J_and_A_-_15_Mar_15_-_Rohde_and_Schwarz_with_list.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

VDATS Parts Rohde & Schwarz USA, Inc.

PR F3QCCM4099A010

15 Mar 15

I. CONTRACTING ACTIVITY

This Justification and Approval is to request authority for Other Than Full and Open Competition supporting requirements generated for PR F3QCCM4099A010.

402 EMXG, Electronics Maintenance Group, Robins AFB, GA. 31098

The contracting activity for this requirement is:

AFSC/PZIOA, Production Support Branch 375 Perry Street, Robins AFB GA 31098

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

Due to the circumstances described herein, the activity requests authority for a new one time contract under ‘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.” There is currently no existing contract available to satisfy new FY15 through FY19 requirements. This contract will be awarded as a follow-on sole source requirement. This will be a firm-fixed priced contract with options to purchase up to an additional four units within a one-year period, to support the build of up to five VDATS stations.

The source for this requirement is Rohde & Schwarz USA, Inc or their reseller.

Rohde & Schwarz USA, Inc. CAGE: 82199 Technical Communities, Inc. CAGE: 1RPN6 6821 Benjamin Franklin Drive 1111 Bayhill Drive, Suite 400 Columbia, MD 21046-2633 San Bruno, CA 94066-3043 POC: Rick Struble, (410) 910-7824 POC: Matthew McMahon, (650) 794-3706 E-mail: info@rsa.rohde-schwarz.com E-mail: Matthew@testmart.com

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S

NEEDS

The VDATS is an organically designed test station with Open Architecture and Virtual Modular Equipment (VME) Extensions for Instrumentation (VXI) technology. The test station contains flexible hardware and software architectures that are fully expandable and customizable, and eliminate or reduce the need for active Interface Test Adapters (ITAs).

The VDATS consists of standardized, commercially available test equipment, components and software.

There are two configurations of VDATS, the DA1 and DA2. Additionally, there is an RF1 roll-up rack mailto:Matthew@testmart.com that provides radio frequency capability to the core DA. Currently, these configurations support the B-1, B-2, C-130J, and F-15 weapon systems.

The basic quantity item is required to be delivered no later than 210 days after contract award.

The Noun/NSN covered by this J&A is shown in the chart below. Additional information can be found at the end of this document.. The estimated total contract amount is $342,500.00. This will be funded with CSAG-M (DMAG) funds.

Part Number/ Description NSN

Basic Qty

Option Max Qty

Unit Price Total Price

FSU26-OPT-

B18-B19-B23- B25-K7-K30-

K40-ZZA411/

Spectrum Analyzer

6625-01-587-

1605KV

First Year Qty

Total

$68,500.00

$342,500.00

$342,500.00

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 2304(c)(1), as implemented by FAR 6.302-1, 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)

FAR 6.302-1(d)(1) requires an ordering activity to justify its actions when restricting competition. The agency's minimum needs can only be satisfied by the unique supplies or services available from the above cited source, who possesses unique capabilities demonstrated as follows:

Only Capable Source: This contract effort will be solicited under “Other Than Full and Open Competition” to Rohde & Schwarz, Inc.. Rohde & Schwarz, Inc,. is the Original Equipment Manufacturer (OEM) for this NSN and is the only source capable of providing the specific NSN identified in paragraph III that is tested and approved for the VDATS.

The NSN included in this effort has an Air Force Material Command Form, 761 AMC/AMSC Screening Analysis Worksheet (SAW), which states an Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) (3/Z) that indicate a sole source requirement to Rohde & Schwarz exists.

Technical Requirements/Data: To maintain strict configuration management of current production efforts and to comply with the technical requirements identified in the VDATS system technical documentation, the exact part numbers are required and must be procured in order to maintain the configuration control baseline and promote transportability of workload between test stations. The item listed is a commercial item available only from Rohde & Schwarz. In accordance with the DoD 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

Automated Test Station (ATS) Selection Guide which can be found at http://www.acq.osd.mil/ats, program managers are mandated to select from appropriate, DoD approved ATS families to satisfy testing requirements. Program managers for various weapon systems have contacted the VDATS program office requesting new or replacement VDATS assets.

Data for this source-controlled commercial item is unavailable. The commercial vendor has thus far declined to provide quotes for data procurement. Purchase of data through Rohde & Schwarz was requested on 28 Jan 2015. The company confirmed again that they would not sell the data for their part.

