JA signed_Redacted.pdf

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

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 7

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

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

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: AFLCMC/WNKAB

Purchase Request / Local ID Number: FD2060-20-36253

Program / Project (and PE, if applicable): Aircraft Maintenance Testers

Program Type (PEO or Other Contracting): PEO

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

18 Feb 2020

Project Lead / Program Mgr / Requiring Activity

AFLCMC/WNZ/

Signature

Date

18 Feb 2020

Contracting Officer Robert Rollins

AFLCMC/WNKAB/

Signature

Date

24 Feb 2020

Local Legal Reviewer

78 ABW/JA /

APPROVAL (AFFARS 5306.304(a) )

Date

25 Feb 2020

Competition Advocate

AFSC/PZC/

March 2018 FOR OFFICIAL USE ONLY Page 2 of 7

I. Contracting Activity.

This Justification and Approval is to request authority for Other Than Full and Open Competition in support of requirements generated for the AFLCMC/WNZ Support Equipment and Vehicles Program Office. The contracting activity for this requirement is AFLCMC/WNKAB. The purchase request number supporting this contracting action is FD2060-20-36253.

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

Due to circumstances described herein, the activity requests authority to acquire the buys listed in this document using Other Than Full and Open Competition as prescribed by FAR 6.302-1, Only One Source and No Other Supplies or Services Will Satisfy Agency Requirements. This action will result in the award of a follow-on contract, which will be a Firm Fixed Price (FFP) Requirements Indefinite Delivery Contract (IDC) with a basic year plus four, one-year Ordering periods. Orders may be issued on this ID/IQ from 27 June 2020 through 26 June 2025.

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

Howell Instruments, Inc.

8945 South Freeway Fort Worth, TX 76140-4911

CAGE: 98869

Small Business

III. Description of supplies/services required to meet agency needs.

This requirement is for the procurement of the Environmental Control System Test Set (ECSTS), National Stock Number (NSN): 4920-01-387-6124RN, Part Number H301-4 used on all F-16 aircraft to measure the environmental systems of the aircraft. This is a military unique item with no commercial equivalent. The projected best estimated quantity (BEQ) requirements are as shown below.

Proposed Ordering Periods (O/Ps) and Quantities

Ordering Periods BEQ Unit Cost Totals

O/P 1 11 O/P 2 11 O/P 3 11 O/P 4 11 O/P 5 11

Grand Total 55

March 2018 FOR OFFICIAL USE ONLY Page 3 of 7

The nominal Contract Line Item Numbers (CLINs) anticipated for each period are as follows:

CLIN Description Contract Type BEQ Unit of Measure X001 Production FFP 11 EA

Total estimated contract value is . A escalation factor was applied to estimated unit price for each Ordering Period. The basis for the estimated cost was derived from the current contract. This effort will be funded using 3010 Investment Funds. Foreign Military Sales requirements may be executed via the Ordering Periods. The delivery requirements for this acquisition is 210 days After Receipt of Order.

This NSN was screened and assigned Acquisition Method Code (AMC)/ Acquisition Method Suffix Code (AMSC) of 3P which requires the unit be procured from the actual manufacturer. AMC 3.

Acquire, for the second or subsequent time, directly from the actual manufacturer. AMSC P. The rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part. This code is used in situations where the Government has the data but does not own the rights to the data. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

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

10 USC 2304(c)(1), as implemented by FAR 6.302-1, Only One Source and No Other Supplies or Services Will Satisfy Agency Requirements.

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 unique supplies or services available from Howell Instruments, Inc.

Howell Instruments, Inc. is the original manufacturer of the Environmental Control System Test Set and owns the data rights to build and supply this test set. Howell Instruments, Inc. is the only source from which to procure the test set, as the sole owner of the design, manufacturing, and testing data.

The Government contacted Howell Instruments, Inc. on multiple occasions, including 21 September 2016 and 5 November 2019, regarding selling the data rights to the test set with negative results.

Howell Instruments, Inc. is the only source of supply available with the technical data/drawings, expertise, equipment, and testing parameters required to produce and qualify the Environmental Control System Test Set for the Government; therefore, this acquisition will be a follow-on contract for the continued production of highly specialized equipment.

Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Air Force's requirements. This test set is unique to military applications. There are no commercial products in the current market that will fulfill the Government's requirements. Suitable technical data, Government

March 2018 FOR OFFICIAL USE ONLY Page 4 of 7 data rights, or manufacturing knowledge is not available to permit acquisition from other sources.

A sustainment engineering base cost analysis was performed for a reverse engineering effort. In order to reverse engineer the test set, development money must be allocated to fund the effort. A new vendor would be required to complete the reverse engineering effort, manufacture four (4) preproduction units, go through qualification testing, and develop technical manuals before production is authorized. A cost analysis for a reverse engineering effort was performed by AFSC Operations Research Analyst. The analysis estimates the cost to be approximately /each for the preproduction units (including test reports and first article quality testing). The qualification testing is contingent on aircraft availability for test. Development of technical manuals is estimated to cost

. The Government estimates a new vendor would require two (2) legacy units for the reverse engineering effort. One unit would be used for cannibalization; the other for side by side test once compatibility test is arranged. Total developmental cost is estimated to be . The reverse engineering effort is estimated to take two (2) years based on reverse engineering efforts for similar items. The Government expects a 20% savings as a result of competition. Based on this projected saving, it would take the Government 18 years to recover a reverse engineering investment.

