FD2060-14-00029_-Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated for the Air Force Support Center (AFSC), 638 Supply Chain Management Group (SCMG), 408 Supply Chain Management Squadron (SCMS) / GULB. The contracting authority for this requirement is Defense Logistics Agency (DLA) Procurement Operations Warner Robins, DLA/AW. The purchase request number supporting this contracting action is FD2060-14-00029.

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

Due to the circumstances described herein, the activity requests authority to buy the items listed in this document using Other Than Full and Open Competition as prescribed by FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements. This action will result in the award of a new contract, which will be a firm-fixed price, Indefinite Delivery/Indefinite Quantity (ID/IQ) contract with a basic year, to include First Articles, plus four one year ordering periods in which additional production quantities may be ordered. This sole source requirement will be purchased from the following company:

ITT-EXELIS

77 River Road Clifton, NJ 07014

CAGE: 28527

Large Business

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

The Circuit Card Assembly (5998-01-587-9969EW) is used as a component of the AN/ALQ-172(V) Countermeasure Set (CMS). This component is used on the B-52H, MC-130H, AC-130H, and AC-130U platforms. Under the contemplated contract, ITT-Exelis will manufacture the following item which is required to support the B-52H, MC-130H, AC-130H, and AC-130U aircraft:

Basic CLIN Description NSN Part Number Nomenclature Min/Max Estimated Unit Price Total Cost

0001 First Articles 5998-01-587-9969EW 2683938G001 10A34A1 2EA

0002 DATA 1 LOT NSP NSP

Ordering

Period 1 CLIN Description NSN Part Number Nomenclature Min/Max Estimated Unit Price Total Cost

0001 Spares Production 5998-01-587-9969EW 2683938G001 10A34A1 5EA-25EA

0002 DATA 1 LOT NSP NSP

Ordering

Period 2 CLIN Description NSN Part Number Nomenclature Min/Max Estimated Unit Price Total Cost

0001 Spares Production 5998-01-587-9969EW 2683938G001 10A34A1 5EA-25EA

0002 DATA 1 LOT NSP NSP

Ordering

Period 3 CLIN Description NSN Part Number Nomenclature Min/Max Estimated Unit Price Total Cost

0001 Spares Production 5998-01-587-9969EW 2683938G001 10A34A1 5EA-25EA

0002 DATA 1 LOT NSP NSP

Ordering

Period 4 CLIN Description NSN Part Number Nomenclature Min/Max Estimated Unit Price Total Cost

0001 Spares Production 5998-01-587-9969EW 2683938G001 10A34A1 5EA-25EA

0002 DATA 1 LOT NSP NSP

Total Estimated Contract Value

TOTAL ESTIMATED CONTRACT VALUE

AFSC requests that delivery requirements for First Articles be complete 365 days after receipt of order.

For Production Units AFSC requests that the delivery begin 270 days After Receipt of Order (ARO) at a quantity of 5 per month for quantities over 5 each, until completion with no penalty for early deliveries.

For orders below 5 each AFSC requests the complete amount 270 days ARO.

The AMC/AMSC code for this contract is as follows:

3/R for this item. The “3” indicates Acquisition directly from the actual manufacturer, whether or not the prime contractor is the actual manufacturer. The “R” indicates that the Government does not own the data or the rights to the data needed to contract manufacturing of this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part.

This requirement will be funded with Working Capital Funds.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION

10 USC 2304(c)(1), as implemented by FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS OR NATURE OF

THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED ABOVE

Research revealed that there is no commercial application that can fulfill the ALQ-172 components requirement. Research identified ITT-Exelis (CAGE 28527) as the only source available with the unique experience and expertise to satisfy the support requirements. Market research also consisted of reviewing previous contractor support efforts for the ALQ-172(V) system and contacting knowledgeable individuals, including the system engineer, equipment specialist, and program manager regarding market capability of other known possible sources. The research provided no additional sources. Market Research has identified ITT-Exelis as the only source with the required capabilities and knowledge to meet the Government’s requirements and delivery schedule. ITT-Exelis Inc. is the original equipment manufacturer for the ALQ-172 system and is the only vendor with the technical data and expertise to support the manufacture of the circuit card assembly.

