JA_21-30404_PBS4100 REV1_Redacted.pdf

Controlled Unclassified Information

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. Agency and Contracting Activity.

This Justification and Approval is to request authority using Other Than Full and Open Competition supporting requirements generated for Air Force Life Cycle Management Center (AFLCMC), Support Equipment and Vehicles Program Office (SE&V). The contracting activity for this requirement is AFLCMC/WNKAB. The purchase number supporting this contract is

FD2060-21-30404.

II. Nature and/or description of the action being approved.

Due to the circumstances described herein, the activity requests authority to acquire Portable Vibration and Balancing System (PBS4100) production and repairs using Other Than Full and Open Competition (OTF&OC) 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 follow-on contract, which will be a firm fixed price Requirement Indefinite Delivery Contract (IDC) with five (5) ordering periods (12 months each). Based on projected contract award date in Jan 2021, orders can be issued from Jan 2021 to Jan 2026.

This sole source requirement will be purchased from the following company:

MTI INSTRUMENTS, INC.

325 WASHINGTON AVENUE EXT

ALBANY, NY, 12205-5582

Cage Code: 97W70 Small Business

III. Description of the supplies/services required to meet agency needs (including the estimated value).

This requirement is for the procurement and repair of the Portable Vibration and Balancing System (PBS4100) National Stock Numbers (NSNs) 6635-01-630-9391 (PBS-4100+), 4920-01- 624-5966 (PBS-4100R), and repair of associated kits. The PBS-4100 and PBS-4100+ are currently used on nine Air Force jet engine applications which include the C-5, B-1, B-2, KC- 135, E-4, C-17, B-52, and A-10, as well as being compatible with existing accessory kits for the F108 and F117 programs.

The PBS-4100+ performs trim balance and vibration diagnostics frequency spectrum analysis, act as an oscilloscope/voltmeter and perform balance analysis. The PBS4100 uses aircraft or ground power and use engine pickups and engine speed signals for analysis on many types of gas turbine engines and other rotating machinery.

The PBS-4100+ collects and records the vibration data, calculating precise balance solution and determining the specific balance weights required. The system allows the user to select the engine type from an onscreen menu and recall data files for that engine type. Cable sets shall be specific to engine type for both engines mounted in aircraft and engines mounted in test cells.

Use of balancing system reduces time required to perform vibration analysis and trim balancing on United States Air Force (USAF) engines. USAF uses two NSN versions of MTI engine vibration tester. NSN 6635-01-630-9391 (PBS-4100+) is the portable system and NSN 4920-01- 624-5966 (PBS-4100R) is the rack mounted version. It is worth noting there are older NSNs still in use and if returned to MTI for repair they would be repaired to the latest configuration.

This follow-on acquisition is to support the repairs and new production of the Portable Vibration and Balancing System (PBS4100) which consist of the data acquisition unit, laptop, engine accessory kits, change amplifiers and cable sets. PBS4100 accessory kits will also be repaired under this contract. This contract will be for five (5) ordering periods (12 months each). The projected Best Estimated Quantities (BEQ) per a year are as shown below.

NSN In Unit Cost BEQ- Per Ordering

Period Basic Cost 1st Ordering Pd* 2nd Ordering Pd* 3rd Ordering Pd* 4th Ordering Pd*

6635-01- 630-9391 10 4920-01- 624-5966 1 Total Buy Contract 6625-01- 395-8180 5 6625-01- 502-6787 1 6625-01- 431-7920 3 6625-01- 563-6437 1 6625-01- 502-5175 1 6625-01- 502-5177 1 6625-01- 481-5997 2 6625-01- 502-5176 1 6625-01- 628-1987 3 6635-01- 563-5989 5 6635-01- 630-9391 15 4920-01- 624-5966 2

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

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

The Portable Vibration and Balancing System hardware, software, and data rights are proprietary to MTI. They are the original equipment manufacturer (OEM). Versions of the PBS4100 have been used successfully by the Air Force since the 1980's. The Portable Vibration and Balancing System is a MTI proprietary tester with specially designed and certified accessory kits used on USAF aircraft platforms.

Awards have been previously made to MECHANICAL TECHNOLOGY, INC., (Cage Code 26741) which is the parent company to MTI Instruments (CAGE 97W70). MECHANICAL TECHNOLOGY, INC has recently undergone a reorganization and changed its name to Solunda Inc. while maintaining the same CAGE. The reorganization also included a decision to make their operational company MTI Instruments (CAGE 97W70) who has historically performed the work under the parent company, the prime contractor instead of Solunda Inc. (CAGE 26741).

These companies have the same physical address.

The most recent contract to MTI is FA8519-16-D-0003, awarded 01 July 2016. This sole source contract expires 30 June 2021. The lapse in coverage for this item will be mitigated by completing requisitions currently in the system. The team is working to ensure that all requisitions are committed before the end of contract.

The expected life cycle of the PBS4100 is 20+ years. The PBS4100 series of testers: 1) Are the only systems officially qualified for USAF requirements; 2) includes diagnostics and troubleshooting software which has been tested and certified by the Air Force Jet Engine authority at Tinker Air Force Base; and 3) is currently in use by trained USAF-wide staff and documented in Air Force Technical Data.

