JA Sole Source AERONet Amendment - 5.3.2024_Redacted.pdf

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

CONTROLLED UNCLASSIFIED INFORMATION

August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 5 of 14August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 5 of 14 manufactured directly by TA Defense as the Original Equipment Manufacturer (OEM), or they are designed and manufactured by other sources but are modified to integrate into the overall aircraft design and are the only items listed as acceptable for use in aircraft technical publications. As such, these special items cannot be sourced anywhere other than from TA Defense.

OPTION CLIN Items

• 1 Times & Altitude Test Set Check Voltage (220V)

• 1 TDU Fixture estimated value of

• 1 Seat Sequencing Tool Kit estimated value of

• 1 BTRU Cocking Tool estimated value of

• 1 BTRU Aneroid Peg Spanner estimated value of

• 1 Socket Spanner estimated value of

• 1 BTRU Peg Spanner estimated value of

• 1 Firing Pin Gauge estimated value of

• 1 Adapter Assembly Indicator estimated value of

• 1 Firing Pin Protrusion Gauge estimated value of

BTRU Fixture (Timing Test Set) estimated value of

Laser Verification Fixture estimated value of

• 1 Timing Cable estimated value of

• 1 Frequency Counter, 1.6GHz estimated value of

• 1 Barometer GE Druck estimated value of $

• 1 Hose Flexible Druck estimated value of

• 1 30mm Slip Gauge estimated value of

• 1 40mm Slip Gauge estimated value of

• 1 50mm Slip Gauge estimated value of

• 1 Bridle Piston Retract Tool estimated value of

• 1 ADU Extender estimated value of

August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 6 of 14August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 6 of 14

• 1 ADU Locking Tool estimated value of

• 1 Harness Locking Pin estimated value of

• 1 Sticker Clip Plug estimated value of

• 1 Breech Adapter estimated value of

• 1 ISS Disconnect Indicator estimated value of

• 1 Harness Release Adapter estimated value of

• 1 ADU Adapter estimated value of

• 1 Altitude Adapter estimated value of

• 1 Drogue C Spanner estimated value of

• 1 Mechanical Cocking Tool, TDU Timing estimated value of $ .

• 1 Tool Firing Unit estimated value of

• 1 HPRU Adapter Indicator estimated value of

• 1 DDU Adapter Indicator estimated value of

• 1 LH MPI Adapter Indicator estimated value of

• 1 LH MPI Adapter Pipe estimated value of

• 1 5 to 5 Pipe Adapter estimated value of $

• 1 BTRU Camp Assembly estimated value of

• 1 BTRU RH MPI Inlet Adapter estimated value of

• 1 Dummy Seat Frame estimated value of

• 1 HBDU Indicator estimated value of $

• 1 TDU Clamp Assembly estimated value of

• 1 TDU Inlet Adapter estimated value of

• 1 Bridle Release Restrictor Streamer Assembly estimated value of $

August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 8 of 14August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 8 of 14 increase to 60% if a source selection is required because of the effects associated with increased cost/schedule and depleted performance, while also creating the potential for a repeat of the Tunisia/Nigeria programs unsuccessful source selections to acquire AERONet.

Since TA Defense was the contractor that performed these tasks in support of CLAE, the Government has direct knowledge of the effort involved and the capabilities and expertise provided by TA Defense to successfully complete the development, integration, and installation of AERONet on the AT-6 aircraft. Not only is TA Defense the OEM, but an aircraft warranty currently exists between the RTAF and TA Defense under the DCS contract this action supports. The aircraft warranty begins for a two (2) year period following the delivery date of the aircraft. The RTAF currently plans to accept two (2) aircraft in April 2024, and six (6) aircraft between July 2024 and September 2024 (2 each month). Therefore, these warranties are effective through April 2026 for two (2) aircraft and July through September 2026 for six (6) aircraft. The entire aircraft is covered under this warranty.

