JA_(002).pdf

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

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Choose the funding level for this J&A Document:

< $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: AFLCMC/WIUK

Purchase Request / Local ID Number: FD2060-16-94408

Program / Project (and PE, if applicable): Engineering Support Services for the TH-1H Avionics Suite

Program Type (PEO or Other Contracting): PEO

Authority (include full title): 10 USC 2304(c)(1), as implemented by FAR 6.302-1, Only One Responsible Source

Estimated Contract Cost (including options): $660,000.00 J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

11 Aug 2016

Program Manager / Requiring Activity

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

11 Aug 2016

Contracting Officer

Signature

I. Contracting Activity.

The requiring activity for the proposed contracting action is AFLCMC/WIUBC. The contracting activity responsible for this action is AFLCMC/WIUKB at Robins Air Force Base, Georgia. This is a Justification for Other Than Full and Open Competition to complete this proposed contracting action. The purchase request number for this action is

FD2060-16-94408.

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

This action will be awarded as a new contract action. Due to the circumstances described herein, the activity requests authority to acquire sustaining engineering services listed in this document using Other Than Full and Open Competition as prescribed by 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. This action will result in the award of a Firm-fixed price contract with two Cost Reimbursement - No Fee CLINs for materials and travel, which will be for a period of 3 (three) years identified as a basic year and 2 (two) 1-year option periods. This sole source requirement will be purchased from the following company:

L-3 Communications Integrated Systems L.P.

324 Corder Road Warner Robins, GA 31088 Cage Code: 0F5W6 Large Business

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

The Government will acquire sustaining engineering support services for the USAF TH-1H aircraft instrument, avionics, communication and navigation system (Commercial Avionics Suite) along with all associated electrical and wiring systems. Sustaining engineering support will be provided for detail components as well as the integration of these components in the TH-1H. The primary components of the flight instrument system, commonly called the Commercial Avionics Suite, include the Multi-Function Displays (MFDs), the Engine Data Concentrator Unit (EDCU), the Air Data Computers (ADCs) and the Attitude and Heading Reference System (AHRS). The primary components of the avionics, communication and navigation systems include the receivers, transceivers, control heads, transmitters, transponder, and associated antennas. Sustaining engineering will also include support for any additional subsequent modification design and integration activity accomplished by L-3 Comm/TCS on the TH-1H.

Support services needed will consist of 1,040 man hours per year with a Period of Performance of 30 Sept 2016 to 29 Sept 2019. This includes the one year basic and two option years. The projected period of contract performance is 36 months. Estimated cost using 3400 funds is to be approximately per year. Break down as follows: hours of Engineering Services at , hours for PM and support personnel at

, hours for Tech Data Writers and support at , hours of Software and Support at , Travel and Per Diem is figured by a one way distance of 300 miles per mile, three persons and six TDY's per year with an average of five nights stay each/ lodging- Per Diem;

Government will also accompany on 1/3 of the TDY's figured by a one way distance of 300 miles per mile, two persons and three TDY's per year with an average of five nights stay each/ lodging- Per Diem , and estimated for material. All totaling an estimate of for the first year, adding in the governments scheduled inflation, future mileage and Per Diem rates year two comes to and year three comes to . All three years will total with the scheduled changes in Per Diem, mileage, and inflation.

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, or limited Responsible Sources 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).

The USAF TH-1H Avionics Suite was designed, integrated and installed by L-3 Comm/TCS. It is highly specialized because L-3 Comm/TCS utilized commercial components/subcomponents from multiple Original Equipment Manufacturers (OEMs) to design the TH-1H Avionics Suite. Once the commercial items are integrated, the TH-1H Avionics Suite as a whole is considered military unique. The design of these commercial communications and avionic components are proprietary to the OEMs and not directly available to the TH-1H design activity, technical support provider, or to the Government without specific agreement for system integration and technical support.

The Government has no configuration control over individual commercial items integrated to comprise the avionic system.

L-3 Comm/TCS has access to data and has engineering expertise greater than that possessed by the System Program Office (SPO), which is required to adequately maintain Operational Safety, Suitability and Effectiveness (OSS&E) for the TH-1H fleet. The technical data currently possessed by the Government is incomplete and does not properly reflect the current aircraft configuration. The existing Technical Data package (TDP) style and format does not conform to the requirements from the AFLCMC Engineering Data Management support section (LZPEM) and cannot be added to the Joint Engineering Data Management Information and Control System (JEDMICS) technical data repository.

The JEDMICS Engineering Data Management Office (EDMO) has consistently rejected the TH-1H Technical Data Package --the most recent rejection occurring in Jun 16. As a result, only L-3 Comm/TCS has a complete set of top level (Level I) drawings that reflects the current configuration of the TH-1H Avionics Suite.

A re-procurement package (Level III drawing package) was not purchased under the production contract due to funding limitations and the OEMs unwillingness to sell the data for the COTs components that comprise the Avionics Suite. In an effort to determine future possibilities of procuring data for the TH-1H Avionics Suite, the Government reached out to all of the OEMs of all COTs components that comprise the TH-1H Avionics Suite. The OEM's that were contacted were, All OEMs gave negative responses to requests to procure data for their systems between 15 July 2011 and 30 June 2015 either verbal or by email. Manufactures of approximately 80% of the components that make up the Avionics Suite;

declined via email while the rest verbally declined. As a result, currently it is not possible to obtain data.

