Redacted_JAv_Redacted.pdf

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

NEGOTIATION SENSITIVE

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I. Agency and Contracting Activity.

United States Air Force

AFSC OL:H/PZAAA

6050 Gum Lane, Bldg. 1215 Hill AFB, UT 84056-5825 Contracting Officer: Kaitlin Johnson Phone Number: DSN 775-2966 PR Number: FD2020-23-00265

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

A. Upon approval to use other than full and open competition procedures the Air Force will issue a new non-commercial, one (1) year, with 2 additional years of delivery (3 year Period of Performance), "C" type repair services contract for the rebuild of the Traveling Wave Tube and components listed below, used in the Missile Warning Defense AN/FPQ-16 radar program by the US Air Force. A "C" type contract is being used for this requirement as Stellant Systems is not interested, and will not participate, in an Indefinite Delivery/Indefinite Quantity (IDIQ) type contract.

Contract will be awarded to: Stellant Systems INC.

1035 Westminster Dr.

Williamsport, PA 17701-3911

CAGE CODE: 89146

B. The estimated dollar value is $ . A Firm Fixed Price (FFP) pricing arrangement is anticipated. The estimated award date is March 2023 with three (3) year period of performance from March 2023 through March 2026.

C. Type: Individual

D. This is not a Bridge Action

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

A. This is a new standalone repair services contract for rebuild of the Traveling Wave Tube and components listed below, used for the AN/FPQ-16 Parameter Acquisition Radar-Attack Characterization System (PARCS) by the US Air Force. This component is a subassembly of a system that is used to provide RF amplification by velocity modulating electron beams through 128 vacuum tubes within the radar. This system is part of the ballistic missile program which provides early warning of incoming IBCM's. This Radar also provides space object and satellite tracking capabilities to detect objects outside of the atmosphere that could possibly pose a threat to our national security.

B. The traveling Wave Tube is designed specifically for the PARCS AN/FPQ-16 radar. Repair services are not available from any other source than Stellant Systems, formerly (L-3). Stellant Systems is the only vendor who has demonstrated the unique repair knowledge, and possesses the technical data required to repair/rebuild the listed TWT stock number as the Original Equipment Manufacturer (OEM). Stellant Systems is experienced with Wave Tube repair and is currently rebuilding the TWT under another current standalone contract FA8250-21-C-0007. USAF does not possess or have rights to the necessary data to support the development of alternate sources of production, repair, and sustainment of this Traveling Wave Tube. For this repair contract, the contractor will provide Firm Fixed Pricing (FFP) for the repair CLIN Line listed below with estimated unit repair cost and quantities available:

The Air force estimated unit repair cost and quantities are shown below:

Line NSN Type of Repair Qty Cost Est Total 0001 5960-01-058-6272 Total Rebuild TWT 68 0002 5960-01-058-6272 Vacuum Ion Pump 68

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C. Total Estimated Cost . This estimate is based on a history of prior repair services and past market research, while including an annual inflation rate of five percent (5%). Sufficient pricing data provided by procurement history in J018 and performance data available from the Escape system were used to predict a realistic forecast. The contracting action will use 4930 CSAG-S Working Capital Funds.

D. Statutory authority permitting Other than Full and Open Competition 10 USC 2304 (c) (1), as implemented by FAR 6.302-1 (a) (2) (iii), Only One Responsible Source and No Other Supplies Will Satisfy Agency Requirements.

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

A. The above authority was selected for repair of highly specialized assets. The Traveling Wave Tubes are highly specialized because they contain a vacuum ion pump that has been installed on new TWT to extend the life cycle of existing tubes, therefore this acquisition will be for the repair/rebuild of highly specialized assets.

B. The Traveling Wave Tube is designed specifically for the PARCS AN/FPQ-16 radar. Repair services are not available from any other source other than Stellant Systems, formerly (L-3). Stellant Systems is the only vendor who has demonstrated the unique repair knowledge, and possesses the technical data required to repair/rebuild the listed TWT stock number. Stellant Systems is experienced with Wave Tube repair and is currently rebuilding the TWT under the current standalone contract FA8250-21-C-0007. USAF does not possess or have rights to the necessary data to support the development of alternate sources of production, repair, and sustainment of this Traveling Wave Tube.

