JA_Redacted.pdf

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

FOR OFFICIAL USE ONLY

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I. Contracting Activity.

This Justification and Approval (J&A) is to request authority for Other Than Full and Open Competition (OTF&OC) to support requirements generated for the Air Force Life Cycle Management Center (AFLCMC), Support Equipment & Vehicles Division (WNZ), Base & Aircraft Support Equipment Branch. The contracting activity for this requirement is the Support Equipment & Vehicles Contracting Branch (AFLCMC/WNKAB). The Purchase Request Number supporting this contracting action is FD2060-18-31580.

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

Due to the circumstances described below, this activity request authority to acquire the spares listed in this document using Other Than Full and Open Competition procedures as prescribed 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 “Bridge” firm fixed price (FFP) Requirements Indefinite Delivery Contract (IDC) with a one (1) year basic ordering period and one additional (1) one-year ordering period. The anticipated basic ordering period is 6 Jul 2018 through 5 Jul 2019, and the additional one-year ordering period will be 6 Jul 2019 through 5 Jul 2020.

This sole source requirement will be purchased from the following company:

AGE Logistics Corporation 426 E Duarte Rd.

Monrovia, CA 91016-4603

CAGE: 02708

Small Business

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

The purpose of this requirement is to procure 15 to 26 Ton Pneumatic Lifting Bags. The pneumatic lifting bag is a device which lifts crash damaged or crippled aircraft from terrain where it is impractical or impossible to use standard aircraft jacks. Deflated pneumatic lifting bag modules are stacked under the wings of the aircraft. Air supply hoses are connected to pneumatic control consoles and the modules are inflated to the desired height, thereby raising the aircraft. Each of the 15 and 26 ton pneumatic lifting bag assemblies consist of five (5) pneumatic modules, 15 hose assemblies, 4 protective pads, and a repair kit. Each pneumatic module consists of three (3) elements made from fabric. Each element is a self-contained compartment that is designed to be inflated with air.

Approximately 80,000 drop stitches internally connect the top and bottom of the element to prevent deformation when pressurized. Each element has two ports which are molded into the bag, one for a relief valve, the other for a gasketed adapter and socket that provides for attachment of an air hose assembly. The elements are attached together around the edges with fabric. Each pneumatic module has handles and Velcro patches that allow attachment of one module to another to form a five (5) module stack. Two protective pads are placed above and below the stack during operation. The repair kit provides materials necessary to patch damaged areas of the pneumatic modules. The pneumatic lifting bags are designed and configured to operate in conjunction with a pneumatic console to form a complete aircraft recovery system. Pneumatic lifting bag systems are universally deployed throughout the world for use on a wide range of aircraft.

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The National Stock Numbers (NSNs) applicable to this requirement are as follows:

ITEM 0001: 15 Ton Pneumatic Lifting Bag, NSN 5120-01-284-2611QS, P/N 9314-010

ITEM 0002: 26 Ton Pneumatic Lifting Bag, NSN 5120-01-285-5785QS, P/N 9315-010

The Best Estimated Quantity (BEQ), unit price, and total price for each of the NSNs for this requirement is shown below:

NSN: 5120-01-284-2611QS (15-Ton Bag)

Contract Period BEQs Unit Price Estimated Total Basic Contract Period, 1-Year $1,407,900 Ordering Period I $1,450,140 Estimated Totals (15 ton bag) $2,858,040

NSN: 5120-01-285-5785QS (26 Ton Bag)

Contract Period BEQs Unit Price Estimated Total Basic Contract Period, 1 Year $1,857,720 Ordering Period I $1,913,460 Estimated Totals (26 ton bag) $3,771,180 Estimated Program Value $6,629,220

The overall estimated value of this acquisition is $6,629,220. The basis for the BEQs is to fill all critical and important backorders that have been identified on the asset distribution list. The estimates are based on historical pricing from the previous contract with an escalation factor of 3% applied.

The funds to be utilized are FY18 Central Procurement Investment 3010. The ordering validity period for this Requirements IDC is projected to be 6 Jul 2018 through 5 Jul 2020. The delivery schedule for the system is 180 days after receipt of order (ARO).

