Redacted_JA.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 7

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.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition:

Contracting Activity: AFSC/PZAAB C-15, C-130, C-5 Supply Chain Contracting Section

Purchase Request / Local ID Number: FD2060-19-00115

Program / Project (and PE, if applicable): Datalink Printer

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

24 Sep 2019

Project Lead / Program Mgr / Requiring Activity Tyler A. Adsit

409SCMS/GUMAB DSN 468-6952

Signature

Date

01 Nov 2019

Contracting Officer Brandon A. Jones

AFSC/PZAAB

Signature

APPROVAL (AFFARS 5306.304(a) )

Date Chief of the Contracting Office (COCO) [ Official Signature Block ]

Signature

March 2018 FOR OFFICIAL USE ONLY Page 2 of 7

I. Contracting Activity.

This Justification and Approval is to request authority for Other Than Full and Open Competition (OTF&OC) supports requirements generated for the Air Force Sustainment Center (AFSC,) 448 Supply Chain Management Wing (SCMW,) 638 Supply Chain Management Group (SCMG,) 409 Supply Chain Management Squadron (SCMS) / GUMAA. The contracting activity for this requirement is AFSC/PZAAB. The purchase request number supporting this contracting action is

FD2060-19-00115.

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

Due to the circumstances described herein, the activity requests authority to acquire the repair services listed in this document using Other Than Full and Open Competition as defined by Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This individual J&A action will result in the award of a new contract, which will be a Firm-Fixed Price, Indefinite Delivery Requirements contract with one year basic ordering period followed by four (4) one year ordering periods at an estimate of $207,174.34. The period of performance will be November 30, 2019-November 29, 2024

This sole source requirement will be procured from the following company.

Astro Nova (Commercial and Government Entity (CAGE) Code: 54318) 600 Greenwich Avenue West Warwick, RI 02893

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

This requirement is for the repair of the Data Link Printer (DLP) 7025-01-490-0096UC, Part Number 8055515-4501 with Best Estimated Quantities (BEQs) of 8 each per ordering period.

The DLP is currently used exclusively on the C-5 aircraft. The DLP repairs are currently covered through an Air Force Life Cycle Management Center Contract Logistics Support (AFLCMC CLS) contract managed by Lockheed Martin, contract # FA8525-16-D-0003. All items on the CLS contract are individually priced. This process causes significant delays as each order has to be negotiated with the Contractor and Lockheed Martin. The technical data for the DLP was proprietary to Honeywell International Inc. (CAGE code 94580) until 28 September 2017 when it was sold to Astro Nova.

Although Lockheed Martin is the Original Equipment Manufacturer (OEM) integrator of the CLS contract, Lockheed Martin no longer functions in the CLS item management role for the DLP since item management has transitioned to the Air Force. Lockheed Martin continues to provide repair for the DLP through its sub-contractors for approximately 30 months or until AFSC establishes repair coverage. The DLP is a modified commercial item and the technical data and software was proprietary to Honeywell before it was sold to Astro Nova. A workload shift, Depot Source of Repair (DSOR) 11-300, was accomplished in August 2012 identifying the DLP Source of Repair (SOR) as contract.

Data Link Printer 7025-01-490-0096

Basic OP 1 OP2 OP3 OP4

Total Est BEQ Repair Quantity 8 8 8 8 8

March 2018 FOR OFFICIAL USE ONLY Page 3 of 7

Est Repair Unit Price (4%)*

Est Total Repair

Est No Fault Found Qty 1 1 1 1 1

Est NFF Unit Price (4%)*

Est NFF Total

Est BER Qty 1 1 1 1 1

Est BER Unit Price (4%)*

Est BER Unit Total

Total

Total Contract Cost NSN

This National Stock Number (NSN) was screened and assigned Repair Method Code (RMC)/Repair Method Suffix Code (RMSC) of R3/R.

RMSC (REPAIR METHOD SUFFIX CODE)

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.

RMC (REPAIR METHOD CODE)

RMC R3 Repair for the second or subsequent time, directly from the actual manufacturer

IV. Statutory authority permitting other than full and open competition.

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, required by FAR 6.303-2(b)(4).

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 only be satisfied by the unique supplies and services available from Astro Nova. The technical data for these items is now proprietary to Astro Nova after Honeywell sold them the data rights on 28 September 2017. The Government contacted Astro Nova on 17 August 2018 and again on 12 June 2019 requesting the giving, leasing, or selling of this data to the Government. When Astro Nova representative Tom Carll responded on 28 August 2018 his response was “As the owner of the data, it is AstroNova's policy not to loan, lease, sell or give the data rights for these printers.” In the past there were other sources that were capable to complete these repairs, however, at this time, Astro Nova is the only company with the tech data rights to complete this repair. Lockheed Martin is listed as a source because of the current contract arrangement under the CLS contract referenced above. Lockheed Martin is only the intermediary supplier, never actually owning the required data to repair, Astro Nova actually completes the repair of these panels.

A. Only One Responsible Source (FAR 6.302-1)

March 2018 FOR OFFICIAL USE ONLY Page 4 of 7

Only Capable Source: Astro Nova is the only qualified source for these highly specialized repairs which require extensive knowledge of the technical design techniques. The test equipment required are possessed only by Astro Nova as well as the engineering data package that includes assembly, schematic, and test procedures for these items. The Government does not possess the internal technical drawings for these items.

