Redacted_AFSAT_FY15_Spares_J A_FBO.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

The Air Force Materiel Command, Air Force Life Cycle Management Center, Armament Directorate, Test and Training Division, Aerial Targets Branch (AFLCMC/EBYA), Eglin AFB, FL 32542-6844 is the contracting activity supporting this individual Justification and Approval (J&A) action for Other Than Full and Open Competition.

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

This individual J&A is for the award of a new Firm-Fixed-Price (FFP) bridge contract (FA8678-15-C- 0052) that will enable the Air Force Subscale Aerial Target (AFSAT) program to procure AFSAT peculiar spares between the award of the bridge effort and the award of the new IDIQ CLS/Spares contract (FA8678-16-D-0008), which has a projected award date of 1st Qtr. FY16. This contract will be awarded on a sole source basis to Composite Engineering Inc. (CEi).

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

NEEDS

The entire AFSAT System Peculiar Items is comprised of 250 parts but only 170 are active. The new IDIQ Spares contract (FA8678-16-D-0008) includes approximately 80 items. Under the contemplated bridge contract effort (FA8678-15-C-0052), CEi will provide the peculiar spare parts that will be depleted out of the inventory based on the current and projected mission requirements. These spare parts consist of eighty items that are most urgently needed before the full IDIQ contract is awarded. These items were identified using the Air Supportability Model also referred to as LMI model to project future requirements for the AFSAT inventory. This is a forecasting model that uses historical data to predict future requirements. The contract award for the FY15 spares bridge effort is anticipated to be in 4th Qtr. FY15 with a total contract value of . This will be a one (1) time procurement with each CLIN having its own delivery time based on the item procured. The performance of this contract will cross multiple FYs as these are long lead items that can take up to 26 months to be delivered. This contract will be funded with 3400 appropriations. Based on the delivery schedule, the lead-time exception to the Bona Fide Need Rule is applicable.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

The statutory authority for this acquisition is 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302- 1(a)(2)(ii), Only 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)

The AFSAT is an Acquisition Category (ACAT) III program assigned to the Air Force Program Executive Officer for Weapons (AFPEO/WP). The AFSAT is a reusable, cost effective alternative to full scale targets providing the Air Force the Title 10 required capability to evaluate fielded, as well as developmental, air-to-air weapon system programs to determine weapon performance and assess mission success. This acquisition of AFSAT System Peculiar Items is required to provide the ability to launch, refurbish and relaunch existing targets to provide cost effective and timely support to meet current kill authorizations stated in the HQ USAF/TEP “Tactical Air Missile Program (TAMP)” and to provide a cost-effective sustainment program to satisfy projected AFSAT requirements in the 2015 and 2016 timeframe.

Operationally, the AFSAT is launched and recovered multiple times before being retired from service.

When repairs are determined to be cost effective, both common parts (DLA competitively sourced) and AFSAT System Peculiar Items are required to return the AFSAT to an operationally usable status. By the nature of operations, parts required to refurbish each individual target to an operationally usable status vary depending on the damage/breakage sustained during the land or water recovery in the previous use.

The re-use of the AFSAT is an asset multiplier as the targets are flown an average of missions before being declared not economically repairable due to damage by a missile strike and/or impact with the ground/water. For example, over the last year, launches took place and only AFSATs were expended through attrition due to the ability to repair and reuse the target. Without access to these highly specialized AFSAT System Peculiar Items, the production and acquisition of new targets could not keep pace with the user’s requirements and continued operations would cease when current inventories are expended. Therefore, this acquisition will allow for the continued production of highly specialized equipment in between the existing spares contract and new IDIQ contract.

The previous AFSAT spares contract, FA8678-14-C-0041, was awarded as a sole source contract to CEi on 24 September 2014. This contract procured a total of 38 highly specialized AFSAT Peculiar Items.

AFSAT Peculiar items must be compatible with the existing AFSAT design, and initial deliveries are required as early as three (3) months after contract award to avoid impacts to continued Title 10 testing requirements. The need for additional quantities of AFSAT System Peculiar Items is required to support operations and maintenance of the AFSAT targets procured under contracts FA8678-10-C-0051 (Lots 6- 8), FA8678-12-C-0202 (Lots 9-10) and contract FA8678-15-C-0069 (Lots 11-13). Additionally, DoD test support and aerial target inventory requirements demand continuous operations and do not permit a break due to high operations tempo. As such, CEi is the only responsible source of these highly specialized AFSAT Peculiar Items that has the capability to meet all program requirements, including the necessity to prevent disruption to the planned live-fire (USC Title 10) requirements for F-22 and F-35 weapon system developments, AMRAAM and AIM-9X development, high priority special weapons/weapons system testing, front-line fighter operational flight program (OFP) development, and missile inventory weapon system evaluation programs (WSEP).

The AFSAT Program Office believes that award to any source other than CEi would result in a significantly impaired sustainment capability delay of five (5) years if the Government pursues a competitive acquisition strategy. This estimate is based on one (1) year to compete a contract assuming an adequate supplier is identified. Next, it is estimated that it will take up to two (2) years to reverse engineer over 80 peculiar parts without a TDP. Finally, before deliveries could begin, each of the over 80 peculiar parts would have to be tested for form, fit and function on the AFSAT system and this effort could take one (1) year. Upon completion of all the testing, the contractor could start manufacturing these AFSAT peculiar parts that have lead times of up to one (1) year.