These NSNs were screened and assigned an Acquisition Method Code (AMC)/ Acquisition Method Suffix Code (AMSC) of 1G:

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.

The 15 and 26 ton pneumatic lifting bags were designed for use on military unique aircraft, and have been sold commercially. AGE Logistics Corporation has sold the pneumatic lifting bags to several vendors on the commercial market including; British Airways, Turkmenistan Airlines, and Bristol Airport. The 15 and 26 ton pneumatic lifting bags are determined to be commercial as both meet the definition of a commercial item in accordance with FAR 2.101. This determination has been captured via a Commercial Item Determination (CID).

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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. This acquisition will follow procedures of FAR 13.5, "Simplified Procedures for Certain Commercial Items" in accordance with 41 U.S.C. 1901 or the authority of 41 U.S.C. 1903.

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 current minimum needs can only be satisfied by the unique supplies or services available from the above cited source that possesses unique capabilities demonstrated as follows:

The 15 and 26 ton pneumatic lifting bags are a multi-time use (consumable) aircraft recovery system designed for use on crash damaged or crippled aircraft where it is impractical or impossible to use standard aircraft jack stands. The 15 and 26 ton pneumatic lifting bags have a ten (10) year shelf life.

Since 1994, AGE Logistics Corporation has supplied these items to the United States Air Force (USAF) based on technology, material and labor from the United Kingdom (UK) and Europe. In 2012, it was determined that aircraft pneumatic lifting bags were subject to the Berry Amendment.

Use of foreign source(s) would require approval of Domestic Non-Availability Determination (DNAD) in accordance with DFARS PGI 225.7002-1 (i.e., Berry Amendment).

In 2012, there were no manufacturers of applicable drop-stitch fabric in the United States, no neoprene-coaters with the ability to coat that type of fabric, and no fabricators with experience in building and testing the end-item. Because the quantities involved are small relative to the capital equipment required, it was difficult to develop the necessary supply chain.

During the period of 2012 - 2015, AGE Logistics Corporation took action and invested their time and funds to develop the necessary sources. Their investment included technology transfer fees, modifications to an existing loom for weaving the fabric, and extensive coating trials. Extensive and costly testing of the material was done at the Textile Technology Center at Gaston College and at the University of Rhode Island. The prototype material was sent to the UK for initial fabrication and testing. A US-based fabricator was engaged to develop prototype bags and to perform a series of destructive tests. Production tooling was designed and created for the sole purpose of making Berry Amendment compliant pneumatic lifting bags.

AGE Logistics Corporation is the Original Equipment Manufacturer (OEM) and the only United States (US) approved source for the 15 and 26 Ton Pneumatic Lifting Bags. The primary material used to make pneumatic lifting bags is a complex technical textile often called drop stitch fabric or double wall fabric. The drop stitch fabric consists of two layers of nylon or other synthetic fabric with an interlocking warp (a dense matrix of individual yarns or drop stitches woven between two layers of fabric) connecting the layers together. The drop stitches are approximately 8 inches in length. The top and bottom layers of nylon or other synthetic fabric are coated with synthetic rubber. Pneumatic lifting bags made of drop stitch fabric exhibit exceptional lateral stiffness and stability. Drop stitch

March 2018 FOR OFFICIAL USE ONLY Page 5 of 9 fabric is unique and ideally suited for application to heavy duty inflatable pneumatic lifting bags.

When the bags are inflated, the yarns of the drop stitch matrix are stretched out and loaded in tension.

The matrix of yarns in tension retains the top and bottom fabric panel surfaces of the pneumatic lifting element flat and parallel to one another. Flatness and parallelism are critical properties for the pneumatic lifting bag's stability under load. Any lateral forces applied to the inflated elements in any direction are directly opposed by the action of the matrix of yarns in tension. When the pneumatic lifting bag is deflated, the drop stitches collapse and the thickness of the deflated bag is minimized.

Drop stitch fabric is used in heavy duty pneumatic lifting bags made by AMS, Kunz Gesellschaft mit beschränkter Haftung (GmBH) (which means "company with limited liability"), and Vetter GmBH.

