FD20201900034_REDACTED.pdf

FD2020-19-00034

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY:

Defense Logistics Agency DLA Aviation at Ogden 6051 Gum Lane Bldg 1225 Hill Air Force Base UT 84056-5825 Contracting Officer: Rocky Tello Commercial: (385) 519-8203 Email:

PR Number: FD2020-19-00034

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

A. Upon approval to use other than full and open competitive procedures, DLA Aviation will issue a new contract to procure 63 each Fiber Optic Signal Conditioners (FOSC). This requirement is for support of the Minuteman III Intercontinental Ballistic Missile Environmental Control System sustainment program and will be used by the United States Air Force. The contract will be awarded to:

LumaSense Technologies

3301 Leonard Court Santa Clara, CA

95054-2054

CAGE: 4H3E0

B. Contract Type & Structure: A spares contract to procure a total quantity of 63 each with an anticipated Firm-Fixed-Price arrangement will be issued. The estimated award date is December 2018 with performance expected through December 2019.

C. Type J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED MEETING THE

AGENCY’S NEEDS:

A. The requirement is to procure 63 each Fiber Optic Signal Conditioners replacement spares, NSN 6030015456837/Part Number SQ10871L, at an estimated unit cost of $ each. The Fiber Optic Signal Conditioner translates fiber optic signal to an electrical signal which allows the Environmental Control System to track and report multiple temperatures throughout the facilities. The FOSC is located in several location within the HVAC systems of the Minuteman

III Missile Alert Facility and also the Launch Facility. Failure of this component will impact Weapon System availability and capability.

FY NSN Name Est. Qty Price/Unit Ext. Price 2019 6030 01 545 6837 Modulator, Light Sig 63 $ $

B. Total estimated cost is: $ This estimate is based on USAF mission requirements of the past 2 years and the computed by the D200 Requirements Determination System. This action will use 4930 FC04 working capital funds. Since the government does not control the design or own the data required to manufacture the Fiber Optic Signal Conditioner, there are no feasible actions that could develop future competition as referenced in Section V, paragraph C below.

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 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 AUTHORITY CITED

ABOVE (APPLICABILITY OF AUTHORITY):

A. The above authority was selected because the government does not own the data or rights needed to procure the Fiber Optic Signal Conditioner from additional sources.

B. The Contracting Officer contacted Lumasense on 22 May 2018 to request if Lumasense would be willing to sell or license the manufacturing data needed to compete this requirement. On 24 May 2018 Eric Wallace from Lumasense responded that Lumasense cannot sell or license the data.

C. The 414 SCMS/GUMBB Engineer has determined that it would be uneconomical to reverse engineer the FOSC and that it would cost approximately $ to complete the effort.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE:

A. A combined Request for Information and Sources Sought Synopsis (RFI/SSS) SPRHA2-18-R-6837 was posted to FedBizOpps.gov on 22 May 2018. The RFI/SSS closed on 5 June 2018. The contracting office did not receive any responses.

B. Other actions: None

C. Qualifying Country Sources: None

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE:

The following steps will be taken to ensure that the anticipated cost of this acquisition will be fair and reasonable. The Contracting Officer will comply with the procedures and criteria contained in Federal Acquisition Regulation (FAR) under Part 30 - Cost Accounting Standards, Part 31 - Contract Cost Principles and Procedures, Subparts 15.4 - Contract Pricing; to include technical evaluations and audits, as appropriate. Additional steps to ensure price reasonableness will be under the guidance of the Contract Pricing Reference Guides, jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology. The Contracting Office will obtain certified cost and pricing data IAW FAR Subpart 15.403. The final step is to include the Price Negotiation Memorandum (PNM). This detailed documentation and justification of price reasonableness will be disclosed in the official PNM, to be prepared upon completion of negotiations.

VIII. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS,

OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED:

A. As described above, market research, in accordance with FAR Part 10, was conducted by a Sources Sought Synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. There were no interested sources.

B. In addition, the 414th SCMS/GUMB Integrated Product Team conducted market research that yielded the following results:

1. May 2018, a review of commercial catalogs, company literature, proprietary data rights and individual experience was initiated by IPT members. The review indicated no other alternate commercial item or non-developmental item (NDI) will meet the requirement, nor can the requirement be modified to permit use of existing commercial items or NDIs.

2. May 2018, contacted knowledgeable individuals in Government regarding market capabilities to meet requirements. The USAF IPT consisting of the ICBM Program Manager, Item Manager, and System Engineer, through market research and years of combined professional knowledge of the ICBM weapon system, have concluded with a high level of confidence that there are no additional sources capable of meeting the government’s needs.

3. May 2018, a review of the procurement history for this NSN identified LumaSense Technologies, as being the only manufacturer utilized for procurement of this item.

4. May 2018, the Government Purchase Request Process System (PRPS) was also searched using the item’s NSN, in which the results showed the only approved source as LumaSense Technologies. Additionally, the 761 AMC/AMSC Screening Analysis Worksheet lists LumaSense Technologies as the only approved source. The search did not yield any additional approved sources.

5. May 2018, a search and review of the below internet sites was accomplished in which no viable, authorized manufacturing sources were identified.

- Google (http://www.google.com)

- ThomasNet (http://www.thomasnet.com)

C. Based on the market research conducted, there is a high level of confidence that there are no additional sources capable of satisfying the agency's need for this proprietary item nor are there any other commercial or no developmental items which could be utilized or which could be modified to meet the needs of the government.

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

OPEN COMPETITION:

The 414 SCMS/GUMBB Engineer declares that this item has been identified as “commercial” per FAR part 2.101 and DoD Commercial Item Handbook. This determination simply means that LumaSense provides this item to customers within the commercial marketplace and that the commercial pricing data can be used as a baseline to determine fair pricing. It does not mean the commercial marketplace currently has a substitute for this item that could functionally replace it with little to no modifications. During the commerciality review it was determined that the commercial marketplace does not offer such a replacement.

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 Air Force regularly inquires the manufacturers in regards to sharing or selling the proprietary data rights for use in free and open solicitations. Furthermore, the Air Force regularly performs analysis to determine the feasibility and cost effectiveness of reverse engineering the proprietary technology.

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)).