J A_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 AFSC Robins/PZABA. The purchase request number supporting this contracting action is FD2060-13-00215.

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. The acquisition is being conducted under the authority of the test program for commercial items. This action will result in the award of a new contract, which will be a firm-fixed price contract with a basic year plus 4 ordering periods. This sole source requirement will be purchased from the following company:

L-3 Communications Corporation

Doing Business As:

L-3 Communications Aviation Recorders Division

100 Cattleman Rd

Sarasota, FL. 34232

CAGE: 06141

Large Business

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

AGENCY’S NEEDS

a. Narrative Description: Repair of a best estimated quantity of 30 SSCVRs, 30 SSFDRs, 10

Amplifier Controls, and 10 SSFDR each per year. (RMC is R3R for all NSNs).

b. Quantities and unit prices are estimated for each period of performance and a flat inflation factor has been applied. The totals are summarized and listed below:

Basic Ordering period

NSN NOM P/N U/C BEQ REPAIR COST

5835-01-477-0137CX SSCVR 2100-1020-93 $3602.00 30 $108,060.00

6610-01-471-8090CX SSFDR 2100-4042-00 $3602.00 30 $108,060.00

5895-01-524-2752CX Amp. Ctrl. 93-A152-16B $1013.00 10 $10,130.00

6610-01-501-1161CX SSFDR 2100-4042-53 $1013.00 10 $10,130.00

BASIC YEAR TOTAL 80 $236,380.00

Ordering period I

NSN NOM P/N U/C BEQ REPAIR COST

5835-01-477-0137CX SSCVR 2100-1020-93 $3710.06 30 $111,302.00

6610-01-471-8090CX SSFDR 2100-4042-00 $3710.06 30 $111,302.00

5895-01-524-2752CX Amp. Ctrl. 93-A152-16B $1043.40 10 $10,434.00

6610-01-501-1161CX SSFDR 2100-4042-53 $1043.40 10 $10,434.00

Sub-total 80 $243,472.00

Ordering period II

5835-01-477-0137CX SSCVR 2100-1020-93 $3821.36 30 $114,641.00

6610-01-471-8090CX SSFDR 2100-4042-00 $3821.36 30 $114,641.00

5895-01-524-2752CX Amp. Ctrl. 93-A152-16B $1074.70 10 $10,747.00

6610-01-501-1161CX SSFDR 2100-4042-53 $1074.70 10 $10,747.00

Sub-total 80 $250,776.00

Ordering period III

5835-01-477-0137CX SSCVR 2100-1020-93 $3936.00 30 $118,080.00

6610-01-471-8090CX SSFDR 2100-4042-00 $3936.00 30 $118,080.00

5895-01-524-2752CX Amp. Ctrl. 93-A152-16B $1106.90 10 $11,069.00

6610-01-501-1161CX SSFDR 2100-4042-53 $1106.90 10 $11,069.00

Sub-total 80 $258,298.00

Ordering period IV

5835-01-477-0137CX SSCVR 2100-1020-93 $4054.06 30 $121,622.00

6610-01-471-8090CX SSFDR 2100-4042-00 $4054.06 30 $121,622.00

5895-01-524-2752CX Amp. Ctrl. 93-A152-16B $1140.10 10 $11,401.00

6610-01-501-1161CX SSFDR 2100-4042-53 $1140.10 10 $11,401.00

80 $266,046.00

Grand Total: 400 $1,254,972.00

c. A 3% inflation rate is included for each ordering period beyond the basic year. The total estimated repair cost is $ 1,254,972.00.

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, which possesses the unique capabilities demonstrated as follows: L-3 Communications is the Original Equipment Manufacturer; they own both the data and the data rights. Additionally, they are still in full production on these units and are not interested in selling this data to the government or any other entity. On 16 January 2013 via email, the government was advised that L-3 Communication was not interested in selling the data rights at any cost and that “the repairs are currently only performed at L-3 Communication facilities for both the military and commercial entities.” In accordance with the screening worksheet the RMC code of R3/R has been assigned to these NSNs. This indicates that the

Government does not own the data or the rights to the data needed to solicit contract repair of this part from additional sources.

http://www4.law.cornell.edu/uscode/html/uscode10/usc_sec_10_00002304----000-.html http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/Far/06.htm#P77_9982

A reverse engineering estimating effort has determined that re-engineering these assemblies and their sub-components in order to obtain a complete and adequate TDP is not considered economically feasible. A “like” system was evaluated to estimate reverse engineering costs.

