JA 20-00003 Ontic_Redacted.pdf

FOR OFFICIAL USE ONLY

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

FOR OFFICIAL USE ONLYMarch 2018 Page 1 of 6

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: AFMC/PZAAA

Purchase Request / Local ID Number: FD2060-20-00003

Program / Project (and PE, if applicable): HH-60 Fuel Quantity Indicator

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) ) ** The text in the signature blocks below is editable, including the title.

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APPROVAL (AFFARS 5306 . 304 ( a) )

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.

2/22/2019

2/22/2019

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Contracting Activity.

This Justification and Approval is to request authority for Other Than Full and Open Competition supporting requirements generated for the Air Force Sustainment Center (AFSC), 638th Supply Chain Management Group (SCMG), 411th Supply Chain Management Squadron (SCMS)/GULAB. The contracting activity for this requirement is AFSC/PZAAA. The purchase request number supporting this contracting action is FD2060-20-00003.

Nature and/or description of the action being processed.

Due to the circumstances described herein, the activity requests authority to acquire the repair services listed in the document using Other Than Full and Open Competition as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This action will result in the award of a new contract, which will be a Firm Fixed Price requirements contract with a basic one-year plus four (4) one-year O Periods. The period of performance (PoP) is projected to be 19 May 20 through 18 May 202 . This sole source requirement will be purchased from the following company:

Ontic Engineering and Manufacturing 20400 Plummer Street Chatsworth, CA 91311

725-2379

CAGE: 45934

Large Business POC: Marlene Walsh E-mail: marlene.walsh@ontic.com

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

This requirement is for the repair of the HH-60 Fuel Quantity Indicator (FQI). The planned acquisition is a five-year contract in sic one-year period and four one-year o periods with an estimated value of The FQI is used on the HH-60 Helicopter in the United States Air Force (USAF). T vice life for the FQI is 2024.

National Stock Number (NSN) 6680-01-442-1888GC, Part Number (PN) 9280752-002 is the Master NSN of the FQI and is interchangeable with NSN 6680-01-442-3181GC, PN 9280752-003. The Screening Analysis Worksheets indicated Repair Method Code (RMC)/Repair Method Suffix Code (RMSC) 3/R for this NSN. The RMC 3 indicates repair for the second or subsequent time directly from the actual manufacturer. The RMSC R indicates that the Government does not own the data or the right to the data needed to compete the contract for repair of this part among other sources. This is a military unique item so FAR 12 does not apply.

The total estimated amount of this acquisition based on best estimated quantity (BEQ) is The estimated cost is based on pricing data from the Ontic Engineering and Manufacturing website. The out-year o period(s) Deliveries are expected to begin 30 days After Receipt of Order (ARO), or delivery of assets, whichever is later.

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O Period NSN Part Number CLIN

Type Quantity Price Total Price

Basic 6680-01-442-1888 9280752-002 Repair 11

NFF/BER 1

6680-01-442-3181 9280752-003 Repair 17

NFF/BER 1

I 6680-01-442-1888 9280752-002 Repair 11

NFF/BER 1

6680-01-442-3181 9280752-003 Repair 17

NFF/BER 1

II

6680-01-442-1888 9280752-002 Repair 11

NFF/BER 1

6680-01-442-3181 9280752-003 Repair 17

NFF/BER 1

III

6680-01-442-1888 9280752-002 Repair 11

NFF/BER 1

6680-01-442-3181 9280752-003 Repair 17

NFF/BER 1

IV

6680-01-442-1888 9280752-002 Repair 11

NFF/BER 1

6680-01-442-3181 9280752-003 Repair 17

NFF/BER 1

TOTAL

Depot Maintenance Interservice (DMI) document #10-0127 was issued on 9 July 2010. The DMI decision designated the workload as contract repair.

Below are the previous awarded contracts:

Emergency Repair Contract FA8524-12-M-0014 awarded 12 Jun 2012 for five each repairs to Ontic Engineering and Manufacturing (referenced as Ontic) Small Purchase Repair Contract FA8524-12-M-0005 awarded 10 Jul 2012 for 41 each repairs to Ontic Two-year Repair Contract FA8524-13-D-0005 awarded 15 May 2013 for 98 each repairs to Ontic A five-year Repair Contract FA8524-15-D-0007 awarded 15 May 2015 to Ontic for estimated

Ontic is a large business and is known under CAGE 45934 and NAICS 332912. The RMSC has been 'R' on each of the previous contracts while the RMC has changed to reflect the repeated contract awards to actual manufacturer, Ontic.

