- JAQ - JA ChipCHECK Repair JA_Redacted.pdf

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

CONTROLLED UNCLASSIFIED INFORMATION

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(See "Specific Guidance for Completing this Template" after item XII below.)

I. Agency and Contracting Activity.

Department of the Air Force

AFSC/PZABC

3001 Staff Drive Tinker AFB OK 73145-3032 Purchase Request (PR): FD2030-24-32084 Requiring Activity: AFLCMC/LPSZC

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

This Individual Justification and Approval (J&A), which is not a bridge contract, authorizes the use of other than full and open competition to obtain a non-commercial Firm Fixed Price requirements type contract in support of requirements generated by Air Force customers. This contract is to provide telephone support and off-site repair for the ChipCHECK equipment which is used to analyze magnetic chip detectors from the F110, F101 and F118 engines using ChipCHECK NSN 6650-01-665-6490 manufactured by GasTOPS Inc., CAGE code 3Y4X8. A 2-year Requirements Contract, 2-year basic period with a 6 month option period, is considered appropriate for this acquisition. This contract will include the option to extend services clause, FAR 52.217-8, for up to an additional 6-months. The total estimated value of this contemplated award is dependent on the frequency of repair;

however, the repair cannot cost more than 75% of the market price of a new machine during that time. It is estimated there will be approximately four repairs per year of the contract and one software and technical order update per year. The government estimates the total contract to be $1,699,515.90.

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

Under the contemplated contract, GasTOPS Inc. will provide repair services for the ChipCHECK for the U.S. Air Force requirements.

END ITEM NSN: 6650-01-665-6490PR

NOUN: ChipCHECK Spectroscopy, Laser

APPLICATION: F110/F101/F118 Engine Program

Type Appropriation: 3400

Contract Summary

Estimated Dates Estimated Dollars

Base Period Year I 01 Jan 25 - 31 Dec 25 $663,317.46

Base Period Year II 01 Jan 26 - 31 Dec 26 $690,798.96

-8 Extension Period 01 Jan 27 - 31 June 27

Total Contract 01 Jan 25 - 31 June 27 $1,699,515.90

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CLIN Est Qty Unit Price Estimated Price Period of Performance 0001 AA 6 01 Jan 25 - 31 Dec 25 0002 AA 6 01 Jan 25 - 31 Dec 25 0003 AA 6 01 Jan 25 - 31 Dec 25 0004 AA 1 01 Jan 25 - 31 Dec 25 0001 AB 6 01 Jan 26 - 31 Dec 26 0002 AB 6 01 Jan 26 - 31 Dec 26 0003 AB 6 01 Jan 26 - 31 Dec 26 0004 AB 1 01 Jan 26 - 31 Dec 26

This is a Requirements contract to provide repair service and software/technical order support for the USAF ChipCHECK Spectroscopy System.

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 see approval for more than one fiscal year. If other qualified or approved sources become known during the life of this contract, full and open competition will be considered and utilized to the maximum extent practicable.

IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above.

Under the contemplated follow-on contract GasTOPS Inc., will provide highly specialized services for the ChipCHECK system. The ChipCHECK system is a field deployable analyzer designed for rapid on-site identification of equipment lube oil, employing laser spectroscopic technology for analyzing microscopic chip debris. GasTOPS Inc., is currently providing the procurement under contract FA8119-18-D0012 which was awarded on 26 September 2018 as a Small Business Innovation Research (SBIR) acquisition.

All system software and hardware configuration of the ChipCHECK units are proprietary to the Original Equipment Manufacturer (OEM), GasTOPS Inc. All data required to service or repair this equipment is proprietary to the OEM. GasTOPS Inc., utilizes highly specialized personnel and specialized test equipment/tooling for the diagnostics, repair, and maintenance of the ChipCHECK system.

GasTOPS Inc., was contacted on 21 December 2023, regarding Government data access and indicated they will not give the Government access to the data, sell the Government the data, or grant any use rights to the data. For this reason, service/repair will be procured using other than full and open competition.

