ID05180043_Limited_Source_Justification_Redacted.pdf

ID# ID05180043

Limited Source Justification Under Multiple Award Contract for Federal Supply Schedules (FSS) when fair opportunity is not provided IAW FAR 8.405-6

1. Requiring Agency and Contracting Activity Requiring Agency: Air Force Life Cycle Management Center/EBHCC 6033 Elm Lane, Bldg. 1247 Hill AFB, UT 84056-5825

Contracting Activity: General Services Administration, Region 5 Federal Acquisition Service 1734 Corporate Crossing, Suite #2 O’Fallon, IL 62269-3734

2. Nature and/or Description of the Action Being Approved:

This is a Limited Sources Justification to procure AN/USM-715 Rocket Launcher Test Sets, against GSA Schedule 66 contract, necessary to meet the mission of Air Force Life Cycle Management Center (AFLCMC)/EBHCC. The resultant delivery order will be firm fixed price for commodities. A quantity of 84 test sets shall be delivered within 12 months from date of award with an optional CLIN to order up to an additional 84 test sets within 6 months from date of award. The Government worked in conjunction with Science Applications International Corporation (SAIC) to develop the initial test sets and the Government has unlimited rights to the technical data package (i.e. schematics of the test sets). No other product will be acceptable based upon mission.

3. Description of the Supplies/Services Required to Meet Agency’s Need:

The AFLCMC is the single center responsible for total life cycle management of Air Force weapon systems under the Air Force Materiel Command. Currently, an Urgent Operational Need (UON) is in place to acquire and support the Advanced Precision Kill Weapon System (APKWS) 2.75” rocket system for the Air Force. As a result, older Mk III and Mk IV rocket launcher testers are unsupportable and of insufficient quantities to support new Air Force requirements. After thorough research, it was discovered that the United States (U.S.) Navy developed a replacement tester that is more robust, versatile and easier to use than the previous versions. Working in conjunction with the weapons system test set owners at NAVAIR Lakehurst; a rocket launcher test set was developed by SAIC and was identified as product AN/USM-715 (P/N 3982AS100-1, NSN 4933-01-566-1364). As part of the development effort, a manufacturing drawing was developed for the AN/USM-715, and a quantity of 210 were developed for use by the U.S. Navy and Marines. This technical data package is owned by the U.S. Navy and has been procured, field tested and used by the Navy for years. The Air Force evaluated this tester and found it to be a great fit for the requirements. Additionally, the Navy and Air Force can benefit from economies of scale if future requirements deem more testers are needed. This acquisition will not result in the procurement of any weapons systems.

As discussed above, AFLCMC approached the U.S. Navy regarding their requirement that supports the Air Force’s UON. The Navy loaned them a test set initially to see if it would meet their need. The Air Force tested the product and found that it met their need and urgent fielding schedule in response to their UON. AFLCMC/EBHCC is in need of at least 84 of these test sets at an estimated combined value of to fill this UON. Additional units may be needed, but the quantity is unkown at this time. An optional quantity CLIN will be included for up to an additional 84 test sets. The total life cycle of this purchase is estimated at with the optional CLIN inclusion. In addition to that need, the initial 84 units are needed within 12 months of date of award to fill the UON. The Navy does not have the ability to fulfill the immediate need of the AFLCMC as they do not have the quantity of test sets required. As such, this requirement is needed to be solicited and fulfilled by the commercial marketplace. To date though, only one Original Equipment Manufacturer (OEM), SAIC, has manufactured these items. Furthermore, SAIC only has one authorized reseller of these items, Technical Communities, Inc., DBA TestMart. TestMart has recently added the AN/USM-715 to their GSA Schedule GS-24F-0066M and it was confirmed that it is available on their schedule.

4. Authority and Rationale for Limiting Sources and a Demonstration of the Contractor’s Unique Qualifications This action is being proposed using the authority cited in FAR 8.405-6(a)(1)(i)(B) Limiting sources, which states that “Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized”.

The Air Force has an urgent requirement for these test sets. The Navy does not have spare test sets to satisfy the Air Force’s need; therefore, an acquisition of these items is required. The Region 5 GSA Office has taken all necessary and reasonable actions to prepare for a timely quote of the required test sets, receiving no responsive responses to the Government’s posted sources sought notice (see section 6 for a detailed description of market research conducted).

As this is a specialized military product that has design specifications that required extensive developmental stages, another contractor could not build these particular items and accomplish the required prototype and security processes in the time required by the UON. To date, SAIC is the only OEM that has successfully developed and deployed these items for use by the Government. SAIC only authorizes one reseller of this product and that is TestMart. TestMart currently has these items on their GSA Schedule 66, Special Item Number (SIN) 602-40 (Avionics Test Equipment). Additionally, SAIC has confirmed that due to the uniqueness and design specifications involved, the lead time for such items is 10-12 months from time of award.

