JA_Redacted.pdf

FD20302000248

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): FD2030-20-00248

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

The individual Justification and Approval (J&A) authorizes the use of other than full and open competition procedures to obtain a new firm-fixed price requirements-type contract for the KC-135 Altitude Alerter, Servo Altimeter, Air Data Computer, and Air Speed Indicator. This acquisition is commercial and is not a bridge action. The contemplated contract is for a repair service from Innovation Solutions and Support Inc., Commercial and Government Entity (CAGE) code 0EUW0.

In accordance with (IAW) FAR 16, a requirements type contract with a 1-year basic contract and four 1-year options is considered to be appropriate for this acquisition. Total estimated ordering period is 12 Nov 2020 – 11 Nov 2025. The estimated total value of this award is $7,526,985.00 with an estimated award date of Nov 20.

Previous Contract Numbers: FA8117-15-D-0041 Dates of Award: 30 Sep 2015 Completion Date: 29 Sep 2020 Basic Award: Sole-Source

III. DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET AGENCY NEEDS

Under the contemplated contract, Innovative Solutions and Support, Inc. will provide the following services for repair of the KC-135 Altitude Alerter, Servo Altimeter, Air Data Computer, and Air Speed Indicator.

Contract Summary Year Estimated Dates Estimated Dollars Basic 12 Nov 20 – 11 Nov 21 $1,008,800.00

Option I 12 Nov 21 – 11 Nov 22 $1,059,375.00 Option II 12 Nov 22 – 11 Nov 23 $1,112,430.00 Option III 12 Nov 23 – 11 Nov 24 $1,168,195.00 Option IV 12 Nov 24 – 11 Nov 25 $1,226,745.00

O & A 12 Nov 20 – 11 Nov 25 $557,554.00 O & A (Expedite Fee

Surge) 12 Nov 20 – 11 Nov 25 $1,393,886.00

Total Contract $7,526,985.00

PR Line Item 0001

Repair of NSN: 6605-01-457-0162

PN: 9D-80310-14

Noun: Altitude Alerter Application: KC-135 Item Description and Function: Displays barometric corrected altitude. Pointer makes one revolution per 100 ft and Dials indicate altitude in 10,000 ft, 1,000 ft, and 100s of feet.

Type of appropriation: 97X4930 Total Line Item 0001 PR Dollars: $982,200.00

Year BEQ Unit Price Estimated Dollars Basic 75 EA $2,369.00 $177,675.00

Option I 75 EA $2,488.00 $186,600.00 Option II 75 EA $2,613.00 $195,975.00 Option III 75 EA $2,744.00 $205,800.00 Option IV 75 EA $2,882.00 $216,150.00

PR Line Item 0002

No Fault Found (NFF) for NSN: 6605-01-457-0162

PN: 9D-80310-14

Noun: Altitude Alerter Application: KC-135 Item Description and Function: Displays barometric corrected altitude. Pointer makes one revolution per 100 ft and Dials indicate altitude in 10,000 ft, 1,000 ft, and 100s of feet.

Type of Appropriation: 97X4930 Total Estimated Dollars: NFF costs are less than the cost of repair. They are applied through de-obligated funds from the cost of repair, thereby reducing the dollar value of the contract.

PR Line Item 0003

Repair of NSN: 6610-01-469-7873

PN: 9D-80110-14

Noun: Altimeter, Servo Con Application: KC-135 Item Description and Function: Pressure detecting barometer calibrated to indicate feet of altitude instead of air pressure. Displays aircraft altitude in reference to sea level.

Total estimated dollars on CLIN 0003: $1,117,950.00

Basic 50 EA $4,045.00 $202,250.00

Option I 50 EA $4,248.00 $212,400.00 Option II 50 EA $4,461.00 $223,050.00 Option III 50 EA $4,685.00 $234,250.00 Option IV 50 EA $4,920.00 $246,000.00

PR Line Item 0004

NFF for NSN: 6610-01-469-7873

PN: 9D-80110-14

Noun: Altimeter, Servo Con Application: KC-135 Item Description and Function: Pressure detecting barometer calibrated to indicate feet of altitude instead of air pressure. Displays aircraft altitude in reference to sea level.

Type of Appropriation: 97X4930 Total Estimated Dollars: NFF costs are less than the cost of repair. They are applied through de-obligated funds from the cost of repair, thereby reducing the dollar value of the contract. Cost estimation is unneccesary.

