Redacted J&A_Redacted.pdf

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

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 8

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.

Contracting Activity: AFSC/PZAAB

Purchase Request / Local ID Number: FD2060-19-00024

Program / Project (and PE, if applicable): Repair of C-130 Digital Fuel Quantity Indicator and Digital Fuel Quantity Totalizer

Program Type (PEO or Other Contracting): Other Contracting

Authority: 6.302-1 – 10 USC 2304(c)(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

COORDINATION (AFFARS 5306.304(a) )

Date Project Lead / Program Mgr / Requiring Activity

Signature

Date Contracting Officer

Date

20 Dec 2018

Local Legal Reviewer

[ Office Symbol / Phone Number ]

APPROVAL (AFFARS 5306.304(a) )

Date

07 Jan 2019

Competition Advocate

Signature

March 2018 FOR OFFICIAL USE ONLY Page 2 of 8

I. Contracting Activity.

This Justification and Approval is to request authority for Other Than Full and Open Competition (OTF&OC) supporting requirements generated for the Air Force Sustainment Center (AFSC), 638 Supply Chain Management Group (SCMG), 409th Supply Chain Management Squadron (SCMS/ GUMBB). The contracting activity, for this requirement is the Air Force Sustainment Center (AFSC/ PZAAB). The purchase request number supporting this contracting action is FD2060-19-00024.

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

Due to the circumstances described herein, the activity requests authority to acquire the repair of the items 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 will be a Firm Fixed Price (FFP) follow-on, requirements Indefinite Delivery contract (IDC) consisting of one basic year and four one year option periods. The ordering validity of this contract is projected to be from December 2019 until December 2024. The scope of this J&A covers all anticipated orders executed during the validity period of this IDC through completion of the individual order.

This requirement will be purchased from the following company:

Simmonds Precision Products Inc.

DBA: Goodrich Sensors and Integrated Systems 100 Panton Rd.

Vergennes VT, 05491-1008

CAGE: 89305

Large Business

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

The United States Air Force (USAF) has a requirement for the repairs of the Digital Fuel Quantity Indicator (DFQI) and the Digital Fuel Quantity Totalizer (DFQT). The products needed are the DFQI and the DFQT which are composed of two different National Stock Numbers (NSNs)/Part Numbers (P/Ns):

NSN: P/N: System:

6620-01-394-4018LG 10095-0101 DFQI

6680-01-394-2555LG 10097-0101 DFQT

The following services are required to support the repair of the C-130 Aircraft DFQT and DFQI:

replacement of failed components and/or modules and return to the Original Manufacturer's specifications in serviceable condition and to perform Maintenance including teardown, analysis, overhaul, repair, testing and procurement of spare components, packaging handling, storage, transportation, as well as data collection, engineering support and service. This contract requires

March 2018 FOR OFFICIAL USE ONLY Page 3 of 8 delivery to begin 45 days After Receipt of Order (ARO) for quantities as indicated.

The NSNs were screened and assigned Repair Method Code (RMC)/Repair Method Suffix Code (RMSC) of R3/R: RMC 3 meaning repair, for the second or subsequent time, directly from the actual manufacturer. RMSC R. The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

The following table provides the breakout of anticipated Best Estimated Quantities (BEQs) and estimated value of this acquisition. The BEQs may go beyond the current estimated quantities listed throughout the duration of this contract, as such any increase will be considered as in-scope and covered through the execution of this J&A:

TABLE 1:

Digital Fuel Quantity Indicator National Stock Number Part Number Order. Period BEQ Unit Repair Cost Total Cost 6620-01-394-4018 10095-0101 Basic 48 1 36 2 28 3 22 4 20

Digital Fuel Quantity Totalizer National Stock Number Part Number Order. Period BEQ Unit Repair Cost Total Cost 6680-01-394-2555 10097-0101 Basic 30 1 25 2 25 3 25 4 25

DFQI, NSN 6620-01-394-4018

DFQT, NSN 6680-01-394-2555 No Fault Found Over & Above BER Condemnation

BEQ BEQ

Quantity 1 1 1 Estimated Price (Basic Year) Estimated Price (Option 1) Estimated Price (Option 2) Estimated Price (Option 3) Estimated Price (Option 4) Estimated Total

March 2018 FOR OFFICIAL USE ONLY Page 4 of 8

TOTAL CONTRACT VALUE: $1,283,407.00

The basis of this estimate is from the D200 computation system and is based on historical data. The appropriations to be utilized in support of this acquisition will be Consolidated Sustainment Activity Group - Supply Division (CSAG-SD) funds.

