Redacted JA 27Oct23.pdf

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

CONTROLLED UNCLASSIFIED INFORMATION

March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 1 of 5March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 1 of 5

Was a J&A approved for the preceding acquisition where that acquisition required a J&A? Yes No

! ! Attach the preceding J&A in the staff package for this J&A. The preceding J&A will be used as a reference document.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined at AFFARS 5302.101? Yes No

Dollar Value of this Acquisition: < $750K > $750K and < $15M > $15M and < $100M > $100M

Contracting Activity: Jason Neering Contracting Officer

AFMC OL:H/PZIMA

6038 Aspen Ave BLDG. 1289 Upstairs

HAFB,UT 84056-5838

PH: 801-586-8885

jason.neering@us.af.mil

Purchase Request (if available) / Local ID Number:

Program / Project (and PE, if applicable): Testek six month extention

Program Type (PEO, Enterprise, of Operational): Operational

Authority:

6.302-1 – 10 USC 3204(a)(1), Only One Responsible Source - No Other Supplies or Services Will Satisfy Agency Requirements Estimated Contract Cost (including options): $ 728,132.40 J&A Type: Class Individual

COORDINATION ( AFFARS 5306.304(a) )

Date

25 Oct 2023

Project Lead / Program Mgr / Requiring Activity Brenda Keesler

MXSG/MXSDA DSN: 586-3914

Signature

Date Signature

Date Signature

Date Signature

APPROVAL ( AFFARS 5306.304(a) )

Date

27 Oct 2023

Contracting Officer Jason Neering

OL:H/PZIMA/DSN: 586-8885

Signature

KEESLER.BRENDA.LEE.1

388299009

Digitally signed by

KEESLER.BRENDA.LEE.1388299009

Date: 2023.10.25 11:03:08 -06'00'

NEERING.JASO

N.T.1512309115

Digitally signed by

NEERING.JASON.T.1512309115

Date: 2023.10.27 11:12:50 -06'00'

March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 2 of 5March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 2 of 5

I. Agency and Contracting Activity.

Jason Neering, Contracting Officer

AFMC AFSC OL_H/PZIMA

6038 Aspen Ave Bldg 1289 Upstairs Hill Air Force Base, UT 84056-5838

DSN: 586-8885

jason.neering@us.af.mil PR number: N/A

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

A. Upon approval to use other than full and open competitive procedures, the Ogden Air Logistics Complex (OO-ALC) intends to award a 6-month sole source modification bridge extension to contract FA8224-18-C-0041 for the repair and support services listed in section III. A 6-month extension is needed in order to allow time to properly solicit and negotiate a 5-year IDIQ follow on contract. Previously the test stands were maintained under sole source contracts FA8224-15-C-0029 and contract FA8224-18-C-0041 that is set to expire on 22 Jan 2024. The existing contract is for on-site repair services for Hill Air Force Base (HAFB) and Kadena Air Base (AB), which includes CLIN's for Repairs, Over and Above Engineering, Parts & Materials, and Travel. The contractor for this effort will be Avtron Aerospace Inc., which is now owned by Testek:

Avtron Aerospace Inc.

7900 E Pleasant Valley Rd, Cleveland, OH 44131 USA

Cage Code:01014

B. Contract Type & Structure: Type C contract with Firm-Fixed-Priced (FFP) CLIN for Preventative Maintenance and Repair, Cost Plus Fixed Fee (CPFF) CLIN for over and above Engineering Assistance for repairs, Cost Reimbursable (CR) CLIN for Material, and Cost Reimbursable (CR) CLIN for Travel. The total annual costs associated with the proposed contract are anticipated to contain the following: approximately 80% will be FFP for predictable and defined labor and training requirements, approximately 15% will be CPFF to support incidental labor costs using pre-priced labor categories and rates and 5% will be CR to cover incidental materials costs and travel costs.

C. Estimated Value: $728,132.30

D. The Period of Performance: Six (6) months, 23 Jan 2024 though 22 Jul 2024

E. Type of J&A: Individual

F. Estimated Date of Award: 16 Jan 2024

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

A. Under the contemplated service contract, Avtron/Testek will provide services to support Ogden Air Logistics Complex in the maintenance and repair of approximately 108 Avtron/Testek Test Stands for the 524th and 526th Electronics Maintenance Group (EMXG) and the 530th and 531st CMXG at Hill AFB and 525th EMXG located at Kadena AB. Avtron/Testeks services will provide the Complex with services to repair the the test stands to a fully functional state in accordance with the technical data as well as sufficient technical data and training required for repair, engineering/software services, system integration, reconfiguration and modification of test stands. Previously the test stands were maintained under sole source contract FA8224-15-C-0029 and current contract FA8224-18- C-0041 that expires 22 Jan 2024. The contract is for on-site repair services when requested beyond the limited organic maintenance capabilities. The Complex requested to purchase the technical data and/ or source code

March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 5March 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 5 required to perform repairs on 7 Feb 2017 and most recently on 23 Mar 2023 but Testek responded that the data and/or source code was not for sale.

