JA6.302-1FA854013R30504.pdf

JUSITIFCATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval is to request authority for Other Than Full and Open Competition supports requirements generated for the Air Force Life Cycle Management Center (AFLCMC), Electronic Warfare (WNY), International Branch (WNYIA). The contracting authority for this requirement is the Air Force Life Cycle Management Center (AFLCMC), Avionics and Electronic Warfare Branch (WNKCB). The Purchase Request Number supporting the contracting action is FD2060-13-30504.

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

Due to the circumstances described herein, the activity requests authority to acquire the repairs listed in this document using Other Than Full and Open Competition (OTF&OC) 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 C type contract, with a Firm Fixed Priced (FFP), Cost Plus Fixed Fee (CPFF) and Cost Reimbursable No Fee (CRNF) pricing arrangement. This sole source requirement will be procured from the following company:

Northrop Grumman Technical Services (Cage Code: 1LTU5) Warner Robins Maintenance and Modernization 101 Industrial Park Blvd Warner Robins, GA 31088-7409 Large Business

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

AGENCY’S NEEDS

The requirement proposes a basic one (1) year period of performance, plus four (4) one (1) year options for the repair/modification of the classified AN/ALQ-135 Band 3 and Bands 1&2 Traveling Wave Tubes (TWTs) for the Royal Saudi Air Force (RSAF) F-15 Tactical Electronic Warfare System (TEWS) program. In addition, Northrop Grumman Corporation (NGC) will maintain Government Furnished Equipment (GFE) to support this repair. The National Stock Numbers (NSNs) to be repaired for the ALQ-135 Band 3 and Bands 1&2 TWTs are as follows:

NSN Item_Name Estimated Repair Price

Estimated Repair Qty

Estimated Total Price

RMC/RMSC

Code

5996-01-345-1134 RF Amplifier $490,758.00 5 $2,453,790.00 R3/N

5996-01-296-7301 LRU - 14

Pre-Amplifier $118,560.00 1 $118,560.00 R3/R

5865-01-415-4485 5865-01-414-8373 5865-01-530-0718

CONTROL

OSCILLATOR $551,331.00 2 $1,102,662.00

NONE

NONE

R3/R

5865-01-352-4168 Receiver Assy, B3 $104,613.00 5 $523,065.00 R3/N

5960-01-355-2968 A TWT Assy, Band 3 $36,000.00 3 $108,000.00 R3/B

5960-01-356-3490 B TWT Assy $73,012.00 3 $219,036.00 R3/R

5998-01-354-5525 5998-01-414-8372 5998-01-443-4867 5998-01-432-0361

CCA, SCPU $21,590.00 2 $43,180.00

NONE

NONE

NONE

R3/R

5895-01-412-4396 ARTU $384,302.00 3 $1,152,906.00 R3/N

5998-01-411-8102 Dual Mu $79,027.00 4 $316,108.00 R3/N

5998-01-431-2560 CCA, Signal Acquisition $21,590.00 1 $21,590.00 NONE

5985-01-500-9245 5985-01-498-4610

Antenna, Band 3, Fwd

Up

$7,084.00 2 $14,168.00 NONE

5985-01-500-9247 5985-01-498-3848 5985-01-420-9696

Antenna, Band 3, Fwd

Down

$7,084.00 2 $14,168.00 NONE

5985-01-302-6338 5985-01-390-2368 5985-01-420-9696 5985-01-430-5018

Antenna, Band 3, (RH) $12,701.00 2 $25,402.00 NONE

5985-01-303-8120 5985-01-389-7565 5985-01-420-9692 5985-01-428-3816

Antenna, Band 3, (LH) $12,701.00 2 $25,402.00 NONE

5985-01-303-8121 5985-01-319-6301 5985-01-393-4820

Antenna, Band 3, Aft $16,990.00 5 $84,950.00 NONE

5985-01-303-0335 5985-01-420-9697 5985-01-393-9319

Antenna, Band 1.5, Aft $18,751.00 5 $93,755.00 NONE

5895-01-299-6026 RF Disto Assy, Band 3 $22,578.00 2 $45,156.00 NONE

Long Lead Material $500,000 1 $500,000.00 N/A

The total estimated cost is $40,000,000. Pricing is based on historical repair quantities and contractor repair estimates.

IV. STATUATORY 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

QALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE

USE OF THE AUTHORITY CITED ABOVE (APPLICABILITY OF

AUTHORITY)

The agency’s minimum needs can only be satisfied by the unique supplies and services available only from the above sited source, which possesses unique capabilities demonstrated as follows.

NGC is the only source with the proprietary data needed to accomplish repair of the AN/ALQ-135 system and is the original designer and manufacturer of this system.