AMS, Kunz GmBH and Vetter GmBH cannot meet our need because they fail to comply with the Berry Amendment requirements. There is no known alternative cloth or alternative design that would be considered feasible or that can match the necessary characteristics of flatness, parallelism, lateral stability, durability, and reliability of drop stitch fabric for use in building pneumatic lifting bags.

This drop stitch material has a very low demand quantity-wise worldwide as this is a niche market.

Drop stitch fabric is a complex technical textile made of nylon or other synthetic yarns and coated with synthetic rubber. The total square yards of cloth used to make a set of the larger 26 ton pneumatic lifting bags is estimated at approximately 70 square yards. This amounts to approximately 700 square yards for 10 sets of bags or 1400 square yards for 20 sets of bags. In the textile industry, this is a very small quantity of material. There are few applications that require use of this technically challenging, complex and expensive drop stitch fabric resulting in small production demand. Drop stitch fabric is technically complex and difficult to weave and coat properly with synthetic rubber.

Market research has uncovered little potential for development of future US suppliers. Due to low volume and technical complexity, there is an inherent lack of interest and high risk for companies looking to enter the market.

The prior contract, FA8533-15-D-0003, was competitively awarded to AGE Logistics Corporation.

The contract was awarded 03 Sep 2015 with a basic and four (4) annual 12-month options with ordering validity through 02 September 2020 should all options be exercised. Option I was exercised which allowed the contract to remain active through 02 Sep 2017. The last order issued under Option I was awarded on 4 August 2017 for three (3) 26 Ton Pneumatic Air Bags Production Units set to deliver January 2018. The Government did not adequately exercise option II against the Basic D contract, resulting in the need to establish a bridge contract for an additional two (2) years to continue necessary performance for the Government. Since the lapse in coverage occurred in September 2017 on the Basic contract, the Government has experienced 44 critical backorders, 28 important backorders, and 139 routine backorders. Award of this bridge contract in July 2018 is imperative to allow the Government to fulfill these mission critical requirements through July 2020.

Based on information provided by an interested vendor in response to the Government's Sources Sought (SS) /Request for Information (RFI) synopsis, the research and development of drop stitch fabric took almost three years to complete. They estimated it would take an additional year to locate the special tooling required for manufacture of the drop stitch fabric. Also, it is estimated to cost between $13-15M to establish a facility for production of the drop stitch fabric, including the required synthetic rubber coating. Even though the Government has a complete technical data package for the pneumatic bags, it expects the same type capital investment and development time would apply to any new vendor trying to enter this niche market for pneumatic bags. This would result in an unacceptable

March 2018 FOR OFFICIAL USE ONLY Page 6 of 9 delays in meeting our current critical mission requirements.

Accordingly, AGE Logistics Corporation is the only firm capable of providing the requirements described in Section III above without the USAF experiencing an unacceptable delays in fulfilling its requirements.

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

Sources Sought (SS) /Request for Information (RFI) synopsis RM18-PNEUMATIC_LIFTING _BAGS_5120-01-284-2611_5120-01-285-5785 was posted to Federal Business Opportunities (FedBizOpps) on 9 Nov 2017 for the explicit purpose of gathering information about the pneumatic lifting bag manufacturing industry and to identify potential source capabilities to domestically produce the 15 and 26 Ton Pneumatic Lifting Bags. Responses were due 11 Dec 2017. The SS/RFI synopsis received two responses, including one from the incumbent. With exception to the incumbent, the other respondent was determined not currently capable of meeting the Government's immediate mission requirements.

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

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 negotiated in accordance with procedures in FAR Part 12 and FAR 13.106-3(a) (2), and a statement of price reasonableness ensuring the ultimate price to the Government is fair and reasonable. Additional pricing methodologies to negotiate fair and reasonable pricing may include reviewing publicly offered catalogs, comparison to historical contractor sales, and/or analysis of limited cost and pricing information provided by the contractor. In the event that limited cost and pricing information is made available, the Government's negotiation objective will be developed using local technical analysis and direct and indirect rate factors recommended by the Defense Contract Management Agency (DCMA).

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 on 5 Mar 2018 pursuant to FAR 10.001 and 10.002.

