JA_Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. Contracting Activity

This Justification and Approval (J&A) is to request authority for Other Than Full and Open Competition (OTF&OC) supporting requirements generated for the Air Force Life Cycle Management Center, Special Operations Forces/Personnel Recovery (SOF/PR) & Rotary (AFLCMC/WIU) Division. The contracting activity for this requirement is the SOF/ PR & Rotary Division Contracting Division (AFLCMC/WIUKB). The purchase request number supporting this contracting action is

II. Nature and/or Description of the Action Being Processed

Due to the circumstances described herein, the activity requests authority to procure the items and services listed in this document using Other Than Full and Open Competition 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 new Requirements Indefinite Delivery Contract (IDC), which will be a Firm-Fixed Price (FFP). The contract will consist of a one-year basic plus two annual options. The Requirement IDC ordering period is projected to be 07 May 2021 – 06 May 2024, if all options are exercised.

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

Raytheon Company DBA: Raytheon 6125 E 21st Street, Indianapolis, IN 46219-2001 Cage: 072E5 Large Business

III. Description of the Supplies/Services Required to Meet Agency Needs

This requirement is for Interim Contractor Support (ICS) for the repair of National Stock Number (NSN) 5998-01-654-3839GC, Digital Symbology Generator Unit (DSGU) installed on 21 HH-60G Pave Hawk helicopters during the Operational Loss Replacement (OLR) Program. Implementation of the new DSGU was required due to obsolescence issues and the non-procurability of the Symbology Generator Unit (SGU) installed on the current legacy platform. This ICS will include technical and engineering assistance as well as spare units management, repair, and to a lesser degree, technical assistance until such time as item management responsibility is assigned and it is transferred to the Air Force Sustainment Center (AFSC) workload.

The ICS services include operation inspection, test bench check, and disassembly (if needed) of the DSGU to ensure operation conformance to the Original Equipment Manufacturer (OEM) data and specifications for units returned due to failure. The extent of the repair work

V. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (Applicability of Authority)

The agency's minimum needs can only be satisfied by the highly specialized services and unique qualifications available from Raytheon as demonstrated below:

Due to obsolescence issues and non-procurability of the current legacy platform SGU, a new SGU was required. The Government contracted Raytheon, the OEM of the SGU to manufacture a new SGU with Digital capability. The new DSGU (PN 201321300-10, NSN:

5998-01-654-3839-GC) is a direct replacement for Raytheon's SGU. The DSGU addresses increased functionality to the AN/ ASN-161 Video Symbology Display System (VSDS) by processing analog information and mode commands to generate symbology for the HeadDown Display (HDD), and supports integration in both legacy and “glass” cockpits. Raytheon produced the DSGU and provided the technical data required to manufacture the assembly, but did not provide the associated repair data. There has not been a prior repair contract for the

DSGU.

for the HH-60G DSGU was made on 07 May 2020. The decision was depot maintenance should be accomplished by commercial sources. With approximately flying hours left on the life of the HH-60G prior to full retirement, there is insufficient expected planned repairs to justify establishment of a depot repair. The references CAGE ( but this vendor only has capability to support stock, store, and issuance of the DSGUs. They are not a capable vendor for repair sustainment.

The HH-60G is performing combat missions and need for support is at critical levels. A break in support coverage could negatively affect mission success. This acquisition will benefit the United States Air Force (USAF) by ensuring a sufficient number of functional DSGU systems are available for SOF/PR aircraft to continue their mission until a depot source of repair is established.

The OLR aircraft that are equipped with the DSGU have a projected life cycle end of 01 October 2028. The phased-out will begin in . The Combat Rescue Helicopter (CRH)/HH-60W is replacing the fleet of Pave Hawk Helicopters and they will not utilize the DSGU capability. The DSGU end date is on the near horizon, therefore payback of any startup development cost to qualify a new contractor is unlikely to be recouped by the Government.

Although there is no prior reverse engineering data for the DSGU, the repair data Rough Order of Magnitude (ROM) was utilized for the HH60G Integrated Vehicle Health Management System (IVHMS) Component Repair Development Project as a comparison for a Technical Data Package (TDP) delivery. Based on this effort, the reverse engineering of the DSGU system was estimated to cost (~ ) and take year to complete. The reparable generations of the DSGU is not considered high volume due to the small fleet size and the high system reliability, therefore pursuing a reverse engineering effort is not expected to have a return on investment and would cause an unacceptable delay in fulfilling mission requirements.

During the period of July 2019, Raytheon was contacted by email concerning providing a ROM for DSGU repair data and/or providing ICS for the DSGU. Raytheon responded on 26 July 2019 stating they would provide ICS support but would not provide ROM for repair data.