In addition to procuring the data for this system, the government also considered reverse engineering this effort but the results of a Break-Even analysis performed by AFLCMC/WIUB indicated that the duplication of cost could not be recovered throughout the life expectancy of the TH-1H Avionic Suite. The TH-1H Avionics Suite's life expectancy is 20 years. This system was fielded in 2008; this leaves about 13 years of service life remaining for the system.

L-3 Comm/TCS began development of this system in 2004; the system was not fielded until 2008. Based on actuals from the current production contract, FA8530-08-D-0008-0021, with L-3 Comm/TCS as a subcontractor provides Sustaining Engineering support for the TH-1H and the Commercial Avionics Suite. The contract period of performance is due to expire in September 2016 with no renewal. It is estimated to execute a reverse engineering effort for this system and acquire the knowledge and expertise L-3 Comm/TCS possesses would take a minimum of years ( years:

acquisition time, years at man-hours per year at a rate of /hour: delivery of one system, and years sustainment) and cost an estimated (not including any inflation or risk due to future unknowns).

Additionaly, it would cost about to reverse engineer and an estimated to gain the knowledge they have acquired over the years through similar maintenance and sustainment work done on the ICS contract. With this effort estimated to cost over three years, at minimum, the break-even point would be years. Additionally, the government would incur unacceptable delays as there would be no sustainment support until all engineering efforts are completed. The incurred lapse in coverage after September 2016 has the potential to ground the entire fleet if any problem arises in the Avionics Suite and will negatively affect OSS&E.

As the designer, integrator and installer of the TH-1H Avionics Suite, L-3 Comm/TCS has the knowledge, technical expertise and agreements that allow them to access data from the OEMs who hold the proprietary data of the system's components and subcomponents. This gives L-3 Comm/TCS immediate and timely reach-back capability which no other vendor or government entity possesses. Other vendors will have an inherent learning curve as they have no knowledge of how this unique system's components/subcomponents have been integrated in this system, nor do they have any on aircraft time with this system whereas L-3 Comm/TCS does as the designer, integrator and installer.

Since L-3 Comm/TCS is the designer, integrator, and installer (technical provider) of this unique system, they are the only entity with the knowledge, technical expertise and immediate reach-back capability required to sustain the TH-1H Avionics Suite.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

Sources Sought Synopsis: The Government issued a Sources Sought Synopsis/Request for Information on 21 April 2016, under the name TH-1H Avionics Suite Engineering Support, which referenced Solicitation number, TH-1H_AvionicsSuite_EngineeringServices. The government provided a response period of 15 days for response.

The Government received responses from industry. L-3 Comm/TCS, the Original Equipment Manufacturer

(OEM);

responded.

The OEM was found fully capable. was found not fully capable of fulfilling all requirements; lack of direct access to the Technical Data Package (TDP) for the Commercial Avionics Suite was the primary reason. This TDP is proprietary data and held by the OEM. was found Not Capable due to lack of access to the TDP and lack of technical background of the TH-1H aircraft.

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 provide to any source who responds to this synopsis they will be identified to the OEM 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 determined fair and reasonable to the Government. In accordance with FAR 15.404, it is anticipated that negotiations will be conducted using price analysis. A thorough price analysis using available information and approved pricing techniques 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 29 Jun 2016 in accordance with FAR part 10. The market research was conducted using System for Award Management (SAM), Business Identification Number Cross-Reference System (BINCS), and the Small Business Dynamic Database. The vendor queries included NAICS code 541330, Engineering Services, key words “Sustainment Engineeri” (limited to 20 letters)” and “ISO 9000”. The research returned zero (0) potential vendors. Of the 3 vendors evaluated, only one vendor was found capable and that was L-3 Comm/TCS. Other vendors were not capable due to a lack of a complete technical data package, knowledge, experience or immediate reach-back capability to the OEMs who hold proprietary data. Other vendors and the government will have an inherent learning curve as they do not have knowledge of how this unique system's components/subcomponents have been integrated, no established relationships with the OEMs relating to the integration of this system, nor do they have any on-aircraft time with this system.

L-3 Comm/TCS is the only vendor with the capability to execute this requirement, to meet aircraft war fighter mission needs.

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.

As previously stated in section V, the time to reverse engineer the system would be approximately years and at a cost of M; with only an estimated years of system life left any effort to reverse engineer would not benefit the government nor be feasible. With no major OEM willing to sell their proprietary data the Government has no recourse to acquire the system data. Even if the data for each individual component was held by the Government the ability to integrate the system and the components would not be within that data. The only entity that holds this data is the Avionics System OEM.

In an effort to remove barriers to competition for subsequent acquisition for these services, the program team will continue to work to acquire funding for the procurement of proprietary technical data from L-3 Comm/TCS and the OEMs that reflect the current configuration of the TH-1H Avionics Suite. The program team will reach out yearly to individual component vendors to inquire about the procurement of proprietary data. The government will continue to request the data by elevating the request to upper management within the companies. No company has shown interest is the US Government procuring their proprietary data to this date.

In addition, engineering will work to acquire knowledge about the TH-1H Avionics system to become more familiar and knowledgeable of the system and its components to determine the feasibility of standing up an organic support structure. This will be done by working with the contractor as they accomplish engineering task requests. Deliverables and Data received from these task request will become property of the US Government.

All efforts will be continuous and all information/data acquired will be reviewed every year before exercising the contract options. Again, this aircraft is nearing the end of life's date, to reverse engineer we would not recoup the value over the remaining years as detailed in section V. The government will continue to request the data by elevating the request to upper management within the companies.

XII. Certification by the Contracting Officer.

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. Certification by the technical/requirements personnel.

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))