A specification of the aircraft warranty is no contractor other than TA Defense may work on the RTAF's AT-6 aircraft with the exception of two vendors. These vendors are Thai Aviation Industries Co, Ltd, and RV Connex Co, Ltd. Both companies are Thai and primarily employ Thai citizens. These companies were specifically approved via the DCS contract to promote the use of organic Thailand resources in support of the aircraft. Neither of these approved companies are qualified, nor have the knowledge or resources, to perform the tasks necessary to integrate and install AERONet components onto the RTAF AT-6 aircraft. Details of the DCS contract are not shared with the Government. Therefore, to quantify the cost in terms of loss due to warranty nullification, if this effort were to be awarded to an offeror other than TA Defense, is difficult, but it can be assumed the loss could be up to the cost of a new aircraft, which would be in the hundreds of millions of dollar range for eight total AT-6 aircraft.

It is estimated the development/integration tasks will take anywhere from ten (10) to twelve (12) months and actual installation/testing to take up to an additional six (6) to eight (8) months. Based on aircraft delivery dates, coupled with an estimated contract award date of April 2024, this timeline means aircraft modification work would need to begin prior to the end of the two (2) year aircraft warranty period. This FY23 BPC funded effort must have completion of all tasks related to AERONet integration and installation no later than 30 September 2026 due to fiscal year authority laws related to the use of Section 333 BPC funds. Therefore, even allowing for a later contract award, and longer time for the actual tasks to be completed, it would still require work to commence prior to the end of aircraft warranties which occur in April through September 2026 in order to meet the fiscal year constraints of BPC funding.

As a result of the aircraft warranty and BPC fiscal year authority constraints, if any other company other than TA Defense were to be contracted with to perform this work, it would ultimately nullify the aircraft warranties, which would be detrimental to RTAF's DCS contract. Therefore, as the OEM and warranty holder, only TA Defense is capable of providing AERONet without a substantial duplication of cost that could not be expected to be recovered through competition.

The equipment required for the AERONet configuration are Commercial-Off-The-Shelf (COTS) type items. While these items can be procured commercially, individually they have no real significance. It is the use of the items together, and in combination with various software and aircraft hardware, that make them an AERONet equipment item. A separate contracting action solely for the procurement and delivery of this equipment is not feasible. The equipment and the development/integration portion of this AERONet effort are critically connected and separating them as two separate contract actions, by two separate vendors, would cause unacceptable schedule delays and potential additional costs to the overall execution of the program. As the development and integration effort evolves, it will be critical for TA Defense to subcontract with the vendors who are the primary OEMs for the various specific equipment items, just as it did when executing the contract for CLAE. If during development work, it is determined a different item would be more suitable from originally planned, or if there are Diminishing Manufacturing Sources (DMS) or other obsolescence related issues that arise, TA Defense is in the best position to address it without disruption due to this relationship for the integration effort. Keeping the

August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 9 of 14 procurement of the equipment as part of the contract for the integration and installation effort ensures a quicker and more efficient resolution to these issues as the suppliers will be working closely with TA Defense on this program.

To summarize, if there are any anomalies or issues with the parts, TA Defense will be able to reorder them through the selected subcontractor without causing a duplication of cost and schedule delay, ultimately decreasing the overall risk of the AERONet effort. Orchestrating a separate competition for the COTS equipment would add several months to the overall schedule in order to complete a source selection. Additionally, if changes were required to any of the equipment due to DMS, obsolescence, or other technical developments discovered during the integration effort after the equipment was already procured via a separate competed contract, it would result in additional costs to procure the correct items, meaning initial funds were spent on items no longer required. This would result in a waste of taxpayer dollars, while simultaneously increasing overall program costs that could have been avoided.

Finally, TA Defense is the only contractor capable of providing the following aircraft components:

• 16 Ejector Pylon/Rack Assembly

• 20 External Fuel Tanks

• 20 External Fuel Tank Umbilical Harness Assembly

• 4 Pylon equipped with ejector rack unit (spare)

• 12 AT-6 Travel Pods

• 1 Engine Stand

• 2 Mission Planning Station/Mission Debriefing Stations

• 1 Gun Umbilical Harness Assembly

• 1 Gun Boresight Board with Kit

OPTION CLIN Items

• 1 Times & Altitude Test Set Check Voltage (220V)

• 1 TDU Fixture

• 1 Seat Sequencing Tool Kit

• 1 BTRU Cocking Tool

• 1 BTRU Aneroid Peg Spanner

• 1 Socket Spanner

• 1 BTRU Peg Spanner

August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 10 of 14

• 1 Firing Pin Gauge

• 1 Adapter Assembly Indicator

• 1 Firing Pin Protrusion Gauge

• 1 BTRU Fixture (Timing Test Set)

