Redacted JA_Redacted.pdf

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

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 2 of 18

Date Deputy Assistant Secretary (Contracting) Major General Cameron G. Holt (Acquisition, Technology & Logistics)

Signature

APPROVAL (AFFARS 5306.304(a) )

Date William B. Roper, Jr.

Assistant Secretary of the Air Force (Acquisition, Technology & Logistics)

Signature

March 2018 FOR OFFICIAL USE ONLY Page 9 of 18

CLIN 0016 - Repair Application: E-3B, E-3C, E-3G Repair of NSN: 5985-01-549-6743AW Noun: Antenna

PN: 4000-04000-17

Item Dimensions: 23.3000" L x 7.4000" H x 9.0000"W, 51.0 LBS Material Content: Aluminum, Steel, Fiberglass Item description and function: Interception of non-communication RF signals.

CLIN 0016 TOTAL ESTIMATED DOLLARS: $

Year BEQ Unit Price Estimated Dollars Period of Performance Type of Appropriation 5yr Basic 51 each $ $ MAR 21 - MAR 26 97X4930 5yr Option. 40 each $ $ MAR 26 - MAR 31 97X4930

CLIN 0017 - Repair Application: E-3B, E-3C, E-3G Repair of NSN: 5985-0l-549-6744AW Noun: Antenna

PN: 4000-21000-13

Item Dimensions: 25.2500"L x 8.6000"H x 9.0000"W, 53.0 LBS Material Content: Aluminum, steel, fiberglass composite Item description and function: Interception of non-communication RF signals.

CLIN 0017 TOTAL ESTIMATED DOLLARS: $

Year BEQ Unit Price Estimated Dollars Period of Performance Type of Appropriation 5yr Basic 36 each $ $ MAR 21 - MAR 26 97X4930 5yr Option 20 each $ $ MAR 26 - MAR 31 97X4930

CLIN 0018 - Repair Application: E-3B, E-3C, E-3G Repair of NSN: 5895-0l-375-2104AW Noun: Receiver-Transmitter

PN: 4000-02000-05

Item Dimensions: 13.3000"L x 8.000"H x 5.5000"W, 24.0 LBS Material Content: Metals and electronic circuitry Item description and function: Process and route transmit and receive RF signals.

CLIN 0018 TOTAL ESTIMATED DOLLARS: $

Year BEQ Unit Price Estimated Dollars Period of Performance Type of Appropriation 5yr Basic 71 each $ $ MAR 21 - MAR 26 97X4930 5yr Option 60 each $ $ MAR 26 - MAR 31 97X4930

March 2018 FOR OFFICIAL USE ONLY Page 11 of 18

CLIN 0022 - Repair Application: E-3B, E-3C, E-3G Repair of NSN: 5985-0l-550-1540AW Noun: Antenna

PN: 4000-01000-11

Item Dimensions: 64.4500"L x 14.0000"H x 7.0000"W, 89.0 LBS Material Content: Aluminum, steel, fiberglass composite Item description and function: Interception of non-communication RF signals.

CLIN 0022 TOTAL ESTIMATED DOLLARS: $

Year BEQ Unit Price Estimated Dollars Period of Performance Type of Appropriation 5yr Basic 4 each $ $ MAR 21 - MAR 26 97X4930 5yr Option 1 each $ $ MAR 26 - MAR 31 97X4930

CLIN 0023 - Repair Application: E-3B, E-3C, E-3G Repair of NSN: 5985-01-374-7496AW Noun: Antenna Coupler

PN: 4000-03000-11

Item Dimensions: 13.3000"L x 8.0000"H x 5.6000"W, 5.0 LBS Material Content: Aluminum, steel, electronics components, plastic composites Item description and function: Processes IF signals from ESM antenna to digital signals used by Radar processor.

CLIN 0023 TOTAL ESTIMATED DOLLARS: $

Year BEQ Unit Price Estimated Dollars Period of Performance Type of Appropriation 5yr Basic 40 each $ $ MAR 21 - MAR 26 97X4930 5yr Option 40 each $ $ MAR 26 - MAR 31 97X4930

CLIN 0024 - Repair Application: E-3B, E-3C, E-3G Repair of NSN: 7025-01-530-5032AW Noun: Disk Drive Unit

PN: 13221618-07

Item Dimensions: 12.5000"L x 14.5000"H x 12.5000"W, 7.1 LBS Material Content: Electronic components and metal casing Item description and function: Storing data.

CLIN 0024 TOTAL ESTIMATED DOLLARS: $

Year BEQ Unit Price Estimated Dollars Period of Performance Type of Appropriation 5yr Basic 25 each $ $ MAR 21 - MAR 26 97X4930 5yr Option 25 each $ $ MAR 26 - MAR 31 97X4930

March 2018 FOR OFFICIAL USE ONLY Page 13 of 18

CLIN 0028 - Over and Above

O&A is to be negotiated (TBN) and is estimated by using estimated repair dollars.