Various market research techniques were utilized such as internet searches via Google, IHS (Haystack), Central Contractor Repository (CCR), and the Small Business Administration (SBA) Dynamic Small Business Search (DSBS), as well as extensive email communications and a Request for Information (RFI). The market research results identified 10 potential vendors. Only one vendor was found to be Berry Amendment compliant and capable of producing the 15 and 26 Ton Pneumatic Lifting Bags. None of the remaining vendors surveyed are Berry Amendment compliant and have drop stitch technology capability, therefore were determined not capable of meeting the USAF needs.

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The market research results are addressed below:

Google searches targeting drop stitch materials were conducted using the key words/phrases MIL- C-17415, defense engineered fabrics, technical textiles, engineered fabrics, inflatables, industrial fabrics, and coated textiles.

Additional techniques that were utilized include review of previous market research and engineering historical records, discussions with manufacturers, IHS (Haystack) searches, and the development and posting of SS/RFI RM18-PNEUMATIC_LIFTING _BAGS_5120-01-284-2611_5120-01-285-5785 on FedBizOpps, 09 Nov 2017. There were two responses to the SS/RFI, including the incumbent. With exception to the incumbent, the other respondent was determined not currently capable of meeting the Government's immediate mission requirements.

The Integrated Product Team (IPT) reviewed information on prior competitive contract FA8533-15- D-0003.

SBA DSBS searches was performed using the keywords “air bag”, “aircraft recovery”, “crash recovery”, “lifting bag”, “pneumatic bag”, “pneumatic lift bag”, and “recovery bag” without NAICS restriction. The query identified eight (8) other potential vendors. After review and evaluation of the vendors' capabilities, it was determined that none had capability to produce the 15 & 26 Ton Pneumatic Bags, therefore were determined not capable. AGE Logistics Corporation did not appear in the query because they do not fall within the categories of 8a, Historically Underutilized Business Zone (HUBZone), Small Disadvantaged Business (SDB), Service Disabled Veteran (SDV), veteran, woman or women owned, or minority.

Commercial Opportunities: The 15 and 26 ton pneumatic lifting bags were designed for use on military unique aircraft, and have been sold commercially. AGE Logistics Corporation has sold the pneumatic lifting bags to several vendors on the commercial market including; British Airways, Turkmenistan Airlines, and Bristol Airport. The 15 and 26 ton pneumatic lifting bags are determined to be commercial as both meet the definition of a commercial item in accordance with FAR 2.101.

The previous CID is included in the J&A package folder for reference.

The market research concluded AGE Logistics Corporation is the only USAF approved source that can meet the Government's requirements.

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.

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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 15 and 26 ton pneumatic lifting bags are a multi-time use (consumable) aircraft recovery system designed for use on crash damaged or crippled aircraft where it is impractical or impossible to use standard aircraft jack stands. The 15 and 26 ton pneumatic lifting bags have a ten year shelf life.

The 15 and 26 ton pneumatic lifting bags are purchased using Government owned technical data package. Pneumatic lifting bags must be built to print because use of the exact dimensions and physical characteristics are critical for its proper and seamless operation with current systems in Air Force inventory.

The prior competitive acquisition revealed there are a limited number of sources with the capability to produce the technically complex drop stitch fabric. Of those sources, AGE Logistics Corporation is the only US Berry Amendment capable source. There have been no recent changes in the technology, trends or market place.

A vendor responding to the SS/RFI estimated it would take a year to locate special tooling required for manufacture of the drop stitch fabric. In addition, it is estimated to cost between $13-15M to establish a facility for production of the drop stitch fabric, including the required synthetic rubber coating.

Further, time would be required for first article testing. In total, this would create an unacceptable delay and substantial duplication of cost.

The Government has 44 Critical backorders, 28 important backorders, and 139 Routine backorders.

Award of this two year bridge contract will allow the USAF to meet their critical mission requirements.

In order to break barriers to competition, the Government will inquire with RFIs on a bi-annual basis to ascertain if there are companies that are Berry Amendment compliant. Additionally the team is researching the feasibility of executing a 10-year competitive follow-on contract to fill any remaining USAF and FMS requirements. The Government is hopeful that award of this contemplated competitive acquisition will occur in FY20.

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