14-00758_J_and_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 Sustainment Center (AFSC), 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 FD2060-14-00758.

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. A previous J&A was approved for a 3 year contract; however, during negotiations, a sub vendor refused to provide more than one year of cost and pricing data. Due to immediate user need, a decision was made to award a one year contract. This effort is to provide a follow on repair contract and will result in the award of a new 4-year Firm-Fixed- Price, Requirements type contract, which will consist of 1 year basic period and 3 unpriced options. Work is to be performed by:

CONTINENTAL MICROWAVE AND TOOL CO., INC.

DBA: COBHAM ANTENNA SYSTEMS

11 CONTINENTAL DR

EXETER, NH 03833-4564

UNITED STATES

(603) 775-5283

CAGE: 66544

Large Business

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

AGENCY’S NEEDS

The rotary joint (also referred to as the rotary coupler or antenna coupler) is utilized on the APY1/2 Surveillance Radar on the E-3 Airborne Warning and Control System (AWACS) aircraft. Work performed under this contract will include all actions necessary to return a serviceable condition end item. The contractor shall furnish the services and material necessary for the essential repair, functional testing, inspection, packaging, and delivery of a single configuration end item: Part Number (P/N) 1905CF, National Stock Number (NSN) 5985-01- 593-8954CW. Input NSNs (5985010610445CW, 5985015306304CW, and 5985015226376CW) will be updated according to engineering changes so that the output NSN (-8954) is the only fielded Rotary Joint configuration. The estimated repair cost is based

PR No. FD2060-14-00758 Page 1 upon negotiated prices from an FY14 contract, with a percent inflation rate applied and the quantity is based on requisitions from the D200 database. CSAG funding will be used to fund these repairs.

BASIC NOUN BEQ REPAIR COST

5985-01-061-0445 ROTARY COUPLER 1

5985-01-530-6304 ROTARY COUPLER 1

5985-01-522-6376 ROTARY COUPLER 1

5985-01-593-8954 ROTARY COUPLER 1

TOTAL BASIC

OPTION 1 NOUN BEQ REPAIR COST

5985-01-061-0445 ROTARY COUPLER 1

5985-01-530-6304 ROTARY COUPLER 1

TOTAL OPT 1

OPTION 2 NOUN BEQ REPAIR COST

5985-01-530-6304 ROTARY COUPLER 1

TOTAL OPT 2

OPTION 3 NOUN BEQ REPAIR COST

5985-01-530-6304 ROTARY COUPLER 1

TOTAL OPT 3

CONTRACT COST

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.

PR No. FD2060-14-00758 Page 2 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%23P77_9982

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 unique capabilities demonstrated as follows:

Screening action has resulted in the assignment of the RMC/RMSC of R/3R (The Government does not own the data or the rights to the data needed to repair these parts from additional sources). A request for pricing to obtain Level 2/Repair Level data rights (not “top level”) was sent to Cobham. On 3 March 2014 Cobham stated in writing that they were not willing to sell data at any cost to the government and would retain all rights and ownership of said data.

Currently, Cobham provides required services for the rotary joint in the form of testing, repair, functional check and certification of items for use on the E-3 AWACS. Previously, a repair contract was provided under a sole-source contract FA8539-14-D-0002 awarded on 31 Dec 2013 and expiring on 30 Dec 2014. This requirement is needed to repair assets.

Failure to award this contract will result in increased MICAP hours and backorders. The increase of MICAP hours and backorders will result in grounding mission capable aircraft and degradation to the information the warfighter requires for mission accomplishment.

Cobham is the only source identified through marke research with the technical data, facilities, and expertise required to repair/update the Rotary Joint because of the uniqueness of the application and technical information required. While other companies may have experience with ground mounted rotary joints, they are not for use in unique military applications such as the E-3 AWACS and as such are not subjected to the same temperature, vibration, or other operational environmental factors. Cobham produces complex rotating electromechanical subsystems, composite products including radomes, microwave, and mmWave antennas for radio frequency, infrared, and electro-optic sensor platforms. Therefore, this acquisition is for continued performance of a highly specialized service.

Reverse engineering is not recommended as it is cost and time prohibitive. The Rotary Joint provides the RF and power line continuity across the rotating/stationary interface between the airplane and antenna equipment. It is unique to military applications and reverse engineering would require a significant amount of development, integration, and testing. There is no “like” system; however, there are “like” subassemblies. These are the basis for the government engineering estimate.

The E-3 SPO has provided cost data for two like subassemblies that have recently accomplished reverse engineering, as well as cost data for system integration and flight test. The APY1/2 Program Office has performed development and/or upgrades for other components of the rotary joint that were used in this estimate. The VDATS program office had provided a quote for a radar test station and ITA procurement which has been utilized to estimate the cost to procure and develop equipment for repair of the Rotary Joint. Utilizing all of these sources, the best engineering estimate for reverse engineering of the Rotary Joint is (adjusted for inflation).

PR No. FD2060-14-00758 Page 3

The period of performance for the total effort is estimated to be seven years. The Government has determined that reverse engineering is cost and schedule prohibitive, resulting in unacceptable delays and duplication of costs that could not be recovered through competition.

Since it would take years to reverse engineer, and since our requirement is to update the remaining configuration units over the next several years, it is unreasonable to reverse engineer for this effort at this time.

