Redacted JA.pdf

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

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 8

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

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

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition:

Contracting Activity: AFSC/PZAAB

Purchase Request / Local ID Number: FD2060-20-00084

Program / Project (and PE, if applicable): C5 Visor Door Actuator Overhaul

Program Type (PEO or Other Contracting): Other Contracting

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date Project Lead / Program Mgr / Requiring Activity

Signature

Date Contracting Officer

Date

19 Aug 2019

Local Legal Reviewer

APPROVAL (AFFARS 5306.304(a) )

Date

20 Aug 2019

Competition Advocate

March 2018 FOR OFFICIAL USE ONLY Page 2 of 8

I. Contracting Activity.

This Justification and Approval 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) and the 409 Supply Chain Management Squadron (SCMS)/ (GUMAB).

The contracting activity for this requirement is AFSC/PZAAB. The purchase request number supporting this contracting action is FD2060-20-00084.

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

Due to the circumstances described herein, the requiring activity requests authority to acquire the overhaul 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 contract which will be a Firm- Fixed Price (FFP) Requirements Indefinite Delivery Contract (IDC) with a basic one-year plus four

(4) one-year Ordering Periods. The validity period for this IDC is estimated to be 22 November 2019 to 21 November 2024.

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

Thomas Instruments, Incorporated 3440 E. First Street Brookshire, TX 77423-9525 CAGE Code: 5H860 Small Business

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

This requirement is for depot level overhaul services of the C-5 Visor Door Actuator, National Stock Number (NSN) 1680-00-402-9812 / Part Number 10360-2. This item is used on the Air Force's C-5 Galaxy aircraft. The C-5 Galaxy aircraft is projected to retire in 2040. Depot level overhaul is defined as major overhaul or a complete rebuild of parts, assemblies, subassemblies and end items, including the manufacture of parts, testing, and reclamation, as required. The overhaul service will bring the Visor Door Actuator to serviceable condition in accordance with Air Force Technical Manual 16A1-14-40-3 requirements. The Visor Door Actuator is used to open and close the forward visor door on the C-5 Galaxy aircraft. It was specifically designed for, and only used on, the C-5 aircraft.

The depot level overhaul requires a complete teardown, evaluation, repair and/or replacement of components, testing, packaging, handling, storage, transportation, and data collection.

The estimated unit prices, overhaul best estimated quantities (BEQ), Beyond Economical Repair (BER) quantities, Over and Above (O&A), and estimated total costs are listed in the table below:

Basic Ordering Ordering Ordering Ordering Ordering Period (OP) Period (1) Period (2) Period (3) Period (4)

(FY20) (FY21) (FY22) (FY23) (FY24)

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Overhaul

BEQ 28 12 12 12 12

Est. Unit Price Est. Total Overhaul Cost

BER 1 1 1 1 1

Est. BER Unit Price O&A Cost Est. Total Cost Estimated Total:

The nominal Contract Line Item Numbers (CLINs) structure is as follows:

CLIN DESCRIPTION COST BEQ Unit of Measure X001 Overhaul FFP 28 (Basic) Each 12 (OP 1-4) Each X002 BER FFP 1 Each X003 O & A To Be Negotiated 1 Each X004 Data NSP 1 Lot

Total estimated contract value is . A inflation factor was used for each out-year estimated overhaul price. The basis for the estimated cost was derived from the Forecast Repair Price on the September 2018 D200 Summary computation. The BEQ for the basic year was estimated based on backorders, Program Depot Maintenance requirements, and quarterly demand rates. BEQs for out-year ordering periods were estimated based on quarterly demand rate. Actual repair quantities will be based on requirements at the time an order is placed. The O&A cost was calculated by subtracting the estimated first year overhaul cost for one unit from of the forecasted acquisition cost then rounded to the nearest thousands. The requirement will be funded with funds.

This J&A covers the scope and validity period of this IDC through completion of all task and delivery orders. Additionally this J&A supports any increases beyond the stated BEQs. Delivery will be handled at the task/delivery order level and will be for two (2) each every 45 calendar days after receipt of funded delivery order and asset for overhaul.

This NSN was screened and assigned Repair Method Code (RMC)/Repair Method Suffix Code (RMSC) of R1/C. “R1” means suitable for competitive repair for the second or subsequent time.

