JA FD2030-21-02528_Redacted.pdf

FD2030-21-02528

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

United States Air Force

AFSC/PZA

3001 Staff Drive

Tinker AFB, OK 73145

Purchase Request (PR) # FD2030-21-02528 (USAF)

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

This individual Justification and Approval (J&A) authorizes the use of other than full and open competition procedures to obtain a follow-on sole source firm-fixed price requirements type contract. The contemplated contract is for the overhaul of the Non-commercial B-52 Engine Oil Temperature Indicator by Aerosonic LLC, Commercial and

Government Entity (CAGE) code 98810. This is not a bridge action. In accordance with

FAR Part 16, a Requirements Type contract consisting of a one (1)-year basic contract with six (6), one (1)-year options, is considered to be appropriate for this acquisition. The estimated total value of this award is with an estimated award date of

August 2022.

Previous Contract Number: FA8117-17-D-0027

Date of Award: 30 August 2017

Completion Date: 29 August 2022

Basis of Award: Sole Source

Awardee: Aerosonic LLC

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

Dollar values listed below reflect the anticipated value and Best Estimated Quantity

(BEQ). Under the contemplated contract, Aerosonic LLC will provide the overhaul of the B-52 Engine Oil Temperature Indicator, a service acquisition.

Estimated Dates Estimated Dollars

Basic 31 Aug 2022-30 Aug 2023

Option I 31 Aug 2023-30 Aug 2024

Option II 31 Aug 2024-30 Aug 2025

Option III 31 Aug 2025-30 Aug 2026

Option IV 31 Aug 2026-30 Aug 2027

Option V 31 Aug 2027-30 Aug 2028

Option VI 31 Aug 2028-30 Aug 2029

Total Contract 31 Aug 2022 - 30 Aug 2029

PR Line Item 0001

Overhaul of NSN: 6685-01-311-5064RK

P/N: 78000-11158-1

Noun: Indicator, Engine Oil Temperature

Application: B-52H

Function: 5.25 inches long X 2 inches wide X 2 inches high, weighing 1.125 lbs., and composed of a metal housing with electromechanical parts, circuit boards, resistors, capacitors, electric motor, dial, and switches. The engine oil temperature indicator is used to monitor and display engine oil temperatures from the engines.

Type of Appropriation: 97X4930

Total Estimated Dollars for PR Line Item 0001:

Year BEQ Unit Price Estimated Dollars Period of Performance

Basic 41ea 31 Aug 2022-30 Aug 2023

Option I 35ea 31 Aug 2023-30 Aug 2024

Option II 35ea 31 Aug 2024-30 Aug 2025

Option III 35ea 31 Aug 2025-30 Aug 2026

Option IV 35ea 31 Aug 2026-30 Aug 2027

Option V 35ea 31 Aug 2027-30 Aug 2028

Option VI 35ea 31 Aug 2028-30 Aug 2029

PR Line Item 0002

Over and Above (O&A)

O&A is to be negotiated (TBN) on an as needed basis. It is estimated by using 10% of the total estimated overhaul dollars based on historical requirement.

Type of appropriation: 97X4930

Total Estimated Dollars for PR Line Item 0002:

Year BEQ Unit

Price

Estimated Dollars Period of Performance

Basic TBN TBN 31 Aug 2022-30 Aug 2023

Option I TBN TBN 31 Aug 2023-30 Aug 2024

Option II TBN TBN 31 Aug 2024-30 Aug 2025

Option III TBN TBN 31 Aug 2025-30 Aug 2026

Option IV TBN TBN 31 Aug 2026-30 Aug 2027

Option V TBN TBN 31 Aug 2027-30 Aug 2028

Option VI TBN TBN 31 Aug 2028-30 Aug 2029

PR Line Item 0003

Over and Above (SURGE Expedite Fee)

Is negotiated on an as needed basis for SURGE. The O&A Expedite Fee is estimated at

25% of the total overhaul dollars.