The nominal Contract Line Item Numbers (CLINs) for this acquisition is as follows:

CLIN Description (Repairs) BEQ TYPE

0001 6680013942555LG 30 EA FFP

0002 6680013942555LG 30 EA FFP

0003 6680013942555LG 1 EA FFP

0004 6620013944018LG 48 EA FFP

0005 6620013944018LG 1 EA FFP

0006 6620013944018LG 1 EA FFP

0007 6620013944018LG 1 EA FFP

0008 6620DTL190104LG 1 LT FFP

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 DFQI and DFQT are considered highly specialized items and were specially designed for the C-130H, LC-130H and HC-130N aircraft. The DFQIs are a set of eight indicators that display the amount of fuel in each of the eight tanks and are mounted on the flight station control panel. The indicators operate in response to signals from the tank probes. Each of the indicators is contained in an environmentally sealed case. The digital display consists of three numbers and a single decimal point, which shows fuel to the ten pound level. The DFQT is one (1) indicator that totalizes the fuel quantity in each tank and displays the results on a single unit on the C-130 aircraft. Given the highly specialized nature of these items, the agency's requirements can only be satisfied by the unique/highly specialized capabilities provided by Simmonds Precision Products Inc. as demonstrated in the following paragraphs.

Simmonds Precision Products Inc., a UTC Aerospace Systems Company (UTAS) is the Original Equipment Manufacturer of the DFQI and the DFQT and therefore possess the proprietary repair data associated. The Government does not possess any viable repair data for these items in the Joint Engineering Data Management Information and Control System (JEDMICS) repository or Technical Order (TO) Library to allow for competition. The Government as recent as 10 July 2018, contacted Simmonds Precision Products Inc. via email about selling their data rights to the Government.

Simmonds Precision Products Inc. responded that they were not willing to sell, loan or lease the data rights at this time.

March 2018 FOR OFFICIAL USE ONLY Page 5 of 8

Procurement history reflects that the last repair made on the DFQT was on Emergency repair contract FA8538-18-P-0004 for 25 units at a cost of , which was awarded sole source to Simmonds Precision Products Inc. in March of 2018. This contract is set to expire on 29 March 2019. The last repair made on the DFQI was on the repair contract, FA8535-15-D-0004. This contract was awarded sole source to Simmonds Precision Products Inc. in December of 2014, and will expire on 19 December 2019. The last buy made on the DFQI was on a Defense Logistics Agency contract SPM4A6-07-R-0062 for 93 units at a cost of , awarded to Simmonds Precision Products Inc. in 2008. Therefore, this repair acquisition will be a follow-on contract for the continued performance of a highly specialized service necessary to meet C-130 mission needs.

Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Air Force's requirements as demonstrated through a break even analysis conducted by SCMS/GUMBB. The break-even analysis was conducted on the 2 NSNs using the Sole Source and Reverse Engineering alternatives. Assumptions used were the following:

• Costs within the analysis are BY2018 and are considered TY costs converted to BY2018$ using 2018 USAF Raw and Weighted Indices for 3400 Operations and Maintenance, Non-Pay.

• Analysis period is 33 years, FY2018-2050, based on the expected service life of the aircraft which uses these items/NSNs.

• Annual repair costs were based on the FY2015 and FY2018 repair price adjusted for inflation.

Repair quantities were based on 2 separate NSNs used for the duration of the period of analysis (FY2018-2050). Repair quantities were generated based on Market Research Report expectations and assumptions.

• Reverse engineering effort requires 1.5 years and the investment costs are based on engineers working for 1.5 years to develop the technical data package and approve the prototype. These costs are based on a FY13 quote in which values were then adjusted for inflation, and spread evenly across the 1.5 year effort (FY2018-2019)

• While the RE effort is being accomplished, analysis assumes repairs are sole source

(FY2018-2019)

It was determined that the Savings/Investment Ratio (SIR ) and Payback period would return on every dollar invested ) and would not be recouped for , well beyond the life cycle of the C-130 Aircraft which is expected to retire in 2047. In order to break even on the lower estimated cost to reverse engineer within 33 years, the repair cost would need to drop to

. Another source, who has never performed this work, would not be in a position to offer a dramatic price cut such as this. Should the repair cost remain the same at , the reverse engineering cost would never be recouped over the lifecycle of the AC. Additionally in order to qualify a new source it could potentially take the Government between 18 to 36 months due to the complexity of the items and conditioned on Simmonds Precision selling the data rights to the Government. The source would need to acquire the materials to develop the item, develop the prototype and have the prototype undergo testing such as: EMI, temperature and flight in order to be fully qualified.

Accordingly, Simmonds Precision Products Inc. is the only firm capable of providing the requirements described in section III above without the U.S. Air Force experiencing substantial duplication of cost

March 2018 FOR OFFICIAL USE ONLY Page 6 of 8 that could not be expected to be recovered through competition and unacceptable delays and in fulfilling its requirements.

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

A Request for Information (RFI), Solicitation Number FA8538-C-130-DFQI-DFQT was posted to FedBizOpps on June 19, 2018 with a response date of 12 July 2018 for the Repair of C-130 Digital Fuel Quantity Indicator (DFQI) and the Digital Fuel Quantity Totalizer (DFQT). Two (2) responses were received, one of which is the OEM. The other source was determined non capable based on lack of proprietary data and failure to properly respond to the RFI.

The requirement will be synopsized in FedBizOpps in accordance with 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 this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

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 15.403-3, the contractor will be required to submit data other than certified cost or pricing data to support the Government's evaluation of the proposed cost. Additional pricing methodologies to negotiate fair and reasonable price may include reviewing publicly offered catalogs, comparison to historical contractor sales, and/or analysis of limited cost or pricing information provided by the contractor. In the event that limited cost or 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.