Subsection 1

DSOR: A workload shift, DSOR 11-300, was accomplished in August 2012 identifying the SOR as contractor repair as opposed to organic repair. Astro Nova is the only capable party to repair the DLP.

The DLP is currently repaired by Astro Nova through Lockheed Martin during the RERP period under a CLS effort under the Contract number listed above.

Reverse Engineering Cost Estimation Data Link Printer 7025-01-490-0096 Yearly repair cost (w/o inflation) Estimated cost savings per year ) Total years to realize savings

This repair effort must be awarded to an entity that has access to technical data. Astro Nova is the only known source of technical data for these items. A reverse engineering (RE) effort would require additional funding, engineering manpower (Government or contract), and time, including a lengthy qualification process to validate equipment and the repair process. Based on engineering experience and past RE efforts, it is anticipated that a RE effort could cost approximately per item, and would require years to complete. As shown in table above, the estimated cost for the first year of repair is . Assuming that an RE effort was successful and competition resulted in a reduction in cost, yearly savings is estimated at , would take an estimated years to realize savings from purchasing technical data. If an RE project could be funded by 2019 and assuming it takes a maximum of years to complete, the estimated completion of the project would be

. With years needed to recover the investment, the Government would break even well past the estimated retirement of the aircraft in 2040. Due to the substantial duplication of costs not expected to be recovered, reverse engineering is an improbable solution and cannot be economically justified.

Subsection 2

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 listed above, the costs and time frames associated with reverse engineering the DLP would substantially delay schedules and have costs not capable of being recovered by this increased competition.

Subsection 3

Accordingly, Astro Nova is the only firm capable of providing the supplies and 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

March 2018 FOR OFFICIAL USE ONLY Page 5 of 7 requirements.

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

Market Research was conducted as outlined by FAR 10.002. The techniques used to conduct this research included internet searches, vendor surveys, and a RFI (Request for Information) to Industry.

An internet query utilizing the Google search engine with criteria “repair of 8055515-4501” yielded no results. Query results are included as a separate attachment. A query was run on the Dynamic Small Business Search (DSBS) website. It produced no results using the NAICS 811219 and keywords Printout Unit and Printer Unit. In addition Thomas net, GSA.gov, and IHS were searched resulting in five vendors that were directly contacted for the group of items. The results of the searches were all contractors being found not capable due to lack of data rights. An RFI to Industry, reference number RFI_C5_DLP, was posted to FedBizOpps17 August 2018 with responses due by 4 Sept 2018. There were no responses to the RFI.

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 overhaul services 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 negotiated in accordance with FAR Part 12 and FAR 15.403-3, 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 report (MRR) was conducted in accordance with FAR Part 10.001 and 10.002. The market research was completed on September 10th, 2019. Market research techniques used are as follows: wherein Integrated Product Team (IPT) researched capabilities, reverse engineering, past contract coverage, and potential sources. Internet searches of Thomas Net, Google and Small Business Administration (SBA) were completed. Although there were several companies capable to repair similar items, no other company could be deemed a source because they don't own the repair data for these specific items.

The engineer reviewed the searches of Thomas Net, Google, and SBA using NAICS code 811219 and keywords Printout Unit and Printer Unit and found some companies that appear to be in the related business of repairing avionics items. All companies appeared to be potentially capable of repairing the panels but with a high risk due to proprietary data being owned by Astro Nova. For the purpose of this market research, for a vendor to be deemed capable, they must not only have the capability to repair similar parts, but also have access to the technical data package and possess the proper qualifications that the government requires to repair such parts. If they have the ability to repair like parts but do not

March 2018 FOR OFFICIAL USE ONLY Page 6 of 7 possess the Technical Data Package (TDP,) they are considered not capable. Risk levels to the government are assigned based on this capability determination. A list of companies that were contacted can be found in the MRR.

The market research concluded Astro Nova is the only vendor capable of fulfilling the Government's requirement. While the Government doesn't own the rights to the repair data, there is a known source that does. If this barrier was removed, there are several companies that could repair these items, however, the sole source contractor has no intentions to sell, give, or lease the data to the Government nor does the Government have the funds or ability to wait on this item to be reverse engineered. Since the U.S. Air Force is the only user of this item, there is no other contract vehicle currently in place to cover the future need. If a contractor without the repair data for the items is awarded the contract, the items won't be able to serve their function on the airplane. At this time it is my recommendation to use the sole source provider, Astro Nova, for this contract.

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.

The Government does not own the data rights for the DLP to support full and open competition. Astro Nova is not willing to sell the data required to repair these items. The feasibility of purchasing the data could not be ascertained due to the vendor's failure to provide a quote for the sell of the data.

Based on the AFSC Engineering breakeven analysis for the DLP, it was determined to not be cost effective to invest in a reverse engineering effort. Due to the costs and time associated with attempting to qualify new repair sources for this item, the negative break even costs associated with reverse engineering, and the expected life span of the C-5 as 2040 there is no feasible action that the Government can pursue to overcome barriers to competition.

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, March 2018 FOR OFFICIAL USE ONLY Page 7 of 7 which is my (our) responsibility, is both accurate and complete.