J A_Redacted.pdf

PR FD2060-13-31386

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETION

INDIVIDUAL

Category: Other Contracting

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), 407 Supply Chain Management Squadron (SCMS) / GULB. The contracting authority for this requirement is the AFSC/ PZABA- Robins, 460 Richard Ray Blvd, Suite 200, Bay E, Robins AFB, GA 31098-1813. The purchase request number supporting this contracting action is FD2060-13-31386.

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, Requirements contract for a basic year. This sole source requirement will be purchased from the following company:

Vision Systems International LLC (VSI) CAGE: 06VL3 4700 Marine Creek Pkwy Fort Worth TX 76179-6969

Ph: (817) 234-6655 Type: Large Business

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

AGENCY’S NEEDS

a. The Joint Helmet Mounted Cueing System (JHMCS) provides the aircraft fire control systems aircrew with the combat advantage of first look, first shot capability in the air-to-air, within visual range combat arena. The JHMCS weapons sensors are aligned to a specific azimuth/elevation determined by the pilot’s head position. The JHMCS incorporates high off-axis sensors and weapons on USAF/USN single and two seat fighter core weapons avionics of the host aircraft, and allows the helmet-vehicle interface portion of the system to display processor/video hardware and software, cockpit mounted tracker transmitter, tracker processing electronics and software interface to aircraft computers weapons sensors and controls.

b. This requirement is for depot level repair support of the JHMCS Electronic Unit (EU) for the United States Air Force (USAF) and Foreign Military Sales (FMS). This commodity equipment provides the offensive targeting capability for the JHMCS system. The Contractor will provide all labor, facilities, and replacement parts necessary to return unserviceable Government inventory to a serviceable, ready for issue condition. The basic contract will cover the requirements estimate for FY13-14. The estimated repair quantities and budgets are presented below. These repair quantity estimates are based on quarterly demand calculations from the AF D200A computation system.

c. The total estimated cost of this repair requirement is $681,712.00. The repair cost estimates below are derived from negotiated repair pricing on recent and current USAF and USN repair contracts. Funding for USAF repair will be Consolidated Sustainment Activity Group (CSAG) working capital funds (Fund Code 64). Funding for FMS repair if they generate will be Country Case managed funds.

d. Contract options are not included in this effort because it is proposed as a one-time contract repair. The contractor capacity for these items is only four each per month at an overseas facility and at a 120 day turnaround time. Repair of these quantities of items will take all of the planned 12 month period of performance to accomplish. Long term sustainment of these items is covered in the next five year follow-on long term contract for JHMCS avionics planned for award 30 September 2014.

NSN Noun Repair Cost BEQ

Repair Total

1270 015634028 AY EU -30 (Dual Seat)

1270 015634028 AY

EU -30 (Dual Seat)(FMS)

1270 015648181 AY EU -30 (Single Seat)

1270 015648181 AY

EU -30 (Single Seat)(FMS)

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 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 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 unique capabilities demonstrated as follows:

a. No contractor other than VSI, the sole manufacturer and repair source for the JHMCS system, can provide the necessary depot repair expertise to perform this effort. VSI is solely familiar with the level of repair capability required since they are the Original Equipment Manufacturer (OEM).

b. VSI is the designer, developer, and manufacturer of these items and they are the only source with adequate knowledge of the JHMCS performance requirements and capabilities to accomplish the task described above within the repair times stated in the Performance Work Statement. VSI currently repairs all unserviceable JHMCS repairables for the Government and retains all of the detailed production and repair drawings and data for the JHMCS system.

c. VSI is the sole manufacturer of the JHMCS system used on the F-15 and F-16 aircraft. In order to adequately support the weapon system it is imperative that the requirement be contracted with VSI to ensure compatibility of the equipment. The Government does not possess any repair data for the JHMCS system. The contractor must have a full understanding and knowledge of the system. VSI retains the technical expertise for the repair of the system.

d. The RMC / RMSC Code is R3/R.

RMC: R3 Repair, for the second or subsequent time, directly from the actual Manufacturer.

RMSC: R The government does not own the data or rights to the data needed to contract repair of this part from additional sources. It has been determined that it is uneconomical to buy the data, rights to the data or to reverse engineer the part.

e. Numerous attempts by WR AFLCMC/WNYBBBB in CY2012 to obtain data rights have been unsuccessful. The OEM is not open to discussion regarding the selling of data rights. Last known response from the OEM was in 2004 and they stated that the design would be changing and that any current data would be obsolete. Wright Patterson AFB, who led the acquisition of the JHMCS system, was unsuccessful in obtaining data rights at the time of acquisition.

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 JHMCS repair 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

ANITICIPATED 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 15.404, it is anticipated that negotiations will be conducted using information other than cost and pricing data from the contractor. Thorough price analysis will be conducted using available information and approved pricing techniques that will support the contracting office in making a determination that the price paid to the contractor is fair and reasonable to the Government.

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 Part 10.

The following market research techniques were utilized in conducting the market research:

The internet search engine Google was used to search National Stock Numbers, Part Numbers, and Nomenclature for background information and determine current sources. JEDMICS was searched for P/N information to determine what data was available and if that data was sufficient to allow for competition. North American Industry Classification System (NAICS), ThomasNet, System for Award Management (SAM) were used to obtain company information.

Market analysis has determined that VSI is the only responsible source for the repair of the items listed in paragraph III.c. This conclusion is based primarily on VSI ownership of the data, their unique knowledge of the system as Original Equipment Manufacturer (OEM), their active role in platform integration and the diverse nature of the items listed. Given the unique characteristics of JHMCS requirements and capabilities, only VSI is qualified to perform this repair effort. Due to the history and experience of VSI with repairing this equipment, there are no foreseeable risks to the program.

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

OPEN COMPETITION

Re-engineering has been determined to not be economically feasible. Information on the current system in government repositories is virtually non-existent. To “re-engineer” piece parts or portions of the system would require that these “new” parts work with existing parts. The amount of testing required to determine signal I/O from the various parts and the incorporation of “new” items to mimic existing SRU/LRUs would be considerably complex. Secondly, some of the items are considered safety of flight items which require rigorous and extensive testing before being certified for use. The time and cost of establishing new sources would not be economically in the best interest of the government. Third, some items produced by subcontractors have been deemed “proprietary data” and not for sale to the government.

The Program Office re-engineering cost estimate to prepare a Technical Requirements Documentation package for repair will be approximately $8 to$13 million. This estimate is based on the complexity of the hardware and their interaction with other components as a system. The Electronic Unit (EU) itself is a complex unit because much of the functionality of the unit is encased in programmable ball grid arrays. These firmware devices require highly skilled technicians and engineers to determine the internal programming. Usually, this data cannot be extracted, leaving no other source for the information other than the OEM. Qualifying a new source for repair would take a minimum of 36 to 60 months after the date of contract award. Due to the lack of system operational data, adequate repair procedures and test equipment, and the time required to qualify a new source, efforts to re-engineer or buy the necessary repair data are deemed uneconomical.

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

SUBSQUENT ACQUISITIONS FOR THE SUPPLIES

The Government awarded a contract (FA8523-12-C-0004) in Sep 12 to procure from VSI an organic repair capability for the Electronics Unit (EU) to be established at WR in CY14. This repair capability will be exercised via a partnering agreement with VSI for the contract repair of the EU (minimum 50% organic repair). Access to the repair data for Government use only will be through an annual renewable license agreement with VSI.

In addition, as part of market research on the long-term sustainment contract, we will again attempt to pursue pricing for data rights, elevating to higher levels within the company if necessary.

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)).