RMSC “C” indicates this part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique engineering skills and repair knowledge by the qualified source(s) require repair of the part by the approve source(s). The approved source(s) retain repair knowledge, or technical data that are not economically available to the Government, and data or knowledge is essential to maintaining the quality of the part. An alternate source must qualify

March 2018 FOR OFFICIAL USE ONLY Page 4 of 8 in accordance with the design control activity's procedures, as approved by the cognizant Government engineering activity. The qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application.

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 Service 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 agency's minimum needs can only be satisfied by the unique services available from Thomas Instrument, Incorporated. Aerocontrolex Group, Inc. (Cage 98889) was the original equipment manufacturer of the Visor Door Actuator, however the configuration/design has changed since it was originally designed. The Government owns the Visor Door Actuator technical data package but does not own an operable test stand. The Government owns a technical manual for the current test stand, but the test stand has been deemed unsafe by C-5 engineering. The Government test stand was condemned on the basis that it could not perform all of the components of the test plan outlined in the overhaul Technical Order (TO).

There are missing/failed components that Ogden ALC is unable to repair in order to restart the process. In addition, the test stand currently hoists 6000lbs 20 feet in the air and poses a significant risk to workers in the area should a failure occur. There have been incidences of the load getting stuck at the top and requiring manual load release.

Aerocontrolex Group, Inc. provided repair services on contract F09603-99-D-0420-0001, awarded 30 September 1999 for quantity of 11 each. However, since the Visor Door Actuator design has changed, Aerocontrolex Group, Inc. is no longer considered a qualified source. In order to become a qualified source, Aerocontrolex Group, Inc. or any new vendor would be required to meet pre-qualification requirements set forth by C-5 system Engineering. An Aerocontrolex Group, Inc. representative was contacted by email on 18 March 2019 to inquiry if they would be interested in re-qualifying. No response has been received to date. Based on the previous effort with Thomas Instruments, a pre-qualification effort is estimated to take three years to complete. Pre-qualification of a new vendor at this time would cause an unacceptable delay in fulfilling the Air Force's requirements.

The Visor Door Actuator is highly specialized due to its complex design. To perform an overhaul requires strict control of processes to ensure adherence to very close tolerances. Due to the unique application and Critical Safety Item designation of the Visor Door Actuator, as defined in the 1C-5M-6, special equipment is required to test the final overhauled item and ensure its flight worthiness. Brake, load, and functional testing are required to ensure the Visor Door Actuator will not fail in use. Failure of the item would place the aircraft and crew in a hazardous situation. Failure of the Visor Door Actuator in use may lead to loss of life, damage to the aircraft, or destruction of cargo. Based on the complex design and critical nature of the item, a new vendor would have to be pre-qualified, which includes first article testing.

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Lockheed Martin (LM) is the Prime contractor for the C-5 Galaxy Aircraft Program. LM conducted an engineering analysis on this item from 2004 through 2014 to address issues related to several failure modes that require review and maintenance intervals. Thomas Instrument worked under an engineering contract to analyze and verify Air Force overhaul procedures and components to alleviate the issues documented by LM. Thomas Instruments was tasked with generating red-lined TOs, reverse engineering several obsolete components, and conduct endurance testing to qualify Visor Door Actuator modifications. During this analysis, Thomas Instruments tore down, inspected, performed practice overhauls, and developed the Qualification Test Plan (QTP) to meet the operational testing requirements in the overhaul TO. As a capital investment, Thomas Instruments designed a test stand based on the QTP to perform the qualification testing of the new designed parts. Due to the work performed under this contract, C-5 engineering qualified Thomas Instruments as an overhaul source of repair for the Visor Door Actuator.

A request was sent via e-mail to Thomas Instruments on 24 June 2019 to inquiry their interest in selling the test stand and/or the technical data for their test stand. An e-mail response was received the same day indicating that it was Thomas Instrument's policy not to sell technical data or test equipment.

Since the Government owns the technical data package there is no need to perform a reverse engineering effort. However, since the Government does not own the technical data for the test stand, one would need to be developed. The Visor Door Actuator has been organically repaired at Ogden ALC since around 1999 until late 2018 when repair was discontinued due to unserviceable test equipment. Organic repair capability cannot be reinstated until new test equipment is acquired. The Government is in process of funding acquisition of the test stand. The FY21 funding package includes the requirement to acquire the new test stand. Any other Government effort to develop a test stand would be a duplication of effort and cost. Since the test stand is custom built, Ogden ALC maintenance has estimated it would take to complete after receipt of funding. This estimate is based on previous experience in purchasing test equipment.