TestMart has partnered with the OEM, SAIC, for this developed item and can meet the required delivery date as the only reseller of this product. Although this is a Government owned data package, there is no other contractor that would be able to set up production, order parts, manufacture, qualify its product and pass all necessary testing in time to meet the timeline for the U.S. Air Force’s UON. It would take approximately 2 years for another contractor to go through the following processes: pre-planning activities based upon being familiar with the Government provided technical data package, set up initial prototype development, testing and acceptance of that prototype by the Government, and full production and delivery of the 84 test sets required. In addition to this additional ramp-up time required for another contractor to get up to speed with development and production; there would be a duplication of costs associated with that ramp-up estimated at . This gross estimate is based upon the Navy’s technical expertise and the initial developmental costs of approximately for this particular item when initially procured from TestMart/SAIC. Although a full development would not be needed at this point due to the Navy owning the technical data package, there would be a significant monetary investment by another contractor in setting up a production line, completing test and acceptance, and implementing final production of the quantity needed by the Air Force.

The AN/USM-715 Rocket launcher testers will be used by Air Force Munitions and Weapons personnel to test, evaluate serviceability, and help repair various rocket launchers, to include the LAU-131A/A. If this requirement is not fulfilled, the Air Force will be unable to sustain operations utilizing the critical APKWS. Older testers will inevitably become unserviceable and are incapable of being repaired. This would prevent testing and repair of APKWS rocket launchers. Furthermore, new requirements for other squadrons to use this system will not be met due to insufficient quantities of old testers available. The warfighter will be hampered by being limited or completely unable to utilize this significantly less expensive and low-collateral damage weapon system. As such, the test sets provided through this task order are essential to meeting the Air Force’s mission.

5. Determination by the Ordering Activity Contracting Officer that the Order Represents the Best Value Consistent with FAR 8.404(d):

There is only one source capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized. Based on an Independent Government Cost Estimate (IGCE) that was developed utilizing historical prices paid for by the U.S. Navy and in the quantities being requested; prices for these items will be significantly discounted from TestMart’s GSA Schedule unit price of as listed on Schedule 66 (SIN 602-40) which has been found to be fair and reasonable. Based on the RFI request, TestMart responded with an unofficial quote offering a unit price of .

6. Description of the Market Research Conducted among the Schedule Holders and the Results of the Research:

In compliance with the GSA Memorandum, Preferred Use of Existing GSA Contract Vehicles (dated Sept. 17, 2012), which requires GSA employees to use existing GSA acquisition vehicles for new contracts, a sources sought notice was posted on the GSA eBuy and FedBizOpps website on June 14, 2018. It was sent to over 14 Federal Supply Schedule 66 (SIN 602-40) contractors and to an unknown number of companies using FedBizOpps (FBO). In response to the RFI, one response was received from TestMart via GSA eBuy and two responses from the FBO announcement from

Although two responses were received based upon the technical data package provided within the RFI, neither company sufficiently addressed the additional testing requirements (i.e. addressing the Factory Acceptance Test Procedures, Environmental Stress Screening, and calibration requirements) associated with not manufacturing this item previously and how that relates to the Air Force’s required delivery date. All of the testing information was provided within the technical data package provided to both parties. Due to the limited information with regards to testing and delivery, it was determined that both sources were not viable sources for competition and mission purposes. The only remaining source was TestMart, who is partnered with the OEM of this product and it was confirmed that the item is on their GSA Schedule 66 (SIN 602-40). As such, GSA will utilize the schedule to fulfill this requirement and therefore be in compliance with the GSA policy.

7. Any Other Facts Supporting the Justification:

None.

8. Statement of the Actions the Agency May Take to Remove or Overcome any Barriers that Led to the Restricted Consideration Before Any Subsequent Acquisition for the Supplies or Services is Made:

There are no other sources available for the AN/USM-715 Rocket Launcher Test Set purchase at this time. If additional test sets are required at a later date, GSA will assess whether competition for future requirements is feasible and cost effective.

9. Technical/Requirements Certification I certify that the supporting data under my cognizance which are included in the Limited Sources Justification are accurate and complete to the best of my knowledge and belief.

Date

10. Contracting Officer’s Certification The contracting officer’s signature on the signature page evidences that she has determined this document to be both accurate and complete to the best of her knowledge and belief.

Contracting Officer Contracting Division, R5 FAS

11. Review and Approval:

Supervisory Contracting Officer Contracting Division, R5 FAS

Director, Assisted Acquisition Services, R5 FAS

Assistant Regional Counsel Date General Services Administration, 5L

Director, Contracting Division, R5 FAS

APPROVAL:

Deputy Regional Commissioner, R5 FAS Competition Advocate