This acquisition must remain restricted to the part number controlled baseline that is approved and tested for the VDATS ATS. Any change to the VDATS configuration potentially impacts every VDATS user and creates a ripple effect for software and firmware within Test Program Sets (TPS) for Line Replaceable Units or Shop Replacement Units (LRU/SRUs) tested on the VDATS Support Equipment.

The Government does not own the data rights to this proprietary item. Accordingly, Rohde & Schwarz is the only source capable of providing the supply described in Section III above in accordance with the DoD Automated Test Station (ATS) Selection Guide.

Substantial Duplication of Cost: Qualification of substitute parts – The Software Integration Lab (SIL) researches alternative parts. This research includes 18 to 24 months of review/testing. The review of substitute parts is done at a part number level. There are 40 to 50 part numbers per VDATS station and each station must be customizable to the extent for testing approximately 200 unique weapon system platforms. When considering costs that are duplicated, we would have the labor of approximately 3 engineers ($80K per year) and 3 technicians ($60K). Rohde & Schwarz has one part number related to the VDATS test station build. The cost of 24 months of testing and integration for any part in any of the VDATS configurations is estimated at $1,040,000 depending on the part. This is not a viable alternative. This part number qualification process is only completed in the case of obsolescence.

Contractor development of VDATS replacement tester – This is not a feasible alternative. The deliverables would be a VDATS-compatible station, Level III drawing package, and full rights to all developed software. The estimated cost of this effort would be $20,000,000. The cost of rehosting TPSs in addition to the design/development cost is incalculable. Furthermore, this is a DoD family of testers. SAF/AQ mandated that this tester be the preferred automatic tester for the Air Force.

Reverse Engineering - Reverse engineering of each component would be estimated at $1,500,000 per part. This does not include cost of the part procurement. The cost savings at the time of procurement over the VDATS life would not equal the cost of the reverse engineering project. Also, because of the emergence of technology, VDATS will have to evolve. This means new commercial components with different capability. Reverse engineering would only be an expensive, short-term solution to the sole source aspect of VDATS procurement.

Each of these presents substantial duplication of costs to the Government that is not expected to be recovered through competition.

Unacceptable Delay: An attempt to seek commercial manufacture of VDATS through a Performance Based Acquisition, Solicitation Number FA8535-09-R-0001, was aggressively protested. Upon further analysis, the VDATS SPO determined that the length of the source selection and award process rendered the solicitation requirements obsolete and recommended that the Designated Acquisition Official (DAO) http://www.acq.osd.mil/ats withdraw the solicitation. The DAO approved that recommendation and withdrew the solicitation as corrective action to the second round of protests. The DAO further directed the ATS Product Group Manager to reinvigorate organic manufacture while a new independent business case analysis was developed by WR-ALC/FM to support a decision on continued pursuit of commercial manufacturing or full organic manufacture of VDATS. On January 30, 2012, it was decided to pursue this as an organic manufacturing project. The requirements defined in this new purchase request are necessary to support known requirements through organic manufacturing for FY15-FY19.

The VDATS are highly specialized equipment; without serviceable assets that have been tested and approved, system performance in accordance with test station specifications will be placed at great risk.

Lack of proper configuration impacts every VDATS, causing failure to execute mission or prevent the achievement of critical objectives and the DoD Automated Test Station (ATS) Selection Guide mandates program managers to select from appropriate, DoD approved, ATS families to satisfy testing requirements. Significant delay would be realized if testing and approval are required from sources other than the OEM. The estimated timeline is based on minimum of 18 months to prepare a competitive solicitation, and up to 48 months to test and approve each applicable NSN. Failure to acquire the specific VDATS parts could potentially impact multiple weapon system programs. VDATS is the Air Force preferred family of tester, so any new test requirements for weapons systems, once determined to be flexible for use on VDATS, are directed to the ATS Division for VDATS procurement, guidance, and usage. Without the ability to build VDATS, we will be crippling the family of tester program, which was designed to reduce proliferation of unique test systems by providing a common solution (VDATS, in this case). The existence of tester families severely reduces the cost of development and sustainment of the unique test requirements developed if no tester families are available.

The item being acquired is critical to maintaining configuration control in all of the test stations. In order to maintain this control, Rohde & Schwarz is the only known source that can satisfy the Government’s requirement. Any attempts at Full and Open Competition at this time would cause a significant time delay.

