JA_-_High_Temp_Test_System_Redacted.pdf

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

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 4

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.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity:

Air Force Life Cycle Management Center (AFLCMC) Installation Contracting Division Base Support Contracting Office (PZIBB) 1940 Allbrook Dr., Bldg 1, Rm 109 Wright-Patterson Air Force Base, OH 45433-5344

Purchase Request / Local ID Number:

Program / Project (and PE, if applicable): High Temperature Testing System

Program Type (PEO or Other Contracting): Other Contracting

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

18 Apr 2018

Project Lead / Program Mgr / Requiring Activity

Signature

Date

19 Apr 2018

Contracting Officer

APPROVAL (AFFARS 5306.304(a) )

Date

19 Apr 2018

Contracting Officer

-04'00'

March 2018 FOR OFFICIAL USE ONLY Page 2 of 4

I. Contracting Activity.

Air Force Life Cycle Management Center (AFLCMC) Installation Contracting Division Base Support Contracting Office (PZIBB) 1940 Allbrook Dr., Bldg 1, Rm 109 Wright-Patterson Air Force Base, OH 45433-5344

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

This action will result in the award of a new Firm Fixed Price (FFP) contract.

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

Under the contemplated FFP contract, MTS Systems Corporation will provide a High Temperature Testing System for use by the Air Force Institute of Technology (AFIT) fatigue testing laboratory.

This High Temperature Testing System includes a furnace with gripping devices that include thermal shielding and internal cooling, and it will be used to test temperatures as high as 1500 degrees Celsius on a specimen while maintaining stability and control of that specimen. Additionally, AFIT currently has a load frame model MTS 810 series Model 310.10 with which any acquired system must be compatible.

The estimated total price for this action is United States Working Capital Funds (4930) will be used to fund this requirement.

Delivery Information: Delivery and Installation will be completed no later than ninety (90) days after award.

IV. Statutory authority permitting other than full and open competition.

10 USC 2304(c)(1), as implemented by FAR 6.302-1(b)(1)(ii), unique supplies or services available from only one of a limited number of sources or from only one or a limited number of suppliers with unique capabilities.

41 USC 1901, as implemented by FAR 13.501(a)(1)(ii), as required by FAR 13.501(a)(1)(i).

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

In accordance with (IAW) FAR 6.302-1, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements," the procurement of the MTS Systems Corporation High Temperature Testing System is essential to support the Government's current requirement.

The furnace system available from MTS Systems Corporation includes required gripping devices that include thermal shielding and internal cooling. This allows testing of temperatures as high as 1500 degrees Celsius to a specimen while maintaining stability and control of that specimen. MTS Systems Corporation originally developed this system via a Cooperative Research and Development Agreement (CRADA) with AFRL/RXC in order to fulfill a need for a 1500C furnace that has the ability to hold the entire specimen under tension with heated grips. MTS Systems Corporation now holds a US patent on this item, and MTS does not offer sale of the product through an authorized distribution network. The pairing of capabilities (1500 degrees Celsius and heated grips to control specimen stability) was not found to be offered together in other devices available in the commercial marketplace. MTS Systems Corporation is the sole source for the only product that meets the Government requirement. This system is also compatible with the current load frame model MTS 810 series Model 310.10 in the AFIT fatigue testing laboratory.

Award to any other source would result in both unacceptable delays and duplication of costs in fulfilling the Air Force's requirements. Because only MTS Systems Corporation manufactures and sells the system that meets the customer's

March 2018 FOR OFFICIAL USE ONLY Page 3 of 4 needs, the Government would be forced to internally design, or compete and contract with a different vendor to design, a system that also meets the requirements, as well as potentially compete the manufacture of the items after design was complete. This would be a duplication of costs due to the CRADA with AFRL having already been accomplished (CRADA cost-to-date of per , AFRL/RXCM), and it would be an unacceptable delay of approximately (current time frame of AFRL/RXC CRADA) since AFIT's time line for delivery/installation is within FY18.

Accordingly, MTS Systems Corporation is the only manufacturer and distributor capable of providing the supplies and services described in Section III above without the USAF experiencing unacceptable delays and duplication of costs in fulfilling its requirements.

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

Market research was conducted to identify companies that offered the same or similar system that could meet the customer's requirements. No companies were found other than MTS Systems Corporation that could meet both the 1500 degree Celsius (1500C) temperature requirement and the requirement for a heated gripping device. Most systems found via web search used a lower temperature and did not have the same or similar sophisticated gripping system.

The customer point of contact, was contacted to clarify if the 1500C requirement was flexible.

confirmed that systems with heating abilities up to 1350C were already present in the laboratory, and they could not meet the need of the required furnace system. The customer specified that the 1500C requirement was not able to be lowered or expanded into a range.

A Sources Sought was posted to the Federal Business Opportunities website (FBO.gov) from 23 February 2018 to 13 March 2018. No responses were received, no questions were submitted, and no vendors listed themselves as `Interested Vendors' on FBO.gov.

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

The Contracting Officer determines that the anticipated price will be fair and reasonable based on a price analysis using historical sales of the item by the contractor, as well as cost information related to the contractor collaboration with AFRL/RXC (FAR 15.404-1(b)(2)(ii)). Also, market research will be conducted to obtain pricing information for similar (though not the same) systems available in the commercial marketplace (FAR 15.404-1(b)(2)(vi)), and data provided by the contractor will be analyzed (FAR 15.404-1(b)(2)(vii)) to ensure the offer is the best value for the Government.

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 to confirm that no other vendors exist that can provide a system that meets the Government's requirement.

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

MTS U.S. Utility Patent 9,696,218 B2 dated July 4, 2017 applies to the products associated with this system, and there is no distribution network. The product is commercially available from MTS Systems Corporation and only

MTS.

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

See Section VI above.

March 2018 FOR OFFICIAL USE ONLY Page 4 of 4

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.

Because this system is proprietary to MTS Systems Corporation, the USG must pursue R&D either internally (AFIT, AFRL, etc.) or with additional commercial vendors in order to develop an alternate system that meets the high temperature, the heated gripping system, and the compatibility with existing equipment.

Additionally, when the load frames and this system are considered for retirement, it is in the Government's best interest to pursue an acquisition of 'universal' pieces so that compatibility issues are not a consideration in future acquisitions.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief (FAR 6.303-2(b)(12)).

XIII. Certification by the technical/requirements personnel.

As evidenced by my signature above, I certify that any supporting data contained herein, which is my responsibility, is both accurate and complete (FAR 6.303-2(c)).