBDS) was conducted using keywords: 904J038, Power, Generator, Tester, and NAICS 334515. Results from the SBDS returned zero results for potential vendors that could provide this tester.

As discussed in Section VI, RFI FA8532-16-TESTSET was posted 27 Jun 2016 to www.fedbizzops.gov.

The Government received a reply from Testek and one from an interested company. The interested company was deemed not capable.

Commercial Opportunities - This is not a commercial item. This electrical test set has been built and tested to military standards. There is no compatible commercial products available.

The market research concluded Testek is the only capable source of providing this electrical test set.

http://www.fedbizzops.gov/

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.

As of 19 Jul 2016, the Original Equipment Manufacturer (OEM), Hamilton Sundstrand had not responded to our phone calls and/or emails regarding the Government's request to purchase the proprietary data. The

20 Jul 2016 BCA indicated a reverse engineering effort would not provide a return on the Government's investment for years. The life of the T-38 program is projected through , therefore undertaking a reverse engineering effort would not economically feasible for the Government because the payback period for the investment exceeds beyond the projected life of the program.

Our plan to break barriers to competition on future acquisitions is to request the OEM sell or provide

Government purpose rights to the technical data. Our request to the OEM will be on an annual basis prior to exercise of option(s). If the OEM agrees to release Government purpose rights, the Government will compete future requirements for the electrical test set.

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.

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