JUSTAPPR 18-02766_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 (J&A) requests authority for Other Than Full and Open Competition (OTF&OC) supporting requirements generated for the Air Force Sustainment Center (AFSC), 638th Supply Chain Management Group (SCMG), 408th Supply Chain Management Squadron (SCMS)/ GULB. The contracting office for this requirement is AFSC/PZABB. The purchase request number supporting this contracting action for one NSN is FD2060-18-02766. Note: This PR is in addition to FD2060-17-00749, which contains 153 NSNs.

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

Due to the circumstances described herein, the activity requests authority to acquire the services listed in this document using Other Than Full and Open Competition 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 follow-on Requirements Indefinite

Delivery Contract (IDC), which will include five (5) one-year ordering periods (FY20-FY24).

The sole source requirement will be obtained from the following source:

Contracting Agency Executing Agency Harris Corporation Harris Corporation 77 River Rd 1500 New Horizons Blvd Clifton, NJ 07014-2000 Amityville, NY 11701-1130 Cage Code: 28527 Cage Code: 82340 Large Business Large Business

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

This requirement is for the repair of the Band 8 AFT 1122 Antenna (NSN 5985-01-166-1030EW), which is an AN/ALQ-161A Line Replaceable Unit (LRU) installed on the B-1B.

The total estimated cost of this repair requirement is . The basis for the estimated repair price is from D043 with a 3% inflation factor added each year. The Best Estimated Quantities (BEQs) estimated for the five (5) ordering periods is based on Secondary Item Requirements System (SIRS) D200A computations. The contract is projected to award by 9 Jan 2020. The previous contract, FA8522-14-D-0002, expired on 10 Dec 2018. Harris would not agree to an extension to the contract, therefore the Government has a lapse in coverage. The validity period of the follow-on Requirement IDC will be 9 Jan 2020 to 8 Jan 2024.

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NSN: 5985-01-166-1030

Part Number: 435070-1

Noun: Antenna 1122 BD8 AFT

Period Est Qty Est Unit Price Est Total Cost

OP1 6

OP2 2

OP3 2

OP4 2

OP5 2

Optional 6 month Extension 2

Total

TOTAL ESTIMATED DOLLAR VALUE

This acquisition will be funded with Consolidated Sustainment Activity Group-Supply (CSAG-S) Defense Working Capital Fund (DWCF) 97X4930 appropriations.

The NSN has been screened in accordance with Pre-Award Qualification of New or Additional Parts Sources and the Use of The Source Approval Request (SAR), AFMCI 23-113 and findings documented on individual Contract Repair Screening Analysis Worksheets (CRSAWs), AFMC Form

762. The NSN was assigned a Repair Method Code (RMC) “R3.” This code means Repair, for the second or subsequent time, directly from the actual manufacturer. The assigned Repair Method Suffix Code (RMSC) is “R.” This code means the Government does not own the data or the rights to the data needed to repair or purchase this part from additional sources and it has been determined by the AN/ ALQ-161A Engineer and Program Manager to be uneconomical to buy the data or rights to the data. It also has been determined to be uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights.

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

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only One Responsible 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 AN/ALQ-161A is unique and was designed and built in the 1980s by Airborne Instruments Laboratories (AIL). The entire AN/ALQ-161A is comprised of 108 LRUs. Harris is the OEM for some, but not all, of these LRUs. The only asset applicable to this J&A is the Band 8 AFT 1122 Antenna (NSN 5985-01-166-1030EW). The Government did not purchase the data covering the

March 2018 FOR OFFICIAL USE ONLY Page 4 of 8 design and testing of this asset .

Since its inception, multiple companies have owned the AN/ALQ-161A design. However, all production and repairs have been accomplished under the same CAGE code regardless of company name. Below are the companies who owned the AN/ALQ-161A design under CAGE code 82340.

Source drawings may reflect any of the companies that once owned the AN/ALQ-161A design, however all companies used the 82340 CAGE code.

• AIL

• ITT-EDO

• ITT Exelis

• Exelis

• EDO (a wholly owned subsidiary of Harris Corporation)

• Harris Corporation

The Source of Repair Assignment Process (SORAP) for the entire AN/ALQ-161A, Tracker #09-147 was approved on 10 May 2010 and a Periodic Review was completed on 13 May 2015. The SORAP was approved for organic repair of 21% WR-ALC and contractor repair 79%. The Government cannot currently support organic repair of the Harris LRUs/SRUs.

The item covered by this acquisition is part of the AN/ALQ-161A RFS/ECM system installed on the B-1B aircraft. The AN/ALQ-161A is highly specialized Electronic Warfare equipment that provides RFS/ECMs, such as radar tracking warning and radar jamming capabilities. The AN/ ALQ-161A system is unique to the B-1B aircraft. There are no commercial applications for this item.

As indicated by the RMC/RMSC and discussed further below, the asset can only be repaired by Harris.

This acquisition is for a follow-on contract to sole source contract FA8522-14-D-0002. The previous contract expired 10 Dec 18. This follow-on contract will be a continuation of these highly specialized repair services.

Harris is the original equipment manufacturer (OEM) and Design Authority for the AN/ALQ-161A.