The E-3 AWACS provides senior leadership with time-critical information on the actions of friendly and enemy forces. Continued support is essential to the Air Force mission. This J&A must be immediately approved for repair at the approved source in order to prevent impending mission degradation. The E-3 SPO believes that the Rotary Joint is too critical and complex for reverse engineering. It should be noted that Cobham outsources the installation and repair of the nine channel data assembly to a company that specializes in this slip-ring technology.

No source other than Cobham (CAGE: 66544) can fully repair and test these items exclusively for the E-3 AWACS. The repair data is proprietary to Cobham and they also own the required interface test adapters necessary for successful integration to the aircraft. A complete data package is not available for competitive solicitation. To pursue competition at this time would cause substantial duplication of costs as well as significant delays.

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 Rotary Coupler Joint 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 fair and reasonable to the Government. In accordance with FAR 15.403-4, the contractor will be required to provide certified cost and pricing data to be used in supporting the Government’s evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types and quantities of material, other direct costs, and direct and indirect rates will be negotiated by the Government based on recommendations from the Defense Contract Management Agency (DCMA) and expert technical personnel supporting the program.

The contract price will be negotiated in accordance with the procedures in FAR Part 15 ensuring the ultimate cost to the Government is fair and reasonable.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED

PR No. FD2060-14-00758 Page 4

Market Research was accomplished in March 2014 in accordance with FAR Part 10. The Joint Engineering Data Management Information and Control System (JEDMICS) and Program Data Management (PDM) Gateway were searched using P/Ns to determine what technical data is available. IHS Haystack, The Federal Logistics Information System (WebFLIS), Business Identification Numbers Cross-Referencing System (BINCS), Small Business Administration (SBA) Dynamic Small Business Search (DSBS); System for Award Management (SAM);

Purchase Request Process System (PRPS), and the internet were searched using NSNs, P/Ns, and system nomenclature for background information, company information, and to determine current, past, and potential sources capable of completing this effort.

Northrop Grumman acquired the Westinghouse division that originally designed the APY-1/2 surveillance radar system and awarded the manufacture and repair of the rotary joint to a sub-vendor L-3 (Randtron). Northrop Grumman has never repaired or manufactured a Rotary Joint and is not a qualified source.

Randtron originally manufactured the Rotary Joint according to Westinghouse requirements, but is not a capable source of repair because these legacy configurations had been modified by Kevlin Corporation, later acquired by Continental Microwave and Tool, doing business as Cobham Corporation. Cobham now has all proprietary data and equipment and is the only source of repair with the facilities and expertise to accomplish this repair. Spinner Atlanta was also evaluated as they repair rotary joint type items for other applications; however, they do not have rights to the technical data or the equipment and expertise required to repair the E-3 APY- 1/2 Rotary Joint configuration and are therefore not a capable source.

The Government determined that the limited repair data available to the government is insufficient for using other than current source as indicated in JEDMICS and PDM Gateway. No other potential sources could be found through IHS Haystack, WebFLIS, BINCS, SAM, PRPS, and the internet. Cobham is the only source that possesses both the capability and the data necessary to repair these items.

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

OPEN COMPETITION

None.

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

The E-3 AWACS is scheduled to remain operational through 2035.

PR No. FD2060-14-00758 Page 5

The only available action to remove the competitive barriers to full and open competition would be reverse engineering to develop technical data package, specification, test equipment, and tooling. Engineering evaluation has determined that the cost to accomplish would be approximately and to complete. For this reason, a reverse engineering effort cannot be economically justified nor could the E3 successfully complete mission requirements with the extensive delays required to accomplish a reverse engineering effort. The rotary coupler is also planned for organic repair and, even though no funding or estimated completion date has been developed at this time, discussions about depot activation will continue until funding becomes available to begin this engineering project.

The rotary joint output NSN is stable and mature in the sustainment lifecycle. While the current MR indicates a sole source environment for these NSNs, there are steps the Government will take to overcome barriers to competition for future acquisitions.

1. Review the items on this contract to identify opportunities where procurement of technical data/drawings would return a positive Return On Investment (ROI) and justify competition.

2. Solicit for technical data/drawings or pursue third party engineering services where feasible, for a proposal to enhance the data as necessary to render it suitable for competition.

3. Request funding to acquire technical data/drawings for competition in the appropriate fiscal cycle to yield the purchase of a sufficient data for competition.

4. Execute funded projects to obtain technical data/drawings.

Once the data/drawings are available, the Government will be postured to compete future requirements.

Cobham is the only source known that can provide items and repair services described herein.

The government will continue attempts to acquire rights to technical data with additional requests for proposal to up management within Cobham.

Re-engineering is a desirable and viable avenue whenever applicable and practical. However, in this case, item complexity and lack of adequate data (for the repair, certification and validation testing) causes re-engineering to be a rare possibility. Cobham is considered to be a viable and stable company for the next five to eight years. Components for repair of the rotary joint hardware are still in production, legacy rotary joint hardware are still being upgraded to the output configuration, obsolescence issues and test equipment supportability are worked by Cobham, and repair capability and capacity adequately address sustainment requirements. The government engineers have little justification to pursue a re-engineering project and are less likely to receive any project funding. The sustainment team is seeking the opportunity to buy adequate repair data and access to repair component parts to establish an organic repair capability at the government depot.

PR No. FD2060-14-00758 Page 6

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)).

PR No. FD2060-14-00758 Page 7 http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/Far/06.htm%23P204_28777 http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/Far/06.htm%23P204_28777