• 1 Laser Verification Fixture

• 1 Timing Cable

• 1 Frequency Counter, 1.6GHz

• 1 Barometer GE Druck

• 1 Hose Flexible Druck

• 1 30mm Slip Gauge

• 1 40mm Slip Gauge

• 1 50mm Slip Gauge

• 1 Bridle Piston Retract Tool

• 1 ADU Extender

• 1 ADU Locking Tool

• 1 Harness Locking Pin

• 1 Sticker Clip Plug

• 1 Breech Adapter

• 1 ISS Disconnect Indicator

• 1 Harness Release Adapter

• 1 ADU Adapter

• 1 Altitude Adapter

• 1 Drogue C Spanner

August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 11 of 14

• 1 Mechanical Cocking Tool, TDU Timing

• 1 Tool Firing Unit

• 1 HPRU Adapter Indicator

• 1 DDU Adapter Indicator

• 1 LH MPI Adapter Indicator

• 1 LH MPI Adapter Pipe

• 1 5 to 5 Pipe Adapter

• 1 BTRU Camp Assembly

• 1 BTRU RH MPI Inlet Adapter

• 1 Dummy Seat Frame

• 1 HBDU Indicator

• 1 TDU Clamp Assembly

• 1 TDU Inlet Adapter

• 1 Bridle Release Restrictor Streamer Assembly

• 1 Insertion Tool

• 1 MOR Adapter

• 1 Clamping Tong

After efforts to research these items was conducted, it was determined these components are either designed, integrated, and manufactured directly by TA Defense as the OEM, or they are designed and manufactured by other sources but are modified to be integrated into the overall unique AT-6 aircraft design by TA Defense. The resultant end product is then a TA Defense designed assembly, which cannot be sourced anywhere else.

Accordingly, TA Defense if the only firm capable of providing the supplies and services described above without the Government experiencing substantial duplication of cost that could not be recovered through competition and unacceptable delays in fulfilling its requirements.

August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 12 of 14

V. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under FAR 5.202 applies.

There are multiple instances of `inexecutable contracts' for AERONet using open-source competition intended to help our PN Allies gain a competitive advantage. As most recently as July 2023, acquisitions to acquire AEROnet for both Tunisia and Nigeria were unsuccessful via FAR Part 15 source selection. Thus, it was determined a sole source award to TA Defense would be in the best interest of the Government and RTAF.

To summarize this requirement, the RTAF participated in a joint experimentation CLAE effort between USAF and PN countries, which demonstrated the AERONet capabilities on the AT-6 aircraft. The RTAF requirements are to acquire the AERONet system it used during CLAE. The scope of this requirement includes supplies and services needed for a successful AERONet system. Supplies required include hardware, software, TOs, and drawings.

Services required include integration/installation/setup of AERONet into both the AT-6 aircraft and in Thailand at RTAF locations, training for Pilots/Command & Control (C2) personnel/Server personnel/Maintenance personnel, additional testing to include hardware ruggedization and operational flight testing after installation, and Contractor SME support and reach back.

Since CLAE ended, multiple PN participants have shown interest in AERONet and tried to acquire the capability .

Both AERONet acquisition efforts used open-source competition/FAR Part 15 source selection and were unsuccessful. In the Tunisia AERONet source selection attempt, the Government released three (3) separate sources sought/request for proposal documents in an full and open competition approach and received zero (0) valid bids from interested/capable vendors. It received responses from two vendors, but neither followed Section L instructions, and there was confusion between offerors and requirements. One vendor originally had its cost 214% above the Government estimate and the other vendor stated it had “low confidence AERONet would work in the PN country environments." Both companies withdrew their offers, and this effort was determined to be un- executable by the Government in May 2023.

In a separate acquisition attempt to purchase strictly AERONet hardware for Nigeria, who was also interested in AERONet after CLAE, the FAR Part 15 source selection resulted in award to a small business. However, after contract award, the small business realized the scope of the acquisition effort and the financial constraints to spend money right away to acquire the hardware. The vendor was unable to fulfill its contractual obligations and decided to withdraw from contract execution/obligation because it stated the financial constraints would be detrimental.