Harris has been providing these services since the initial fielding of the system in 1983 via the initial repair contract F33657-85-C-0074, awarded by the B-1B System Program Office (SPO). Harris designed and developed the system during the initial development and acquisition of the B-1B aircraft and owns the specifications, test equipment software, test procedures, and all the necessary documentation to accomplish the repairs of the AN/ALQ-161A. In addition, they are the only known source that possesses the necessary skills, support equipment (test stations, test adaptors, and test software) and facilities required to repair and test all the items covered by this acquisition. Only Harris possesses the detailed design packages (equivalent to Level III drawings) which provide the necessary schematic diagrams needed to repair the item. The Government has no product data for this NSN other than top level drawings which are not adequate to support competitive acquisition of these repair services. The Government sent an inquiry to buy the data/drawings to Harris on 18 Apr 2018.

Harris responded they were not interested in selling the data, but will continue to support the Government.

The 154 NSNs associated with PRs FD2060-18-02766 and FD2060-17-00749 have been determined

March 2018 FOR OFFICIAL USE ONLY Page 5 of 8 to be of such complexity and criticality that first article testing measures and specialized test equipment/tooling are required for all unproven sources. As detailed below, the Government does not possess the technical data so an interested source would be required to reverse engineer the parts and qualification of a new repair source would require the repair-candidate to develop and provide two first articles that pass qualification testing. The Government estimated it will take a minimum of ten years to complete this Qualification process for all NSNs associated with this effort. The basis of this estimate is based on previous estimates for reverse engineering of similar items of different Electronic Warfare systems.

The Government has determined that a break in this critical repair service will cause unacceptable delays and would seriously impair the mission capability or cause serious damage or harm to the B-1B aircraft program. Specifically, failure to repair these assets will lead to increased Mission Impaired Capability Awaiting Parts (MICAP) and Surge requirements that will ground aircraft and ultimately result in mission failure or loss of life.

With the limited life cycle of the B1-B, it would not be feasible for the Government to reverse engineer the repair data to allow for future competition.

The Government estimates a reverse engineering effort for all 154 NSNs would cost in excess of $225 million and require a minimum of 10 years to complete. This is based on previous estimates for reverse engineering of similar items of different Electronic Warfare systems, such as the LRU 2, 3 and 6 of the F-15 ALR-56C. If reverse engineering were to occur, there would not be ample life cycle on the legacy system for the Government to recoup the cost incurred in a reverse engineering effort.

Accordingly, Harris is the only firm 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 as well as creating 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 (SS)/Request for Information (RFI) synopsis was posted to Federal Business Opportunities (FedBizOpps) website on 13 Sep 2017. The solicitation number was FA8522-17- ALQ161-ECMS and interested parties were afforded 30 calendar days until 13 Oct 2017 to provide documentation supporting their company's capability to meet the requirements for qualification and repair of the AN/ALQ-161 requirement. No parties responded to the publication.

The requirement will be synopsized in FedBizOpps in accordance with FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through this synopsis. Any source who responds to the Government as a result of the synopsis will be identified to the prime contractor as a potential for subcontracting possibilities.

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 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 on recommendations from the Defense Contract Audit Agency

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(DCAA), Defense Contract Management Agency (DCMA) and expert technical personnel supporting the program. The contract price will be negotiated in accordance with the procedures in FAR Part 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 as outlined by FAR 10.001 and 10.002 and completed on 16 Apr 2018. Market research techniques used are as follows: reviewing industry reports, trends, and product developments; discussions with industry representatives; internet searches; and industry knowledge possessed by the ALQ-161A Integrated Product Team (IPT) and Engineering staff.

Engineering has been actively engaged in component product sustainment, staying abreast of industry developments by reviewing industry reports, trends and product developments, talking with field personnel, and maintaining an active dialog with the OEM.

A SS/RFI synopsis was released on FedBizOpps 13 Sep 2017 under solicitation number FA8522-17- ALQ161-ECMS. No vendor responded to the publication after being posted for 30 calendar days.

The team conducted a review of several industry-wide searches on the Internet using the following search engines. The key terms used in the searches were “Electronic Combat system repair, RF Repair for ALQ-161A, Digital Repair, and Microwave Repair”

• http://www.aerospace-technology.com/contractors/index.html,

• http://www.globalspec.com/ProductFinder,

• http://www.eem.com/,

• http://web.sba.gov/pro-net/search/dsp_dsbs.cfm

• http://www.google.com

Vendor Survey: With exception to Harris, there are no other depot level repair sources with AN/ ALQ161A expertise who can support repair of this requirement. Other AN/ALQ161A vendors do not repair Harris unique AN/ALQ-161A NSNs. Three AN/ALQ-161A vendors were surveyed but they do not have the technical data required to perform the unique Harris NSN repair services. They only have the capability to repair items they originally manufactured. In addition, a survey of secondary vendors used by Harris was completed for potential breakout purpose. This survey resulted in the identification of one breakout vendor, however the vendor was shown to not have full repair capability due to lack of technical data. Other secondary vendors were found to repair only lower assembly items with engineering support from Harris and the items are consumed with the repair of the Next Higher Assembly (NHA), therefore they were not viable repair sources for this requirement. Other items are of such low quantity they could not be economically broken out. Based on the analysis of the secondary vendors utilized by Harris, no further breakout is justified. The Air Force's minimum requirements can only be satisfied by the unique capabilities of Harris.

The items listed for AN/ALQ-161A do not fit the definition of commercial item as defined in FAR

2.101. The 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 aircraft in the commercial market with the same or similar components. Market research revealed that there is no commercial application that can

March 2018 FOR OFFICIAL USE ONLY Page 8 of 8 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.