Justification and Approval Amended Redacted final.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

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I. Agency and Contracting Activity.

This Class Justification and Approval is to request authority for Other Than Full and Open Competition supporting requirements generated for the Air Force Sustainment Center (AFSC), 638 Supply Chain Management Group (SCMG), 407 Supply Chain Management Squadron (SCMS)/GULA. The contracting activity for this requirement is AFSC/PZABA, Robins AFB, GA. The purchase request number supporting this contracting action is FD2060-25-00044.

II. Nature and/or description of the action being approved.

Due to the circumstances described herein, the activity requests authority to acquire the repair services on the Air Radio Communication (ARC)-169 listed in this Class J&A 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 follow-on 4-year C-Type contract with Firm Fixed Price (FFP) contract line item numbers (CLINs). The contract will be structured with a 1-year Basic and three 1-year option periods. Based on the projected contract award date, orders can be issued August 2025 through August 2029.

A Class J&A is appropriate due to multiple contracting actions in the form of delivery orders, that will award within the scope of this J&A.

This sole source requirement will be purchased from the following vendor:

RF Products, Inc.

1500 Davis Street Camden, NJ 08103-3003

CAGE: 58022

Small Business

III. Description of supplies/services required to meet agency needs.

The purpose of this effort is to repair the Band Pass Filter (BPF) for the 169 System. The BPF, which is used on the Airborne Warning and Control System (AWACS) of the E-3 Aircraft, is a highly selective tunable ultra-high frequency (UHF) Filter capable of being remotely tuned to a selected frequency of operation in order to strongly attenuate signals at frequencies displaced from the selected center frequency.

The BPF is capable of being installed in any of three different Mounting Bases, which contain passive matching/coupling/filtering sections providing respective coupling of one, two, or four BPFs to a single output, along with a low-pass filter for interference mitigation outside of the 225- 400MHz band. The matching/coupling/filtering networks are not part of the BPF but are part of the aircraft Mounting Bases.

The BPF can be tuned to any operating frequency from 225 to 399.975 MHz in 25kHz increments. The Benchtop Reconfigurable Automatic Tester is utilized for testing purposes. The BPF is a modular unit designed for use in multiple locations on the aircraft.

The following tables depict the National Stock Number (NSN), Data Item Description

(DID), Best Estimated Quantities (BEQs), unit prices, and total estimated cost:

Table I. Estimated Cost for Basic Year CLIN ELIN Description NSN/DID P/N Est BEQ T otal Est

Price Cost

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Government Property Inventory Report 3003 D003 Data DI-PSSS-81995 $ 1 $

CDM Production Report 3003 D004 Data DI-SAFT-81563 1 NSP

Accident Incident Report 3003 D005 Data DI-QCIC-81722 $ 1 $

Quality Program Plan Total: $

Technical data packages (TDPs) and/or intellectual property rights will not be purchased via this effort.

The total estimated contract value is $ and is based on monthly demand rates (MDR), current backorders, and estimated unit prices for repair provided by ESCAPE. An inflation factor of 3% was included for each out-year option period. Consolidated Sustainment Activity Group 4930 appropriation funding will be used to fund these repairs. The delivery schedule will be 45 calendar days after receipt of delivery order and assets. This J&A covers the 4-year period through completion of all delivery orders.

The Repair Method Code (RMC) / Repair Method Suffix Code for this NSN is R3/R. RMC “R3” is defined as repair for the second time or subsequent time directly from the actual manufacturer. RMSC “R” means the Government does not own the data or the rights to the data needed to repair this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/ or rights.

The overall program acquisition strategy for future sustainment is to establish Open Architecture configuration(s) that can be supported through competitive acquisition.

IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above.

The agency's minimum needs can only be satisfied by the highly specialized services and unique qualifications available from the above cited source demonstrated as follows:

This acquisition is for the procurement of highly specialized depot level repair for ARC-169 BPF which requires knowledgeable expertise of systems and interoperability schemes. The ARC-169 is an airborne UHF radio used only on the E-3 AWACS which provides an accurate, real-time picture of the battlespace to the Joint Air Operations Center. There are 19 BPFs per aircraft and a fleet of 32 E-3s totaling 608 installs. The BPF is considered highly specialized as it is a remotely tunable radio frequency (RF) filter which diminishes superfluous signals, providing clear voice communication over the military UHF band.