Type of appropriation: 97X4930

Total Estimated Dollars for PR Line Item 0003:

Year BEQ Unit

Price

Estimated Dollars Period of Performance

Basic TBN TBN 31 Aug 2022-30 Aug 2023

Option I TBN TBN 31 Aug 2023-30 Aug 2024

Option II TBN TBN 31 Aug 2024-30 Aug 2025

Option III TBN TBN 31 Aug 2025-30 Aug 2026

Option IV TBN TBN 31 Aug 2026-30 Aug 2027

Option V TBN TBN 31 Aug 2027-30 Aug 2028

Option VI TBN TBN 31 Aug 2028-30 Aug 2029

PR Line Item 0004

Data

Data IAW DD1423 Contract Data Requirements List (CDRL) Commercial Asset

Visibility Air Force (CAV AF) Reporting.

Not separately priced

Total PR Estimated Dollars:

Due to the circumstances described below in Sections V, IX and XI, there are no additional actions that could be taken to develop competition. Therefore, it is considered appropriate to seek approval for more than one fiscal year’s requirements. If other qualified or approved sources become known at any time during the contract, competition will be utilized to the maximum extent possible.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 U.S.C. 2304 (c)(1), as implemented by FAR 6.302-1(a)(2)(iii), and required by FAR

6.303-2(b)(4).

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE

USE OF THE AUTHORITY CITED ABOVE (APPLICABILITY OF

AUTHORITY)

Aerosonic LLC., is currently performing this highly specialized service on the sole-source contract FA8117-17-D-0027. The Engine Oil Temperature Indicator, one unit per aircraft, provides individual engine oil temperature information to the aircrew and is therefore considered a specialized service on the B-52 weapon system. Aerosonic LLC., is the Original Equipment Manufacturer (OEM) for part number 78000-11158-1.

Aerosonic LLC., is the only known source with the special tooling/equipment, personnel, and technical data to satisfy the Air Force’s minimum needs. Therefore, this acquisition will be a follow-on contract for the continued performance of a highly specialized service.

The specific overhaul data for the Engine Oil Temperature Indicator including acceptance test procedures, specialized tools, and test equipment necessary to foster competition are not presently available to the Government. Although the Government realizes that it has unlimited usage rights to form, fit, and function data as well as data related to operation and installation, such data and rights are insufficient for purposes of meeting the Government’s overhaul needs as that data cannot be used to draft adequate specifications to overhaul the item or develop data needed to foster competition. Efforts by the Government to acquire data use rights from the OEM were unsuccessful.

Aerosonic LLC., declined to provide overhaul data in response to Rough Order of

Magnitude request on 31 August 2021.

The 422 SCMS believes that award to any other source would result in unacceptable delays in fulfilling the Air Force’s requirement. Due to the unavailability of overhaul data necessary to develop other sources and the Government does not expect that another source could be qualified in time to avoid unacceptable delays in meeting the

Government’s requirement. Once a source approval request (SAR) is submitted by a vendor, a period of 3 years can be required to process and validate an alternate supplier’s approach. As the Government is not aware of any vendor SARs at present to initiate this process, the proposed sole-source approach is the Air Force’s remaining alternative to execute the requirement between now and the need date for the overhaul item. If deliveries do not begin by 29 August 2022, the B-52 would be impacted immediately with Mission Impaired Capability Awaiting Parts (MICAP) or backorders materializing within weeks. This has the potential of grounding the B-52 and leaving the Air Force unable to meet critical mission requirements.

Additionally any efforts to reverse engineer the overhaul process is estimated to take a minimum of 5 years from the initiation of a CSAG (Consolidated Sustainment Activity

Group) Sustaining Engineering project. This timeframe includes the budget request period, purchase request processing, contract negotiation and award, period of performance, qualification testing of the reverse engineering process and source qualification. A cost estimate to complete this project has not been generated due to the unknown nature of some of the project’s elements such as securing Government use rights to the technical data, lack of historical project cost information for similar equipment and the scope of qualification testing required to ensure operations safety, suitability and effectiveness.

