01_Redacted_J A.pdf

FD20201601058

25 Feb 2016

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY:

Defense Logistics Agency

DLA-OO/AUB

6051 Gum Lane, Bldg 1225 Hill AFB UT 84056-5826 Contracting Officer: Nathan Gomm Phone Number:

PR Number: FD2020-16-01058

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED:

A. Upon approval to use other than full and open competition procedures, the Air Force will issue a new strategic IDIQ spares contract to procure the F-16 Head Up Display (HUD), Electronics Unit (EU) Low Volt (Lv) Power Supply NSN 6130-01-585-9805, used on the F- 16 Aircraft, to:

Shigamo Development Inc DBA American High Voltage (AHV) 2992 Idaho St Elko, Nevada 89801 CAGE Code: 0LRG2

B. Contract Type & Structure: A new five-year strategic Indefinite Delivery Indefinite Quantity (IDIQ) spares contract with an anticipated firm-fixed pricing (FFP) arrangement will be issued. The maximum quantity that may be ordered through the life if the contract is 220 each. The estimated award date is 16 September 2016, with performance and delivery expected through 15 September 2021.

C. Type J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS:

A. The intent of this acquisition is to provide a new, strategic IDIQ spares contract to procure the F-16 HUD EU Lv Power Supply used by the United States Air Force (USAF) and FMS customers. This is a Low Volt Power Supply Shop Replaceable Unit (SRU) of the F-16 HUD EU. The HUD, through and interface with the electronics unit and other equipment provides navigation and aircraft performance information such as altitude, airspeed, weapons targeting and landing information that are all critical to the pilot. This power supply provides power to the HUD EU.

B. The Air Force’s estimated unit price, quantity, and extended price are shown below:

B. Other actions: No efforts can currently be accomplished because the Government does not currently possess adequate data or the rights to the data necessary to add additional sources.

C. 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 Government will obtain certified cost and pricing data IAW FAR Subpart 15.403, when required. 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 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 was done, in accordance with FAR Part 10.

B. The following market research was conducted for this item on 14 March 2016:

The Engineers conducted a search of ThomasNet, an internet database outgrowth of the Thomas Registry (http://www.thomasnet.com) on 10 Apr 2013 and again on 14 March 2016.

Searches of ThomasNet were conducted for the appropriate NSN, component part number, and nomenclatures. The Engineer reviewed the ThomasNet database and companies’ websites to evaluate if alternative sources exist for buying of these items. None were found.

A search of HAYSTACK showed that this NSN replaces 6130-99-741-9556 (BAE 7506- 00098) and 6130-99-776-6884 (BAE 7506-00104 and Roband Electornics 0A3437-12).

Purchase Request Process System was also looked into to determine sources for the replaced NSNs. Other internet sources were also searched for these Shop Replaceable Units (SRUs).

C. In total, four possible sources of supply were identified; Shigamo, BAE Systems, Eldac Corporation, and Roband Electronics. While there are four potential sources, the design for four is believed to have Diminishing Manufacturing Sources and Material Shortages (DMSMS) problems and would require a redesign in order to supply a new power supply.

Based on current supply management data Shigamo Development Inc is the only contractor capable of providing the supplies and services described in Section III above without experiencing substantial duplication of costs that cannot be expected to be recovered through competition and meet cost, schedule and performance to support the customer.

D. The government estimates the cost to redesign this asset to be and the break even time at 14.36 years. It is not economically beneficial for the Air Force to redesign this part.

E. Based on the market research conducted, there is a high level of confidence that there are no additional sources currently capable of satisfying the agency’s need nor are there any commercial or non-developmental items which could be utilized or modified to meet this requirement.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION:

None

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED 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 will continue to peridocially request the necessary data and data rights to repair this asset in order to make this acquisition competitive.

XII. CONTRACTING OFFICER’S CERTIFICATION:

The contracting officer’s signature on the Coordination and Approval Document evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief (FAR 6.303-2(a)(12)).

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION:

As evidenced by their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete (FAR 6.303-2(b)).