Delaying overhaul of Visor Door Actuators while waiting on development and approval of a test stand would impact the mission capability of the C-5 fleet. As of 06 May 2019, there are six backorders including one mission impaired capability awaiting part requirement. There are currently no serviceable spares to replace on-aircraft failures. There is also a current requirement for this item to be time-changed during the Aircraft PDM. However, due to lack of serviceable assets this time-change requirement is being waived. Without a serviceable Visor Door Actuator, the aircraft cannot load and unload cargo to its full capability. The C-5's full operational availability is reduced which impacts the war fighter's ability to accomplish specific missions.

Accordingly, Thomas Instruments is the only firm capable of providing the services described in Section III above without the U.S. Air Force experiencing unacceptable delay 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

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Opportunities (FedBizOpps) on 17 December 2018 under Solicitation number: FA85SB- Prequalification-Actuation_Mecanism_Visor_Door_NSN-1650-00-402-9812 with responses due by 17 January 2019. The SS/RFI requested responses from interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this effort. There were no responses.

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

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 and pricing data to be used to support the Government's evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types and quantities of material and other direct costs, and direct and indirect rates will be negotiated by the Government based on recommendations form the Defense Contract Management Agency 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 beginning 17 December 2018 and completed on 06 May 2019 in accordance with FAR Part 10.001 and 10.002. The market research techniques used are as follows:

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 17 December 2081 under Solicitation number: FA85SB-Prequalification- Actuation_Mecanism_Visor_Door_NSN-1650-00-402-9812. No one responded to the SS/RFI.

Queries were conducted and performed within Government data bases and via internet searches such as the following:

a. Dynamic Small Business Search 04 March 2019 at http://dsbs.sba.gov/dsbs/search/ dsp_dsbs.cfm/ using NAICS code 336413 (other aircraft parts and auxiliary equipment manufacturing) and keyword “actuator”. The search resulted in sixty-two (62) matches. None of the vendors were pre-qualified.

b. Search for https://www.thomasnet.com/ using the following search criteria:

Actuator Rebuilding & Repair Services

Quality Certifications - ISO 900 Search resulted in 17 suppliers. None of the vendors were pre-qualified.

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The subject mechanical actuator was designed specifically for the C-5 Galaxy aircraft which is a military transport aircraft. This item does not fit the definition of a commercial item as defined in FAR 2.101. This item is defined as military unique and it is not customarily used by the general public or by non-Governmental entities. The Government requires parts that meet an exact for, fit, and function as determined by the specific mission. There are no aircraft in the commercial market with the same or similar component.

The market research concluded Thomas Instruments is the only vendor capable of fulfilling the Government's requirement.

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 owns the technical data package but it does not own the test equipment or data required to develop the test equipment. The item has been organically repaired at Ogden ALC since 1999 until late 2018 when repair was discontinued due to unserviceable test equipment. Ogden ALC is in process of obtaining funding to acquire new test equipment (FY21 Budget). Once funding is obtained, the administrative and production lead-time to acquire the test equipment is estimated to be

. Additional ordering period is included with this instant requirement to account for potential delay in acquiring the new test equipment. Once new test equipment is acquired, Ogden ALC organic repair capability will be re-established.

A reverse engineering project is not necessary since the Government owns the technical data package, however a development effort would be required for the test stand. Inquiry was sent to Thomas Instruments on 24 June 2019 to inquiry on their willingness to sell their test stand and/or test stand technical data to the Government. They declined interest in selling their equipment or technical data.

The Government anticipates funding will be received to acquire a new test stand in the FY21 budget and organic repair capability for Ogden ALC will be re-established within years thereafter. Based on this, a subsequent follow-on contract is not anticipated therefore the Government is not planning any further action to break barriers to competition.

There is no prior J&A therefore the requirement for higher level approval in accordance with DFARS PGI 206.304(a) (S-70) (ii) does not apply.

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XII. Certification by the Contracting Officer.

As evidenced by my signature, 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) signatures, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.