This effort will be funded with Materiel Support Division dollars.

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

10 U.S.C. 2304(c) (1), as implemented by FAR 6.302-1, required by FAR 6.303-2(b) (4). Only one responsible source and no other supplies or services will satisfy agency requirements.

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

Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition.

Ontic is a large business based on NAICS 332912. Ontic owns all data required to meet the Government requirement. No other company has access to the data.

The Government owns top level drawings for cataloging and reference purposes only. The Government used military manuals to provide basic operational and reference information for the FQI.

Government data are insufficient for repair, testing and troubleshooting purposes. The technical manuals address component operation and use only.

Competing this requirement requires a full Technical Data Package that includes repair level drawings and specifications which are all proprietary to Ontic. Reverse engineering the FQI is not a viable option as the replacement FQI is scheduled to be fielded by 2024.

Accordingly, Ontic is the only firm capable of providing the supplies and services described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition.

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

The requirement will be synopsized in Federal Business Opportunities (FBO) in accordance with FAR

5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Although the Government does not own data to support acquisition of this repair effort from any other source, any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

The Government requested Ontic provide or sell the required data to repair and test this component via email on 29 August 2018. Ontic confirmed willingness to continue repairing the FQI on a future contract and to maintain repair capability for the future. Ontic refused the data request via email on 29 August 2018.

The Government issued a Request for Information on 31 July 2018 via FBO. The posting FuelQtyIndicator-20-00003 closed on 15 August 2018. There were no responses to the RFI.

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

The overall cost of this acquisition will be fair and reasonable to the Government. The contract price will be negotiated in accordance with the procedures in FAR Part 15 ensuring the ultimate cost to the Government is fair and reasonable.

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

The Integrated Production Team (IPT) performed market research in accordance with FAR Part 10 on 27 August 2018. The main methods of market research used were Internet searches and researching previous contract history. The System for Award Management (SAM) at https://www.sam.gov was used to find the North American Industry Classification System (NAICS) code at web address http:// www.census.gov/eos/www/naics/. The current NAICS is 332912. In addition the IPT searched Google and ThomasNet https://www.thomas.net.com using 'aircraft fuel quantity indicator.' JEDMICS and PDM Gateway were searched using the NSNs and PNs to determine what drawings and data are available. The IPT searched SBA Dynamic Small Business (SDSB Website: http:// dsbs.sba.gov) using 'aircraft fuel quantity indicator.'

An examination of the available technical data was conducted. A Federal Logistics Information System (FLIS) search was performed to determine if the item was available from different vendors who could serve as alternate sources of repair.

The Government attempted to remove competitive barriers by issuing a Request for Information (RFI) and requested data to repair and test the FQI. RFI FuelQtyIndicator-20-00003 was posted on Federal Business Opportunities (FBO) on 31 July 2018. The RFI closed on 15 August 2018. There were no responses to the

RFI.

These searches yielded five vendors located via ThomasNet but all five are manufacturers and/or distributors instead of repair facilities. SBA returned no small businesses. The Google search yielded no repair vendors.

The IPT reviewed the previous market research for the current contract. Only Ontic owns all data required to repair and test the FQI. No other vendors were located. The previous market research listed two possible vendors but neither owns the proprietary repair data for the HH-60 FQI.

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

None.

X. List of any sources that expressed, in writing, an 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 Government plans no future RFIs nor extensive market research to locate possible vendors due to the expected replacement data in 2024.

No additional actions are planned because the current FQI is being replaced. The expected completion date is 2024. The Government will not request data rights in the future nor pursue reverse engineering the current FQI. The current replacement plan will quickly reduce the number of current FQIs in use, reducing

FOR OFFICIAL USE ONLYMarch 2018 Page 6 of 6 the need for future contracts with the goal to totally eliminate contractual needs for the current FQI after 2024. Ontic will maintain repair capability should the Government require additional support if the replacement schedule is delayed.

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.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.

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