JUSTAPPR-Redacted (Final).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) is to request authority for Other Than Full and Open Competition supporting requirements generated for the Air Force Sustainment Center (AFSC), 638 Supply Chain Management Group (SCMG), 408 Supply Chain Management Squadron (SCMS)/ GULB. The contracting activity for this requirement is AFSC Robins/PZABB. The purchase request number supporting this contracting action is FD2060-20-00009.

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

Due to the circumstances described herein, the activity requests authority to acquire the services necessary to meet repair requirements for the AN/ALQ-161A Frequency Mixer Stage (Down Converter) and Frequency Mixer Stage (Up Converter) 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 follow-on contract which will be a Firm Fixed Price (FFP), Requirements IDC contract with a one year Basic, four one-year annual ordering periods and a 6 month option via the Option to Extend Services clause (FAR 52.217-8). The ordering validity period for the IDC will be five years (30 June 2020 to 30 December 2025) after contract award. The six month option will be exercised at the discretion of the Government.

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

Spectrum Microwave, Inc., API Technologies 2707 Black Lake Place Philadelphia, PA 19154-1008

CAGE: 60979

Large Business

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

This requirement is for depot level repair of two Frequency Mixer Stage assemblies that are found on the AN/ALQ-161A Electronic Countermeasures (ECM) system: the Frequency Mixer Stage (Down Converter), NSN: 5895-01-529-1724EW, P/N: MR289 and the Frequency Mixer Stage (Up Converter), NSN: 5895-01-529-1725EW, P/N: MR290. The Frequency Mixer Stage assemblies are a part of the Band 7 Driver, which is a Line Replaceable Unit (LRU). The AN/ALQ-161A system, which is located on the B-1B aircraft, provides 360-degree receiving and jamming coverage against a large number of threats simultaneously. The system sorts threats by priority and reacts to them automatically.

The anticipated Best Estimated Quantities (BEQs) and estimated costs for each NSN are displayed in the tables below:

NSN: 5895-01-529-1724W

Part Number: MR289 Noun: Frequency Mixer Stage (Down Converter) Period Est Qty Est Unit Price Est Total Cost

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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, required by FAR 6.303-2(b)(4).

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 agency's minimum needs can only be satisfied through the unique services that Northrop Grumman, the Original Equipment Manufacturer (OEM), or one of its approved sources as they possess the expertise, facilities, equipment, and proprietary data necessary to repair the AN/ ALQ-161A Frequency Mixer Stage assemblies as demonstrated in the following paragraphs.

The AN/ALQ-161A is a major system with highly specialized firmware, hardware, and software that is used to control jamming transmitters and receivers that provide ECM against enemy fire control radar systems and their associated missiles. The system is expected to remain on the B-1B aircraft until 2040. The Government does not have the details of any of the assemblies, only Source Control Drawings (SCD), which are insufficient to allow another source to repair the units. Northrop Grumman has declined this work and Spectrum Microwave, Inc., APT Technologies (former SAGE Laboratories) is the only approved source that is operational. On 14 Jan 2019, the Government emailed Northrop Grumman about selling their detailed specification documents for the Frequency Mixer Stage (Down Converter) and Frequency Mixer Stage (Up Converter). On 25 Feb 2019, Northrop Grumman declined to sell the detailed specifications/drawings. Spectrum Microwave, Inc., API Technologies owns the technical data that is required to repair the Frequency Mixer Stage assemblies. The Government contacted Spectrum Microwave, Inc., API Technologies via email on 7 Dec 2018 about selling the technical data. Later in the same day, Spectrum Microwave, Inc., API Technologies stated that they were not interested in selling the technical data but would support the repairs for both NSNs.

The Government currently has a depot level repair contract for the repair of the Frequency Mixer Stage assemblies on the AN/ALQ-161A awarded to Spectrum Microwave, Inc., API Technologies on 31 July 2015 with an expiration date of 30 July 2020. The current contract was sole source due to the Government not owning the technical data and test set needed to compete the repair requirement. Therefore, this acquisition will be a follow-on contract for the continued performance/ repair of the highly specialized/major system: AN/ALQ-161A.

