00944_ADTS__JA_V2.docx_revisions_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), 409 Supply Chain Management Squadron (SCMS)/GUMC.

The contracting authority for this requirement is AFSC Robins/PZAAB Warner Robins. The purchase request number supporting this contracting action is FD2060-14-00944.

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

Due to the circumstances described herein, this activity requests authority to acquire the 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 requirement is for the procurement of repair services for the Air Data Test Set (ADTS) for the Electronic Systems Test Set (ESTS), AN/GSM-397, and will be restricted to three qualified contractors. This shall be a new Firm-Fixed-Price (FFP) contract with a basic year plus four option periods. Period of performance for the acquisition is estimated to be from December 02, 2015 through December 02, 2020, if all options are exercised. This sole source requirement will be awarded to one of the following company(s):

Northrup Grumman Systems Corporation 600 Hicks Road Rolling Meadows, IL 60008-1015 Phone: 224-625-6554 Type: Large Business CAGE Code: 26916 NAICS Code: 336413

Elbit Systems of America LLC, Commercial Aviation-Kollsman 220 Daniel Webster Hwy Merrimack, NH 03054-4844 Phone: 603-886-2309 Type: Large Business CAGE Code: 89944 NAICS Code: 334511

Testvonics, Air Data Test Set 375 Jaffrey Road Peterborough, NH 03458 Phone: 603-924-5922 Type: Service Disabled Veteran Owned Small Business (SDVOSB) CAGE Code: 1A9E1 NAICS Code: 54161302

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

AGENCY’S NEEDS

This requirement is for the procurement of repair services for the Air Data Test Set (ADTS) for the Electronic Systems Test Set (ESTS), AN/GSM-397. The ADTS is utilized to test 2 (two) F- 15 aircraft Line Replaceable Units (LRUs) in conjunction with Interface Test Adapter (ITA) 6 on the ESTS test station. The ADTS provides Pitot and Static pneumatic pressures at precision levels to test the F-15 Air Data Computer and Electronic Air Inlet Controller on the F-15 ESTS.

This effort will also include providing obsolete parts resolution, testing verification of failures, calibration and/or repair. This acquisition will use Consolidated Sustainment Activity Group (CSAG) funding. The item to be calibrated and/or repaired under this effort, with Best Estimated Quantities, is as follows:

NSN: 4920-01-550-2455, P/N: 18906300001

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 or Limited Number of Responsible Sources 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 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. The ADTS components are highly specialized, complex items and require specific procedures for repair and calibration. The F-15C/D/E is currently used by the Air National Guard, Air Combat Command, USAFE and PACAF, and is scheduled to be in service until 2040. The ESTS system is used to support this aircraft and is not scheduled for replacement. Therefore, this acquisition is for continued performance of a highly specialized service.

CLIN Unit Price BEQ Basic Opt. I Opt. II Opt. III Opt. IV Total Repair 12 ea.

O&A BER 1 ea.

No Fault Found $ 1 ea.

Calibration 26 ea. $

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 Interface Test Adapters associated with the ADTS were built by Lockheed-Martin and Northrop Grumman Corporation (NGC).

NGC is the OEM of the ESTS test station, and as such, has an ESTS for supporting the tester.

NGC is the prime contractor on our current sole source Firm-Fixed-Price contract, FA8538-11- D-0003, awarded 03 Dec 2010 and expiring 02 Dec 2015.

. Testvonics Air Data Test Systems is currently the sub-contractor to NGC, repairing and calibrating 26 ADTS items per year, performing all repairs, troubleshooting, and calibration under the current NGC contract. The contractor uses independently-developed repair procedures. Depot repair data for the F-15 ADTS and ESTS does not exist. The OEM and data rights owner for the ADTS and ADTS test software, Elbit Systems of America LLC, Commercial Aviation-Kollsman, was contacted in June 2014 by the Government to inquire if they would be willing to sell the data rights for the F-15 ESTS ADTS to the Government. They expressed on July 7, 2014, that they are not willing to sell the data rights at this time. The Interface Test Adapters associated with the ADTS were built by Lockheed-Martin and Northrop Grumman, who were granted exclusive rights to the data from the OEM.

Screening action has resulted in the assignment of the R2R, RMC 2 (suitable for competitive acquisition for the first time), RMSC R (the Government does not own the data or the rights to the data needed to purchase this part from additional sources) for NSN 4920-01-550-2455FX.

The original Source of Repair Assignment Process (SORAP) decision was completed in September 2004.

F-15C/D/E aircraft is scheduled to be in service until 2040. Also, organic technicians will require training from the prime systems contractor to commence repairs, for start-up training. The estimated five to six years required and costs associated with reverse engineering, drawing development, test development, calibration, man-hours, repair data, and operating costs is estimated at Consequently, total reverse engineering and organic operating costs for the scheduled service of the aircraft is estimated at Competing the calibration and repair would potentially result in an annual savings estimated of only , or the service life of the aircraft. Clearly, the nonrecurring cost of life of the program. Furthermore, there have been no acceptable alternatives that are in the marketplace for the replacement of this item.

Elbit Systems of America LLC, Commercial Aviation-Kollsman, Testvonics Air Data Test Systems, and Northrop Grumman Corporation are the only sources identified through market research with the technical data, facilities, and expertise required to calibrate and repair the Air

Data Test Set because of the uniqueness of the application and technical information required.

Qualifying more sources would require a clean-sheet redesign or an extensive reverse engineering project due to the complexity of the item and the fact that the Government does not own the data package to allow for stock number assignment. Accordingly, these three sources are the only firms capable of providing the 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.

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 repair of this Air Data Test Set for the Electronic Systems Test Set 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 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 in May 2014 as outlined by FAR 10.002. The main method of market research used was internet research. Major website sources used for research were the Dynamic Small Business Database, www.google.com, www.thomasnet.com and various company websites. The search term used was ‘F-15 Air Data Test Set.’ Also, discussions with industry representatives and past experience with similar contracts were other techniques used.

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. Other parameters used in the search include tooling capability, support equipment, and the data necessary to calibrate and repair the ADTS. Results revealed that only NGC, Testvonics, and Elbit Systems of America are sources capable of fulfilling the repair and calibration requirements for the

ADTS. These companies are the only sources that possess or have access to the data and highly specialized services that are required to support the ADTS. The market research determined that no other commercial repair vendors exist to fit the Government’s needs.

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

OPEN COMPETITION

As indicated Section V above, the results of the study/analysis indicates it is not cost or time effective to attempt to qualify new sources for this particular item under the cited conditions.

Failure to award this contract will cause the support posture to drop below the existing requirement objective on this asset; the result would be an increase in MICAP hours and backorders. The increase of MICAP hours and backorders will result in grounding mission-capable aircraft and degradation to the information the warfighter requires for mission accomplishment.

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

It is anticipated that there will be follow-on repair requirements. The Program Office will continue their attempts to procure data by elevating to a higher level within Elbit Systems of America LLC, Commercial Aviation-Kollsman, the request for the data rights. As of July 7, 2014, the OEM expressed that they are not willing to sell the data rights, but they will possibly revisit the opportunity in the future. Should a proposal be provided, SCMS/GUMC will request the funds to procure data if it makes economic sense to do so. The Program Office will also further explore the feasibility of pursuing clean-sheet redesign or reverse engineering efforts and will coordinate annual meetings to discuss removing competitive barriers.

XII. CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on the Coordination and Approval Document evidences that she has determined this document to be both accurate and complete to the best of 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%23P204_28777 http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/Far/06.htm%23P204_28777