PR_14-00100_JA_redacted.pdf

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 Sustainment Center (AFSC), 638 Supply Chain Management Group (SCMG), 409th Supply Chain Management Squadron (SCMS/ GUMBB). The contracting agency and organizational activity responsible for the proposed contracting action is AFSC/PZAAB. The purchase request number supporting this contracting action is FD2060-14-00100.

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

Due to the circumstances described here, the activity requests authority to purchase the NSNs 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 Will Satisfy Agency Requirements. This action will result in the award of a new contract, which will be a firm-fixed price, requirements type contract with one basic year plus one option year. This sole source requirement will be purchased from the following company:

Northrop Grumman Systems Corporation (NGSC) 1580A W Nursery Road Linthicum Heights, MD 21090

(410) 993-5025

CAGE CODE: 97942

Large Business

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

AGENCY’S NEEDS

The Air Force has a requirement for the Receiver Transmitter Processor (RTP) electronic components and circuit card assemblies, a part of C-130 AN/APN-241 Low Power Color Radar (LPCR) unit used for video inputs and outputs. They may be mounted on multiple printed wiring boards back-to-back, stacked, etc. The AN/APN-241 LPCR provides a high resolution ground map capability to support the All Weather Aerial Delivery System (AWADS) requirements of today’s Air Forces. It also provides unprecedented safety-of-flight measures with its long range weather through weather detection and predictive wind shear.

Basic Year

National Stock

Number

Part Number

Purchase Price

Quantity

Quantity to be

Purchased

Total Purchase

Price

5998-01-433-9518LG 788R102G01 $17,751.77 39 $692,319.00

5998-01-433-9516LG 780R203G01 $17,751.77 21 $372,787.00

5995-01-433-6969LG 780R191G01 $10,283.69 31 $318,794.39

5998-01-501-0131LG 810R763G01 $15,380.11 37 $569,064.00

5998-01-534-5169LG 824R061G06 $9,825.50 02 $19,651.00

5998-01-591-8319LG 824R061G17 $14,235.08 04 $56,940.32

Option Year

$2,029,555.71

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National Stock

Number

Part Number

Purchase Price

Quantity

Quantity to be

Purchased

Total Purchase

Price

5998-01-433-9518LG 788R102G01 $18,461.84 26 $480,007.84

5998-01-433-9516LG 780R203G01 $18,461.84 02 $36,923.68

5995-01-433-6969LG 780R191G01 $10,695.04 02 $21,390.08

5998-01-501-0131LG 810R763G01 $15,995.31 09 $143,957.79

5998-01-534-5169LG 824R061G06 $10,218.52 02 $20,437.04

5998-01-591-8319LG 824R061G17 $14,804.48 02 $29,608.96

$732,325.39

The period of performance (24 months) is a basic and one (1) option year with an estimated total dollar amount of $2,761,881.10 funded by Materiel Support Division (MSD). Five NSNs have AMC/AMSC of 3R and NSN 5998-01-591-8319 has AMC/AMSC of 3H. The Government does not own the data or the rights to the data needed to produce these parts from additional sources. The AN/APN-241 is a non-developmental system, no detailed drawing packages, documentation of manufacturing procedures, test specifications or inspection data rights have been procured by the government (all are considered proprietary to NGSC); it has been determined to be uneconomical to reverse engineer the parts as the OEM maintains configuration control for the next higher assembly.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND

OPEN COMPETITION

10 USC 2304(c), 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 be satisfied by the supplies available from the above-cited approved source, which possesses the capabilities demonstrated. The Government does not own the data or the rights to the data needed to compete these items from additional sources.

NGSC is the sole source supplier of the AN/APN-241 LPCR. AN/APN-241 is a non-developmental system used in military applications. The AN/APN-241 was developed exclusively at NGSC’s expense. Since LPCR is a non-developmental system, no detailed drawing packages, documentation of manufacturing procedures, test specifications or inspection data rights have been procured by the Government. All are considered proprietary to NGSC. NGSC has been the sole source of supply and repair for the AN/APN-241 radar since its inception. This acquisition is a contingency effort, which contains one (1) option due to the expiration of Northrop Grumman Corporate contract F09603-03-D-0002 which expired 11 Aug 2013. NSNs approved for NG Corporate contract and the follow-on contract is estimated to be awarded fall 2014 or early spring 2015; hence, the need for a stand-alone contract to support the warfighter’s requirements. Therefore, this acquisition will be a contingency contract for the continued production of electronic components. When contacted about selling the data rights in May 2011, NGSC provided an estimate of $200M. NGSC was contacted in July 2012 and again in November 2013 with NGSC responding they were unwilling to sell re-procurement and technical data rights package.

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The reverse engineering cost is estimated over $450M, this includes replacement cost and testing of: antenna, indicator and control panels, a Radio-Transmitter-Processor (RTP), a RTP mount, an antenna power supply, a wired chassis, and several Line Replaceable Modules (LRMs) on 435 aircrafts. As a result, no further actions such as business case studies showing the ROI over the life to obtain this data have been taken. It has been determined that there is currently insufficient justification for obtaining funds to reverse engineer or qualify additional sources to eliminate the competitive barriers.

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 website (FedBizOpps.gov) as required by FAR 5.201, citing conditions which preclude full and open competition. Sources expressing interest as a result of the synopsis will be investigated for their capabilities to perform on this and/or future requirements.

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 or pricing data to be used supporting the government’s evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types and quantities of material and 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, in accordance with FAR Part 10, was conducted on 2 Oct 2013 and background information was obtained through searches within government databases (D200, SMART PIDS and PRPS) as required by FAR 10.001 and 10.002. Vendor information was obtained using techniques that include Central Contractor Registration (CCR) database. A search of both government databases (D043, PRPS) and internet databases (ILSmart, Haystack) for acquisition and support history showed no evidence of any company other than Northrop Grumman providing the AN/APN-241 and its associated components to the Air Force. No other companies (beside NGSC) are listed as approved source. There are no companies known to have developed their own data on the AN/APN-241 without assistance/consent from NGSC or the government.

Since the AN/APN-241 is designated a non-developmental radar, no detailed drawing packages, documentation of manufacturing procedures, test specifications or inspection data rights have been procured by the government. It was developed by NGSC utilizing their internal funds. All data is proprietary to NGSC. Due to lack of data possessed by the government, there is no competitive opportunity. Configuration control and technical data remains the responsibility of NGSC. A broad search for contractors possessing general capabilities required for this acquisition was not conducted due to lack of data possessed by the government.

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/10.htm

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

NGSC was contacted May 2011, July 2012 and again in Oct 2013 with the result of NGSC continuing to be unwilling to sell data rights to the Government. Lack of technical data package, specification and engineering description required for a suitable Full and Open Competition cannot be developed without reverse engineering based on engineering estimate of $450M. As a result, no further actions such as business case studies showing the ROI over the life to obtain this data have been taken. It has been determined that there is currently insufficient justification for obtaining funds to reverse engineer or qualify additional sources to eliminate the competitive barriers. Due to lack of available data to compete the requirements, qualifying any other source would be uneconomical for the Government. It is anticipated that there will be follow-on procurements and although this is a contingency until the NG Corporate contract is awarded, the Government will make another attempt to procure data.

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 (FAR 6.303-2(b)(12)).

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 (FAR 6.303-2(c)).

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/06.htm http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/06.htm