JA FD2030-22-00055 - REDACTED.pdf

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): FD2030-22-00055

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 new follow-on firm-fixed price requirements type contract.

The contemplated contract is for a repair service of the KC-135 Attitude Indicator from the OEM L3 Aviation Products, Inc., Commercial and Government Entity (CAGE) code 25583. This is a commercial acquisition and is not a Bridge Action. In accordance with (IAW) FAR Part 16, a one-year basic contract with four one-year options is considered to be appropriate for this acquisition. The estimated total value of this award is $9,575,234.00 with an estimated award date of August 2022.

Previous Contract: FA8117-17-D-0019 Award Date: August 11, 2017 Completion Date: August 10, 2022 Contractor: L3 Aviation Products, Inc.

Value: $9,780,900.00

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

AGENCY’S NEEDS(INCLUDING THE ESTIMATED VALUE)

Under the contemplated contract, L3 Aviation Products, Inc. will perform repair services of the KC-135 Attitude Indicator.

Contract Summary Year Estimated Dollars Estimated Period of Performance Basic $ 11 Aug 22 - 10 Aug 23 Option I $ 11 Aug 23 - 10 Aug 24 Option II $ 11 Aug 24 - 10 Aug 25 Option III $ 11 Aug 25 - 10 Aug 26 Option IV $ 11 Aug 26 - 10 Aug 27 O&A $ 11 Aug 22 - 10 Aug 27 O&A (Expedite Fee) $ 11 Aug 22 - 10 Aug 27 Total Contract $ 11 Aug 22 - 10 Aug 27

PR Line Item 0001 – Minor Repair Repair of NSN: 6610-01-452-2715 P/N: 501-1817-01 Noun: Indicator, Attitude Application: KC-135 Item description and function: 9.325 inches long X 3.315 inches wide X 3.315 inches high, weighing 5 lbs., and composed of non-corrosive aluminum alloy with electronic component. The Attitude Directional Indicator (ADI) is a hermetically sealed, integrally lighted aircraft navigational instrument. The ADI provides the pilot indications of the aircrafts pitch and roll attitude.

Year Quantity Unit Price Estimated

Dollars Estimate Period of

Performance Basic 50 $ $ 11 Aug 22 - 10 Aug 23 Option I 40 $ $ 11 Aug 23 - 10 Aug 24 Option II 40 $ $ 11 Aug 24 - 10 Aug 25 Option III 40 $ $ 11 Aug 25 - 10 Aug 26 Option IV 40 $ $ 11 Aug 26 - 10 Aug 27

Type of appropriation: 97X4930 Total estimated dollars for PR line item 0001: $

PR Line Item 0002 – Major Repair Repair of NSN: 6610-01-452-2715 P/N: 501-1817-01 Noun: Indicator, Attitude Application: KC-135 Item description and function: 9.325 inches long X 3.315 inches wide X 3.315 inches high, weighing 5 lbs., and composed of non-corrosive aluminum alloy with electronic component. The Attitude Directional Indicator (ADI) is a hermetically sealed, integrally lighted aircraft navigational instrument. The ADI provides the pilot indications of the aircrafts pitch and roll attitude.

Year Quantity Unit Price Estimated

Dollars Estimate Period of

Performance Basic 160 $ $ 11 Aug 22 - 10 Aug 23 Option I 130 $ $ 11 Aug 23 - 10 Aug 24 Option II 130 $ $ 11 Aug 24 - 10 Aug 25 Option III 130 $ $ 11 Aug 25 - 10 Aug 26 Option IV 130 $ $ 11 Aug 26 - 10 Aug 27

Type of appropriation: 97X4930 Total estimated dollars for PR line item 0002: $

PR Line Item 0003 – No Fault Found (NFF) Repair of NSN: 6610-01-452-2715 P/N: 501-1817-01 Noun: Indicator, Attitude Application: KC-135 Item description and function: 9.325 inches long X 3.315 inches wide X 3.315 inches high, weighing 5 lbs., and composed of non-corrosive aluminum alloy with electronic component. The Attitude Directional Indicator (ADI) is a hermetically sealed, integrally lighted aircraft navigational instrument. The ADI provides the pilot indications of the aircrafts pitch and roll attitude.

Type of appropriation: 97X4930

Cost for NFFs is less than the cost for repairs. Costs for NFFs are paid via re-alignments that de-obligate funds from the repair CLINs. No cost estimation is necessary.

PR Line Item 0004 – Over and Above (O&A) Over and above (O&A) is to be negotiated (TBN) and is estimated by using 5% of the total estimated repair dollars of line items 0001 and 0002.