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 citing conditions which preclude Full & Open Competition. Sources expressing an interest as a result of the synopsis will be investigated for their capabilities to perform on this and/or future requirements.

Alternate sources of supply for equivalent parts are constantly being reviewed/evaluated in order to increase competition and system responsiveness. If potential solutions are yielded and evaluated by VDATS SPO personnel and if they are approved for use on VDATS, multiple sources will be available for VDATS parts procurement thereby increasing competition.

As part of on-going reverse engineering efforts, other solutions are being evaluated for use on the VDATS platform from other companies. Once potential solutions are evaluated by VDATS SPO personnel, and if they are approved for use on VDATS, multiple sources will be available for VDATS parts procurement thereby increasing competition. Implementation of these alternate sources, however, could take up to 4 years, depending on the success of the reverse engineering process and the functionality of the resulting parts. The parts must meet VDATS transportability requirements, i.e. the new card must allow for seamless transition of VDATS TPSs from the previous part to the new one.

Data for these source-controlled commercial items is unavailable.

In an effort to remove or overcome barriers to competition in the future, the market will be scanned for new companies that could satisfy the government’s requirement. Where possible, the government will make future requirement descriptions suitable for full and open competition. This requirement will be synopsized in FedBizOpps to allow for subcontracting opportunities.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED

COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The contract price will be negotiated in accordance with the procedures in FAR Part 12 ensuring the ultimate cost to the Government is fair and reasonable. In accordance with FAR 15.403-3, the Contracting Officer will evaluate other than certified cost and pricing data to support the Government's evaluation of the proposed cost. This includes data on the prices at which the same or similar items have previously been sold to Government and commercial sources, current catalog and/or price lists, and if required, other data in sufficient detail to allow for determination of fair than and reasonable pricing.

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 as required by FAR Part 10.001 and FAR Part 10.002 on 09 Mar 15, using techniques that included review of Government database information for individual part number requirements as well as a search of the dynamic small/disadvantaged business database. The Market Research was finalized on 15 Mar 15. Also, the engineer conducted research utilizing Haystack and D043. A query of the Small Business Dynamic Search engine was performed. NAICS code 334515 was used as well as the key words “test equipment”. This is considered a commercial item. The exact part number is required in order to maintain the configuration control baseline and promote transportability of workload between test stations. No source other than Rohde & Schwarz was identified as being capable of meeting the exact and mandated requirements of the Government.

A search for HUBZone, 8(a), Veteran, Woman Owned and Service Disabled Veteran Owned businesses was conducted using Dynamic Small Business Search engine. Several sources for “test equipment” were identified, however, due to the proprietary nature of the parts being procured, none are capable of satisfying the requirement. A large business, Rohde & Schwarz, owns the proprietary data needed to maintain configuration control and performance according to test station specifications.

As described in Section VI above, market research, in accordance with FAR Part 10, will also be conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.

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

This acquisition must remain restricted to the part number controlled baseline that is approved and tested for the VDATS. Alternate sources of supply for equivalent parts are constantly being reviewed and evaluated in order to increase competition and system responsiveness. As part of on-going reverse engineering efforts, other solutions are being evaluated for use on the VDATS platform from other companies. Once potential solutions are evaluated by VDATS SPO personnel, and if they are approved for use on VDATS, multiple sources will be available for VDATS parts procurement thereby increasing competition. The remaining life cycle for the VDATS system is 30 years.

The Air Force owns Level 3 drawing package data for all VDATS configurations; this is an effort to procure the commercial piece part required to assemble the stations. Purchase of the data for the individual part is not possible. We requested the drawings/data for the part on 28 Jan 15. The company confirmed again that they would not sell the data for their part.

If a replacement for the VDATS is required in the future, competition would be considered.

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)).

VDATS - Rohde Schwarz Line Items and Pricing Data

Option Quantity per Quantity per Quantity per Number of Number of Number of Basic Max

Item No Part Number NSN Description DA1 Station DA2 Station RF Station DA1 Stations DA2 Stations RF Stations Qty Qty Unit Price Total Price

0001 FSU26-OPT-

B18-B19-B23- B25-K7-K30-

K40-ZZA411

6625-01-587-1605KV Spectrum Analyzer 0 0 1

Minimum 0 0 1 1 68,500.00$ 68,500.00$ Additional Option Quantity 0 0 4 4 68,500.00$ 274,000.00$ Maximum Quantity 5

Total Estimated Contract Value 5 342,500.00$