The Nigeria acquisition effort not able to be executed based on the vendor withdraw in July 2023.

Efforts to locate other similar systems through additional sources were completed via Internet searches as of June 2023. No viable options were found.

Discussions with industry were crucial in the market research effort for AERONet. Capability improvements were discovered, which allowed the experiment to be successful with RTAF participation. In a discussion with TA Defense on 9 August 2023, TA Defense stated that for the aircraft RTAF acquired through DCS to remain under warranty, no other vendor can perform work on the aircraft. The aircraft warranty is critical to RTAF to ensure its aircraft remain safe and lethal in combat mission. The aircraft warranty covers the aircraft and components within it delivered to RTAF. RTAF leadership emphasized the importance of keeping its aircraft under warranty.

The results of the market research indicate this work can only be performed by TA Defense to ensure the aircraft warranty remains viable. Additionally, TA Defense should perform this work because of its unique knowledge and understanding of the aircraft, frequency interference possibilities, installation and integration performed under a previous USAF contract for the same aircraft platform and based on the configuration being the same AERONet system used during CLAE. Therefore, by awarding this contract as sole source, the Government meets RTAF needs and incurs lower costs and expedited completion schedules. Expedited completion schedules allow on-

August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 13 of 14 time delivery to RTAF, additional testing/training to ensure safety and avoid risk, and provide a capability to RTAF, which is currently lacking from RTAF's operational missions.

The additional AT-6 unique components (not AERONet), which are also being procured and provided to Thailand on this contract, are either designed, integrated, and manufactured directly by TA Defense as the OEM, or they are designed and manufactured by other sources, but are modified to be integrated into the overall unique AT-6 aircraft design by TA Defense. The resultant end product is a TA Defense designed assembly, which cannot be sourced anywhere else. These are the only acceptable items per AT-6 technical publications.

A Sources Sought Synopsis (SSS) was posted to SAM.gov in November 2023. While nine (9) vendors replied to the SSS, (two (2) large businesses, six (6) small businesses and one (1) unidentified), only three of these replies provided vendor capability information that was deemed to reflect the relevant knowledge, skill-set, and experience required to perform most or a large portion of all the requirements for this effort. Two of these three would likely only be capable as a subcontractor to a Prime, based on their experience and past government attempts to utilize a small business as a Prime for AERONet. Of these three vendors, TA Defense is the only one meets all the required capability to perform all aspects of this program as a Prime. No other interested companies could perform this work as a Prime without voiding the RTAF aircraft warranty.

In summary, multiple types of market research and market analysis were conducted for AERONet through a vast array of efforts to include internet searches, government databases, Requests for Proposals (RFPs), coordination with the small business administration, discussions with industry, dialogue with government industry experts, contacting known source of product/services, trade-off studies, and actual contract efforts for AERONet in support of CLAE and testing/experimentation.

This effort will be posted to SAM.gov IAW FAR 5.201 after approval of the J&A as an intent to sole source.

Estimated posting date is 21 December 2023. Additionally, it will be posted after contract award.

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

The program office has members with multiple years of experience working with the AT-6 and evaluating technical proposals from TA Defense. Government market research provided the government with reasonable cost estimates for this purchase, so the Government intends to use actual cost data in order to estimate a fair and reasonable price. Additionally, the program team has developed strong relationships with DCMA, DCAA, SAF/AQC, and AFLCMC Pricing and Policy departments. The proposal will be evaluated upon submission and evaluated to ensure it is fully adequate. All actions will be done as required in accordance with FAR Part 15, and a contract will be awarded only if the Contracting Officer determines the prices provided to be fair and reasonable. This will be thoroughly outlined in the Price Negotiation Memorandum (PNM).

VII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

As described in Section V above, multiple types of market research and market analysis were conducted for AERONet and AT-6 unique components through a vast array of tasks to include internet searches, government databases, requests for Pricing and Availability (P&A), Requests for Proposals (RFPs), coordination with the small business administration, lessons learned, discussions with industry, dialogue with government industry experts, contacting known source of products/services, trade-off studies, and actual contract efforts for AERONet in support of CLAE and testing/experimentation.

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

Discussions with industry were crucial in the market research effort for AERONet. Capability improvements were realized that allowed for the experiment to be successful with RTAF participation. In a discussion with TA