Type of appropriation: 97X4930 Total estimated dollars for PR line item 0004: $

PR Line Item 0005 – O&A (Surge Expedite Fee) An increment of 5% is included in the dollar estimate to address any impact on (funds, quantity, services, period of performance etc.) which may arise due to any possible surge requirements associated with this acquisition.

Type of appropriation: 97X4930 Total estimated dollars for PR line item 0005: $

PR Line Item 0006 - Data Data IAW DD 1423 Contract Data Requirements List (CDRL) Commercial Asset Visibility Air Force (CAV AF) Reporting Not separately priced

Due to the circumstances described below in Sections V, IX, and XI, there are no immediate actions that could be taken to develop competition. Therefore, it is considered appropriate to seek approval for more than one year. If other qualified or approved sources become known during the life of this contract, full and open competition will be considered and utilized to the maximum extent practicable.

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).

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE

USE OF THE AUTHORITY CITED ABOVE (APPLICABILITY OF

AUTHORITY)

L3 Aviation Products, Inc. is the Original Equipment Manufacturer (OEM) and is the only known source that has unique capabilities such as data, parts, expertise, tools, facilities, and test equipment necessary to sufficiently meet the Government’s minimum need. L3 Aviation Products, Inc. currently performs repairs on sole-source contract FA8117-17-D-0019 due to expire in August 2022. The anticipated contract is a follow-on for repair services. Although the Government realizes that it has unlimited usage rights to form, fit and function data as well as data related to operation, maintenance, installation, and training, such rights are insufficient for purposes of meeting the Government’s needs. Therefore, this acquisition is for the continued performance of a highly specialized service.

The Attitude Directional Indicator (ADI) is a hermetically sealed, integrally lighted aircraft navigational instrument that consists of highly specialized electronic equipment as that provides the pilot indications of the aircrafts pitch and roll attitude. Required technical data, drawing packages, and acceptance test criteria needed to foster competition to repair the Attitude Indicator is not available to the Government presently and it is not possible to draft adequate specifications for competitive repair. The most recent attempt by the Government to acquire the data or rights to the data occurred on August 2, 2021, when the 422 SCMS sent L3 Aviation Products, Inc. a Rough Order of Magnitude (ROM) requesting a Firm-Fixed price estimate for the sale of rights regarding technical, manufacturing, and maintenance data for KC-135 Attitude Indicator. The OEM responded on August 12, 2021, declining to sell data as it is still active on multiple programs.

The 422 Supply Chain Management Squadron (SCMS) believes that award to any other source would result in unacceptable delays in fulfilling the Air Force’s requirements. Potential vendors are subject to qualification requirements and the SAR process. Based on similar workloads it’s estimated that it would likely take 3-5 years for another source to obtain the necessary capability resulting in increased MICAP incidents and ultimately grounding the KC-135 fleet. The development of an additional source to produce this item is not feasible within the scope and timeframe of this repair. The Small Business (SB) Office was contacted on August 27, 2021, at this time there are no Source Approval Request (SAR) evaluations in process and no new SAR packages have been submitted. The OEM has the potential to approve and license other suppliers for its products however, no additional suppliers have been identified by the OEM.

Additional information can be found in Section IX.

Accordingly, the L3 Aviation Products, Inc. is the only source capable of providing the requirements described in section III above without the U.S. Air Force experiencing unacceptable delays in fulfilling its requirements.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

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

This requirement will be synopsized in https://SAM.gov as a notice of proposed contract action IAW Far 5.201. A Sources Sought Synopsis (SSS) reference number FA8117-21-SS-0013 was posted on July 26, 2021 in support of market research to identify potential repair sources. The SSS closed on August 26, 2021 and no responses to the solicitation were received.

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 Certified Cost or Pricing Data and/or Other Than Certified Cost or Pricing Data. A detailed cost analysis and price 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. 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

As described in Section VI above and IAW FAR Part 10, market research was conducted on July 26, 2021 by Sources Sought Synopsis. Additionally, a multi-functional team consisting of the Engineer, Contracting Officer, and Production Management Specialist conducted market research including inquiries of available data systems, such as Parts Manufacturer Approvals, HAYSTACK, and web sites. Searches conducted did not yield any additional sources for the repair of the Attitude Indicator. As a result, L3 Aviation Products, Inc. (Cage 25583) is the only approved source to meet this repair requirement and is identified in the Contract Repair Screening Analysis Worksheet (CRSAW).

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

OPEN COMPETITION

No further information https://beta.sam.gove/

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITION

L3 Aviation Products, Inc. CAGE: 25583 5353 52nd St SE Grand Rapids, MI 49512-9702 Phone: (616) 285-4206

See section VI for more details.

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. 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.