The B1 Defensive Avionics Electronic Recorder performs essentially the same function as the recorders being repaired under this effort for the C-5, C-17, and C130 mobility aircraft. The cost for development and approval for one B-1 recorder was $2.1M, factoring in the 3 recorders and some risk, as well as the cost of flight test, reverse engineering is expected to cost $7.4M and take approximately 3-5 years.

After reverse engineering is complete, a full and open competition for a new repair contract would have to be accomplished. The time to develop a solicitation package, complete technical evaluation, and perform source selection would take approximately 2 years. In short, the time to complete reverse engineering, develop, evaluate, and award a repair contract would take 5-7 years. This is an unacceptable delay for this repair effort because the mobility fleet would be grounded without these recorders.

L-3 Communications is the only qualified source capable of repairing the three recorders and the amplifier control. Currently, L-3 provides repair services in the form of testing, repair, functional check and certification of items for use. Previously, repair was provided under a sole-source contract FA853909D0005 awarded on 27 May 2009 and expiring on 27 May 2014.

In addition, there was a DMI decision 27 July 2010 to stand up organic repair capability for these items at OO-ALC. However, notification received from the 309 th

EMXG Review Board on

28 January 2013 indicated that as a result of a previous Business Case Analysis, the 309 EMXG

Review Board at Ogden and the DMAWG Team, determined that it was not economically feasible to pursue Depot Standup based upon 1) The data to repair the cards being proprietary; 2)

An attempt to reverse-engineer the circuit cards is not viable because of programmable chips; 3)

The current two tier repair contract is $2000 for minor repair and $3800 for major repair line items, while the cost of the replacement cards also range from $2000 to $3800; Additionally, 4)

Purchase of test equipment is $6500, plus card cost, and additional logistic support would be required.

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 the Solid State Recording Systems (SSRS) 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

This acquisition is for commercial repair. The overall cost of this acquisition will be considered fair and reasonable based upon FAR 12 commercial pricing 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

Market research was conducted in accordance with FAR 10.001 and 10.002. The main method of market research used was internet searches. A search was conducted under numerous search engines for Digital Flight Data Recorder. Search engines used were sba.gov, Google, Thomas

Net. The sba.gov search system resulted in no findings for Flight Recorder. Historically, the numbers of available sources for the SSCVR, SSFDR, and ACU have been limited to the original equipment manufacturer (OEM). The only approved source capable of performing the tasks required of this effort is L-3 Communication. The government has limited repair data that is insufficient for using other than current source (s) as indicated by JEDMICS, HIS Haystack, and PDM Gateway.

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

OPEN COMPETITION

L-3 Communications is the Original Equipment Manufacturer (OEM) for the Solid State Cockpit

Voice Recorder, the Solid State Flight Data Recorder, and the Amplifier Control. L-3 has unique experience in the manufacture of this item. The low number of Product Quality

Deficiency Reports (PQDR) and historical on-time delivery demonstrates that award to L-3

Communications is low risk for both quality and schedule. Because repairs are fixed price, cost risk is also low. L-3 Communications has proven their ability to meet the government’s requirements.

Full and Open Competition is not an option at this time. As stated in Section V, reverse engineering and new vendor qualification will take approximately 5-7 years conservatively.

This is an unacceptable delay for this repair effort.

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

A DMI decision was made on 27 July 2010 to stand up organic repair capability for these items at OO-ALC. However, notification received from the 309 th

EMXG Review Board on 28 January

2013 determined that it was not economically feasible to pursue Depot Standup based upon 1)

The data to repair the cards being proprietary; 2) An attempt to reverse-engineer the circuit cards is not viable because of programmable chips; 3) The current two tier repair contract is $2000 for minor repair and $3800 for major repair line items; new replacement cards also have a cost range from $2000 to $3800.

The government does not own the technical data rights for this asset. Additionally, reverse engineering is expected to cost $7.4M and take approximately 3-5 years. The recorders will begin aging out and will have to be replaced by approximately 2019. As such, with a replacement effort 6 years away, it is not cost effective to purchase technical data or reverse engineer the current requirement.

Flight recorders are a requirement for aircraft and the government is currently identifying a definitive plan for replacement. If there is a slippage in the replacement time, the government will re-evaluate the need for purchasing technical data as well as re-evaluate reverse engineering efforts.

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)).