JUSTAPPR_Redacted.pdf

FD2060-17-00074 ELT Beacon

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 activity for this requirement is AFSC/PZABA. The purchase request number supporting this contracting action is FD2060-17-00074.

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

This effort is intended to be awarded as a new buy contract and will be submitted as a Firm- Fixed Price contract. Due to the circumstances described herein, the activity requests authority to acquire the repair(s) 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 requirement is for the purchase/”BUY” of the Emergency Locator Transmitter (ELT) Distress Beacon National Stock Number (NSN) 5821-01- 561-9503, (P/N 453-5060). This action will result in the award of a new three (3) year firm fixed-price contract consisting of one basic year (12 months) plus two (2) additional 12 month ordering periods; total estimated value of The estimated award date for this acquisition is not later than (NLT) 1 Oct 2017. This sole source requirement will be purchased from the following company brand name product NSN 8521-01-561-9503 and no other product equal or similar will be accepted. Surplus will be accepted:

ACR Electronics, Inc. (ACR ARTEX) 5757 Ravenswood Rd, Fort Lauderdale, FL 33312

CAGE: 18560

Small Business

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

AGENCY’S NEEDS

Under the contemplated contract, ACR Electronics, Inc. (ACR/ARTEX) will provide the Government with serviceable assets which will meet form/fit/function and integration (F3I) for use in C-5 and C-130 aircraft. Initial procurement levels have been consumed and D200A computations indicate a need to be replenish stock over the next three (3) years (FY17-19). ACR provides manufacturing and repair support for ELT’s applicable to KC-135 and C-5 aircraft.

BASIC REQUIREMENT:

NSN

5821-01-561-9503

Ordering Period

Quantity

Unit Cost

Estimated Cost

Total estimated contract value is: based on unit cost listed in Air Force’s D200A database.

These items have been screened with an AMC code 3/Z which means: Acquire directly from the actual manufacturer, whether or not the prime contractor is the actual manufacturer. This part is a commercial/non-developmental/off-the-shelf-item. Valid AMCs: 1, 2, 3, 4 and 5. However, the requirements are military unique.

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 (APPLICABILITY OF AUTHORITY)

This agency's minimum needs can only be satisfied by the supplies available only from the above cited source, which possess unique capabilities demonstrated as follows:

ACR Electronics, Inc. is identified approved source for manufacture of these line replacement units (LRU) of the ELT system. ACR Electronics (CAGE 18560) is the Original Equipment Manufacturer (OEM) for the ELT; the company owns the proprietary Technical Data, special test equipment, Acceptance Test Procedure, and personnel that are specifically trained for the ELT production.

ACR Electronics, Inc. was contacted about purchasing the data rights on 23 August 2016. They responded via-e-mail; stating they do not wish to sell the rights to their intellectual property as it pertains to the manufacturing of these items (see attachment 1). Re-engineering this beacon and in order to obtain a complete and adequate Technical Data Package (TDP) as a means to remove competitive barriers is not considered economically feasible. Based on previous efforts, it is estimated to cost at least minimum and take years to reverse engineer (RE) this beacon. There has been no changes in the market place. With the low cost and low frequency/demand (monthly demand rate ) in which these items are purchased, a favorable return on investment is not there to consider RE. The asset has been assigned Expendability, Recoverability, Reparability, Cost (ERRC) code “P” at the user or field level, not

FY17 Basic 42 FY18 One (1) 1-10 FY19 Two (2) 1-10

TOTAL =

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 the depot level although it is an expensive item. At the user/field level, the battery can be changed as a repair action. The ELT is managed by this organization as a means of tracking proper Demilitarization (DEMIL) of the unit and battery. Efforts will be made to move asset management from this organization to Defense Logistics Agency (DLA) management when enough spares have been secured to get the system healthy and a solid source of supply is verified.

The ELT is an emergency beacon used on C-130 and C-5 platforms that requires special expertise and facilities to produce. The Government does not have the technical data, facilities, or expertise required to manufacture this asset. The potential risks with a sole source repair are low because Artex is the OEM and design activity for this asset. Artex/ACR is the only company capable of providing the services described in Section III without the Government experiencing unacceptable delays or costs for fulfilling mission requirements.

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 manufacturing effort 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. The RFI/SSS: solicitation # FA8539-17-Q-0074 was posted on FedBizOpps on 17 Oct. 2016 and closed on 31 Oct. 2016 with one response from

. However, due to responses to the RFI requirements, they are not considered a viable source of supply. requires access to a TDP and spare parts, in order to meet this requirement. In their reply to the RFI, identified this asset as a legacy ELT and an unlikely candidate for RE due to lack of access to proprietary data and low volume of usage--this would not be a cost effective solution.

Reverse-engineering this beacon in order to obtain a complete and adequate Technical Data Package (TDP) as a means to remove competitive barriers is not considered economically feasible. Based on previous efforts, it is estimated to cost at least minimum and take years to RE these LRUs. There has been no changes in the market place. With the low cost and low frequency (monthly demand rate ) in which this item is purchased, a favorable return on investment is not there to consider RE.

