SCEP JA Approved.pdf

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

CUI

The reserve is included to provide a ceiling for new requirements or adjustments needed to meet increased customer demand over the life of this J&A.

The specific funds/appropriations/contract type and delivery dates will be identified on each contract action utilizing this J&A.

At time of individual contract award, the Procuring Contracting Officer (PCO) will update the J&A usage spreadsheet (maintained by AFSC/PZA-R) to ensure the ceiling is properly managed.

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

Requirements utilizing this Class J&A will have an approved source annotated on an AFMC 761/762 Screening Analysis Worksheet and thereby are identified as the only known source that possesses the pre-requisite technical data to manufacture, repair, overhaul, remanufacture and/or repair to the latest approved United States Air Force (USAF) configuration. Additionally, they are the only known source to possess the unique qualifications which can include but are not limited to sub-assemblies, piece parts, expertise, special tooling, special test equipment, and design engineering resources required to meet the Government's requirement. Some repairs may or may not require special tooling and special test equipment. Qualification requirements and acceptance criteria for these repairs cannot be developed due to the unavailability of technical data. It is not possible to draft adequate specifications for these repairs and parts without design engineering efforts or access to the owning contractor’s technical data. The Government will query all available sources of data to include All Purpose Tool Engineering Analytics Management (A-TEAM), Military Engineering Data Asset Locator System (MEDALS), and the Enhanced Technical Information Management System (ETIMS), as a part of the screening process, to ensure no additional data is found.

Attempting to procure these services from an alternate source without the necessary technical data would introduce unacceptable risks to airworthiness and reliability. Completion of a reverse engineering program for highly specialized end-items found on the major weapon systems is known to take an average of five years through the Consolidated Sustainment Activity Group Sustaining Engineering program once funding is available. This timeframe is an engineering estimate which includes the budget request period, purchase request processing, contract negotiation and award, production lead times, period of performance for qualification testing, and source qualification. These delays will result in the lack of spare parts available, causing the weapon systems to become inoperable. This is not an acceptable option.

Reverse engineering is considered high risk due to the highly specialized end-items requiring unique contractor skills, considerable trained Government resources for inspection and analysis, and to ensure no change to the technical baseline and airworthiness certifications. Further, reverse engineering may require a complete redesign of the component, causing a need to recertify the component airworthiness which would cause critical delays to mission requirements. Therefore, only the current approved sources can satisfy the agency's requirements for maintaining these essential weapon system components within an acceptable timeframe and at an acceptable level of risk to the fleet.

As identified above, the 448th SCMW has determined that award to any other source in these cases would result in unacceptable delays in fulfilling the Government's requirements.

If at any time during the screening or market research process, it is discovered that the USAF possesses sufficient data rights (e.g., Government Purpose Rights or Unlimited Rights) to enable competitive procurement for a specific NSN, the NSN shall be immediately re-coded with an appropriate competitive AMSC/RMSC that allows for competition. Those NSNs shall be immediately excluded from the scope and authority of this Class J&A. This two-step action ensures that this J&A is used strictly and only for items where a lack of competitive data rights has been rigorously verified and confirmed.

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.

An individual Sources Sought (SS) Notice/Request for Information (RFI) will be posted for each acquisition utilizing this J&A prior to contract award. Each requirement will be synopsized on SAM.gov, as required, as a notice of contract action in accordance with FAR 5.201. The PCO will verify no responses were received from alternate/additional sources that can meet the requirement. If additional responses are received and deemed to be viable sources, a competitive procurement will be pursued, and the J&A will not be used.

Prior to use of this J&A, the Government will ask to purchase required data to compete the requirement from the owning contractor. Should the contractor be willing to sell the data at a price expected to be recouped through competition, those procurements will not be within scope of this J&A. To use this Class J&A, market research must conclude that there are no alternate/additional sources capable of meeting the Government's requirements for these particular AMSC/RMSC coded items. The owning contractor must be verified as the only known contractor capable of satisfying the Government requirements. This finding will be re-verified for each individual requirement prior to use of this J&A.

As a part of the market research process for this class of requirements, the Government will contact the owning contractor identified as the approved source on the screening analysis worksheet to determine whether the necessary technical data required can be purchased. This outreach will assess the owning contractor’s willingness to sell the data and at what cost. The results of this inquiry will be used to determine whether the data is available at an economical price and to evaluate the feasibility of developing competitive acquisition strategies across the covered items.

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

The PCO will comply with the procedures and criteria contained in FAR Part 30 - Cost Accounting Standards Administration, Part 31 - Contract Cost Principles and Procedures, Subpart 15.4 - Contract Pricing, to include technical evaluations, audits and Certified Cost and Pricing Data, and Part 12 - Acquisition of Commercial Items as appropriate. This detailed documentation and justification of price reasonableness will be disclosed in the official Price Negotiation Memorandum, 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.