Specifically, USAF does not have rights to:

C. The government estimates the cost to reverse engineer the TWT to be . Government engineers estimate 24 months time to reverse engineer the Traveling Wave Tubes prototype, which would then need to be manufactured as required with additional costs and time. Reverse engineering of this highly specialized equipment by any other source would be cost prohibitive and add unacceptable time delays to these repairs. Stellant Systems bought all remaining spares of this sub-component when the manufacturer announced the End of Life of the product. Access to this piece is crucial to being able to repair the Interface Adapter. Furthermore, the TWT provided a budgetary estimate of in 2010 for the USAF to acquire the necessary data to support the development of alternate sources of production, repair and sustainment. On 12 December 2022 Stellant Systems indicated that they are not interested in selling their intellectual property/data package based on it being detrimental to the vendor's competitive advantage.

D. Accordingly, Stellant Systems is the only firm capable of providing the repair services described in section lll above without the U.S. Air Force experiencing substantial duplication of cost that could not be recovered through competition and unacceptable delays in fulfilling its requirements.

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E. Communications & Power Industries (CPI), was previously listed as an approved source on the prior 762, however it was found though discussions with CPI that they were erroneously added to the 762 based on them expressing a desire to become qualified, but they never had the capability to repair the parts. Due to the USAF not owning the data rights or possessing the necessary data package to qualify a new source, CPI could not be vetted to become an approved source and had to be removed from the 762. The prior contract (FA8250-21-C-0007) was solicited competitively (thinking CPI could propose), but only one offer was received (from Stellant), at which time we found CPI was not a qualified source.

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.

A. source Sought Synopsis: The Source Sought Synopsis was posted under FA8250-22-R-00TWG on 15 Feb 2022 at www.Sam.gov and closed on 2 Mar 2022. This repair is for 68 units necessary to support the MWD system.

B. A response was received on the Sought Sought Synopsis under FA8250-22-R-00TWG from PSI Repair Services INC who expressed interest in becoming qualified. However, since the USAF does not own the data, we are unable to qualify PSI Repair Services and PSI noted they do not currently have the capabilities in house to perform the repairs. On 12 December 2022 Stellant Systems indicated that they are not interested in selling their intellectual property/data package based on it being detrimental to the vendor's competitive advantage, nor will they work with another competitor to help qualify them.

C. Synopsis: This requirement will be synopsized at www.Sam.gov as a notice of contract action IAW FAR 5.201

D. Other Actions: None

E. Qualifying Country Sources: None

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 service will be fair and reasonable. The Contracting Officer will comply with procedures and criteria in the Federal Acquisition Reguylation (FAR) under Subparts 15.4- Contract Pricing to include technical evaluations and audits as appropriate. Additional steps to ensure the 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. The final step is to include the Price Negotiation Memorandum (PNM). This detailed documentation and justification of price reasonableness will be disclosed in the offical 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.

As described in Section V above, Market Research (MR), in accordance with FAR Part 10, has been conducted by synopsis of the proposed acquisitions, advising industry of the pending acquisition and soliciting inquiries from interested parties.

B. In accordance with FAR part 10, and in addition to ongoing market surveillance performed by the integrating product team, acquisition specific market research has been conducted by the 415 SCMS on 10 August 2022. The Market Research Strategy focused on gathering information to support the efficacy of establishing additional repair sources for the TWT.

Research included vendor surveys, commercial opportunities evaluation, product data and data rights evaluation, review of past and current terms and conditions of repair, performance requirements, engineering skills and techniques required, repair history, additional and existing sources for the system. Additionally, Internet based Searches were conducted via Google, Thomas Net, IQS Directory, market research.com, AcqNet, Yahoo, Bing, and by other Actions by USAF pursuant to FAR Part 10.0019(a)(2)(v).

C. Market research concluded that there are no alternate/additional sources capable of meeting the government's requirement at this time and Stellant Systems (Cage Code 89146) is the only known company capable of satisfying the government requirements.

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D. The Traveling Wave Tube is unique to the AN/FPQ-16 radar system and does not have commercial off-the shelf sources of manufacture. No commercial or non-developmental items are available with similar form, fit, or function parameters that can be used or modified to satisfy the agency's need.

E. The Traveling Wave Tube is currently not a candidate for organic repair due to the high cost of depot stand-up. The government does not possess data rights. DMISA Crane DSOR #07-56 dictates contract repair.

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

No further information

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

See section V above

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.

Stellant Systems is the only source that owns the data required to repair these items. The required data for this configuration is not available from any other source. The Program Engineer will continue to pursue purchase of data rights from Stellant on an annual basis to facilitate competition for the Missile Warning Defense (MWD)/Traveling Wave Tube (TWT). This information will be reviewed and maintained before any future subsequent acquisitions. Future acquisition efforts will include data/software deliverables and pursue additional data licenses.

The government will post a Request For Information (RFI) / Source Sought Synopsis (SSS) annually throughout the life of the contract to see if any other contractors are interested in becoming qualified to repair the TWT.

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.