B. This effort will be funded with 4930, CSAG-M dollars. The Government anticipates the six (6) month contract period of performance to begin 23 Jan 2024 through 22 Jul 2024. The following proposed Contract Line Item (CLIN) structure will be used:

6001: FFP: On-site Repair & Maintenance: $587,073.18

6002: CPFF: Over & Above Engineering Assistance, $105,966.09

6003: CR: Parts and Material, $24,302.85

6004: CR: Travel, $10,790.28

6005: Data NSP A001 procedural changes, A002 Upgrades, A003 backup CD, A004 Service Report, A006 Mishap/ incident report. Intellectual rights and property is not being acquired as part of this effort.

C. The Government estimates the total value to be $728,132.30

D. Approval request is for six (6) months, because there are no feasible actions that can be taken to develop future competition during this contract.

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

A. This is a highly specialized service because the automatic test architecture is unique to the Avtron/Testek test equipment and the knowledge and expertise necessary to recreate or modify the hardware or software does not exist within the complex. The test stands are used to test hydraulic actuators, voltage regulators, control units and generators for the F-16, F-15, T-38, C-130, C-5 and A-10. The Government has no rights to the source code, drawings, manuals, etc. and without access to the source code, the Government is not capable of performing maintenance or troubleshooting operations to bring the test stands to fully operational status. Additionally; the ability for the Government to reconfigure test stand operations to support new workloads would be compromised.

B. On 24 Mar 2023 Walter Keating, Vice President of Aftermarket Sales sent a letter stating "Testek cannot offer the referenced manuals, drawings, and software source code to the government with unlimited and unrestricted rights or government purpose rights as is assumed in the intent of the email" requesting data rights. The specialized manuals, drawings, and source code that are available only through Avtron/Testek, are required for MXSG Maintenance Group to test and repair aircraft and missile components which supports every major weapon system. Avtron/Testeks is currently the only licensed user of the manuals, drawings, and source code, and possesses the technical data, documentation, and detailed knowledge of the maintenance test stands. As such, Avtron/Testek is the only source who can successfully integrate software/hardware configuration management and enable proper calibration, maintenance and repair.

C. Award to another contractor would cause unacceptable delays and costs to the Government. Based on the Governments Basis of Estimate (BOE) the time necessary for reverse engineering, integration testing, engineer and operator training would take up to 4,200 hrs or approximately 2.5 years leaving the test stands inoperable or with limited testing capabilities. This would cause a considerable amount of down-time and lost production that could not be recovered.

D. Accordingly, Avtron/Testeks is the only firm capable of providing this service described in Section III above without the U.S Air Force experiencing unacceptable delays in fulfilling its requirement.

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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.

Market research, in accordance with FAR Part 10, was conducted by requesting a Rough Order of Magnitude (ROM) via the ATTSI II contract on 10 January 2023. The ROM was to include all maintenance requirements found in the Performance Work Statement (PWS) and to procure the source code fromTestek. The ROM was evaluated by the Maintenance Support Group (MXSG) Technical Team and found not to be cost effective and did not include cost for procuring the source code.

In addition, a Sources Sought (FA8227-23-SS-TESTEK) was posted to SAM.gov on 11 Apr 2023 and closed on 12 May 2023 with one (1) source responding, Test-Fuchs. The MXSG technical team evaluated the response and found them technically unacceptable based on their lack of ability to obtain the source code from Avtron/Testek.

VI. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

A. The following steps will be taken to ensure that the anticipated cost of this acquisition will be fair and reasonable.

The Contracting Officer will comply with the procedures and criteria contained in Federal Acquisition Regulations (FAR) under Part 30 - Cost Accounting Standards, Part 31 - Contract Cost Principles and Procedures, Subparts 15.4 - Contract Pricing; to include technical evaluations and audits, as appropriate.

B. Additional steps to ensure price reasonableness will be under the guidance of the Contract Pricing Reference Guides, jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology. The contracting office will obtain certified cost or pricing data IAW FAR Subpart 15.403, when required. The final step is to include the Price Negotiation Memorandum (PNM). This detailed documentation and justification of price reasonableness will be disclosed in the official PNM, to be prepared upon completion of negotiations.

VII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

A. As described in Section V above, market research, in accordance with FAR Part 10, was conducted by posting a sources sought synopsis of the proposed acquisition, advising industry of the pending acquisition, and soliciting inquiries from interested parties.

B. Market Research conducted included the following: Google & Yahoo Interenet Research, GSA-e-Library & working with the SME's (Subject Matter Expert's) that have some knowledge of this type of service.

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

None

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

TEST-FUCHS Corporation, 10325 Brecksville RD, Brecksville, OH 44141 USA

Test Fuchs responded to the sources sought (FA8227-23-SS-TESTEK) that was posted to SAM.gov on 11 Apr 2023 but does not have access to the data rights and source code needed to repair the Avtron/Testeck test stands.

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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.

It is the ultimate goal of the Government to increase organic repair capabilities but since Avtron/Testek has refused to sell any data rights to the Government, the Government will not be in a position to move entirely away from Avtron/Testek services at the end of this contract. However, upon the exercise of each option the Government will continue to perform market research, including posting a sources sought synopsis and request the necessary data right in attempts to overcome barriers to competition in the future.

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.

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.