JandA redacted for post synopsis_Redacted.pdf

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

FOR OFFICIAL USE ONLY

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I. Contracting Activity.

This Justification and Approval is to request authority for Other Than Full and Open Competition to support requirements generated for the Air Force Life Cycle Management Center (AFLCMC), Support Equipment & Vehicles Division (WNZ), Base & Aircraft Support Equipment Branch. The contracting activity for this requirement is the Support Equipment & Vehicles Contracting Branch (AFLCMC/ WNKA). The Purchase Request Number supporting this contracting action is FD2060-19-33163.

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

Listed in this document using Other Than Full and Open Competition procedures 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 Firm Fixed Price Requirements Indefinite Delivery Contract (IDC) with a one (1) year basic and six (6) one-year options. The validity period of the IDC is projected to be 15 Feb 2020 through 14 Feb 2027, if all annual options are exercised.

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

Engineered Arresting Systems Corporation (ESCO) DBA: Safran Aerosystems Arresting (SAA) 2550 Market Street Aston, PA 19014-3426

CAGE: 21439

Large Business

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

This requirement is for the Mobile Runway Edge Sheave (MRES) National Stock Number (NSN) 1710-01-540-8959RN, P/N 9D01019-105. It is a system consisting of two identical MRES assemblies and hardware to anchor the MRES assemblies at the installation site. The MRES system provides a low profile runway edge sheave. This independent runway edge sheave allows the aircraft arresting gear to be set back from the runway, removing the equipment from the edges of the runway or overrun. In addition, the runway edge sheave is designed with metal covers that turn the profile of the MRES into a low ramp, which allows aircraft to safely roll over the MRES if they stray from the surface of the runway or overrun. Overall, the MRES assemblies allow the runway or overrun to appear less cluttered, without diminishing the capabilities of the arresting gear system. Since the MRES assemblies are completely mobile, they can be used with Mobile Aircraft Arresting Systems (MAAS). The MAAS systems, in particular, benefit from the capability of a set-back installation.

The MRES assemblies route the tapes from the aircraft arresting gear through their center-mounted sheave assemblies. The sheave assemblies orient the tapes properly and allow them to move smoothly without hang-up or tangling. In a typical installation one MRES assembly is positioned on each side of the runway, and one aircraft arresting gear is positioned at a safe distance away from each side of the runway. The tapes from each aircraft arresting gear are connected to an engaging system which crosses the runway.

The Best Estimated Quantity (BEQ), unit price, and total price for the NSN for this requirement is shown in the table below. The nominal Contract Line Item Number will be X001.

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The previous sole source Requirement IDC was F09603-03-D-0107. This IDC expired on 29 Jun 2010. Since the expiration of the contract, SAA developed an overhaul kit to return the MRES to like new condition. The MRES are on a ten year overhaul schedule as per technical order 35E8-2-3-1. To mitigate sustainment, the United States Air Force (USAF) has developed new Unit Type Code (UTC) requirements for rapid deployment and these UTCs are mainly stored in War Readiness Material locations until needed to support contingency operations worldwide.

On 01 Mar 2018, the USAF requested a price to release the manufacturing data for the MRES from SAA. The Vice President of Sales and Marketing stated SAA declines to provide pricing. On 21 Mar 2019, the Director of Sales and Marketing, Europe and North America reaffirmed SAA's decision to decline to provide pricing for sale of the technical data and/or Government purpose rights to the data.

An economic analysis was accomplished 10 May 2019 on MRES. It determined it would be uneconomical to pursue a reverse engineering effort. The economic analysis compared status quo (remaining sole source) verse cost of a reverse engineering effort. A reverse engineering effort was estimated to cost ~$5.5M and take 24 - 36 months to complete. The estimates were based on a similar reverse engineering project and a rough order of magnitude for first article testing (FAT). The out-year (beyond 7 years) demands for MRES are projected to be low. At this time, the Government is projecting approximately six (6) buys, total quantity of 58 to sustain the requirement seven (7) years and beyond. If competition were to allow for a 20% reduction in cost, it would take 37.1 years to recoup a reverse engineering investment. As a result, the economic analysis indicates a reverse engineer effort is not economical or in the Government's best interest now or in future procurements.

Accordingly, SAA is the only firm capable of providing the requirements described in above without the USAF experiencing a substantial duplication of cost that could not expected to be recovered through competition.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

A Sources Sought Synopsis (SSS) / Request for Information (RFI) for FA8533-18-MRES was posted to Federal Business Opportunities (FedBizOpps) on 17 Jan 2018 with responses due by 16 Feb 2018.

The SSS/RFI requested responses from interested vendors with capability to manufacture the MRES.

The SSS/RFI synopsis received two responses, including one from the incumbent. The other interested respondent was evaluated and determined not capable because they do not have the technical data required to manufacture the MRES.

This requirement will be synopsized on FedBizOpps web page as required by FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Any source who responds to the Government as a result of the synopsis will be identified to the prime contractor as a potential source for subcontracting opportunities.

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

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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 the 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 upon 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 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 in accordance with FAR Part 10.001 and 10.002. The market research was completed on 15 Mar 2019. Market research techniques used are as follows:

As described in Section VI above, the SSS/RFI was posted to FedBizOpps on 17 Jan 2018 under Solicitation Number FA8533-18-MRES. The SSS/RFI synopsis received two responses, including one from the incumbent. The other interested respondent was evaluated and determined not capable because they do not have the technical data required to manufacture the MRES.

Google searches and marketplace knowledge confirm that other potential manufacturers do exist.

There are welding, machining and fabrication shops throughout the United States who may be capable of manufacturing the MRES if the technical data were available to them.

A Small Business Administration Dynamic Small Business Search query was conducted utilizing North American Industry Classification System code 336413 and keywords “arresting system,” “arresting systems,” “mobile sheave,” “sheave,” “runway equipment,” and “runway.” The queries identified ten potential small business vendors. The vendors were evaluated and determined not capable due to their lack of access to the MRES technical data.

The MRES does not fit the definition of a 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

The market research concluded that SAA owns the proprietary technical data to the MRES and is the only source capable of fulfilling this requirement.

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.

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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 SAA proprietary data package to the MRES to support full and open competition. An inquiry for sale of the proprietary data package was sent to SAA on 01 Mar 2018 and again on 21 Mar 2019. SAA responded to both inquiries that they were not interested in selling the data package.

An economic analysis was accomplished 10 May 2019 on MRES. A reverse engineering effort is estimated to cost . If competition were to allow for a 20% reduction in cost, it would take 37.1 years to recoup a reverse engineering investment. Even though the life of the MRES program is indefinite at this time, this would be a significant investment with no guarantee of success, therefore a reverse engineer effort was determined uneconomical to pursue and not in the Government's best interest based on the low MRES demand rate.

In order to overcome barriers to competition, the Government will continue to engage SAA on an annual basis, prior to the exercise of each option period, to determine the feasibility of procuring the technical data package.

The prior J&A did not include a plan to overcome barriers to competition, therefore the 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 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) signatures above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.