Based on the current AFSAT operational usage and sustainment item consumption rates, a break caused by a competitive acquisition of AFSAT System Peculiar Items will result in an unacceptable delay to DoD test activities (to include F-22 and F-35 efforts required by law). Without sufficient subscale target sustainment, the Air Force is unable to meet Title 10 test requirements, which would have a domino effect upon the weapons system programs that are the subject of these tests. Based on this analysis, it is not in the best interest of the Government to acquire the technical data to facilitate a competitive acquisition for this FY15 spares contract.

CEi is the only source with the requisite unique engineering expertise, necessary data, and production support equipment/special test equipment required to produce the AFSAT System Peculiar Items required. Accordingly, CEi is the only firm capable of providing the supplies described in Section III above without the U.S. Air Force experiencing unacceptable delays in fulfilling requirements.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED

FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

Most recently, and in preparation for this requirement, AFLCMC/EBYK posted a Sources Sought Synopsis (SSS) on 9 October 2014 with a closing date of 10 November 2014 under solicitation number FA8678-15-C-0052 for spare parts. The SSS requested a Statement of Capabilities (SOC) package from all interested vendors capable of providing all the spare items required and capable of meeting critical mission timelines. The SSS also included a listing of the spare components to evaluate. CEi of Sacramento, CA and expressed interest. Only CEi submitted a Statement of Capabilities for evaluation. CEi’s SOC was evaluated and determined to meet requirements.

Since did not provide a SOC, the Government could not determine if they could meet the requirement. Tab 3 of the contract file documents the PCO’s efforts to reach out to numerous times in regards to their SOC submission. In accordance with FAR 5.201(b)(1), a Notice of Contract Action (NOCA) was posted on FedBizOps on 13 November 2014 with a closing date of 28 November 2014. At the present time, CEi is the only company that has expressed interest as a result of the NOCA. Any proposals received will be evaluated against U.S. Air Force requirements.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED

COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The Contracting Officer will ensure that the negotiated price is fair and reasonable to the Government based on price analysis and cost analysis. The proposed rates and hours will be analyzed and compared to actual rates and hours on the current contract and the Government estimate of hours. Cost analysis shall be used to evaluate the reasonableness of individual cost elements. Steps taken to ensure the final contract price is fair and reasonable will include: (1) Obtaining actuals from CEi; (2) Getting a technical evaluation from the technical team familiar with the past and current effort and qualified to make recommendations that evaluate the proposed labor hours, materials, and shipping for reasonableness; (3) Using the Weighted Guidelines (WGL) tool to determine the appropriate profit/fee; and (4) In accordance with the Truth in Negotiations Act (TINA) and FAR 15.403-4, upon conclusion of negotiations, the Contracting Officer will obtain a Certificate of Current Cost or Pricing Data from the Contractor.

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 by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. In addition to releasing the SSS and NOCA for this FY15 bridge spares effort and data reviewed in preparation for AFSAT Lots 11-13 RFP and the AFSAT IDIQ Spares (FA8678-16-D- 0008) RFP release, key program management and engineering employees regularly attended industry-sponsored national symposia to remain cognizant of industry capabilities. These events provide the opportunity to network with industry counterparts who are keenly interested in doing business with the Government. Technical personnel also remain aware of industry improvements and capabilities by their continual search through technical journals and trade publications. These methods have not identified new qualified sources, nor have these methods identified potential alternative approaches to satisfying the core requirements of this program. This market research verifies to high fidelity that CEi is the only source with the requisite unique engineering expertise, necessary data, and production support equipment/special test equipment required to produce the AFSAT System Peculiar Items required.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION

The Government does not intend to procure a TDP package which is required to qualify a new vendor for AFSAT System Peculiar Items for AFSAT sustainment due to the schedule outlined in Section V.

Development of a new vendor for these AFSAT System Peculiar Items with a TDP would significantly exceed the timeline required to provide sustainment required to maintain support of DoD test activities.

As a result, neither acquisition of the TDP nor qualification of a new vendor could be accomplished without a break in production and lapse in sustainment of subscale targets to support Title 10, USC requirements. Additionally, the ongoing DoD-wide logistics reassignment process provides for the migration of parts declared common to be sourced competitively through DLA. For example, if an AFSAT Peculiar part becomes a National Stock Number (NSN) listed part for another DoD user, DLA pursues acquiring and stocking that part for all DoD users. If DLA is able to source the now common part at a lower cost, the base supply system will direct that requisition to DLA rather than CEi.

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

The Program Office is not currently taking any actions to remove any barriers to competition. As discussed in Section V, without a TDP package, the Government is limited to the number of sources for the AFAT System Peculiar Items due to the uniqueness of each part. The estimated five (5) year delay discussed in Section V prohibits the Program Office from removing these barriers due to the detrimental mission impacts. The Program Office will continue to conduct market research identified in Section VIII and try to identify companies that develop similar products to preclude the necessity for future sole source acquisitions.

XII. CONTRACTING OFFICER’S CERTIFICATION

The Contracting Officer’s signature on the Coordination and Approval Document evidences that he has determined this document to be both accurate and complete to the best of his knowledge and belief.

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.