Redacted JandA.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 9

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: AFLCMC/WIUKA

Purchase Request / Local ID Number: FD2060-20-30290

Program / Project (and PE, if applicable): -110 Clock and Cycle Counter Assembly Kits, Nylon Extended Tunnel Assembly Kits, & Ring Tunnels

Program Type (PEO or Other Contracting): PEO

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

17 Jan 2020

Logistics Manager Brandi Nicole Mitchell

AFLCMC/WIUAS / 472-1539

Signature

Date

17 Jan 2020

Contracting Officer Bryan D Canady

AFLCMC/WIUKA / 468-4430 ]

Signature

Date

21 Jan 2020

Local Legal Reviewer

CHARLES R. EPPERSON

78 ABW/JAQ, 472-0578

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

06 Feb 2020

Competition Advocate

THOMAS G. ELLER, NH-04

AFSC/PZC, 472-1088

Signature

MITCHELL.BRANDI.136

4711030

Digitally signed by

MITCHELL.BRANDI.1364711030

Date: 2020.01.17 13:35:16 -05'00'

CANADY.BRYAN.D.1386

987587

Digitally signed by

CANADY.BRYAN.D.1386987587

Date: 2020.01.17 14:31:55 -05'00'

EPPERSON.CHARLES.R.

1103770811

Digitally signed by

EPPERSON.CHARLES.R.1103770811

Date: 2020.01.21 16:25:48 -05'00'

ELLER.THOMAS.G.1056

933570

Digitally signed by

ELLER.THOMAS.G.1056933570

Date: 2020.02.06 10:49:02 -05'00'

March 2018 FOR OFFICIAL USE ONLY Page 2 of 9

I. Contracting Activity.

This Justification and Approval is to request authority for Other Than Full and Open Competition supporting requirements generated for the Fixed Wing SOF/PR Cross-Platform Sustainment Section AFLCMC/WIUAS. The Contracting Activity for this requirement is AFLCMC/WIUKA. The purchase request number is FD2060-20-30290.

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

Due to the circumstances described therein, the activity request authority to acquire the items listed in the document using Other Than Full and Open Competition as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Service Will Satisfy Agency Requirements. This action will result in the award of a new contract, which will be a Firm Fixed Price (FFP) “D” Requirement Indefinite Delivery Contract (IDC) with a 24 month ordering validity period. The validity period is anticipated to be 15 April 2020 through 14 April 2022.

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

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

This requirement is for the procurement of the -110 Clock and Cycle Counter Assembly Kits, Nylon Extended Tunnel Assembly Kits, and Ring Tunnels for the MC-130J Air Refueling Pod. The Air Refueling Pod is the only refueling pod system on the MC-130J.

Air Refueling Pods are installed on the MC-130J during aircraft production. The -110 Clock and Cycle Counter Assembly Kits provide a capability to track Hose Reel cycle usage. The Nylon Extended Tunnel Assembly Kits with the Nylon Ring Tunnels eliminate the wear surface and extend the life of the Refueling Hose and drogues.

The projected requirements for this IDC is provided via the following, depicting Best Estimated Quantities by item:

-110 CLOCK AND CYCLE COUNTER ASSEMBLY KITS

NSN NOUN BEQ U/I

6625-01-643-2276 Clock and Cycle Counter Assembly 88 ea Not stock listed ID Plate 88 ea

This program will procure a Best Estimated Quantity (BEQ) of 88 each: -110 Clock and Cycle Counter Assembly Kits (2 kits per 42 aircraft, plus 4 spare kits). Each kit will include one identification plate (P/N: 149-4122-13; NSN: TBD) and one Clock and Cycle Counter Assembly (P/N:

406512-2; NSN: 6625-01-643-2776).

March 2018 FOR OFFICIAL USE ONLY Page 3 of 9

NYLON EXTENDED TUNNEL ASSEMBLY KITS

NSN NOUN BEQ U/I

1560-01-660-6257 Extended Tunnel 88 ea

This program will procure a BEQ of 88 total Nylon Extended Tunnel Assembly Kits (2 kits per 42 aircraft, plus 4 spare kits). Each kit will include 1 Nylon Extended Tunnel Assembly (P/N: 401051-3;

NSN: 1560-01-660-6257) plus hardware.