The Government does not possess the data required to repair the Bands 1, 2 & 3 System. NGC has maintained propriety test procedures for the AN/ALQ-135 TWTs since the system’s inception and this this is the only testing data that can be used to assure complete system performance when installed into the RSAF’s F-15 fleet. The TWTs must be repaired in accordance with the NGC test specifications, which are proprietary to NGC. This is the only method of ensuring that aircraft fly safely with authorized parts. NGC has always been the sole repair source for the AN/ALQ-135 system and system certification.

The data that must be used to facilitate repair of the Band 1 & 2 TWTs is also proprietary to NGC. NGC built a proprietary Acceptance Test Procedure for the TWTs and

USAF depot facilities once maintained limited TEWS component repair capability, while the Electronic Warfare (EW) system was operated on their F-15 aircraft.

However, on 1 October 2012, the USAF made decision to cease sustainment of the ALQ-135 system in its inventory. After the USAF decision was made, the EW Foreign Military Sales (FMS) Program Manager contacted the NGC TEWS Program Manager about releasing and selling this proprietary testing data to support RSAF repair requirements. On 15 November 2012, NGC reiterated that they have no plans to sell or release this testing data or data necessary to repair the AN/ALQ-135 system.

After a review of engineering project data, EW engineers estimated that it would cost $6-8 million and take 24 months to reverse engineer the necessary repair data and proprietary testing and certification procedures. In addition, once Government procedures were developed, additional RSAF funding would be required for a digital test equipment depot upgrade. Because of these factors and the fact that the USAF no longer maintains the AN/ALQ-135 system in its inventory, it is not in the Government’s best interest to invest in another repair source for this unique FMS military requirement. Moreover, the RSAF has not directed the Government to procure the proprietary testing and certification procedures or repair data from NGC via a Letter of Offer and Acceptance (LOA). Therefore, the Government does not have the authority to buy data for the RSAF.

Repairs for the RSAF’s ALQ-135 system can only be performed by NGC because they are the only source capable of fulfilling all of the requirements for this acquisition.

NGC is the only source that possesses the proprietary data and highly specialized services that are required to support the ALQ-135 without the Air Force experiencing unacceptable delays and a substantial duplication of costs that is not expected to be recovered through competition as explained above.

VI. DECRIPTION 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 system repair of the ALQ-135 from any other source, any source who responds to the Government as a result of this synopsis will be referred to the prime contractor 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 determined to 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 cost, and direct and indirect rates will be negotiated by the Government based on recommendations from the Defense Contract Audit Agency (DCAA) and expert technical personnel supporting the program. The contract price will be negotiated in accordance with the procedures in FAR Part 15, ensuring that the ultimate cost to the Government is fair and reasonable.

VIII. DESCRIPTION OF THE MARKET RESEACH CONDUCTED AND

THE RESULTS, OR A STATEMENT OF THE REASONS MARKET

RESEARCH WAS NOT CONDUCTED

Market Research was conducted pursuant to FAR 10. Research techniques included internet research, Central Contractor Registration, and review of the ALQ-135 repair history. Major website sources used for research was www.google.com, www.altavista.com, and www.thomasnet.com. The search term utilized was ‘ALQ-135’. On 1 Oct 2012, the USAF ceased all sustainment activity associated with the ALQ-135 system. The 402 MXW division was contacted to inquire about providing limited repair of the ALQ-135 system to support the RSAF program. The quote provided by the 402 MXW included $26M in up-front costs to upgrade their test stations to the digital configuration required for the RSAF’s unique ALQ-135 configuration. Test station upgrade cost estimates eliminated the USAF depot as a support option due to being economically unfeasible.

The Market Research results revealed that only NGC possesses the required data and highly specialized services to support the AN/ALQ-135 repairs. Repairs for the AN/ALQ-135 system can only be performed by NGC because they are the only source capable of fulfilling all of the requirements for this acquisition. NGC is the only source that possesses the proprietary data and highly specialized services that are required to support the AN/ALQ-135.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN

FULL AND OPEN COMPETITION

NGC is not willing to sell data rights to the Government, which means the technical data package, specification, and engineering description suitable for Full and Open http://www.google.com/ http://www.altavista.com/

Competition cannot be developed without reverse engineering. The Government has determined that reverse engineering is cost prohibitive, as explained in paragraph V.

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 SUPPLIES OR SERVICES REQUIRED

The ALQ-135 system is aging and will be increasingly more difficult to sustain in the future. With the USAF terminating all sustainment activity on 1 October 2012, spare parts will be increasingly harder to procure. The RSAF decision to continue operating this system through 2025 will become increasingly more difficult and expensive. The Government will scan the market before exercising each option in order to promote competition. Finally, discussions will be held with the RSAF concerning the possibility of reverse engineering or purchasing the repair data, which would remove barriers to competition.

XII. CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on the Coordination and Approval Document evidences that she has determined this document to be both accurate and complete to the best of her knowledge and belief (FAR 6.303-2(a)(12)).

XII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidenced by their signatures on the Coordination and Approval document, the technical requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete (FAR 6.303-2(c)). b.