JA NPS Corporation Redacted.pdf

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

FOR OFFICIAL USE ONLY

March 2020 FOR OFFICIAL USE ONLY Page 1 of 6March 2020 FOR OFFICIAL USE ONLY Page 1 of 6

Was a J&A approved for the preceding acquisition? Yes No

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined at AFFARS 5302.101? Yes No

Dollar Value of this Acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: Air Force Life Cycle Management Center Agile Combat Support Directorate Human Systems Division

(AFLCMC/WNUK)

Purchase Request (if available): F4FDAY0206A101 / FA8606-20-C-0024

Program / Project (and PE, if applicable): Expansion of Filtration Media Manufacturing Capacity of N95 Respirators and ASTM Level 1-3 Masks

Program Type (PEO, Enterprise, of Operational): COVID-19 Task Force

Authority: 6.302-2 – 10 USC 2304(c)(2), Unusual and Compelling Urgency

Estimated Contract Cost (including options): $ 2,750,000 (NTE) J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

28 Jul 2020

March 2020 FOR OFFICIAL USE ONLY Page 2 of 6March 2020 FOR OFFICIAL USE ONLY Page 2 of 6

APPROVAL (AFFARS 5306.304(a) )

Date

March 2020 FOR OFFICIAL USE ONLY Page 3 of 6March 2020 FOR OFFICIAL USE ONLY Page 3 of 6

I. Agency and Contracting Activity.

Department of the Air Force Air Force Materiel Command Air Force Life Cycle Management Center Agile Combat Support Directorate Human Systems Division 1981 Monahan Way, Bldg. 12 Wright Patterson AFB, OH 45433-7017

This is an Individual Justification and Approval (J&A) for Other than Full and Open Competition.

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

This Individual Justification and Approval (J&A) is for the award of a new contract to National Packaging Solutions Corporation (hereafter referred to as NPS) for the acquisition to expedite and expand the domestic capacity of fine fiber meltblown filtration media to support production of National Institute for Occupational Safety and Health (NIOSH)-approved N95 respirators and ASTM Level 1-3 masks to resolve urgent national supply needs. The respirators and masks serve as critical personal protective equipment (PPE) for medical and health professionals and protect the wearer from airborne particles, including droplets that may contain bacteria and viruses.

NPS is a manufacturer of meltblown media currently operating at various locations around the US. NPS provided a solution to activate a new manufacturing line of fine fiber meltblown filtration media. Once the line is in operation, NPS will partner with and sell this filtration media to domestic companies that produce N95 respirators and ASTM level 1-3 masks for domestic consumption. The new manufacturing line is anticipated to be operable within 12 months of the contract award, and within another 90 days from start-up, shall be capable of supplying 300,000 pounds per month of filtration media. This 300,000 pounds of fine meltblown filtration media is sufficient to produce either 140 million face masks (ASTM Level 1-3) or 60 million N95 respirators per month, depending on demand from the domestic mask/respirator manufacturers. The production capacity will be accomplished in NPS's Green Bay, WI facility. The contract for this effort was awarded on 24 July 2020 as a Undefinitized Contract Action (UCA) with an NTE amount of $2,750,000. It is a commercial, FAR Part 12 acquisition employing a Firm-Fixed Price contract type. Definitization is planned to be complete within 180 days from contract award.

In addition, this contract will have a 15 month Period of Performance (PoP). In accordance with AFFARS 5306.302-2(d)(1)(ii), the authority for the Air Force to make the determination that exceptional circumstances apply to allow a PoP that exceeds one year is the SCO or the J&A approval authority, whichever is higher. For this dollar value, the J&A approval authority is normally the Competition Advocate. Therefore, in order to comply with AFFARS 5306.302-2(d)(1)(ii), the approval authority for this J&A has been elevated to the SCO. The exceptional circumstances are due to NPS's solution to increase their capacity; it takes 12 months to install the new production line and another three months to ramp-up to the full production rate promised in the contract's Statement of Work. The two activities cannot be divided into separate contracts.

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

The Agile Combat Support (ACS) Directorate awarded a contract to NPS to expedite and expand the domestic capacity of filtration media. In order to expand their production capacity, NPS has proposed that

March 2020 FOR OFFICIAL USE ONLY Page 4 of 6March 2020 FOR OFFICIAL USE ONLY Page 4 of 6 they will activate a new manufacturing line of fine fiber meltblown filtration media capable of supplying 300,000 pounds per month in their Green Bay, WI plant. NPS shall be responsible for securing necessary approval on the expanded production capability and shall ensure planning, execution, and follow-through regarding all necessary certification of the equipment upgrades to comply with appropriate certifications and local, state, and federal regulations.

To enable the production capacity to achieve a rate of 300,000 pounds per month of mask filtration media will require the support of the United States Government (USG). Without the issuance of the UCA, significant acquisition delays will severely hamper the manufacturing capabilities needed to reduce the current strain on the limited mask filtration media available.

The requested $2,750,000 J&A ceiling is based on a 21 July 2020 Not-to-Exceed quote submitted by NPS in response to a Request for Proposal (RFP) and Statement of Objectives released by the ACS Directorate on 16 July 2020. The Department of Health and Human Services (DHHS) is providing Coronavirus Aid, Relief, and Economy Security (CARES) Act funds through the Economy Act to fund this effort.

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

The contracting actions covered by this Individual J&A falls within the authority found at 10 U.S.C.

2304(c)(2), as implemented by Federal Acquisition Regulation (FAR) 6.302-2(a)(2) - Unusual and Compelling Urgency.