NYLON RING TUNNELS

NSN NOUN BEQ U/I

1680-01-660-6317 Ring Tunnel 8 ea

This program will procure a BEQ of 8 total initial spares Ring Tunnels (P/N: 411676-1; NSN:

1680-01-660-6317).

These items do not require Screening Analysis or an Acquisition Method Code/Acquisition Method Suffix Code (AMC/AMSC) because currently manufactures the Aerial Refueling Pod and the Hose Reel parts for the Navy. These are the same parts the Air Force would need for these modifications. Items contained in these upgraded kits have undergone an extensive development, ground and operational flight prototype testing program. The Navy is currently flying these items with no Deficiency Reports.

As outlined in the following tables, the total estimated contract value is This cost is based on a Rough Order of Magnitude (ROM) from the Original Equipment Manufacturer (OEM), Sargent Fletcher Inc. This requirement will utilize 0300 Procurement appropriations.

TABLE 1

ORDERING FISCAL ESTIMATED

PERIOD YEAR TOTAL

24 Months FY19

TOTAL

The nominal Contract Line Item Numbers (CLINs) anticipated are as depicted in Table 2:

TABLE 2

CLIN Description Item Cost Type BEQ U/I Kit Price Total price 0001 Procurement Counter FFP 88 ea $ 0002 Procurement Extended Tunnel FFP 88 ea $ 0003 Procurement Ring Tunnel FFP 8 ea $

March 2018 FOR OFFICIAL USE ONLY Page 4 of 9

0004 Procurement Data NSP 1 ea

TOTAL

The ordering validity period of this IDC will be 24 months after contract award, anticipated to be 15 April 2020 through 14 April 2022. This J&A covers the ordering validity period through completion of all delivery and technical orders as well as any increases beyond the maximum stated BEQs.

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

10 USC 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 USAF's minimum needs can only be satisfied by the unique supplies available from . The -110 Clock and Cycle Counter Assembly Kit counts the extraction/retraction cycle of the refueling hose during use, tracking actual cycle usage to build Government inspection standards and mitigate unnecessary aircraft downtime. The Extended Tunnel and Ring Tunnel replace their stainless steel material with nylon, providing a softer surface, extending hose and drogue service lives. These modifications consist of both highly specialized mechanical and electrical systems that require the Contractor to have extensive knowledge and experience with the Special Operations Forces C-130 aircraft platforms and in-depth knowledge and expertise of the Air Refueling Pod. They must also have vast knowledge and competency in overhauling Hose Reels. This specific expertise prohibits any other source from providing these parts.

The -110 Clock and Cycle Counter Assembly kits, Extended Tunnels, Ring Tunnels as well as the Next Higher Assembly (NHA) the Air Refueling Pod are not commercial products and all data rights are proprietary to the Original Equipment Manufacturer (OEM), . The ideas, new technology and aircraft modification are intellectual property of . retains proprietary control and rights to this technology and data (drawings) and are unwilling to sell the data rights at this time. The Government has made attempts to acquire the data from . AFLCMC/WIUAS reached out to via email October 9, 2019 to inquire on interest in selling TDP to the Government. declined request via email stating, “We have invested significant hours and purchased millions of dollars of test equipment developing and improving our refueling system for the C-130 aircraft. Because of these investments and the significant infrastructure we have built up to support our refueling business, we are not able to sell our IP at this time.”

Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Air Force's requirements. Items contained in these upgraded kits have undergone an extensive development, ground and operational flight prototype testing program. All of the development and testing over the last three (3) years was at the private expense of SFI and is ready for production. The -110 Clock and

March 2018 FOR OFFICIAL USE ONLY Page 5 of 9

Cycle Counter Assembly kits have been flying on Navy Hose Reels for three (3) years with no deficiencies. A reverse engineering (RE) effort is estimated by AFLCMC/WIU Program Office to cost $5.3M. The $5.3M estimate is based on development cost, ground and operational flight prototype testing. The RE effort is estimated to take three (3) years at a minimum. Additionally another two (2) years would be necessary after RE for the development of a competitive solicitation package and competition via source selection procedures. Based on this, a total of five (5) years would be required to pursue a reverse engineering acquisition strategy in addition to the last three (3) years already invested which is an unacceptable delay for this effort. AFSOC's requirement is urgent, as such they have budgeted and are currently prepared to obligate FY19 0300 funds. There is no guarantee of funds availability if redundant delays occur.

Part Type of Cost Timeframe Cost Tunnel/Ring Tunnel Development 2 Tunnel/Ring Tunnel Manufacture Prototype $ Counter Development Counter Manufacture Prototype Counter 3 Flight Tests

Total Estimated Cost:

*1 lead engineer @ 2 other engineers @ Time frame based on actual development time invested by SFI

**2 lead engineers @ 4 other engineers @ Time frame based on actual development time invested by SFI

Manufacture Prototypes and Flight Test estimates are based on actual cost to SFI.

An Analysis for this effort was conducted and concluded on October 15, 2019. The alternatives used was Sole Source and Reverse Engineering. The following are assumptions used while conducting analysis.

• A 35 year time frame was used for the analysis period, based on the expected service life of the

MC-130J.

• Reverse engineering effort requires three (3) years. Costs were based on engineers working for two (2) years on development and one (1) year of Flight Testing. The reverse engineering, prototype and data development is based on similar Inter-Communication Set Control Panel (ICSCP) reverse engineering program.

• USG does not own Refueling Pod data, so a Aerial Refueling Pod must be provided to the Contractor as GFM during the approximately three (3) year reverse engineering effort.

• A serviceable Hose Reel must be provided to the Contractor as GFM to use during the development of the counter.

• The Contractor must acquire a functioning Hose Reel stand. Currently two (2) stands exist, but cannot be used for this effort because USG does not have rights to SFIs stand and JAXs stand is currently in use - 1 at SFI (owned by SFI) and 1 at JAX (owned by Navy).

March 2018 FOR OFFICIAL USE ONLY Page 6 of 9

• The Contractor must use the existing mount and wiring harness that exists currently on the Hose Reel or the Hose Reel will have to be Reverse Engineered as well.

• In summary, the costs of Reverse Engineering are approximately and the costs of going to are approximately , a cost savings of . Therefore, the analysis indicates sole source procurement is the least costly alternative.

The ideas, new technology, and upgraded parts are intellectual property of .

. retains proprietary control and rights to this technology and data (drawings). The Government (USN/USAF) did not procure the data from . Since the upgraded kits are proprietary technology developed by ., there are no commercially available alternative options.

Currently on the MC-130J, a hose reel inspection is performed every 135 days regardless of how many times the hose reel is used. An inspection requires 5 maintainers and 8 hours of aircraft downtime.

The proposed solution is to upgrade to the -110 Clock and Cycle Counter Assembly Kits. These -110 Clock and Cycle Counter Assembly kits will mitigate unneeded downtime and help the Government build inspection standards based on actual air refueling reel usage. It will also allow the gathering of data to assist with future preventative measures as well as possibly extending the inspection requirement from a 135 day to a 270 day inspection.

The current Air Refueling Pod extended tunnel assembly and stainless steel wear plates are causing undue wear on the VSD rib coating. This excessive wear increases friction and may lead to stow and lock problems and/or trail mis-wraps which jeopardizes mission accomplishment for the MC-130J.

The proposed solution is to replace the current extended tunnel assembly and stainless steel wear plates with a Nylon Extended Tunnel Assembly Kit. This will provide a softer surface and reduce friction with the VSD rib coatings, resulting in easier extractions/retractions while extending the service life of the ribs.