Accordingly, Aerosonic LLC., is the only vendor capable of providing the overhaul services described in Section III above without the Air Force experiencing unacceptable delays in fulfilling its B-52 mission readiness requirements.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

This requirement will be synopsized in https://sam.gov website as a notice of proposed contract action IAW FAR 5.201. It was posted under reference number FA8117-21-SS-

0016 on 16 August 2021 for 30 days. The Sources Sought Synopsis (SSS) included the

NSN, part number, and overhaul quantity along with requested information. This is pursuant to FAR 10 in support of market research to identify potential sources for overhaul. It closed on 18 September 2021. No responses were received. This requirement will be synopsized on https://sam.gov as a notice of proposed contract action IAW FAR

5.201. The expected date of publication is 18 February 2022.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE

The Contracting Officer will ensure that the items described herein are negotiated at a fair and reasonable price to the Government. IAW FAR as supplemented, the contractor will be required to submit Other Than Certified Cost or Pricing Data. A detailed cost analysis will be performed. The Contracting Officer will request a technical evaluation from the

Defense Contract Management Agency (DCMA) to aid in the evaluation of the contractor’s proposal if necessary. The Contracting Officer will seek audit assistance from the Defense Contract Audit Agency (DCAA) if necessary.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH

WAS NOT CONDUCTED

Market research, in accordance with FAR 10.001 and 10.002, was conducted by a multi-functional team consisting of the Item Manager, Equipment Specialist, Logistics Officer, and Engineer. This research included inquiries using Google search for part number and noun. A review was also conducted for the temperature indicator in Parts Manufacturer

Approvals (PMA) along with the Thomas Register, Haystack, and similar item manufacturer’s websites resulting in identifying other companies that perform similar efforts but none possess the applicable OEM technical data and test equipment required to overhaul to the Government’s specifications. Research was conducted over a period ending 30 September 2021. This is a non-developmental item that is a military unique requirement. Additional market research is not expected to reveal any new sources. Other sources manufacture similar items but none have been identified as having access to the data described in Section V necessary to meet the requirement described in Section III.

Further, this requirement cannot be modified nor be satisfied with a commercial or modified commercial item.

A Sources Sought Synopsis was also conducted; see Section VI for more details. Based on this market research, Aerosonic LLC., was found to be the only source able to fulfill the requirement described in Section III.

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

OPEN COMPETITION

The Government does not have the capability to qualify additional sources for this overhaul due to lack of source qualification data and Aerosonic LLC., is the only known source that can meet the Government’s overhaul needs. Due to the lack of overhaul technical data and qualification requirements, the Government does not expect that another source could be qualified in time to avoid unacceptable delays in meeting the

Government’s requirement. Lengthy delays involving cost and time to develop additional sources is discussed in section V. Efforts by the Government to acquire a license from the

OEM have been unsuccessful. The most recent attempt by the Government to acquire the data or the rights to the data occurred on 27 August 2021 when the Logistics Manager sent the OEM a letter requesting rights regarding technical, manufacturing and maintenance data. The OEM responded on 31 August 2021 stating they are willing to continue to provide overhaul services and build new units if required, but have no interest in selling any intellectual property.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE

ACQUISITION

Aerosonic LLC (CAGE 98810)

1212 N Hercules Ave

Clearwater, FL 33765-1920

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

As a result of continued refusal by the sole source contractor to provide or license data as well as unacceptable delay of developing additional sources per Sections V and IX, there are no known additional actions which can be taken to remove barriers to competition and therefore, specific actions and milestones cannot be established.

Per PGI 206.304(a)(S-70) - As indicated by signature on the Coordination and Approval

Document, the previous J&A has been reviewed and the Approval Authority determines that all stated actions to remove barriers to competition have been accomplished.

XII. CONTRACTING OFFICER’S CERTIFICATION

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. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

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.