Sole Source Justification.pdf

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

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I. Agency and Contracting Activity.

United States Air Force

OL_H/PZABA

6050 Gum Lane, Bldg 1215 Hill AFB, UT 84056-5825 Contracting Officer: Patrick Jurkiewicz Phone Number: DSN 775-6535 PR Number: FD20202200173

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 stand-alone spares contract to procure (84) Installation Kits, EL, of different National Stock Numbers for the F-16 AIS Test Stands to be used by the United States Air Force.

Contract will be awarded to:

BAE Systems Information and Electronics Systems Integration, Inc.

10920 Technology Pl.

San Diego, CA 92127

CAGE: 12436

B. The estimated dollar value is $569,190.06. A Firm Fixed Price (FFP) pricing arrangement is anticipated. The estimated award date is 01 Feb 2022 with performance expected through 01 Feb 2023. The Government estimates deliveries will occur within one year, however performance will continue until after receipt of last order.

C. Type: Individual

III. Description of supplies/services required to meet agency needs (including the estimated value).

A. This is a new non-commercial buy contract to procure spares of Installation Kits, EL for the F-16 AIS Test Stands listed below, used for the F-16 AIS program by the US Air Force. These Installation Kits, EL are optional hardware that is required to perform test station one-time only modifications or upgrades to replace obsolete components in the F-16 AIS Test Stands.

B. The Air Force estimated unit procurement cost and quantities for this effort are shown below:

Line Item NSN Qty Cost Est. Total 0001 Counterfeit Prevention Plan 0002 Installation Kit, EL 6625-01-677-8309WF 17 0003 Installation Kit, EL 6625-01-676-8829WF 9 0004 Installation Kit, EL 6625-01-676-8839WF 15 0005 Installation Kit, EL 6625-01-676-8838WF 7 0006 Installation Kit, EL 6625-01-676-8831WF 5 0007 Installation Kit, EL 6625-01-676-8833WF 7 0008 Installation Kit, EL 6625-01-677-2065WF 2 0009 Installation Kit, EL 6625-01-677-3280WF 15 0010 Installation Kit, EL 6625-01-677-2066WF 6 0011 Installation Kit, EL 6625-01-677-2061WF 1

C. Total Estimated Cost $569,190.06. Sufficient pricing data, procurement history, and performance data are available from D200A requirements system to come up with a realistic forecast. The contracting action will use

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4930 CSAG-S Working Capital funds.

D. Expected delivery schedule is 12 months after receipt of order.

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

10 USC 2304(c)(1), as implemented by the Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

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

A. The above authority was selected because the requirement is for the procurement of highly specialized assets.

They are highly specialized because they are used to install and integrate items into the F-16 AIS Test Stands that have been upgraded, due to age or DMS issues, by the OEM, BAE Systems. These Installations Kits, EL were designed specifically for the F-16 AIS Test Stands by BAE which is also proprietary to BAE, and there are no viable alternatives which would be able to support the installation and integration of “items” into the test stand. Therefore, this acquisition will be for procurement of these highly specialized assets.

B. The 416th SCMS/GUMAA Logistics Management Specialist contacted BAE Systems Information Electronics System Integration, Inc. on 04 November 2021 regarding data rights for this item. BAE Systems responded on November 8th stating they are not willing to sell any of their data rights to the Government. As a result of BAE not willing to sell or license the data, the Government only possesses top-level drawings sufficient to assist in asset identification. The USAF does not possess or have the rights to necessary data to support the development of alternate sources of production, or sustainment of the Installation Kits, EL.

C. The Government estimates the cost to reverse each Installation Kit, EL is $300,000 per Installation Kit, EL, plus project-costs such as travel, testing, and repair process establishment, for a total cost of $4,225,000. Any other source, none of which would have the proprietary knowledge of the recommended source, would have to reverse engineer the as-is condition and the to-be condition associated with the design and use of each installation kit. The cost to reverse engineer all of the required information for each/any individual kit is expected to be of the same order of cost as the entire contract effort using the cognizant contractor. Actual production costs of the kits is expected to be nearly identical between the recommended and any additional sources obtained through a reverse engineering effort. Additionally the time to accomplish a reverse engineering effort would not be recouped through any decreased production time, causing significant and unacceptable impacts to Air Force mission accomplishment.

Reverse engineering is not considered economical as the Government would incur a substantial duplication of costs in the amount of $4,225,000 which is not expected to be recovered through competitive procurement. The 416th engineering group estimate a 27 year break even period to recoup any potential savings, severely out lasting the anticipated life of the weapon system.

D. Accordingly, BAE Systems Information and Electronics Systems Integration, Inc. is the only firm capable of providing the procurement services described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

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VI. 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. Sources Sought Synopsis: The sources sought synopsis was posted under SSS-2200173 on 16 Nov 2021 at www.sam.gov and closed on 15 December 2021. The requirement is to purchase approximately 84 Installation Kits, EL spares for the F-16 AIS Test Stands.

B. No response was received from the Sources Sought Synopsis

C. Synopsis - this requirement will be synopsized at www.beta.sam.gov as a notice of contract action IAW FAR 5.201.

D. Other Actions: None.

E. Qualifying Country Sources: None

VII. 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 Federal Acquisition Regulation (FAR) under Part 30 - Cost Accounting Standards, Part 31 - Contract Cost Principles and Procedures, Subparts 15.4 - Contract Pricing; to include technical evaluations and audits, as appropriate. Additional steps to ensure 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 Final Step is to include the Price Negotiation Memorandum (PNM). This detailed documentation and justification of price reasonableness will be disclosed in the official PNM, to be prepared upon completion of negotiations.

VIII. 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, 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 integrated product team, acquisition specific market research has been conducted by 416 SCMS on 17 December 2020 and 6 April 2021 and November 9 2021. The Market Research Strategy focused on gathering information to support the efficacy of establishing additional sources for the procurement of spares for the Installation Kit, EL. Research included vendor surveys, commercial opportunities evaluation, product data and data rights evaluation, performance requirements, engineering skills and techniques required, additional and existing sources for the system. Additionally, Internet based Searches were conducted via Google, Thomas Net, IQS Directory, marketresearch.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 BAE Systems Information and Electronics Systems Integration, Inc. (Cage Code 12436) is the only known company capable of satisfying the Government's requirements.

D. The Installation Kit, EL is unique to the F-16 fighter aircraft 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.