The Extended Tunnel Assembly upgrade includes a Ring Tunnel. This Ring Tunnel is a nylon insert that can be replaced once it is deemed to have reached a certain point of wear that could impact the integrity of the Extended Tunnel. This sacrificial piece aims to protect the rest of the Tunnel Assembly as the hose is extended in and out for multiple refueling efforts.

Accordingly, is the only firm capable of providing the supplies described in Section III above without the USAF experiencing substantial duplication of cost that could not be expected to be recovered through competition and 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 Request for Information (RFI) synopsis was posted to Federal Business Opportunities (FedBizOpps) on 9 October 2019 with a response date of 1 November 2019 under Solicitation Number FA8509-20- R-0002. The RFI requested responses from interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this effort. There were no responses by interested vendors to the RFI.

The requirement will be synopsized to Government Point of Entry (GPE) in accordance with FAR

March 2018 FOR OFFICIAL USE ONLY Page 7 of 9

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 contractor 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 or 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 from the 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. Contracting Officer will perform price and cost analysis to determine the price fair and reasonable.

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

The Market Research was conducted during October 1, 2019 and completed on November 4, 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 Request for Information (RFI) was posted to FedBizOpps advertising industry of the pending acquisition and soliciting inquiries from interested vendors. The RFI was posted on October 17, 2019 under Solicitation Number FA8509-20-R-0002. Zero (0) vendors responded to the RFI.

A SBA Dynamic Small Business Search (DSBS) query was conducted utilizing North America Industry Classification System (NAICS) code 336413 with key words Air Refueling Pod, Hose Reel, Refueling and Special Operations Forces. This query produced approximately 4,000 potential vendors.

The Market Research performed revealed potential sources within various Small Business (SB) categories. Those SB categories include: 8(a), Woman-Owned Small Business, Hub zone, Small Disadvantaged, Veteran Owned, and Minority Owned companies. Initial analysis was performed concluding several small businesses could potentially meet some of the basic criteria. However, after additional evaluation, there were no vendors identified who met the capability criteria to manufacture and produce the specific SOF/PR parts needed for this requirement.

Procurement of the parts for the Air Refueling Pod does not meet the commercial definition per FAR Part 2. This item is defined as military unique and it 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. Additionally knowledge of the Special Operations Forces C-130 aircraft platforms and in-depth knowledge and expertise of the Air Refueling Pod is necessary to fulfill this requirement. This specific expertise would prohibit this work from being provided by the general commercial market. There are no other market participants. Air Refueling Pod/ Hose Reels are for military customers only and all data is proprietary to

March 2018 FOR OFFICIAL USE ONLY Page 8 of 9

The Government will not be able to provide the proper fleet support for the Air Force Special Operations Command and ultimately the Warfighter if a vendor in "learning mode" is selected. The Government has concluded via Market Research that the OEM, has adequate resources, skills, and knowledge and 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 does not possess the TDP for the Aerial Refueling Pod to support full and open competition. An inquiry for sell of the TDP was sent to the OEM on October 9, 2019. The OEM responded on October 9, 2019 and declined interest in selling the TDP.

A reverse engineering effort is estimated to take three (3) years at a minimum to complete.

Additionally another two (2) years would be necessary after RE for the development of a competitive solicitation package and competition via source selection procedures. Based on this, a total of five (5) years would be required to pursue a reverse engineering acquisition strategy in addition to the last three (3) years already invested. AFSOC has budgeted and is currently prepared to obligate FY19 funds and there is no guarantee of future funds availability. This would cause an unacceptable delay in meeting AFSOCs urgent requirement and is therefore not feasible.

While the current Market Research indicates a sole source environment for the Air Refueling Pod, the Government intends to overcome barriers to competition by soliciting SFI for the data package within 24 months. The Government does not possess the data for the Air Refueling Pod/Hose Reels to support full and open competition. Currently, there are no other market participants. The decision not to sell data rights to the Government is the primary obstacle for removing barriers to competition.

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.

March 2018 FOR OFFICIAL USE ONLY Page 9 of 9

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.