An award to any other source would require a reverse engineering effort to develop a technical data package (TDP). Establishing a secondary source of repair would require approval by the design authority, Northrop Grumman. Potential new vendors would have to reverse engineer the components, develop their own drawings, and develop a test set. The test set is necessarily designed to process classified information, which would require a Defense Security Service (DSS) audit and a Risk Management Framework package before authority to operate is received. Based on a similar project, the ALQ-161 Voltage Variable Attenuator redesign, the lead time for reverse engineering and creating technical documentation would be 12 months. After completion of the technical documentation, developing the test station, qualifying it, and gaining DSS Authority to Operate via approval of the Risk Management Framework package would require another three to six months. Given that there

March 2018 FOR OFFICIAL USE ONLY Page 5 of 7 are currently over 60 backorders for these NSNs, standing up a secondary repair source would not meet the Government's schedule requirements. The time required for such an effort would directly impact and degrade mission effectiveness by increasing backorders based on current requirements and monthly demand rates. Based on this, this would cause unacceptable delays in fulfilling the agency's requirements because the completion of a reverse engineering effort would push repair of the assets out an additional 18 months at the least causing backorders to increase in the meantime. Additionally, organic repair is not an option because these units are hermetically sealed microwave parts that require special equipment and a clean room for repair, which Government organic facilities do not have.

Accordingly, Spectrum Microwave, Inc., API Technologies is the only firm capable of providing the services 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 (SS)/Request for Information (RFI) synopsis was posted to Federal Business Opportunities (FedBizOpps) on 30 July 2018 with a response date of 14 August 2018 under Solicitation Number FD2060-20-00009. The SS/RFI requested responses from interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this effort.

No responses to this RFI were received.

This requirement will be synopsized on 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 15.403-3, the contracting officer shall require submission of other than certified cost or pricing data from the offeror to the extent necessary to determine a fair and reasonable price. 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. A comprehensive analysis will include a technical evaluation of the proposed effort and recommendations by Defense Contract Management Agency (DCMA) and expert technical personnel supporting the program.

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 10.001 and 10.002. The market research was completed on 18 January 2019. The market research techniques used are as follows: consulted with Government contacts who have experience with this product and released a RFI.

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As described in Section VI above, a SS/ RFI was posted to FedBizOpps advising industry of the pending acquisition and soliciting inquiries from interested vendors. The SS/RFI was posted on 30 July 2018 under Solicitation Number FD2060-20-00009. No one responded to the SS/RFI.

The primary concern with considering a third party repair service is the lack of a technical data package and test set. There are no known sources that have the TDP or know the exact components of the hardware, firmware, and software other than Spectrum Microwave, Inc., API Technologies. As such, the NSNs do not fit the definition of a commercial item in accordance with FAR 2.101 because the items are unique to the military and cannot be acquired in the commercial marketplace.

The market research concluded Spectrum Microwave, Inc., API Technologies is the only vendor capable of fulfilling the Government's requirement due to their access to proprietary information to conduct the necessary repairs of the converters.

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.

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 TDP for AN/ALQ-161A Frequency Mixer State (Down Converter) and Frequency Mixer Stage (Up Converter) to support full and open competition. An inquiry for the sale of the detailed specification document was sent to Northrop Grumman via email on 14 January 2019. Northrop Grumman declined to sell the detailed specification documents on 25 February 2019. The Government also contacted Spectrum Microwave, Inc., API Technologies via email on 7 December 2018 about selling the technical data. Spectrum Microwave, Inc., API Technologies responded on 7 December 208 that the company was not interested in selling the technical data but was interested in supporting the repairs of the Frequency Mixer Stage assemblies.

A reverse engineering effort is estimated to take 18 months. Based on a similar project (ALQ-161 Voltage Variable Attenuator redesign), reverse engineering and development of the technical documents would take approximately 12 months to complete. Also, for the test station, it would take an additional three to six months for development, qualification, and receiving authority of operate from DSS.

The life of the AN/ALQ-161A program which is located on the B-1B aircraft is projected to be through 2040. Thereafter, the Frequency Mixer Stage (Down Converter) and Frequency Mixer Stage (Up Converter) will no longer be required for repair.

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In the previous J&A, the plan to overcome barriers to competition was to perform market research to find potential sources for repair. The Government has continued to carry out this plan by conducting market research to identify other repair sources. The most recent market research was completed on 18 January 2019.

To overcome barriers to competition, the Government is working to qualify a second source to repair the Frequency Mixer Stage assemblies. The Government has contacted Northrop Grumman, the design authority, for approval to stand up a second source. As part of qualifying a new repair source, the Government will continue to attempt to procure the full technical data package. Procurement of a full TDP would enable the Government to pursue competitive acquisitions for these assets. Based on the fulfillment of the prior plan, the current J&A does not require higher level approval in accordance with DFARS PGI 206.304 (a) (S-70) (ii).

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) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.