PR Line Item 0005

Repair of NSN: 6610-01-526-9850

PN: 9B-81010-49

Noun: Air Data Computer Application: KC-135 Item Description and Function: Central Air Data Computer is a microprocessor-controlled digital computer that processes air data inputs received from various sources and provides data to other subsystems.

Type of Appropriation: 97X4930 Total Estimated Dollars: $1,458,585.00

Basic 45 EA $5,865.00 $263,925.00

Option I 45 EA $6,159.00 $277,155.00 Option II 45 EA $6,467.00 $291,015.00 Option III 45 EA $6,791.00 $305,595.00 Option IV 45 EA $7,131.00 $320,895.00

PR Line Item 0006

NFF for NSN: 6610-01-526-9850

PN: 9B-81010-49

Noun: Air Data Computer Application: KC-135 Item Description and Function: Central Air Data Computer is a microprocessor-controlled digital computer that processes air data inputs received from various sources and provides data to other subsystems.

Type of Appropriation: 97X4930 Total Estimated Dollars: NFF costs are less than the cost of repair. They are applied through de-obligated funds from the cost of repair, thereby reducing the dollar value of the contract. Cost estimation is unneccesary.

PR Line Item 0007

Repair of NSN: 6610-01-526-9851

PN: 9D-80210-49

Noun: Air Speed Indicator Application: KC-135 Item Description and Function: Provides the speed of the aircraft in relation to the air mass surrounding that aircraft and displayed to the pilot in nautical miles per hour.

Type of Appropriation: 97X4930 Total Estimated Dollars: $2,016,810.00

Basic 90 EA $4,055.00 $364,950.00

Option I 90 EA $4,258.00 $383,220.00 Option II 90 EA $4,471.00 $402,390.00 Option III 90 EA $4,695.00 $422,550.00 Option IV 90 EA $4,930.00 $443,700.00

PR Line Item 0008

NFF for NSN: 6610-01-526-9851

PN: 9D-80210-49

Noun: Air Speed Indicator Application: KC-135 Item Description and Function: Provides the speed of the aircraft in relation to the air mass surrounding that aircraft and displayed to the pilot in nautical miles per hour.

Type of Appropriation: 97X4930 Total Estimated Dollars: NFF costs are less than the cost of repair. They are applied through de-obligated funds from the cost of repair, thereby reducing the dollar value of the contract. Cost estimation is unneccesary.

PR Line Item 0009

Over and Above Is negotiated on an as needed basis. Over and above is estimated at 10% of total estimated repair dollars based on historical requirement

Total Line Item 0007 PR Dollars: $557,554.00

Over & Above

Basic 12 Nov 20 – 11 Nov 21 $100,880.00

Option I 12 Nov 21 – 11 Nov 22 $105,937.50 Option II 12 Nov 22 – 11 Nov 23 $111,243.00 Option III 12 Nov 23 – 11 Nov 24 $116,819.50 Option IV 12 Nov 24 – 11 Nov 25 $122,674.00

Total 12 Nov 20 – 11 Nov 25 $557,554.00

PR Line Item 0010

O &A (Surge Expedite Fee): Is negotiated on an as needed basis for SURGE.

Total Line Item 0007 PR Dollars: $1,393,886.00

Surge Expedite Fee

Basic 12 Nov 20 – 11 Nov 21 $252,200.00

Option I 12 Nov 21 – 11 Nov 22 $264,843.75 Option II 12 Nov 22 – 11 Nov 23 $278,107.50 Option III 12 Nov 23 – 11 Nov 24 $292,048.75 Option IV 12 Nov 24 – 11 Nov 25 $306,686.00

Total 12 Nov 20 – 11 Nov 25 $1,393,886.00

PR Line Item 0011

Data Not separately Priced Data IAW DD 1423 CDRL CAV-AF Reporting

An increment of 25% is included in the dollar estimate to address any impact on funds; quantity, services, or period of performance which may arise dute to any possible surge requirements associated with this acquisition.

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 fiscal year’s requirement. If other qualified or approved sources become known during the life of this contract, full and open competition will be 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)

This acquisition will be a contract for the continued repair of the Altitude Alerter, Altimeter, Air Data Computer, and Air Speed Indicator applicable to the KC-135 aircraft. These items requires special tooling and expertise for repair.

