REDACTED RR-202 JA for FBO 1_Redacted.pdf

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

CONTROLLED UNCLASSIFIED INFORMATION

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I. Agency and Contracting Activity.

Department of the Air Force AFLCMC/EBHKC, Munition Components Contracting Section

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

A. Upon approval to use other than full and open competitive procedures, the United States Air Force will issue a new, non-commercial, Firm-Fixed Price (FFP) contract to procure a minimum of RR-202/AL Chaff rounds listed in Section III, A.

This requirement supports the Expendable Countermeasures Program and is used by various Air Force fixed- and rotary-wing aircraft.

B. This contract is for the production of a minimum of rounds of RR-202/AL chaff and development of production tooling and design improvements necessary to allow for production of rounds per year for future orders.

C. The contract will include a basic award for one year and one option period for two years which will include production, using current designs and tooling, taking an estimated 3 years to complete. Design and tooling improvements shall be incorporated via ECP requests which could expedite production.

D. Estimated contract award date is: September 2022

E. The contract action will be awarded to the following contractor:

Armtec Defense Technologies California Operation 85901 Avenue 53 Coachella, CA 92236 Cage Code: 3DU30

F. Estimated value is $

G. Type J&A: Individual

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

A. Under the contemplated contract, Armtec Defense Technologies (Armtec) will provide the following supplies:

Description: RR-202/AL Chaff

NSN: 1370-01-699-5750AQ

Part Number: 200326 Quantity:

Est Unit Cost:

Est Ext Cost:

B. The Period of Performance will be from contract award date (estimated as Sept 2022) through Sept 2025. The Period of Performance estimate is based on the manufacturing capacity and rate. There are no feasible actions that can be taken to promote competition during the period of the acquisition due to the government not having sufficient license rights to the technical data.

C. Additional effort to increase production capability to approximately per year. These efforts could be with design or production improvements along with additional production equipment.

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The projected CLIN structure will be as follows:

CLIN# Description NSN Type Qty Estimated Delivery

0001 RR-202 Chaff 1370-01-699-5750 FFP Jan 2023 -Jan 2024

0002 Production Prove out FFP 1 As required

0003 CDRLs Data (NSP) FFP 1 As required

1001 RR-202 Chaff 1370-01-699-5750 FFP Jan 2024 -Jan 2026

1002 Production Prove out FFP 1 As required

1003 CDRLs Data (NSP) FFP 1 As required

D. Type of money used: FY21 - 3010 Procurement; Total

E. Below are the estimated costs associated with this effort.

FY22 FY23 Total

Estimated Total cost $

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 because this requirement is for a highly-specialized supply/capability. This is a highly specialized and advanced chaff countermeasure that will provide expanded countermeasure protection against enemy threat systems.

B. Armtec Defense Technologies (Armtec) is the only source qualified to produce the RR-202/AL chaff countermeasure.

Armtec has the engineering personnel and program management expertise based on experience dating back 20+ years on chaff design, development, production and testing. The RR-202 is specialized and proprietary to Armtec. No other companies have expressed interest in manufacturing chaff countermeasures in the past 20 years. Armtec has the necessary manufacturing equipment already in place to immediately start production while evaluating the necessary changes required to increase production to support future larger order quantities.

C. Armtec responded to the Sources Sought Synopsis and a ROM Request in April 2022. The vendor responded that they are unwilling to sell the necessary data to the Air Force. The government does not have sufficient data rights to allow another contractor to produce the system using the qualified TDP. Award of this contract to any source other than Armtec would result in an unacceptable delay. Armtec is the only manufacturer that possesses the technology, infrastructure and capacity to produce RR-202 Chaff within the time frame to meet USAF deployment schedules and training requirements, in addition to other global DoD aircraft operations. Armtec is capable of fulfulling the government's delivery requirements of no later than December 2025. Approximately 24 months would be required to conduct competition to select a new source. In addition, a new source would require at least two years to achieve the desired product maturity in order to provide the required supplies. Any interruption in procurement of these items would pose critical setbacks to global combat plans. A new design would create an unacceptable timeline for fulfilling inventory objective requirements.

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. A Sources Sought Synopsis (SSS) was posted to beta.SAM.gov under number FA8213-22-R-3020 on 5 Apr 2022 with responses required by 21 April 2022. The government received only 1 response to the SSS: Armtec Countermeasures. No further responses were received.

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B. This requirement will be synopsized in beta.SAM.gov as a Notice of Contract Action IAW FAR 5.201. All sources that request a copy of the requirement will be provided one. If other interested sources express interest as a result of this synopsis or other action, they will be listed in the official contract file.

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

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 the Federal Acquisition Regulation (FAR) under Part 30 - Cost Accounting Standard, Part 31 - Contract Cost Principles and Procedures, Subparts 15.4 - Contract Pricing;

include technical evaluations and audits, as appropriate. Additional steps to ensure price reasonableness will be under the guidance of the Contracting Reference Guides, jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology. The Contracting Officer will obtain certified cost or pricing data IAW FAR Subpart 15.403 if the value of an individual contract exceeds $2,000,000 unless an exception exists. Detail documentation and justification of price reasonableness will be contained within the contract file.

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 VI above, market research, IAW FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition, and soliciting inquiries from interested parties.

B. Additionally, the following market research was conducted:

a. Sources sought synopsis was posted on beta.sam.gov on 5 April 2022 with responses required by 21 April 2022.

Armtec was the only respondent to the SSS.

b. No commercial services are available and the requirement cannot be modified to permit the use of existing commercial services.

c. Performed keyword searches through Internet search engines - unable to find similar services or additional sources for these services.

C. Market Research concluded that no additional sources are capable of meeting the government's requirement at this time and Armtec Defense Technologies (CAGE CODE: 3DU30) is the only known source capable of satisfying the government requirements.

D. As mentioned in Section V, the RR-202 is a specialized aircraft countermeasures; as such it does not have a commercial off-the-shelf source of manufacture. No commercial or non-developmental items are available with similar form, fit, or function parameters that can be used to satisfy the agency's need.

E. The RR-202/AL chaff is not currently a candidate for organic remanufacture due to the substantial duplication of cost associated with qualifying a new design.

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.

Per Section VII above, Armtec was the only respondent to the SSS.

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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.

The Air Force regularly inquires with industry about sharing or selling the proprietary data rights for use in free and open solicitations and will do so annually with Armtec before starting a contract effort. Armtec is the only source that owns the data required to manufacture this item.

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.