CLIN 0028 TOTAL ESTIMATED DOLLARS: $

Year BEQ Unit Price Estimated Dollars Period of Performance Type of Appropriation 5yr Basic 1 each TBN, TBN MAR 21 - MAR 26 97X4930 5yr Option 1 each TBN, TBN MAR 26 - MAR 31 97X4930

CLIN 0029 - Beyond Economical Repair (BER) Funds for BER will be de-obligated down from the repair line item as needed by re-alignment modification. This will effectively be a reduction in cost for each occurrence.

Estimation is unnecessary.

CLIN 0029 TOTAL ESTIMATED DOLLARS: $0.00

CLIN 0030 - CANCELLED

CLIN 0031 - DATA - Contract Data Requirements List (CDRLs) Not Separately Priced

CLIN 0031 TOTAL ESTIMATED DOLLARS: $0.00

CLIN 0032 - O&A Surge Expedite Fee

O&A expedite fee is to be negotiated (TBN) and is estimated by using total estimated repair dollars. The O&A expedite fee is included in the dollar estimate to address any possible surge requirements (due to notable changes in funding, quantity, period of performance, etc.) associated with this acquisition.

CLIN 0032 TOTAL ESTIMATED DOLLARS: $

Year BEQ Unit Price Estimated Dollars Period of Performance Type of Appropriation 5yr Basic 1 TBN TBN MAR 21 - MAR 26 97X4930 5yr Option 1 TBN TBN MAR 26 - MAR 31 97X4930

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

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii).

March 2018 FOR OFFICIAL USE ONLY Page 14 of 18

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

Boeing is the only company with the special tooling/equipment, personnel, and technical data to satisfy the Air Force's minimum need. The Government does not have the capability/capacity with the established infrastructure, specialized technical knowledge, skills, abilities and proficiencies to assume this sustainment workload. Boeing is the only known source possessing the necessary licensing agreements with Original Equipment Manufacturers (OEM), as well as the facility leasing agreement with the Ohio Port Authority. Boeing is also maintaining the irreplaceable Government-furnished Depot Support Equipment (DSE) test stations, which are essential to the repair of these items.

Over the past eighteen years, Boeing has developed an intimate knowledge of the operation and maintenance requirements, and the company has created a plan to support the existing equipment via Contractor Technical Manuals. Previous contract costs have contributed toward developing current contractor employees' knowledge, skills and abilities, thus allowing Boeing to find efficiencies through the cross-utilization of these individuals for repairing other assets within the facility.

Attempting to recreate such skills would not be instantaneous, and therefore increases the risk of transitioning to another workforce and/or location. For the Government, the time and costs associated with the recreation of these skills would negatively impact production schedule and likely result in unacceptable delays and potential production shutdown. Therefore, this acquisition is for continued performance of a highly specialized service.

The 448 SCMW believes that award to any other source would result in unacceptable delays in fulfilling the Air Force's requirements. Boeing currently occupies the facility formerly used by The Air Force Guidance and Metrology Center, which previously performed operations for the same items. The facility location is deemed critical to the depot-level repair of the guidance and navigation systems. The bedrock and foundation of the facility enables repair personnel to obtain precise measurements of azimuth and alignment without worrying about seismic activity distorting tolerances. The current building also houses a one-of-a-kind anechoic chamber utilized to test multinational aircraft electronic surveillance measuring systems, and it was constructed utilizing funding from the State of Ohio. Moving this workload would negatively affect facility overhead rates for the remaining workload and would pose an unacceptable financial liability to the Government caused by duplication of infrastructure, processes and personnel.

These items requiring repair have a unique military application demanding precise measurement/ alignment standards and are of a declining nature, many of which are resource-limited due to their progressive age and spare part constraints. Workload-specific DSE is Government-owned equipment;

however, common DSE is the property of the Central Ohio Aerospace and Technology Center (COATC). The Government-owned DSE is old, fragile, and not designed to be transported, posing an unacceptable risk of malfunctioning if moved. Relocating this unique support equipment, much of which is singularly developed and utilized, would jeopardize the presently required production schedule, and endanger operational readiness of multiple weapon systems supported by these items, if any disruption to deliverables were to materialize.

Based on the above, the workload must remain at the current facility. Any competing contractor would be required to negotiate a lease to occupy the building with the Ohio Port Authority, who was given title to the facility; Boeing has secured the lease to the facility through 2021. The Ohio Port Authority leasing agreement allows Boeing exclusive control of the area and makes it extremely difficult to incorporate another contractor since Boeing holds the rights to allow sublease activities within the same unique facility. Moreover, the incumbent has made it clear they are unwilling to

March 2018 FOR OFFICIAL USE ONLY Page 15 of 18 sublease to a competitor because of the inability to share test equipment with the current contract's remaining work-in-progress. In addition, the facility infrastructure is not conducive for segregation of the workload, and isolating competitors would require specific security authorizations in designated areas.