Accordingly, Raytheon 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 be 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

A Sources Sought (SS)/Request For Information (RFI) was posted to Federal Business Opportunities (FedBizOpps) on 08 February 2019, with response date of 08 March 2019, under solicitation identifier “DSGU (PN 201321300-10, NSN: 5998-01-654-3839-GC).”

The SS/RFI requested information from potential sources that may possess the expertise, capabilities, and experience to provide ICS for the DSGU. No responses were received for this notice.

The requirement will be synopsized on the Government Point of Entry (GPE) beta.SAM in accordance with FAR 5.201. It is anticipated that sources having an interest in subcontracting will be identified through the synopsis. Any source who responds to the Government as a result of this synopsis will be identified to the prime Contractors as a potential for subcontracting possibilities.

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 fair and reasonable to the Government. In accordance with FAR 15.403-4, the contractor will be required to provide certified cost or pricing data to support the Government's evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types, and quantities of material and other direct costs will be negotiated by the Government based on recommendations from the Defense Contract Management Agency and expert technical personnel supporting the program. The contract price will be negotiated in accordance with the procedures in FAR Part 15, ensuring the ultimate cost to the Government is fair and reasonable.

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 04 November 2019 - 17 March 2020 in accordance with FAR Part 10.001 and 10.002. The Market Research Report (MRR) was completed on 26

May 2020. Market research techniques used are as follows:

As described in Section VI above, a SS/RFI was posted to FedBizOpps advising industry of the pending acquisition and soliciting inquiries from interested vendors. The SS/RFI was posted on 08 February 2019. No responses were received.

The team members performed the following internet searches:

Thomasnet.com (http:// www.thomasnet.com/) which shows no matches.

Haystack Database (http://haystack.ihserc.com/) which details the history of design for the item which produced two results, Telephonics Corporation, DBA Command Systems Division, and Raytheon Technical Service Company. The Government contacted both vendors regarding their interest in proposing on this requirement. Telephonics responded on 19 December 2019, stating they were not interested. Telephonics does not possess the necessary data, tooling, equipment, knowledge, skills, and expertise necessary to support this effort, therefore were determined not capable. Raytheon responded they would be interested.

Queries were run on the Small Business Administration Dynamic Small Business Search (DSBS) (http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm/) using North America Industry Classification System code “334511” (Aeronautical Systems Repair Not A/C Repair) which returned three matches, Executive Instruments Inc., Duncan Aviation, and Capital Avionics, Inc.

On 09 December 2019, an email containing a Contractor Capability Survey was sent to Executive Instruments Inc., Duncan Aviation Inc., and Capital Avionics Inc. The Government asked each representative about their potential capabilities and if they could provide ICS support for the DSGU unit. To date, only one of the three companies responded to the inquiry. The representative from Duncan Aviation responded on 23 December 2019, stating that they can assist the Government with this project as long as they receive maintenance manuals and will include the cost of the test set build in the quote. The Government does not possess the repair data with the maintenance manuals required. No responses have been received at this time from Executive Instruments nor Capital Avionics. Based on response from Duncan Aviation, no response from the other small business vendors, and lack of information to establish their capability, all three were determined not capable of supporting the DSGU ICS effort.

A Federal Logistics Information Services (FED LOG) (FLIS) search was conducted to determine if the service could be provided by an alternate source. The query produced a negative result. Based on available data and engineering knowledge of the item the only viable source for ICS of this part is the Raytheon (CAGE 072E5).

The DSGU does not fit the definition of commercial item as defined in FAR Part 2.101. This item is defined as military unique and is not customarily used by the general public or by non- Governmental entities. The Government requires parts that meet an exact form, fit, and function as determined by the specific mission. There are no aircraft in the commercial market with the same or similar components.

The market research concluded Raytheon is the only vendor capable of fulfilling the Government's requirement in a timely manner.

IX. Any Other Facts Supporting the Use of Other Than Full and Open Competition

None

X. List of Sources, if any, That Expressed 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

This product was qualified and manufactured exclusively by Raytheon. Raytheon is the only entity with the necessary technical data and expertise required to perform engineering requirements for repair and troubleshooting. Due to projected low-volume repair orders, it is deemed uneconomical to reverse engineer or draft adequate specifications or procedures descriptions of the repair.

Due to the unwillingness of Raytheon to sell the Government the repair data, low failure rate, and retirement schedule of the HH-60G in 2030, competitive efforts are not feasible at this time.

In order to overcome barriers to competition, the Government will continue to pursue obtaining the necessary repair data from Raytheon. If successful, the Government will investigate the feasibility of purchasing the repair data to support competitive acquisition in the future.

This is the first DSGU repair requirement, therefore no prior justification for sole source.

Based on this, requirement for higher level approval in accordance with DFARS PGI 206.304

(a) (S-70) (ii) does not apply.

XII. Certification by the Contracting Officer

As evidenced by my signature on the Coordination and Approval Document (CAD), 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) on the CAD, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.