The Portable Vibration and Balancing System is commercial, as it’s used by both Government and commercial avionic industry. This equipment is the only tester with highly specialized customized cables that allow complete interconnection on military aircraft. The Portable Vibration and Balancing System has capabilities not available in other products, including the ability to collect and store unique, historical engine-peculiar vibration data as well as accomplishing a precise balancing solution and determination of the specific weights after only a one-time engine run.

In order to reverse engineer the system, development money must be allocated to fund the effort.

It is the professional opinion of subject matter experts in Support Equipment and Vehicles Division and the end user, that the cost to reverse engineer or develop a Portable Vibration and Balancing System would be at a significant cost to the Government. The total developmental cost of a new or reverse engineered system is estimated to cost more than $37M based on estimations for similar reverse engineering efforts. This cost would include development, test reports, first article quality testing, the cost of legacy units to be used in reverse engineering, engineering hours, technician hours, test materials, laboratory and research equipment, and software programmers. This would be a duplication of cost the Government is not expected to recoup through competition.

The Air Force fielded over 225 PBS4100s which represents a sizable, pre-existing USAF investment of approximately core tests systems. This does not include the associated accessories kits to connect to individual engines. This is a significant investment and replacing the system with a new Portable Vibration and Balancing System would cause significant delays in procurement of the asset and would negatively impact mission readiness. A reverse engineering effort is expected to take 24 months to complete but only if the Government has the testing data to qualify a new source. During this period the Air Force would not be able to test the PBS-4100 used on the aircraft. Delays in meeting our mission requirements would cause a work stoppage.

PBS-4100+ technical data is proprietary to MTI. The technical data is required to build and maintain the equipment, and it is uneconomical for the Government to reverse engineer or procure rights. It is anticipated to cost $3M and take two years to reverse engineer the technical data.

MTI was contacted on 10 Dec 2020 with inquiry of their interest to sell the Technical Data Package (TDP), including software, hardware, drawings, accessory kits, cables and charge amplifiers. MTI responded on 11 Jan 2021 with quote of . The potential savings through competition could not be offset through competition over the anticipated lifespan of the PBS4100, therefore a procurement of the TDP is not economical.

MTI maintains the technical capabilities, facilities, and expertise needed to manufacture the PBS-4100. Accordingly, MTI is the only firm capable of providing the requirements described in Section III above without the USAF experiencing substantial duplication of cost that could not expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

VI. 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.

A Request for Information (RFI) was posted to beta.SAM on 14 July 2020 with a response date of 13 Aug 2020 under Solicitation Number FA8533-20-R-PBS41. The RFI requested responses from interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this effort. Two vendors responded to the RFI: MTI and Vet Met.

Vet Met did not provide any responses to the RFI questions but provided an overall capabilities sheet indicating that their main business was a distributor of medical equipment. The other respondent was OEM, MTI. The vendors were evaluated for their capability and MTI was determined capable and Vet Met not capable.

The requirement will be synopsized in beta.SAM in accordance with FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis.

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.

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 negotiated in accordance with procedures in FAR Part 12 and include a statement of price reasonableness confirming the ultimate price to the Government is fair and reasonable. Additional pricing methodologies to negotiate fair and reasonable price may include reviewing publicly offered catalogs, comparison to historical contractor sales, and/or analysis of limited cost or pricing information provided by the contractor.

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

Market research was conducted beginning 14 July 2020 and completed on 19 January 2021 in accordance with FAR Part 10.001 and 10.002. The market research techniques used are as follows:

As described in Section VI above, a RFI was posted to beta.SAM advising industry of the pending acquisition and soliciting inquiries from interested vendors. The RFI was posted on 14 July 2020 under Solicitation Number FA8533-20-R-PBS41. Two vendors responded to the RFI, including MTI. MTI provided the Government with documentation stating their interest in performing the task and validating their capabilities to perform the requirements outlined in the RFI. The other vendor, VetMed, was evaluated for their capability and determined to be not capable based on information indicating that they performed work outside of this field.

Queries were conducted within Government data bases and various internet searches (PDM Gateway, IHS Haystack, Purchasing Request Processing System, ILSmart, and JEDMICS) were performed of the NSN/part number/item description in search of potential sources.

A Small Business Administration Dynamic Small Business Search (DSBS) query was conducted utilizing North America Industry Classification System (NAICS) code 335899. This query produced 12 potential vendors. The vendors were determined to not have the experience necessary and are considered not capable of producing the item or able to procure the proprietary data from MTI.

The PBS4100 is considered a commercial item as defined in FAR 2.101. The PBS4100 is used by both the military and the commercial aviation industry.

The market research concluded that MTI is the only vendor capable of fulfilling the Government’s requirement for the PBS-4100.

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.

While the current market research indicates a sole source environment for the PBS4100, the Government will continue to engage with the OEM at least once prior to a follow-on contract to determine the feasibility of procuring the TDP and to monitor the marketplace to see if it would be viable to select a new commercial system due to sustainability issues with the PBS4100.

The only action which the previous J&A laid out was for Engineering to monitor the opportunity for a future reverse engineering effort as a viable option to secure this commercial tester. No opportunity was identified.

Based on fulfillment of the prior plan, the current J&A does not require higher level approval in accordance with DFARS PGI 206.304(a) (S-70) (ii).

XII. Certification by the Contracting Officer.

As evidenced by my signature above on the Coordination and Approval Document, 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 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.