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 to the government, 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

As described in Section VI above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. Market research was completed on 31 Oct 2016 as required by FAR 10.001 and 10.002. The engineer searched government databases, conducted internet searches, and conducted a small/disadvantaged business search. The details of each search are as follows:

The Integrated Product Team (IPT) searched government databases such as Joint Engineering Data Management Information and Control System (JEDMICS), https://jedmics.af.mil/webjedmics/index.jsp, and Program Data Management (PDM) Gateway, https://tosune5.robins.af.mil/pdm_gateway/ , these databases were searched using P/N to determine what part number defined technical data is available. In addition, The Federal Logistics Information System (WebFLIS), http://www.dlis.dla.mil/webflis/pub/pub_search.aspx Purchase Request Process System (PRPS), https://www.my.af.mil/prps/PRPSS3/ were searched and the IPT conferred with other qualified government personnel. A search for HUB zone and ownership/self-certs (minority, veteran, women etc.) was conducted using Dynamic Small Business Search (DSBS), http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm, with criteria consisting of keywords pertaining to item name and description. Internet searches were conducted on www.google.com, using item name, NSN and P/N for background information, company information, and to determine current and past sources. The IPT reviewed contractors with similar capabilities but no other products exist which meet the requirements of this procurement action. No company, other than ACR can currently manufacture these assets. If the Government attempts to bid competitively for buys, it will not be able to provide potential vendors the required TDP or test equipment, needed to manufacture this asset.

A RFI: solicitation # FA8539-17-Q-0074 was posted on FedBizOpps on 17 Oct. 2016 and closed on 31 Oct. 2016 with one response from Because of their responses to the RFI questionnaire, is not considered a viable source of supply. requires access to a TDP and spare parts in order to meet this requirement. was not considered as a source for RE, in their reply to the RFI, identified this asset as a legacy ELT and an unlikely candidate for RE due to their lack of access to proprietary data and low volume of usage--this would not be a cost effective solution.

RE this beacon in order to obtain a complete and adequate Technical Data Package (TDP), as a means to remove competitive barriers, is not considered economically feasible. Based on previous efforts, it is estimated to cost at least minimum and take years to RE https://jedmics.af.mil/webjedmics/index.jsp https://tosune5.robins.af.mil/pdm_gateway/ http://www.dlis.dla.mil/webflis/pub/pub_search.aspx https://www.my.af.mil/prps/PRPSS3/ http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm this ELT. There has been no changes in the market place. With the low cost and low frequency (monthly demand rate ) in which this item is purchased, a favorable return on investment is not there to consider RE.

No other potential sources could be found through ThomasNet and there are no potential contract vehicles that already exist. ACR Electronics is the only source that possesses both the capability and the data necessary to manufacture this item.

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 OR SERVICES REQUIRED

On 23 August 2016, a request was made from the 407 SCMS/GUEA to the OEM concerning the sale of intellectual data on the above designated NSN. The OEM responded on the same day stating ACR Electronics, Inc. was not willing to sell the intellectual data package. Since the OEM has declined to sell the TDP, the only remaining option to remove competitive barriers to full and open competition would be to search for other sources of supply or initiate a RE effort to develop test equipment, tooling, and technical data. Based on previous efforts, it is estimated to cost at least minimum and take years to RE this beacon. This would cause an unacceptable delay in providing serviceable assets to the users and will be detrimental to C-5 and C-130 aircraft missions. There have been no changes in the market place. With the low cost and low frequency (monthly demand rate ) in which these items are purchased, a favorable return on investment is not there to consider RE as a viable solution.

RFI/SSS: solicitation # FA8539-17-Q-0074, was posted on FedBizOpps on 17 Oct. 2016 and closed on 31 Oct. 2016 with one response from RFI submission was reviewed and was determined to be unqualified to fulfill the requirement because they have need of a TDP and spare parts, which the government does not possess, in order to produce serviceable assets. In their proposal, rejected the possibility of RE as a viable choice to remove barriers to competition due to a lack of access to vital proprietary data needed to produce the ELT. also stated that it is unlikely to be cost effective to RE a legacy standard ELT in small volumes. The cost to procure a data package is approximately , with the OEM unwilling to provide all data necessary. ACR Electronics is the only known qualified source of manufacture for this item at this time. The ELT is expected to service these aircraft until 2040 and beyond therefore the government will continue to seek purchase of or acquire rights to a TDP sufficient to compete follow-on acquisitions for future purchases as a means to eliminate barriers to competition. ARC NSN 5821-01-561-9503 is a commercial item and is readily available on the market place and surplus may be available.

XII. CONTRACTING OFFICER’S CERTIFICATION

As evidenced by his/her signature, the contracting officer 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, 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))

BENNIE L. SIMMONS

Contracting Officer http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/06.htm