The foundation for this Class J&A is not based solely on a review of market research, but is the direct result of the formal, systematic screening process mandated by the AFMC guidance and instructions detailed in paragraph II. These instructions prescribe mandatory procedures for determining the appropriate acquisition and sustainment strategy for all parts and equipment managed by the 448th SCMW. A key outcome of this screening process is the assignment of a verified AMC or RMC and an AMSC or RMSC.

For the NSNs covered by this Class J&A, the screening processes have concluded with the assignment of a data restrictive

AMSC/RMSC. This code signifies an official, documented determination by the cognizant engineering and logistics authorities that the Government does not own or have access to the necessary technical data, drawings, or specifications required to support competitive procurement and/or the Government does not possess intellectual property rights (e.g., license rights) that would allow it to use contractor-owned data for competitive purposes.

This Class J&A serves to provide the necessary contracting authority that aligns with the technical conclusions of the screening process.

After the screening process has occurred, in accordance with FAR Part 10, the Government will conduct appropriate market research for each acquisition utilizing this J&A to verify the results of screening. This will include SS/RFIs and synopsis of the proposed contract actions, advising industry of the pending acquisition and soliciting inquiries from interested parties.

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

None.

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

Sources that express interest as a result of an individual SS/RFI or notice of contract action will be assessed and documented in the individual market research report.

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.

This Class J&A will be executed not merely as a procurement vehicle, but as a proactive and strategic instrument designed to foster a more resilient and competitive Defense Industrial Base (DIB). A foundational intent is to actively create prime and subcontractor opportunities and convert sole-source items to full and open competition over the life of this Class J&A.

To ensure compliance and accountability, specific procedural checks will be conducted before this J&A is utilized for any acquisition. First, the cognizant PCO will validate that the owning contractor is unable or unwilling to sell its proprietary data to the Government.

Second, before use, any previous J&A for the requirement will be reviewed to ensure the Government completed its planned actions to remove barriers to competition. These diligence steps will be formally verified and documented on the SCEP Class J&A Usage Checklist. This administrative tool, which is managed by the designated centralized SCEP PCO, ensures each contract action is compliant and properly justified. This checklist will be reviewed and approved by the centralized SCEP PCO prior to utilizing the J&A. The approval process to utilize this Class J&A will allow for easy consolidation of requirements, allowing the 448th SCMW to actively engage industry.

The key components of this active engagement strategy include:

1. Targeted industry days or individual partner meetings as appropriate, with the goal of fostering dialogue between industry and Government leadership. Such engagement is intended to explore opportunities for increasing competition in the future.

2. Issuing more robust RFIs and questions to industry in order to assess and cultivate a more competitive industrial base.

The intent behind such discussions would be to not only gather technical data, but also to identify and encourage partnership proposals from companies that possess the capability and willingness to invest in reverse-engineering, requisite testing, and the successful completion of the Source Approval Request (SAR) process. The SCEP Class J&A Usage Checklist will enforce and confirm these discussions have occurred. This approach is aimed at actively fostering the development of new, qualified sources of supply.

3. Creating a Public Data Repository: While contract award data is public, its current format on platforms such as SAM.gov can render it practically unusable for the purpose of fostering competition. A prime or subcontractor cannot reasonably sift through millions of contract actions to find a handful of relevant opportunities. When approval is granted to utilize this Class J&A, true requirement data will be consolidated into a single location and posted publicly. This data will show industry the various components the 448th SCMW is actively purchasing, the associated weapon systems, and which company currently owns the data. The value of this data is far more than forecast data or an exhaustive list of all items the 448th SCMW manages. Although this data exists now, it is released at intermittent times and there is no focal point for collection and consolidation. Management of this Class J&A and its ceiling necessitates this information come through one approval source, thereby establishing the mechanism for consolidated and a standard release point. The objective of such an initiative would be to transform data from being merely public to being truly accessible and useful, thereby lowering the barrier to entry and actively encouraging the industrial base to pursue capability or ownership of items being purchased. This list will be kept current as the J&A is utilized.

The 448th SCMW is committed to developing strategies to foster competition and small business participation for future requirements. The 448th SCMW will actively pursue a data rights acquisition strategy, evaluate reverse engineering feasibility, and conduct market research to identify potential future sources. The 448th SCMW will also consider breaking out requirements in future acquisitions if data rights are adequate. Small business set-asides are a long-term goal, contingent on securing data rights. The 448th SCMW will encourage subcontracting opportunities where feasible.

The ultimate objective of this strategy is to reduce the administrative burden and consolidate J&As supporting SCEP requirements where the Government does not have adequate technical data rights to pursue competition. However, the process to establish and ensure control over this Class J&A provides an opportunity to consolidate information which will enhance the DIB’s awareness and actively create new prime contractor opportunities and convert sole-source items to full and open competition. By actively facilitating and encouraging industry investment by showing known purchases, a competitive environment can be created that drives down long-term costs, enhances supply chain resilience, and provides improved support to the warfighter.

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.