JA_(9)_Redacted.pdf

JUSTICICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval request authority for Other Than Full and Open Competition supports requirements generated for the Air Force Sustainment Center, 638 Supply Chain Management Group

(SCMG), 408 Supply Chain Management Squadron (SCMS)/GULA. The contracting authority for this requirement is the Defense Logistics Agency (DLA) Aviation Warner Robins. The purchase request number supporting this contracting action is FD2060-14-01116.

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

Due to the circumstances described herein, the activity requests authority to acquire spares listed in this document using Other Than Full and Open Competition as prescribed by Federal Acquisition Regulation

(FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency

Requirements. This action will result in an award of a new contract, which will be an Indefinite Delivery

(ID)/Indefinite Quantity (IQ) with a basic and four, one-year ordering periods in which additional quantities may be ordered. This sole source requirement will be purchased from the following company:

Pacific Design Technologies (PDT)

6300 Lindmar Dr

Goleta, CA 93117

CAGE: 1P7T0

Small Business

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

NEEDS

Under the proposed contract, PDT will provide Motor Driven Pumping Units/Liquid Cooling

Systems which are required to support sustainment of the AN/ALQ-184 Electronic Countermeasures

(ECM) Pod. Consolidated Sustainment Activity Group (CSAG) funding will be utilized for this requirement.

NSN 4320015692102EW PN G254008-1V4

FY

Quantity Est. Unit

Price Total

MIN MAX

FY15 10 75

FY16 10 75

FY17 10 75

FY18 10 75

FY19 10 75

The total estimated cost for this acquisition, including maximum quantities for all ordering periods is

This estimate was developed using the actual costs from the previously awarded, sole-source procurement contract SPRWA111D0020 with PDT. Actual costs from this contract were utilized and inflated to the appropriate year using a 3% escalation factor. The quantities are based on actual demand as well as the March 2014 D200A computation cycle.

This item currently has 115 ea backorders, of which 24 ea are SURGEs and 74 ea are MICAPs. Deliveries shall begin four months after receipt of a funded delivery order at a rate of 25 ea per month.

According to the AMC/AMSC Screening Analysis Worksheet Report, the AMC/AMSC for these items are 3/B – Acquire, for the second or subsequent time, directly from the actual manufacturer. This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 2304(c), 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 (APPLICABILITY OF AUTHORITY

The AN/ALQ-184 is a self-protect Electronic Counter Measures (ECM) Electronic Warfare (EW) pod with widespread use in USAF combat aircraft. It provides electronic countermeasures against Surface to

Air Missiles, radar-directed Anti-Aircraft Artillery, and Airborne Interceptors for the A-10 and F-16 aircraft. The pumping unit is responsible for maintaining coolant flow to keep the temperature of the pod below the maximum operating temperature of the electronic components in all operating environments of the host aircraft. It is a critical component of the AN/ALQ-184, and as such, cannot perform its mission without this component.

PDT became a qualified source through a competitively awarded redesign contract. Since becoming the only qualified source, PDT has manufactured the pumping units on two sole-source contracts. The final ordering period of SPRWA111D002 was awarded on 13 May 2014. Therefore, this acquisition is for continued performance of a highly specialized service.

These items to be procured under this proposed contract are highly specialized in nature. The OEM, PDT, retains all proprietary data required to manufacture these items. Additional system level requirements and undocumented engineering knowledge of its operation are owned by PDT. The Government does not own the technical data required to manufacture this item. The Government was advised by PDT’s President on

5 Jun 2014 that they are unwilling to sell the technical data (or rights to the data) required to manufacture the pumping unit.

The AN/ALQ-184 Program Office believes that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Air Force’s requirements. Because PDT is unwilling to sell the propriety data required to manufacture these items, award to any other source would require a reverse engineering effort to develop internal technical data packages which would essentially duplicate the existing propriety technical data owned by PDT. Based on the Air Force’s engineering staff’s experience and engineering project data with similar projects a reverse engineering effort would expose the Air Force to unnecessary cost risk, schedule risk, and technical risks with no guarantee of success. Additionally, it would take approximately three to four years for another vendor to complete reverse engineering effort, identify and rectify any obsolescence issues, deliver qualification reports, provide First Articles for the

Government’s review, deliver a technical data package, and begin deliveries. The estimated cost for such an effort, not including the cost of production assets, is . This estimate was obtained from a

White Paper written by Georgia Tech Research Institute on 15 Jul 13 for the ALQ-184 Program Office.

Such an effort would not result in enough savings to recoup the costs required to award to another vendor as the estimated breakeven point is not until FY30.

Upon completion of the final delivery order (Jan 2015) on the current contract, this item will essentially be unsupportable. The delays associated with award to another vendor are unacceptable as the backorders and MICAPs would continue to accrue during the new contractor’s reverse engineering effort, build, test, qualification, manufacturing start-up, and delivery phases. The overall mission capable rate of the

AN/ALQ-131 fleet would be detrimentally impacted, as would the aircraft they support. Accordingly, PDT is the only firm capable of providing the supplies and 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 as well as unacceptable delays in fulfilling the Air Force’s requirements.

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 Federal Business Opportunities (Fed Biz Ops) web page as required by FAR 5.201, citing conditions which preclude full and open competition. Any source that responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential source 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 costs, and 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 NOTCONDUCTED

Market Research was conducted June 2014 pursuant to FAR Part 10. Thorough documentation searches were conducted within Government data bases, combined with various internet searches (Thomas

Registry, IHS Haystack, Google, etc.) for part/national stock numbers and manufacturers.

Correspondence with the OEM is on file to document the present status of the item. Qualified individuals, within the appropriate Government sections, were contacted and assisted with the gathering of product background information.

A search for HUB zone and service disabled veteran owned businesses was conducted using the Dynamic

Small Business Search Engine (http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm), using criteria consisting of keywords pertaining to the item description. A vendor survey was conducted to examine which contractors have the capability to meet the government’s requirements. Multiple companies listed in the search results were researched in further detail. An analysis was also performed to identify the cost, schedule, and technical risk associated with each of the potential vendors.

Market research identified PDT as the only qualified source to manufacture this item. They are the only company who has manufactured and is manufacturing this item. PDT currently possesses the proprietary technical data package required to manufacture this item and has stated that they will not sell the data and/or the rights to the data. A reverse engineering project for this item is not feasible due to cost, schedule, and technical risk. PDT is considered the sole source for this item and has the greatest likelihood of success from a cost, schedule, and technical risk perspective.

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

COMPETITION

As previously stated, the OEM, PDT, is unwilling to sell the proprietary data and/or rights to the proprietary data required to manufacture the pumping unit, and the Government has determined that a reverse engineering project is not feasible.

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

PDT is unwilling to sell the proprietary data required to manufacture this item. A reverse engineering project or redesign is not only uneconomical to pursue but would also result in unacceptable delays.

Again, such an effort would be considered high risk from a technical standpoint with no guarantee of success.

It is anticipated that there will be follow-on purchases; however, the timeframe and quantities are unknown at this time. When known, the Program Office will make another attempt to procure data and determine the feasibility of pursuing a redesign or reverse engineering effort.

Additionally, the future Pod Upgrade Program (PUP), which is currently in acquisition, will significantly reduce the number of AN/ALQ-184 pods in service and consequently reduce the need for this item approximately 50% by FY22. The potential return on investment of a reverse engineering project will decrease as demand decreases.

XII. CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on the Coordination and Approval Document evidences that she has determined this document to be both accurate and complete to the best of 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)).