RF Products, Inc. is the Original Equipment Manufacturer (OEM) with the technical data and tools capable to repair these assets and has been repairing the BPF since September 2019. The current sole source ARC-169 BPF repair contract is FA8539-23-C-0003. It was awarded 23 August 2023 with an original

August 2023 Page 5 of 8August 2023 Page 5 of 8 expiration date of 22 August 2024. The period of performance was extended to 28 February 2025. Based on the current asset posture, repairs due-in, and demand estimates, the ARC-169 BPF is supportable until August 2025.

This repair requirement cannot be performed or duplicated by another vendor without access to more extensive technical data (i.e. drawings, schematics, data, etc.) which is proprietary to RF Products. The ARC-169 Low Pass Filter NSN 5915-01-294-4987 was replaced by the ARC-169 BPF (5915-01-535-6666BY) as the result of a redesign for enhanced capability in 2003. The redesign was competed through the Flexible Acquisition Sustainment Tool contract in which Lockheed Martin was awarded contract FA8539-09-C-0016 and subsequently subcontracted the effort to RF Products (CAGE: 58022) for completion of the redesign. The contract did not include DFARS 252.227-7026 or -7027 for deferred delivery or ordering of technical data or computer software. RF Products is the OEM of the BPF. Lockheed Martin designed the circuit card assembly (CCA); however, RF Products developed and possesses the proprietary rights to the software used on the CCA. Lockheed Martin also licensed RF Products to build the CCA. There is one CCA within the BPF and without each CCA programmed with the appropriate software by RF Products, the BPF does not function as required.

The Government has limited data rights to the ARC-169 BPF but does not possess a complete TDP that could support a full and open competition for the repairs. There is not enough technical data available that defines the manufacturing characteristics needed to repair this BPF. The Government currently possesses the following three incomplete technical orders: 12R2-2ARC169-2, 12R2-2ARC169-3, and 12R2-2A-182-8-1. Technical Order 12R2-2ARC169-2 for field level repair, and Technical Order 12R2-2ARC169-3 for overhaul repair of this item, are incomplete and only cover basic maintenance such as soldering, cleaning, and/or tightening screws to the correct torque. These procedures only allow the replacement of two subassemblies, control interface assembly and power supply module. Technical Order 12R2-2A-182-8-1 contains go/no go testing procedures, but lacks diagnostic testing procedures and mechanical portion for the CCA interface for the BPF. Without this information, a new vendor would be unable to perform diagnostics to isolate individual faults in order to perform the repair. Overall, the Technical Orders do not include adequate information to make repairs to the CCA interface, nor do they outline how to repair the mechanical part of the filter. RF Products is the only source that possesses the full TDP, including the software code necessary to operate each BPF. Each proprietary card is programmed after manufacture. The software loaded to each CCA is unique and specific to the mechanical portion of each individual filter, therefore each BPF requires its own unique software. This stems from minor imperfections in the RF cavity that push or pull the bandwidth of the RF signal flowing through the filter. Based on the unique characteristics of the ARC-169 BPF, RF Products is the only vendor that can provide continued BPF repair capability of this highly specialized item/system.

An inquiry was sent via email to RF Products on 07 May 2024 asking their interest to sell the proprietary source code, engineering drawings, and overall TDP for the ARC-169 BPF. They responded the same day via email stating, “…since the Low Power Filter Assembly was developed at private expense, we will not entertain selling the data rights for this unit either for US or International requirements” also declined consideration to a partnership effort.

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. Government efforts to reverse engineer the ARC-169 BPF have been determined unfeasible considering the complexity of the proprietary CCA and would result in unacceptable delays. The Government team evaluated a similar reverse engineering effort to determine the feasibility of undertaking such an action for the ARC-169 BPF. The MPST project 3474 is of similar scope and was for the redesign of an ARC-190 BPF the F-1535. At this point in time, five years after award of the ARC-190 redesign effort, the United States Air Force (USAF) has received functional prototypes but they have failed first article testing. The Government has invested $

August 2023 Page 6 of 8August 2023 Page 6 of 8 thus far in the ARC-190 BPF redesign effort and has yet to receive an acceptable unit. Given the similarities between the ARC-169 BPF and the ARC-190 BPF, the Government team estimates that it would cost approximately $ and five years to complete a reverse engineering effort for the ARC-169 BPF. The Government estimates that it would take approximately 38 years to recoup the initial investment of reverse engineering at a 15% annual competition savings in cost. The E-3's remaining life cycle is only through 2033, making reverse engineering uneconomical. This estimated cost of $ does not include the cost to manage 682 software versions, nor the cost to publish new versions after every repair action. To pursue a reverse engineering effort would cause an unacceptable delay and negatively impede the need dates for the ARC-169 BPF.