A detailed market research, in accordance with FAR 10.001 and 10,002, was conducted by the system engineer and completed on 6 November 2018. This research was conducted through issuance of an RFI, internet searches, such as Thomas Registry, IHS Haystack and Google. Searches resulted in more than 20 potential vendors. An assessment to determine the capabilities of individual vendors identified through market research was performed. The assessment results have been annotated as Capable, Not Capable, or N/A. Qualified individuals, within the appropriate Government sections were contacted and assisted with the gathering of product background information. Out of the 20 potential vendors, Simmonds Precision Products Inc. was the only vendor deemed capable of providing this service.

Other vendors such as Lockheed Martin, Altimeter Specialist Inc., Shadin Avionics, J.P Instruments and Aerospace Maintenance Solutions were all deemed as “not capable” sources because they lack the data required in order to perform the qualified repair. Aerospace Maintenance Solutions was a prior qualified source and was awarded a repair contract in 2017, however Aerospace Maintenance Solutions did not possess the technical data to properly repair the glass associated with the DFQT and were condemning the DFQT assets for glass related issues. Given condemnation and lack of access to the technical data rights owned by Simmonds Precision, Aerospace Maintenance Solutions was unable

March 2018 FOR OFFICIAL USE ONLY Page 7 of 8 to fully perform to the Governments requirement. Therefore Aerospace Maintenance Solutions was determined non-capable to perform to this instant acquisition for the same reasons. No other vendor has the rights to the data of these items.

A SBA Dynamic Small Business Search (DSBS) query was conducted utilizing the Dynamic Small Business Search Engine (http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm) Criteria pertaining to the item description for Noun, Part# and NSN [Fuel Quantity Indicator, 10095-0101/6620-01-394-4018] [Fuel Quantity Totalizer,10097-0101/6680-01-394-2555] were used under NAICS code 33641. NAICS Code 33641 - Aerospace product and parts manufacturing. Results portray that there are no potential opportunities for small business set asides and/or direct awards in support of this requirement.

Engineering has determined that the DFQI and the DFQT are C-l 30H unique with no other use because they were designed, qualified, and manufactured exclusively for the military and commercial versions of the C-130H aircraft. The Government has determined that these parts do meet the criteria of a commercial “of a type" item as defined by FAR 2.101.

As referenced in Section VI, an RFI, Solicitation Number FA8538-C-130-DFQI-DFQT was posted to FedBizOpps on June 19 2018 for Repair of C-130 Digital Fuel Quantity Indicator (DFQI) and the Digital Fuel Quantity Totalizer (DFQT). The two companies that responded were UTC Aerospace Systems (UTAS) and Aviarms Support Corp. Aviarms Support Corp submitted their response on July 11, 2018. However, they did not give all the information required to make a valid assessment. They did not give a NAICS code or any documentation that supports the company's capability for meeting these requirements. They also have not answered Part II. Capability Survey Questions; therefore, their submission was disregarded. UTAS, now Simmonds Precision Products Inc., submitted their response to the RFI on July 12, 2018. Their RFI was complete and thoroughly answered all proposed questions.

Based on review of their RFI, Simmonds Precision Products Inc. appears most capable of fulfilling the Government's requirements.

The market research concluded Simmonds Precision Products Inc. is the only vendor capable of fulfilling the Government's requirement as they possess the proprietary technical data to perform repairs associated with the DFQI and DFQT.

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 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.

Simmonds Precision Products Inc. is the only known source that can provide supplies and services described herein within the timeframe required. As of 10 July 2018, Simmonds Precision Products

March 2018 FOR OFFICIAL USE ONLY Page 8 of 8

Inc. is not willing to sell, lease, or loan the data.

A Breakeven Analysis for the C-130H3 Aircraft DFQT and the DFQI was completed in order to determine how long it would take to recoup reverse engineering costs. In order to break even on the lower estimated cost to reverse engineer within , the repair cost would need to drop from to .

While the current Market Research indicates one available source for this NSN, there are steps the Government will try to overcome barriers to competition for future acquisitions:

1. The designated Repair Method Code/Repair Method Suffix Code screening will be revisited every 1-5 years.

2. Contact Simmonds Precision Production Inc., upper management about purchasing essential data/ drawings/technical manuals necessary for competition if significant increases in requirements occur.

3. Work with Consolidated Sustainment Activity Group-Supply/General Support Division Sustaining Engineering Program Office to request funding to acquire data/drawings/ repair technical manuals, through reverse engineering, during the appropriate fiscal cycle for data sufficient for competition.

The previous J&A's plan to break barriers to competition addressed the evaluation to organic repair the assets by the depot and advised that if the designated depot determined repair capability as non-feasible then the IPT would research ways of removing competitive barriers. Since this time the IPT has taken steps to overcome barriers to competition through conducting a cost analysis of undergoing an RE effort as well as qualifying new sources. This prior plan was completed, therefore higher level approval of this instant J&A is not required in with DFARS PGI 206.304(a) (S-70) (ii).

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.