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JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated for the Air Force Global Logistics Support Center (AFGLSC), 638 Supply Chain Management Group (SCMG), 409 Supply Chain Management Squadron (SCMS) / GUMCA. The purchase request number supporting this contracting action is FD2060-09-23596.

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

Due to the circumstances described herein, the activity requests authority to acquire the calibration and/or repair listed in this document using Other Than Full and Open Competition as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This action will result in the award of a new contract, which will be a firm-fixed price, ID/IQ contract with a basic year plus four one year options. This sole source requirement will be purchased from the following company:

Northrop Grumman Systems Corporation (NGC) Electronic Systems Defense Systems Division 600 Hicks Road Rolling Meadows, IL 60008-1098 CAGE Code: 26916 Large

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

This requirement is for the Depot-level Calibration and/or Repair providing for the calibration, testing, and /or repair of the Electronic Systems Test Set (ESTS) Air Data Test Set (ADTS). This effort will also include providing obsolete parts resolution and testing verification of failures and calibration and/or repair.

Under the contemplated contract, Northrop Grumman Corporation will provide the following supplies which are required to support the ESTS in sustainment of the USAF F-15 aircraft:

Basic Requirement

NSN NOUN QTY UNIT PRICE TOTAL PRICE

4920-01-550-2455FX ADTS 26 $5,000.00 $130,000.00

Option 1

4920-01-550-2455FX ADTS 26 $5,150.00 $133,900.00

Option 2

4920-01-550-2455FX ADTS 26 $5,304.50 $137,917.00

Option 3

4920-01-550-2455FX ADTS 26 $5,463.64 $142,054.64

Option 4

4920-01-550-2455FX ADTS 26 $5,627.54 $146,316.04

TOTAL POTENTIAL CONTRACT VALUE

$690,187.68

Total estimated cost of this acquisition: $690,187.68, which is based on the items latest calibration/repair costs with a three (3%) percent escalation factor added for each additional four option years.

The RMC for the identified item is R5 (Repair directly from a Sole Source Contractor which is not the actual contractor.)

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

Elbit Systems of America LLC, Commercial Aviation-Kollsman is the Original Equipment Manufacturer (OEM) that developed and built the ADTS that was utilized by Northrop Grumman for integration on the F-15 ESTS test station. The Northrop Grumman Corporation is the original OEM of the ESTS test station.

Kollsman, Inc. is the sole source for calibration and/or repair of the F-15 ESTS ADTS.

Kollsman has proprietary rights to the ADTS and is the only source authorized to perform required repair and/or calibration.

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The Air Force’s minimum needs can only be satisfied by the unique services available from Kollsman and Northrop Grumman Corporation. Kollsman has the only known capability to perform depot-level calibration and/or repairs to the ADTS. There is no commercial or non-developmental repair available to meet our requirements. The F- 15 war fighter requires an item that meets an exact form, fit, and function as determined by their specific mission. Each ADTS must be able to properly measure the visual properties of the LRU being tested. There are no test systems in the commercial market with the same or similar capability to the ESTS station. These are unique items for testing the F-15 LRUs. The ADTS components are complex items and require specific procedures for repair and calibration.

Northrop Grumman provides a value added service for the repair of the ADTS for the Electronic System Test Set (ESTS). Upon receipt of a damaged ADTS from the field, NGC places the unit on the test station and runs the self test to verify the failure. If they do not find the failure, they have the capability to run some other tests to see if there is another mode which the ADTS is failing. In this way, they eliminate CNDs being sent to the ADTS OEM, costing the Air Force repair money unnecessarily. Also, allows for the unit to be available in the supply chain faster than if it had to go to the OEM, supporting the warfighter better. Upon receipt of the repaired ADTS from Kollsman, NGC is able to repeat the screening to verify that the unit is meeting the ESTS tester requirements. This prevents the ADTS from being returned to the field with a missed fault, again saving the Air Force funds that would have been expended for a returned item. Also, it keeps the warfighter supported by keeping the intermediate repair shop working.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

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. Although the Government does not own data to support acquisition of this Calibration and/or Repair from any other source, any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential for subcontracting possibilities.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The overall cost of this acquisition will be fair and reasonable to the Government. In accordance with FAR 15.403-4, the contractor will be required to provide certified cost and 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 Audit Agency (DCAA) 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

Market Research was conducted as outlined by FAR 10.002. Our review of applicable trade journals and literature, discussions with industry representatives, Internet searches, and past experience with similar contracts determined that no commercial repair existed which could fit our needs. The Air Force Master Item Identification Database, D043A, was also researched along with acquisition historical records. The D043A database contains all qualified sources identified at the time of initial cataloging of these items and through subsequent revisions. Northrop Grumman Corp is the only current source who can meet our needs. They are the OEM for the ESTS and integrator of the ADTS into the ESTS. Kollsman is the OEM for the ADTS and the data for the repair and or calibration of the ADTS was not purchased by the government. Kollsman has proprietary information and experience with the ADTS which makes developing a new source of repair impossible.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION

Elbit Systems of America LLC, Commercial Aviation-Kollsman has been provided a Request for Proposal (RFP) for a sole source effort for the Calibration and/or Repair and their proposal was deemed unacceptable based on the following reasons.

This is not a commercial item repair as this repair is specific to the F-15 aircraft.

Engineering has evaluated/screened this item as non-commercial stating that it cannot be commercially repaired or overhauled. The government is unable to accept the commercial terms and conditions and warranty that Kollsman proposed. Kollsman mandated a Time and Materials contract and would not consider any other contract type. Kollsman is not willing to give a turnaround time for repair units. Turnaround Time (TAT) is required for our contract in accordance with the RFP. Kollsman is stating that "No units will be accepted from outside the United States.” The government anticipated having assets shipped directly to Kollsman from their current location.

Some of these assets are located at military installations overseas. Also, Kollsman is requiring that the government’s terms and conditions and warranty be replaced with their terms and conditions and warranty. Kollsman stated in the proposal that the "Limitation of Liability" clause (52.246-23) needs to be changed to read their required terms. This is a FAR clause and cannot be modified.

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

To remove competitive barriers on subsequent acquisitions the following actions are planned. Perform a cost/benefit analysis to determine if one or two sources of repair are economical. Pursue Air Force capability to complete this as an organic workload.

Upon a positive response to above statement, resubmit SORAP.

The OEM and data rights owner for the ADTS and ADTS test software, Kollsman Inc., was contacted by the government to inquire if Kollsman would be willing to sell the data rights for the F-15 ESTS ADTS to the government. Kollsman expressed that they are not willing to sell the data rights or test software for the F-15 ESTS ADTS per an e-mail dated 9 Feb 10.

To reverse engineer the ADTS It would be expected to take approximately a minimum of $3M in NRE costs and five (5) years to complete the effort. Costs would include the calibrator, drawing development, test development, and man-hours spent in engineering study. This would not include cost for any damage to the ADTS during this effort which is a distinct probability whenever any reverse engineering is done.

XII. CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on the Coordination and Approval Document evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

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