Accordingly, RF Products is the only firm capable of providing the services described in Section III above without the USAF experiencing substantial duplication of cost that is not expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

V. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under

FAR 5.202 applies.

A Sources Sought (SS) / Request for Information (RFI) synopsis was posted on the System for Award Management (SAM.gov) website on 14 December 2023 with a response date of 16 January 2024 under Notice ID FA8539-24-ARC169BPF. The SS/RFI requested responses from interested sources that possess the expertise, capabilities, and experience to meet the qualification requirements to repair the BPF for the ARC-169. The incumbent, RF Products (CAGE: 58022) was the only vendor that responded to the SS/RFI. RF Products was evaluated for their capability and determined to be capable based on ownership of proprietary repair data required to meet system specifications and previous contract repair experience.

The requirement will be synopsized on the SAM.gov in accordance with FAR 5.201. It is anticipated that sources having an interest in subcontracting will be identified through the synopsis. Any source who responds to the Government as a result of the synopsis will be identified to the prime contractor as a potential for subcontracting possibilities.

VI. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

Based upon (1) certified cost or pricing data provided in the offeror's proposal in accordance with FAR 15.403-4; (2) the program office or expert technical personnel analysis of the offeror's Basis of Estimates; (3) inputs from the Defense Contract Management Agency, the contracting officer expects to determine the anticipated cost to the Government to be fair and reasonable; (4) review or comparison to past actuals.

VII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

Market research was conducted 14 December 2023 to 12 June 2024 in accordance with FAR Part 10.001 and 10.002. The Streamlined Market Research and Acquisition Approach report was completed on 12 June 2024.

The market research techniques used are as follows:

As described in Section V above, a SS/RFI was posted to SAM.gov advising industry of the pending acquisition and soliciting responses from interested vendors. The SS/RFI was posted on 14 December 2023 with a response date of 16 January 2024 under Notice ID FA8539-24-ARC169BPF. RF Products was

August 2023 Page 7 of 8August 2023 Page 7 of 8 the only vendor that responded. The incumbent was determined to be a capable vendor.

Queries were conducted within Government databases and various internet searches (GSA Advantage, ThomasNET, and Ability One) were performed using North American Industry Classification System (NAICS) code 334220 and keyword “E-3” to search for potential vendors. No other potential repair sources were identified in the internet searches.

The Joint Engineering Data Management Information Control System (JEDMICS) was queried to determine data availability. There were limited drawings found in JEDMICS which signifies an incomplete data package. Also, the limited data is associated with CAGE 58022 RF Products Inc. that includes the limited rights notice that states, “This data is submitted with the limited rights under Government contract number F09603-01-D-0207-0054. This data may be reproduced and used by the Government with the express limitation that they will not, without written permission of the contractor, be used for manufacture or disclosed outside the Government.” RF Products Inc. is the sole source of the ARC-169 Band Pass Filter and possesses the sole proprietary ownership of the data.

A search for using the Small Business Administration Dynamic Small Business Search engine was conducted using search criteria consisting of NAICS: 334220 and the Keyword: "E-3." The search yielded one result - RF Products, Inc. (CAGE: 58022).

The ARC-169 BPF is military unique and repair capability is not available in the commercial marketplace.

No Commercial Off The Shelf items exist that can be customized, modified, or tailored to meet the requirement. No commercial sales of these items exist, and they are not on GSA contracts. There are no commercial or non-developmental alternatives that can be acquired using procedures FAR Part 12 due to the military unique function of these items.

The market research concluded RF Products Inc. is the only vendor capable of fulfilling the Government's requirement.

VIII. Any other facts supporting the use of Other Than Full and Open Competition.

None.

IX. List of any sources that expressed, in writing, an interest in the acquisition.

See Section V above.

X. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

To overcome barriers to competition for future acquisitions, the Government will take the following actions. These actions will be completed prior to the expiration of this follow-on repair contract.

· The RMC/RMSC screening will be re-accomplished.

· Re-engage RF Products Inc. on authorizing Government purpose rights to the technical data and continuing to inquire on their interest to sale the complete TDP to the Government.

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The strategy to overcome barriers to competition in the prior J&A were the same as the current plan. Both actions were completed, therefore the current J&A does not require higher level approval in accordance with DFARS PGI 206.304(a)(S-70)(ii).

XI. Certification by the Contracting Officer.

As evidenced by my signature above, I certify that this justification is accurate and complete to the best of my knowledge and belief.

XII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.