If this requirement went to another vendor, the Government estimates that it would take three years to bring the vendor up to speed on the ALQ-172 system before the vendor can begin to manufacture the item. Qualifying a new source would include new supplier startup, performing qualification, first article testing, acceptance testing and flight test. This cost would exceed $20 million. This is due to the lack of Government owned data and the fact that the contractor would need to reverse engineer the item and would require Government Furnished Equipment, which is unavailable. The Government cannot afford a schedule delay due to current awaiting parts issues. It would also be a duplication of effort because this card was redesigned in 2009.

These cost estimates are based on previous efforts to develop additional sources through the Defense Logistics Agency and the supply chain.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS

MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

This requirement will be synopsized on the Federal Business Opportunities (FedBizOpps) web page as required by FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Although the Government does not own data to support acquisition of these components from any other source, any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential for subcontracting possibilities.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO

THE GOVERNMENT WILL BE FAIR AND REASONABLE

The overall cost of this acquisition will be fair and reasonable to the Government. In accordance with FAR 15-403.4, the contractor will be required to provide certified cost and pricing data to be used in supporting the Government's evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types and quantities of material, other direct and indirect rates will be negotiated by the Government based on recommendations from the Defense Contract Management Agency (DCMA) and expert technical personnel supporting the program. The contract price will be negotiated in accordance with the procedures in FAR Part 15 ensuring the ultimate cost to the Government is fair and reasonable.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS, OR A

STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT CONDUCTED

As described in Section VI above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.

Internal knowledge possessed by the AN/ALQ-172 engineering staff was queried. Engineering is actively engaged in component product sustainment, staying current with industry developments by reviewing industry reports, trends and product developments, talking with field personnel, reviewing applicable company portfolios on a regular basis, and maintaining an active dialog with the sustainment parts suppliers. Review of several industry-wide searches on the Internet, using the following Acquisition Center of Excellence (ACE) recommended component search engines:

http://www.aerospace-technology.com/contractors/index.html http://www.electrobase.com/app/flC/niprd/wsprdall http://www.electronics-oems.com/products.html http://www.datasheetlocator.com/ http://www.globalspec.com/ProductFinder http://www.eem.com/ Review of Govt-proprietary component product data-base (Haystack)

Market research yielded no results for this NSN and part number other than ITT-Exelis, Inc. This asset was developed by ITT-Exelis under a sustaining engineering project and was completed in February 2009. This item was approved for production at the Configuration Control Board (CCB) on 27 April 2012.

The Government does not own any of the data for this circuit card assembly. Therefore, ITT-Exelis, Inc.

is the only company with the facilities, knowledge and special equipment to produce this item.

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

COMPETITION

The Government does not own any of the drawings or technical data for this item. A request to Exelis on 27 Sept 13 for a Rough Order of Magnitude for the data package was sent and Exelis stated they were unwilling to sell the data. Also the next higher assembly for this asset is being redesigned and is expected to begin fielding in FY18. The current configuration will be phased out by 2021. It would be uneconomical to purchase the data due to the short life span and low usage for the circuit card.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE ACQUISITION

See paragraph 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

The Government requested a Rough Order of Magnitude on 27 September 2013 from the contractor to see if the contractor would sell the drawings to the Government, and the Government received a response stating that Exelis was unwilling to sell the data to the Government. It would also be uneconomical to purchase the data because the next higher assembly for this item has been funded to be redesigned at the Line Replaceable Unit (LRU) level. The new LRU is expected to begin fielding in FY18.

This circuit card will be phased out by the year 2021. The Government will continue to perform market research in order to identify other potential sources.

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(b)(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(c)).