The shelf life of the tester is 20 years, therefore undertaking a reverse engineering effort and the risk associated with such an effort was determined to be uneconomical to pursue. The life of the Environmental Control Test Set program is through 2039.

This would be a duplication of cost the Government may not recoup through competition. In technical terms, any vendor interested in developing or adapting another tester to meet our needs will be required to complete several design reviews requiring MAJCOM and AFMETCAL participation.

Delays in meeting our mission requirements would cause a work stoppage. Fielding of a new tester would require operational training of the new tester F-16 environmental system and fault isolation electronic system or calibration procedures. Delays associated with qualifying a new vendor could seriously impact our ability to meet mission requirements.

Howell Instruments maintains the technical capabilities, facilities, and expertise needed to manufacture the test set. Howell Instruments, Inc. was awarded Requirement IDC FA8533-18-D-0003 on 28 February 2018 and expires 27 February 2020. In the interim, there have been no changes in the market for this item.

Accordingly, Howell Instruments is the only firm capable of providing the supplies and services described in Section III above without the U.S. Air Force 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.

The Request for Information (RFI) number (RFI_EnvironmentalControlTestSet) for the Environmental Control Test Set was posted to Federal Business Opportunities web page on 25 September 2019. This RFI solicited responses from interested sources with capability to produce the Environmental Control Test Set. The only response to this RFI was from Howell Instruments. The RFI closed 25 October 2019.

The requirement will be synopsized in FedBizOpps in accordance with FAR 5.201. It is anticipated

March 2018 FOR OFFICIAL USE ONLY Page 5 of 7 that sources having an interest in subcontracting may be identified through synopsis. Any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

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 be used in supporting the Government's evaluation of proposed cost. The proposed skill mix of labor, labor hours, types and quantities of material, other direct costs, and direct and indirect rates 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 procedures in FAR 15 ensuring the ultimate price 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 in accordance with FAR Part 10 and completed on 5 November 2019.

Market Research findings are summarized below.

The Environmental Control Test Set is a military unique item with no commercial equivalent. It has only been manufactured by Howell Instruments. Howell Instruments has declined to sell the data package to the Government on multiple occasions, including November 2019. Various methods were used to perform the research to identify potential sources, including internet searches, query databases, and email communications. Nine potential vendors were identified for additional research:

Howell Instruments, Inc. (small business), Control Technology, Inc. (woman owned), Greysam Industrial Services (veteran-owned small business), Lighthouse Worldwide Solutions, Inc. (woman owned), Wilbur Technical Services, LLC (woman owned), Aveon Technologies Inc. (minority-owned small business), Automation Evolution LLC. (veteran-owned small business), Enviro-Equipment Incorporated (woman owned), JAXX Manufacturing Inc. (Asian Pacific American Owned) and X Technologies, Inc. (minority-owned small business). The Government reached out to these nine potential vendors. Wilbur Technical Services, LLC, Aveon Technologies Inc., Automation Evolution LLC., Enviro-Equipment Incorporated, JAXX Manufacturing Inc., and X Technologies, Inc. did not respond to inquiries. Lighthouse Worldwide Solutions, Inc. and Greysam Industrial Services stated that they would review the Request for Information, but gave no further response. Control Technology, Inc. replied they would need the drawings from Howell Instruments to review their capabilities to produce the test set.

Additionally, as mentioned in Section VI, RFI_EnvironmentalControlTestSet was posted to Federal Business Opportunities web page on 25 September 2019 to identify potential vendors. The incumbent was the only responder.

The Environmental Control Test Set does not fit the definition of a commercial item as defined in

March 2018 FOR OFFICIAL USE ONLY Page 6 of 7

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 systems in the commercial market with the same or similar components.

Market Research concluded that Howell Instruments, Inc. is the only source that maintains the technical capabilities, facilities, and data needed to manufacture the test set. There have been no changes in the market conditions for this item since 1997. Howell Instruments, Inc. has been the sole awardee due to proprietary data rights.

Based on the results of the market research, Howell Instruments Inc., is the only capable source for this acquisition.

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

None.

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

The Government does not possess the technical data package (TDP) for the Environmental Control Test Set to support full and open competition. An inquiry for sell of the TDP was sent to Howell Instruments Inc. on 5 November 2019. They declined interest in selling the TDP.

A reverse engineering effort is estimated to take 24 months to complete at an estimated cost of

. This would cause an unacceptable delay in meeting our Air Force requirements. The shelf life of the tester is 20 years, therefore undertaking a reverse engineering effort was determined to be uneconomical to pursue. The life of the Environmental Control Test Set program is through 2039.

While the current market research indicates a sole source environment for the Environmental Control Test Set, the Government will continue to engage with Howell Instruments Inc. on an annual basis, prior to each Ordering period to determine the feasibility of procuring the TDP.

The plan to break barriers to competition in the prior J&A was to continue engaging the Howell Instruments Inc. on selling the TDP to the Government. That plan was executed, therefore the current J&A does not require higher level approval in accordance with DFARS PGI 206.304(a) (S-70) (ii).

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.

March 2018 FOR OFFICIAL USE ONLY Page 7 of 7

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s), I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.