Furthermore, the only qualified source performing the required repair actions is Boeing. If this requirement is awarded to a new source, an Initial Production Evaluation (IPE) would be mandated to demonstrate repair capability of each line item. The estimated timeline to complete all IPEs is one year, impacted by current repair shop flow days, shared test equipment scheduling, and component part availability. The IPE requirement would create unacceptable delays in the production schedule, negatively impacting multiple Air Force weapon systems.

Accordingly, Boeing 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.

In accordance with FAR 5.201, this requirement shall be synopsized and the RFP posted at https:// beta.SAM.gov. The expected date of synopsis publication is July 2020.

A Sources Sought Synopsis (SSS) was posted on the FedBizOpps website under reference number FA8117-19-SS-0017 on 15 Jul 2019 with a response date of 9 Aug 2019, seeking depot-level repair services for these items, to include obtaining licensing agreements from OEMs allowing the use of proprietary data required for these repair actions. Five responses to the SSS were received from the following vendors: G&S Test Solutions, LLC, Merrill Corporation, Wavetron Corporation, Turbine Controls, Inc. and Technical Concept Solutions. Although there were five responses to the SSS, only one source - The Boeing Company - has provided detailed information of how it can meet the repair and technical capabilities of the specified repair requirements set forth for these items.

Furthermore, accomplishment of this workload is to be performed at the COATC - located in Heath, Ohio - as a result of a previous Base Closure and Realignment (BRAC) decision to close Newark AFB, and the subsequent AF decision to outsource the workload in place.

Market research of this workload revealed one additional potential source, Blackhawk Management Corporation (CAGE 0NLE0), but further research revealed the company only offers contract management services, not repair capability. No further qualified sources or commercial service presently exists to fulfill this requirement. Although the previously mentioned vendors have all expressed interest in this acquisition, only Boeing possesses the proprietary technical data and specialized testing equipment required to accomplish this workload. The uniqueness of the items being repaired, the facility requirements, and the test equipment needed to perform the work have hindered competition from any other source.

VII. 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. Certified Cost and Pricing Data will be required to ensure

March 2018 FOR OFFICIAL USE ONLY Page 16 of 18 negotiated prices are fair and reasonable to the Government. A detailed cost analysis and price analysis will be performed. The Defense Contract Management Agency (DCMA) and/or Defense Contract Audit Agency (DCAA) may be contacted to assist with the analysis, and may assist with inputs throughout the life of the contract.

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

In accordance with FAR 10.002(b)(2), market research concluded on 8 November 2019 and did not uncover any additional sources having the unique ability, nor willingness, to repair this workload at the COATC location in Heath, Ohio. Modification of weapons systems to incorporate current or emerging technologies to alleviate this requirement is impractical due to the scope and costs associated with such endeavors. Additionally, the OEMs of these items were sent requests for interest to repair their particular items on 30 October 2019; no OEM responded with interest. The five respondents to the SSS do not possess the capability to test, inspect, or repair this workload. Finally, no Source Approval Request (SAR) packages have been received for this requirement.

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

After award of the original repair contract in 1995, the transition from Government to contractor performance cost $12.4 million and took eleven months to accomplish, without having to transport equipment. Boeing has already successfully transitioned this workload on a non-interference basis and will be supporting the completion of work-in-progress repairs. Based on current repair shop flow days, projections to return to steady operations would take at least 208 days (longest shop flow time constraint) to transfer all CLINs, which could result in Mission Impaired Capability Awaiting Parts (MICAP) situations across 13 weapon systems. If forced to move facilities, the costs associated would equate to more than $21.1 million in today's dollars (based on latest inflation models for 2019).

In accordance with Source of Repair Assessments for items on this contract, the Government has extensively reviewed these items and conducted in-depth cost assessments to determine if it would be economically feasible to organically repair these items. The OEMs associated with the items on this contract require an annual licensing fee for the rights to use restricted technical data. Boeing is the only contractor who has secured these agreements for items they repair requiring restricted proprietary information from OEMs. The Government realizes that it has unlimited rights to form, fit, and function data, including source qualification data, as well as data related to operation, maintenance, installation, and training. However, such rights are insufficient to satisfy the current need. Access to both production-level drawings and repair data is necessary to accomplish the tasks for this acquisition.

Efforts by the Government to acquire a license from the various OEMs have thus far been unsuccessful. Boeing leases licenses from the other OEMs; for individual Boeing-developed items, the company will not sell its proprietary information or processes. In addition, separating this workload is not considered to be in the best interest of the Government, nor would "best value" be attained for taxpayers. Division of the workload would incur additional expenses for the transition from contractor to Government. Expenditures on other contracts would also increase as Boeing's overhead rates would be spread across a smaller workload base, without any reasonable expectation to recover these outlays through competition.

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Per DFARS 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 all stated actions to remove barriers to competition have been accomplished.

XII. Certification by the Contracting Officer.

The contracting officer's signature on the Coordination and Approval Document evidences that he/ she has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

XIII. Certification by the technical/requirements personnel.

By their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified as accurate and complete all supporting data, which is their responsibility, contained herein IAW FAR 6.303-2(c).