JAPR1902526Redacted.pdf

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Type of appropriation: 97X4930 Total Line Item 0004 PR Dollars: $

PR L/I 0005 DATA

Not separately priced. Data IAW DD 1423 Contract Data Requirements List (CDRL).

TOTAL PR DOLLARS: $

Due to the circumstances described below in Sections V, IX and XI, there are no immediate actions that could be taken to develop competition. Therefore, it is considered appropriate to seek approval for more than one fiscal year’s requirement. If other qualified or approved sources become known during the life of this contract, full and open competition will be utilized to the maximum extent practicable.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 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 Original Equipment Manufacturer (OEM), CSI Aerospace Inc. is the only known source that has the repair procedures, parts, expertise, tools and test equipment necessary to meet the Government’s needs. CSI Aerospace Inc. possesses the unique capabilities such as test equipment, acceptance test software, theory of operation/architecture, assembly/disassembly procedures, material provisioning and selection criteria, fault diagnostics, shop practices, replacement parts and trained personnel to satisfy the Air Force’s minimum need. CSI Aerospace Inc. is currently providing a highly specialized service on sole-source contract FA8117-15-D-0032 scheduled to end Aug 20. Therefore, this acquisition will be a follow-on contract from FA8117-15-D-0032 for the continued performance of a highly specialized service for the KC-135 aircraft.

The repair data, acceptance test procedures, specialized tools and test equipment necessary to foster competition is not presently available to the government. The necessary repair data is proprietary to the OEM. A request for a Rough Order of Magnitude (ROM) to purchase the necessary technical, manufacturing and maintenance data rights was submitted to CSI Aerospace Inc. on 20 June 2019. CSI Aerospace Inc. provided a response on 26 June 2019 stating that they are not interested in selling data rights at this time. If data rights were able to be purchased, a cost analysis study with an examination of repair/manufacture data rights along with obsolescence and tooling requirements would need to be performed to verify if it is cost effective to purchase the rights. Based on similar weapon systems it is estimated to take up to 6 years for this study and possible approval. The unexpected unknowns involved with the study would hinder the timely award of this acquisition.

The 422 SCMS believes that award to any other source other than CSI Aerospace Inc. would result in unacceptable delays in fulfilling the Air Force’s requirements. Due to current unavailability of repair data the Government does not expect that another source could become qualified in time to avoid unacceptable delays in meeting the Government’s requirements. Once a source approval request (SAR) is submitted by a vendor, a period of 3 years can be required to process and validate an alternate supplier’s approach. The Government is not aware of any vendor SAR’s at present to initiate this process. The proposed sole-source approach is the Air Force’s remaining alternative to execute

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the requirements between now and the need date for the overhauled items. It is estimated if the contract is not awarded by 24 August 2020 mission impacts due to part non-availability is imminent.

In the event of war and “SURGE” is activated an increment of 25% is included in the dollar estimate to address any impact on pricing which may arise due to any possible surge requirements associated with this acquisition.

Accordingly, CSI Aerospace Inc. is the only firm capable of providing the 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 PRACTICABLE

A Sources Sought Synopsis (SSS) was posted under the reference number FA8117-19-SS-0007 on 27 February 2019 with a response date of 14 March 2019. The SSS included the NSN, part numbers, and best estimated quantity (BEQ) for this acquisition requesting information, pursuant to FAR 10, in support of market research to identify potential sources for the overhaul of the NSNs listed. The Government received no response to the synopsis.

In accordance with FAR 5.201, this requirement shall be synopsized in https://beta.sam.gov/ website as a notice of proposed contract action. The expected date of publication is March 27, 2020

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. 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 may request a technical evaluation from the Defense Contract Management Agency (DCMA) to aid in the evaluation of the contractor’s proposal.

The Contracting Officer may 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, IAW FAR 10, was conducted by a multi-functional team consisting of the Item Manager, Equipment Specialist, Logistics Officer, and Engineer. Market Research was conducted via the Internet along with phone calls that were conducted on 23 May 2019. Searches in multiple government databases and commercial websites; Parts Manufacturer Approvals (PMA) and HAYSTACK were made. Due to the complexity and criticality of the item, only pre-approved sources meet Air Force requirements. Further, this requirement cannot be modified nor be satisfied with a non-development item that is commercial off the shelf. Market research did not reveal any other qualified sources available to fulfill the requirement.

A SSS was issued on 27 February 2019, with closing date 14 March 2019; no responses from qualified sources were received.

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

OPEN COMPETITION

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The development of overhaul procedures without the requisite data and/or technical manuals is not possible without extensive and costly reverse engineering. The Government does not possess the experience or historical data to estimate costs with any degree of specificity, but we anticipate that developing an overhaul capability for these parts without any releasable data would be a very high risk endeavor.

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

ACQUISITION

CSI Aerospace, Inc. CAGE: 1BAY3 2020 West Detroit Broken Arrow, Ok 74012 3627 Phone: (918)258-1290

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

As a result of the refusal by the sole source contractor to provide or license data as well as the unacceptable delay of developing additional sources per Sections V and IX, there are no known additional actions which can be taken to remove barriers to competition and therefore, specific actions and milestones cannot be established.

Per PGI 206.304(a)(S-70)- As indicated by signature on the Coordination and Approval Document, the previous J&A has been reviewed and the Approval Authority determines that there were no stated actions to remove barriers to competition.

XII. CERTIFICATION BY THE CONTRACTING OFFICER

The contracting officer’s signature on the Coordination and Approval Document evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

XIII. CERTIFICATION BY THE TECHNICAL/REQUIREMENTS PERSONNEL

By their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified as accurate and complete all supporting data, which is their responsibility, contained herein IAW FAR 6.303-2(c).