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 Global Logistics Support Center (AFGLSC), 638 Supply Chain Management Group (SCMG), 407 Supply Chain Management Squadron SCMS/GULB. The contracting authority for this requirement is 638 SCMG/PKBA. The purchase request number supporting this contracting action is FD2060-11-34009.

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

Due to the circumstances described herein, the 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 action will result in the award of a new contract, which will be a firm-fixed price contract with a period of performance of one basic year plus four option years. This sole source requirement will be purchased from the following company:

TELEPHONICS CORPORATION

COMMAND SYSTEMS DIVISION

815 BROADHOLLOW RD

FARMINGDALE NY 11735-3904

CAGE: 64694

Large Business

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

Under this repair contract, which will utilize MSD funds, Telephonics Corporation will provide the following services which are required to support the E-3 model aircraft in sustainment of the AN/APX-103 Identification Friend or Foe (IFF) System:

Basic Requirement

NSN NOUN QTY REPAIR UNIT PRICE REPAIR TOTAL PRICE

5841014800688CX Radar Receiver 21 $23,459.21 $492,643.41 5998014348012CX Circuit Card… 1 $13,919.36 $13,919.36 5998014348013CX Circuit Card… 4 $14,322.37 $57,289.48 5841014729087CX Radar Tran… 1 $20,188.00 $20,188.00 5841014784765CX Radar Data… 2 $33,721.86 $67,443.72 5998014346342CX Circuit Card… 1 $13,919.36 $13,919.36 5998014346343CX Circuit Card… 1 $13,919.36 $13,919.36 5998014346344CX Circuit Card… 1 $8,258.25 $8,258.25 5895014434860CX Receiver-Tran 1 $8,249.85 $8,249.85 6130014701434CX Power Supply 1 $22,959.30 $22,959.30 5841014729104CX Radar Receiver 1 $19,860.55 $19,860.55 5998014784048CX Circuit Card… 1 $29,380.05 $29,380.05 5998014814196CX Circuit Card… 1 $25,341.00 $25,341.00

Option I 5841014800688CX Radar Receiver 21 $24,632.18 $517,275.78 5998014348012CX Circuit Card… 1 $14,615.33 $14,615.33

5998014348013CX Circuit Card… 5 $15,038.49 $75,192.45 5841014784765CX Radar Data… 7 $37,094.67 $259,662.69 5895014434860CX Receiver-Tran 1 $8,662.34 $8,662.34 5998014814196CX Circuit Card… 1 $26,608.05 $26,608.05

Option II 5841014800688CX Radar Receiver 20 $25,863.79 $517,275.80 5998014348013CX Circuit Card… 4 $15,790.41 $63,161.64 5841014784765CX Radar Data… 4 $38,949.40 $155,797.60 5895014434860CX Receiver-Tran 1 $9,095.46 $9,095.46 5998014814196CX Circuit Card… 1 $27,938.45 $27,938.45

Option III 5841014800688CX Radar Receiver 20 $27,156.98 $543,139.60 5998014348013CX Circuit Card… 5 $16,579.93 $82,899.65 5841014784765CX Radar Data… 4 $40,896.87 $163,587.48 5895014434860CX Receiver-Tran 1 $9,559.23 $9,559.23 5998014814196CX Circuit Card… 1 $29,335.37 $29,335.37

Option IV

5841014800688CX Radar Receiver 20 $28,514.83 $570,296.60 5998014348013CX Circuit Card… 4 $17,408.93 $69,635.72 5841014784765CX Radar Data… 4 $42,941.71 $171,766.84 5895014434860CX Receiver-Tran 1 $10,037.19 $10,037.19 5998014814196CX Circuit Card… 1 $30,802.14 $30,802.14

TOTAL POTENTIAL CONTRACT VALUE $4,149,717.10

The unit price estimate is based on the current contract with a 5% inflation factor for each year.

This contract requires delivery to begin in 1 month at a quantity of 1 type Radar Receiver repair and 1 type Radar Data Repair per month until completion.

The RMC/RMSC is R3R – Which is repair, for the second or subsequent time, directly from the actual manufacturer. The Government does not own the data or the rights to the data needed to contract repair of this part from additional sources. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights.

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

The agency's minimum needs can only be satisfied by the unique supplies or services available from only the above cited source(s), who possess(es) unique capabilities demonstrated as follows:

Telephonics Corporation is the original equipment manufacturer (OEM) of the AN/APX-103 system and, as such, designed and owns the data rights to the AN/APX-103. During the market research, the government found no companies or small business companies that have the capability to manufacture or repair the AN/APX-103 system because the data rights to the AN/APX-103 are proprietary, and the government does not own the data. This item was developed exclusively by Telephonics Corp, and the military unique mode was designed to meet specific government military standards and uses, which are classified. No other company presently manufactures an item that meets the form, fit, and function requirements of the system.

The current Depot Source of Repair (DSOR) Decision designates contract depot maintenance support;

therefore, the 407 SCMS/GULB believes that 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. For another company to attempt to satisfy the quantity requirement, first article qualification, and start-up time would be required. All this requires time, approximately 5-7 years, which the Air Force cannot afford, and additional logistical costs that may result in increased repair costs and prohibit repair production.

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 ETCAS Processor 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 considered fair and reasonable based upon FAR 12 negotiation procedures using price and cost analysis. Methodologies to assure this will be commercial pricing techniques utilizing publicly offered catalogs, comparison to historical contractor sales, and/or analysis of limited cost and pricing information which could be made available 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 applied to direct and indirect rate factors recommended by the DCAA and/or DCMA.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS, OR A

STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT CONDUCTED

The engineer utilized Google, Yahoo, and Bing internet search engines to search for AN/APX-103 Interrogator and APX-103. All relevant returns resulted in Telephonics Corp. as the only source of information concerning the manufacturing and repair of this specific interrogator. Telephonics Corp.

(Cage: 64694), Farmingdale, NY, is the current vendor of this item. They designed and own the data rights to the AN/APX-103 system. No other companies can build or repair it because the data is proprietary to Telephonics Corp. The current RMC/RMSC code is R3/R from the Contract Repair Screening Analysis Worksheet completed in 2008. In addition, due to the fact that the U.S. Government has limited data, there is little leverage for the government. Another factor for the U.S. Government not having any leverage is the fact that Telephonics Corp. refused to quote the data required for the U.S.

Government to compete the repair requirement. Verbal refusal was stated on 26 May 2011. The government is awaiting e-mail confirmation. The driving factor for this market research is because the government requires a repair contract in support of the AN/APX-103.

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

COMPETITION

This OEM is not willing to sell data rights to the Government, which means the technical data package, specification, and engineering description suitable for Full and Open Competition cannot be developed without reverse engineering. The Government has determined that reverse engineering is cost prohibitive (approximately $5-10 million) as described previously.

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

At this time, no actions can be taken because the government owns limited repair data rights, and Telephonics Corp. refused to quote the level of data that would enable the U.S. Government to compete the repair requirement.

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.