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

On 13 Mar 2020, the President declared a national emergency, under section 501(b) of the Stafford Disaster Relief and Emergency Assistance Act 42 USC 5121-5207 (the “Stafford Act”), recognizing the threat that the novel (new) coronavirus known as SARS-CoV-2 poses to national security.

On 25 Mar 2020, Under Secretary of Defense for Acquisition and Sustainment Ms. Ellen Lord established the COVID-19 Joint Acquisition Task Force (JATF). Led by the Principal Deputy Assistant Secretary of Defense, Acquisition Enablers, Ms. Stacy Cummings, the JATF team includes acquisition professionals from the Military Departments and DoD Agencies, and is synchronizing and supporting the acquisition execution of DoD's COVID-19 response to the interagency (Federal Emergency Management Agency (FEMA) and Department of Health and Human Services (DHHS)) for medical resources.

On 27 Apr 2020, the Head of the Contracting Agency for DHHS, Assistant Secretary for Preparedness Response (ASPR), signed a Determination and Findings in accordance with the authority of the Economy Act (31 U.S.C. 1535), as implemented in subpart 17.5 of the Federal Acquisition Regulation (FAR), on behalf of the requesting agency, DHHS, to enter into an inter-agency agreement for acquisition assistance with the servicing agency, the Department of Defense (DoD), United States Air Force (USAF). In accordance with the Economy Act, DHHS is in need of urgent acquisition assistance from USAF that only USAF can provide within the time-frame required. The global pandemic drives the need for DHHS to rapidly support, maintain, and expand critical US industrial capacity for medical supplies and services. The DoD, through the Joint Acquisition Task Force, has significant expertise, robust capability, and extensive processes in place to acquire supplies and services necessary to expand US industrial production in response to the COVID-19 pandemic.

Public health requires the immediate increase of production capability to address critical inventory and production gaps for mask filtration media in order “to maintain a facility, producer, manufacturer, or other supplier available for furnishing supplies or services in case of a national emergency or to achieve

March 2020 FOR OFFICIAL USE ONLY Page 5 of 6 industrial mobilization.” Current US production capacity of filtration media (which is critical for N95 respirators and ASTM Level 1-3 masks) is so inadequate that on 23 Mar 2020, the President issued Executive Order 13910 on Preventing Hoarding of Health and Medical Resources to Respond to the Spread of COVID-19, delegating to DHHS the authority to enforce. Failure to immediately increase production capability will deplete N95 respirator and mask inventories, leaving the USG and the nation critically unprepared for this and the next pandemic emergency. The USG is pursuing contracts with several domestic manufacturers of filtration media used in N95 respirators and ASTM Level 1-3 masks, but does not have time to formerly compete the requirement due to the emergency circumstances. In the case of the National Response to the Spread of COVID-19, it has been determined that NPS of Green Bay Wisconsin, is a responsible domestic source for producing the required critical component for N95 respirators and ASTM Level 1-3 masks, suitable to provide the needed response to the spread of COVID-19.

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.

In accordance with FAR 5.202(a)(2), the contracting officer did not submit the notice required by FAR

5.201 because the contracting officer has determined that the proposed contract action is made under the conditions described in FAR 6.302-2 and the Government would have been seriously injured if the agency complied with the time periods specified in FAR 5.203.

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

NPS has estimated the effort to expand production capacity of mask filtration media can be accomplished under the NTE amount of $2,750,000 based on a contractor-provided spend plan comprised largely of machinery purchase, equipment purchases, and the operational talent staffing and training investment.

Although the commercial exemption to requesting certified cost or pricing data applies to this effort, the Contracting Officer will utilize various price analysis techniques to determine the definitized contract price is fair and reasonable. Since there are multiple domestic manufacturers of mask filtration media using similar machinery/production equipment, the Contracting Officer anticipates having the ability to make comparisons to published price lists for the equipment being purchased by NPS under this contract. As this effort was issued as a UCA, the Contracting Officer will require actual incurred costs as of the submittal of the qualifying proposal. The Government will conduct a technical evaluation/analysis of the proposal to assess the materials and labor hours proposed. Further, if more information is necessary to make a fair and reasonable determination, the Contracting Officer will request other than certified cost or pricing data from the contractor in accordance with FAR 15.403-3.

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

The Air Force Research Laboratory (AFRL) issued a Hybrid Open Funding Opportunity Announcement (FOA) to allow industry to self-identify to the Government a short-fall in various critical industrial bases, to include filtration media production. In addition, through employment of the Economy Act, DHHS requested the USAF award a contract to NPS to expand the production capacity of filtration media to support the increased production of N95 respirators and ASTM Level 1-3 masks.

DHHS has awarded a number of supply contracts for N95 respirators and ASTM Level 1-3 masks, but has concluded that the domestic supply of these respirators and masks is insufficient to meet the needs of the nation to combat COVID-19. Through the Economy Act, DHHS seeks to "rapidly support, maintain, and expand critical US industrial capacity for medical supplies and services." Acting on DHHS's behalf, the

March 2020 FOR OFFICIAL USE ONLY Page 6 of 6

Air Force has awarded several FAR Part 12 commercial contracts for production equipment purchases and equipment conversions to further expand the domestic N95 respirators and ASTM Level 1-3 masks (and its critical components) manufacturing capacity. DHHS will continue to purchase N95 respirators and ASTM Level 1-3 masks through existing contracts; the Economy Act transactions are intended to accelerate respirator and mask deliveries under these existing DHHS contracts, not replace them.

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

N/A

X. List of any sources that expressed, in writing, an interest in the acquisition.

See Section VIII 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.

In the absence of an emergency situation, such as the COVID-19 pandemic, the Air Force will publicize similar contract actions to increase competition, broaden industry participations, and assist small business concerns.

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.