Innovative Solutions and Support, Inc. is the Original Equipment Manufacturer (OEM) and is the only known source that has the repair procedures, parts, expertise, tools and test equipment necessary to sufficiently meet the Government’s needs. Innovative Solutions and Support possesses the unique capabilities such as test equipment, acceptance test software, theory of operation/architecture, assembly/disassembly procedures, material provisioning and selection criteria, fault diagnostics, shop practices, replacement parts and trained personnel to satisfy the Air Force’s minimum need.

Innovative Solution and Support is currently providing repair services on sole source contract

FA8117-15-D-0041 scheduled to end Sep 2020. Therefore, this acquisition will be a follow-on contract from FA8117-15D-0041 for the continued performance of a highly specialized service for the KC-135 aircraft.

The repair data, acceptance test procedures, specialized tools and test equipment necessary to foster competition is not presently available to the government and it is not possible for the Government to draft adequate specifications for the repair. The necessary repair data is proprietary to the OEM.

A request for a Rough Order of Magnitude (ROM) to purchase the necessary technical, manufacturing, and maintenance data rights was submitted to Innovative Solutions and Support Inc.

on September 6, 2019. Innovative Solutions and support Inc. provided a response on September 13, 2019 declining to sell data rights.

The 442 Supply Chain Management Squadron (SCMS) believes that award to any other source would result in unacceptable delays in fulfilling the Air Force’s requirements. Additional information can be found in Section IX. Accordingly, Innovative Solutions and Support, Inc. is the only vendor capable of providing the repair services described in Section III above without the Air Force experiencing unacceptable delays in fulfilling its KC-135 mission readiness requirements.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED

FROM AS MANY POTENTIAL SOURCES AS PRACTICABLE

On 16 Jul 2019, a Sources Sought Synopsis (SSS) was posted in Beta SAM under the reference number FA8117-19-SS-0030 with a response date of 15 Aug 19. The SSS, which included the NSN, part number, and BEQ requested information pursuant to FAR Part 10 in support of market research to identify potential sources for repair of the subject NSN. The government recived a response from Wavetron Corporation (CAGE 88VS4) however, they are not an approved source and to date a Source Approval Request (SAR) has not been submitted. The Government will continue to utilize resources and manpower to remove barriers that prevent full and open competition.

In accordance with FAR 5.201, this requirement shall be synopsized in https://beta.sam.gov/ website as a notice of proposed contract action. The expected date of publication is June 15, 2020

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

Market research, in accordance with FAR Part 10, was conducted by a multi-functional team consisting of the Item Manager, Equipment Specialist, Logistics Officer, and Engineer. This research included inquiries into internet sites including Google, the Thomas Register, Haystack, and similar item manufacturer’s websites. Research was conducted over a period ending 17 Sep 2019. Research indicated that other vendors work similar items but none had access to the OEM data described in Section V necessary to meet the requirements described in Section III. One vendor expressed interest, but is not currently qualified to meet the requirements. Further, this requirement cannot be modified nor be satisfied with a non-development item that is commercial off the shelf.

The SSS conducted during the market research effort did not receive responses from any qualified sources. Discussion held 4 Sep 2019 with government engineers determined repair as a commercial effort as described in section V above. This market research found Innovative Solutions and Support, Inc. to be the only source able to fulfill the requirements described in section III.

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

COMPETITION

Due to unavailability of repair data stated in section V, the Government does not expect that another source could become qualified in time to avoid unacceptable delays in meeting the Government’s requirements. If repairs do not begin by 30 Nov 2020, the KC-135 readiness will be impacted with Mission Incapable Awaiting Parts (MICAPS) that will materialize within weeks thereby degrading the Air Force’s mission. Latest item logistics data indicates there are currently 34 backorders, a quarterly demand rate of 10.29, and monthly demand rate of 3.43.

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

ACQUISITION

Innovative Solutions and Support, Inc. CAGE: 0EUW0 720 Pennsylvania Dr Exton, PA 19341-1129

Phone: 610-646-9800

Wavetron Corporation CAGE: 88VS4 2220 Blue Water Dr Apt 1002 Arlington, TX 76010-6210 Phone: 214-814-7486

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

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

The contracting officer’s signature on the Coordination and Approval Document evidences that she has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

XIII. CERTIFICATION BY THE TECHNICAL/REQUIREMENTS PERSONNEL

By their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified as accurate and complete all supporting data, which is their responsibility, contained herein IAW FAR 6.303-2(c).