Repair and troubleshooting for the subject ChipCHECK units requires not only knowledge of the design/ operation of the specific equipment but also of the proprietary software that operates and supports the system automation, diagnostics, and metal debris analysis functions. The Government does not have the technical expertise or technical data to troubleshoot/repair these critical machines due to the proprietary parts and software and any time spent in development or reverse engineering of the machines or software would result in an unacceptable delay.

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Continuity of service is pivotal to the operation and safety of the F110, F118 and F101 engines. Limitation of funding will cause field units to be unable to conduct required engine magnetic chip detector analyses. The magnetic chip detector analysis is critical for early detection of known engine bearing failures. Inability to detect these failures results in increased safety risk for single engine fighter and reconnaissance aircraft. Limitation of funding for ChipCHECK will result in reduced flight worthy aircraft, negatively impacting air superiority, the warfighter, and decreasing mission effectiveness.

AFLCMC/LPSZC 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 and unacceptable delays in fulfilling the Air Force's requirement. The cost to develop and procure alternative technology is estimated at over $10 million dollars based on similar service efforts. It would take a minimum of five years for a new source to develop the technology to perform this service. The estimate of five years is based on the current oil analysis program project scheduling, contract award, and development and testing. Delays in repair would have the potential to disrupt F-16 and U-2 flights. If a machine is not operational, an engine oil analysis cannot be performed and thus that aircraft cannot be flown. If the machine continues to be nonoperational for an extended period of time, several aircraft would be grounded and thus a Wing's mission would be severely jeopardized. These machines provide critical analytical data to support the engine health of the engine systems. Any failure to service/maintain/repair these machines properly may result in grave damage to aircraft and/or aircrew.

Accordingly, GasTOPS Inc., is the only vendor capable of providing the 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.

V. 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 was published in beta.SAM.gov website on 06 December 2023, for 15 days under number NSN 6650-01-665-6490 for the purpose of identifying sources capable of satisfying the Government's requirement but no potential sources other than GasTOPS Inc., responded as of 14 December 2023.

This proposed contract action will be synopsized in beta.SAM.gov: https://beta.sam.gov/ as a notice of proposed contract action IAW FAR 5.201. Consideration of capability shall be given to any identified, potential sources prior to award.

VI. 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. Pricing data will be requested to ensure negotiated prices are fair and reasonable to the government and contractor. The contracting officer may request a technical evaluation from the Defense Contract Management Agency (DCMA) and a field audit from the Defense Contract Audit Agency (DCAA) for the purpose of determining fair and reasonableness.

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VII. 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 10.002(b)(2), was conducted by the multi-functional team consisting of the Logistics Management Specialist, Engineer, Production Management Specialist, and Procuring Contracting Officer. The conducted research consisted of Internet searches, reviews of government data bases, reviews of results for similar market research requirements, a posting on beta.SAM.gov, a Sources Sought Synopsis posting, and a draft Statement of Work.

The market research revealed there is only one source that can meet this requirement. GasTOPS Inc., is the only company that can meet the telephone support requirement and is also capable of performing repairs. GasTOPS Inc., possesses data and software that are proprietary to the ChipCHECK unit.

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

No further information

IX. List of any sources that expressed, in writing, an interest in the acquisition.

GasTOPS Inc. CAGE 3Y4X8

4960 Corporate Drive, Suite 140

Huntsville, AL 35805

X. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

As a result of continued refusal by the Sole Source contractor to provide or license data as well as the duplication of cost and unacceptable delay of developing additional sources per Sections V, there are no known additional actions which can be taken to remove barriers to competition.

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 any stated actions to remove barriers to competition have been accomplished.

XI. Certification by the Contracting Officer.

As evidenced by my signature above, I certify that this justification is accurate and complete to the best of my knowledge and belief.

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XII. 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.