JA-redacted.pdf

FD2030-21-02550

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) # FD2030-21-02250

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 firm-fixed price requirements-type contract.

This contract is for a repair/overhaul of the Displacement Gyroscope used on the T-38, from Olmsted Instrument Company, Commercial Government Entity (CAGE) code 4H237. In accordance with (IAW) FAR Part 16, a Firm-Fixed Price 1-year basic contract with three, 1-year options is considered to be appropriate for this acquisition. This new, non-commercial contract effort, is not a bridge action. The estimated total value of this award is , with an estimated award date of June 2022.

Previous Contract Number: FA8117-20-D-0024 Date of Award: 24 June 2020 Completion Date: 23 June 2023 Basis of Award: Competitive

Awardee: Olmsted Value:

* Previous contract FA8117-20-D-0024 was competitively awarded to Olmsted. Three sources were approved for that acquisition, though only Olmsted pursued award; both Boeing and L-3 sent e-mails stating they would not bid on that effort. As of 16 Sep 2021, two of the three approved sources have expressed no interest for this solicitation, leaving Olmsted as the only approved source pursuing the current acquisition. In a teleconference with the supply chain, contracting, and the competition advocate, it was determined that, due to having only one qualified vendor express interest in proposing, this effort would be sole-source, and a J&A would be required to move this effort forward.

Function: Provides references, with respect to the earth’s surface, in azimuth and altitude.

Type of Appropriation: 97X4930 Total Estimated Dollars for PR Line Item 0005:

Year Qty Unit Price

Estimated Dollars Period of Performance

Basic TBD TBD TBD 24 Jun 2022 – 23 Jun 2023

Option I TBD TBD TBD 24 Jun 2023 – 23 Jun 2024 Option II TBD TBD TBD 24 Jun 2024 – 23 Jun 2025

Option III TBD TBD TBD 24 Jun 2025 – 23 Jun 2026

PR Line Item 0006 Over and Above (Surge Expedite Fee) Noun: Displacement Gyroscope Application: T-38 Function: Provides references, with respect to the earth’s surface, in azimuth and altitude.

Type of Appropriation: 97X4930 Total Estimated Dollars for PR Line Item 0006:

Year Qty Unit Price

Estimated Dollars Period of Performance

Basic TBD TBD TBD 24 Jun 2022 – 23 Jun 2023 Option I TBD TBD TBD 24 Jun 2023 – 23 Jun 2024 Option II TBD TBD TBD 24 Jun 2024 – 23 Jun 2025

Option III TBD TBD TBD 24 Jun 2025 – 23 Jun 2026

PR Line Item 0007 Data Noun: Displacement Gyroscope Application: T-38 Function: Provides references, with respect to the earth’s surface, in azimuth and altitude.

Type of Appropriation: 97X4930 Not Separately Priced

Cost estimates were arrived at by referencing an IGE based off our last contract and by referencing a Rough Order of Magnitude provided by Olmsted for more accurate price estimation. Once the contractor provides their actual proposal the engineer will conduct a technical evaluation and provide that information to the Contracting Officer for negotiation purposes. PR Line Items 0003 and 0004 are paid via re-alignments that de-obligate funds from their respective overhaul/repair CLINs. No cost estimation is necessary.

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)

The T-38 Displacement Gyroscopes described in Section III are highly specialized components of the T-38 aircraft which provides references, with respect to the earth surface, in azimuth and altitude. Moreover, Olmsted Instrument Company has repaired this workload for the government for, at a minimum, the previous and current contracts (previous contract number FA8117-14-D-0023). On the previous contract Olmsted was the only approved source that submitted a proposal. Olmsted Instrument Company possesses the technical data, specialized tooling and support equipment, supply lines for piece parts, and experience in personnel to perform the requested actions: neither The Boeing Company nor L3 Technologies Inc. possess all of the aforementioned capabilities. Both The Boeing Company and L3 Technologies Inc. standing as qualified vendors stem from their existing infrastructure, experience with similar workloads, and potential given the aforementioned tooling, support equipment, supply lines, and hands-on experience. Though L3 Technologies Inc., as the original equipment manufacturer, has the data rights, it does not have the other capabilities required to repair/overhaul the T-38 Displacement Gyroscopes.

The 422 Supply Chain Management Squadron believes that award to any other source would result in unacceptable delays in fulfilling the Air Force’s requirements. The government does not own the tooling, support equipment, or technical data. If an alternate vendor were used, at a minimum, that vendor would have to order tooling and equipment, negotiate with the original equipment manufacturer for a lease to the technical data rights, establish contracts with sub-vendors for piece parts, and train/certify technicians to perform the work. The last projection provided by The Boeing Company states it would take eighteen to twenty-four months to stand up the repair line and produce. Contracting to a vendor other than Olmsted Instrument Company would result in the backorder posture continuing to degrade, potentially grounding the T-38 fleet, and continuing visibility as a Mission Impaired Capability Awaiting Part (MICAP) driver.

Accordingly Olmsted Instrument Company is the only firm capable of providing the overhaul/repair service 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

A sources sought synopsis (SSS) for the Displacement Gyroscope repair/overhaul requirement was posted to www.sam.gov on 16 August 2021 for 31 days under FA8117- 18-SS-0006. There were no responses to the SSS. Of the three qualified sources listed on the Source Approval Request, two indicated via email they did not intend to bid on this requirement. Olmsted Instrument Company indicated their interest via e-mail traffic and telephone conversations with the responsible Supply Chain Logistics Manager.

This requirement will be synopsized in https://www.sam.gov as a notice of proposed contract action IAW FAR 5.201. The expected date of publication is 11 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 supplemental, 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 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 and was conducted over a period ending 22 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 the tooling, testing equipment, or piece parts necessary to meet the requirements described in Section III.

A Sources Sought Synopsis was also conducted; see Section VI for more details. Based on this market research, only the Olmsted Instrument Company was found to be able to fulfill the requirements described in Section III.

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

OPEN COMPETITION

No further information

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

THE ACQUISITION

Olmsted Instrument Company 1401 Stoneridge Dr. Middletown, PA 17057

USA

Email: heidi@olmstedus.com Phone: 717-944-4021 Cage Code: 4H237

See section VI for more detail.

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

At this time there are no additional actions that could be taken to develop competition.

The 848 SCMG will continue to monitor the marketplace for remanufacture source development, regarding additional approved remanufacture sources. This item will be rescreened in August 2028.

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

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.”