JandA-Post Award.pdf

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

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I. Agency and Contracting Activity.

United States Air Force

OL:H/PZABB

6050 Gum Lane, Bldg 1215 Hill AFB, UT 84056-5825 Contracting Officer: Travis Stephens Phone Number: DSN 586-5091 PR Number: FD20202100484

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

A. J&A is individual and non-commercial. Upon approval to use other than full and open competition procedures the Air Force will issue a 5 year Sole Source Requirements Contract, to procure repair services for an estimated 108 Special Functions Module (SFM) Circuit Card Assemblies (CCA) for the SST for the F-16 to be used by the United States Air Force to the following source:

Contract will be awarded to:

Indesign Cage Code: 1UQ09 8225 E 56th Street Indianapolis IN, 46216-1070

B. The estimated dollar value is Firm Fixed Price (FFP) pricing arrangement is anticipated. The estimated award date is August 2021. The ordering period for this requirements contract will be August 2021 through August 2026 with an estimated delivery schedule that extends through August 2027. The government estimates deliveries will occur within one year, however performance will continue until after receipt of last order.

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

A. Narrative Description: This is for the repair of the Special Functions Module (SFM) circuit card. The SFM supports unique system functionality and occupies VME card cage slot A7. The SFM consists of signal generation resource capabilities to support the SST IU by providing necessary stimulus to various UUTs during testing.

B. The Air Force estimated unit repair and obsolescence update cost and quantities for five years is shown below:

Line Item NSN and Type of Repair 5 Yr Qty Est. Unit Cost Est. Total Amount 0001 Special Functions Module CCA 5998-01-555-5340 108

C. Sufficient pricing data, procurement history, and performance data are available which will permit realistic estimates. This estimate is based on USAF mission requirements as computed by the D200 requirements system and market research. The contracting action will use 4930 CSAG-S Working Capital funds. Yearly totals will be 22 assets per year, two assets per month.

D. Expected delivery schedule is 120 days after receipt of order.

E. Required CDRLS are as follows: CAV AF, CDM, government property inventory report (annual), GFM, CAG, DRILS, Counterfeit Prevention, IUID, contractor manpower equivalent reporting, surge plan, status report (monthly).

F. No need for O&A or BER CLIN - Rationale:

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- Repairs will be FFP (FFP for TT&E plus FFP for overhaul/repair CLIN)

- Anything that is BER will be covered under the TT&E CLIN and the overhaul/repair CLIN won't be required.

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

10 USC 2304(c)(1), as implemented by the Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(iii), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

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

A. The above authority was selected, as the Government does not own the data or the rights to the data needed to purchase this service from additional sources. Indesign is the only company, which has the unique knowledge, capabilities, expertise, drawings, test procedures, specifications and experience manufacturing this part. Therefore, this acquisition will be for the continued repair of this highly specialized asset.

B. The 416th SCMS/GUMAA Logistics Management Specialist contacted Indesign on 22 January 2021 regarding data rights for this item. Indesign responded the same day stating they are not willing to sell any of their data rights to the government.

Accordingly, Indesign owns the technical data sufficient to manufacture this component and is unwilling to sell or give its permission to the government, to use such data for a competitive procurement or repair. The 416 SCMS/GUMAA believes that award to any other source would result in substantial duplication of cost to the government that is not expected to be recovered through competition.

C. The government estimates the cost to reverse engineer the SFM CCA to be $1.35M. Our Basis of Estimate Calculation demonstrates that it would require 75.38 years to break even after reverse engineering the SFM CCA. InDesign will not sell its data rights to the government. An alternate vendor will have to create a similar test capability. For reference a purchase of a test station from BAE will be required. This item is complex and it is estimated to take two years to build and test on a test station. There is every indication from Market Research that a reverse engineered SFM CCA procurement would not result in a significant cost reduction. If there were a cost reduction of 25 percent, it would still take 75.38 years to break even which exceeds the 10 year remaining life of this weapon system.

D. Accordingly, Indesign is the only firm capable of providing the repair 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, 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: The sources sought synopsis was posted under notice ID: FA8251-21-R-F16SST on 26 January 2021 in beta.SAM.gov and closed on 18 March 2021. The requirement is to repair approximately 108 SFM CCA.

B. No response was received from the Sources Sought Synopsis.

C. Synopsis - this requirement will be synopsized in http://www.beta.SAM.gov as a notice of contract action IAW FAR 5.201.

D. Other Actions: None.

E. Qualifying Country Sources: None

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

he following steps will be taken to ensure that the anticipated cost of this acquisition will be fair and reasonable. The Contracting Officer will comply with the procedures and criteria contained in Federal Acquisition Regulation (FAR) under

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Part 30 - Cost Accounting Standards, Part 31 - Contract Cost Principles and Procedures, Subparts 15.4 - Contract Pricing; to include technical evaluations and audits, as appropriate. Additional steps to ensure price reasonableness will be under the guidance of the Contract Pricing Reference Guides, jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology. The Final Step is to include the Price Negotiation Memorandum (PNM). This detailed documentation and justification of price reasonableness will be disclosed in the official PNM, to be prepared upon completion of negotiations.

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

A. As described in Section VI above, in accordance with FAR Part 10, market research has been conducted by synopsis of the proposed acquisitions, advising industry of the pending acquisition and soliciting inquiries from interested parties.

B. In accordance with FAR part 10, and in addition to ongoing market surveillance performed by the integrated product team, acquisition specific market research has been conducted by 416 SCMS on January 12, 2021. The Market Research Strategy focused on gathering information to support the efficacy of establishing additional repair sources for the SST Special Functions Module. Research included vendor surveys, commercial opportunities evaluation, product data and data rights evaluation, review of past and current terms and conditions of repair, performance requirements, engineering skills and techniques required, repair history, additional and existing sources for the system. Additionally, Internet based searches were conducted via Google, ThomasNet, DoD Fedmall, marketresearch.com, AcqNet, Yahoo, Bing, and by other Actions by USAF pursuant to FAR Part 10.0019(a)(2)(v).

C. Market research concluded that there are no alternate/additional sources capable of meeting the government's requirement at this time and Indesign (1UQ09) has is the only known company capable of satisfying the government requirements.

D. The SST SFM is unique to the F-16 fighter aircraft and does not have commercial off-the shelf sources of manufacture. No commercial or non-developmental items are available with similar form, fit, or function parameters that can be used or modified to satisfy the agency's need.

E. The SFM CCA is currently not a candidate for organic repair due to the high cost of depot stand-up. The government does not possess data rights sufficient for organic repair stand-up. DSOR #11-025 dictates contract repair.

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

No further information

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.

Indesign is the only source that owns the data required to repair these items. The required data for this configuration is not available from any other source. The government will periodically request to purchase the rights to the data needed to repair this item from the OEM.

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.

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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.