FD_2060-15-01066_Approved_JA_Redacted.pdf

JUSTIFICATION 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 activity for this requirement is Defense Logistics Agency (DLA) Aviation Warner Robins. The purchase request number supporting this contracting action is FD2060-15-01066.

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

Due to the circumstances described herein, the activity requests authority to acquire the repair services 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:

L-3 Narda-MITEQ 435 Moreland Rd Hauppauge, NY 11788-3926

CAGE: 99899

Large Business

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

NEEDS

Under the proposed contract, Narda will provide the Integrated Microwave Assembly (IMA) which is required to support sustainment of the AN/ALQ-184 Electronic Countermeasure Pod. Consolidated Sustainment Activity Group (CSAG) funding will be utilized.

NSN: 5998-01-435-4423EW PN: G558307-2

Ordering Period

Qty Unit Cost Total Cost

Min Max

2 First Articles $ 20 35 $

2 1 35 $ 3 1 15 $ 4 1 15 $ 5 1 15 $

The total estimated cost for this acquisition can be found above. This estimate was developed using a number of data sources, including the last actual procurement cost, D200A requirements computation system estimates, and a Rough Order of Magnitude. Out-year Estimated Unit Costs were developed using a 3% escalation factor. The quantities are based on actual demand as well projections computed by the March 2015 D200A computation cycle.

These items currently have 15 ea backorders, of which 9 are SURGEs/MICAPs. Upon approval of the First Article, production deliveries are estimated to begin in 120 days after receipt of order.

According to the Screening Analysis Worksheet Report, the AMC/AMSC Code for this items is 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. 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. Data review discloses that required data or data rights are not in Government possession and cannot be economically obtained.

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. DEMONSTRATIO N THAT THE CONTRACTOR’S UNIQUE QUALIF ICATIONS 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 IMA shall provide RF conversion, filtering, switching, adjustable attenuation, and up conversion. The IMA is critical to the successful performance and operation of the AN/ALQ-184 Electronic Attack Pod.

The IMA was previously manufactured by the OEM, Teledyne, on FA8523-04-C-0043. Teledyne has not provided assets to the Government since 2006. In 2012, in an attempt to qualify additional vendors, the Government used the multiple award C4I and Munitions Test (CIMTIC III) contract out of Eglin AFB to contract with Georgia Technical Research Institute (GTRI) via FFP Delivery Order FA9201-11-D-0096- 0008 to redesign the IMA. Although the Air Force inquired into the acquisition of Level 3 data during Pre-Award activities, the contract did not allow for the acquisition of it. Additionally, Engineering also concluded that the technical data that was allowed for on the contract was not enough to support future acquisitions efforts. Consequently, delivery of technical data was not included as a line item or funded on the contract. The data CDRLS on CIMTIC III were not intended to be used for the procurement of production data, but is used as a test and evaluation style contract. The contract was awarded for the development of a prototype that included additional testing. GTRI was contracted to oversee the qualification efforts of two different vendors, Robinson Laboratories, Inc. and L-3 Narda-MITEQ. In September 2015, L-3 Narda-Miteq (Cage 99899) successfully completed the qualification requirements and became the only qualified source to produce the IMA. However, although considered qualified, L-3 Narda-Miteq will be required to provide First Article assets on the proposed contract to validate the fit of the item due to drawing deficiencies identified during environmental testing. The initial testing accomplished revealed that the Government drawing specifications were not accurate. These drawing deficiencies have since been corrected in the Engineering Change Order (ECO). Robinson Laboratories failed to meet the initial requirements, and therefore failed to qualify.

The item to be procured under this proposed contract is highly specialized in nature. The IMA is used only in ECM Pods. The assembly consists of broadband mixers, couplers, filters, switches, and attenuators to be used with 50 Ohm semi-rigid coaxial transmission line in an airborne environment.

The internal technical drawings required to build these items are owned by L-3 Narda-MITEQ. In an email dated 7 Oct 15, James Ryan, Regional Sales Manager, stated that L-3 Narda-MITEQ is not interested in providing or selling the proprietary internal technical drawings required to build this item.

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 the Government does not own or have access to the internal technical drawings required to build this item, a redesign or reverse engineering effort would be required to award to a vendor other than L-3 Narda-MITEQ. Based on the Air Force’s engineering staff’s experience and engineering project data with similar projects such an 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 years for another vendor to obtain the necessary tools/equipment and facilities, complete a redesign or 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, . This estimate is based on the successfully completed GTRI contract. Such an effort would not result in enough savings to recoup the costs required to award to another vendor as the estimated breakeven point does not occur until FY46 which far exceeds the expected life of the AN/ALQ-184.

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 only decrease as demand decreases.

This item is currently 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 redesign or reverse engineering effort, build, test, qualification, manufacturing start-up, and delivery phases. The overall mission capable rate of the AN/ALQ-184 fleet would be detrimentally impacted, as would the aircraft they support. Accordingly, L-3 Narda-MITEQ is the only firm capable of providing the 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 October 2015 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 organizations, 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 number of vendors were identified. Initial analysis determined that most provide microwave and Radio Frequency services. Further research was conducted through a vendor survey to identify which vendors possess the capabilities necessary to meet the Government’s requirements. Three companies were researched and it was determined that L-3 Narda- MITEQ is the only vendor in possession of the internal technical drawings required to build this item. An analysis was also performed to identify the cost, schedule, and technical risk associated with each of the potential vendors, and it was determined that L-3 Narda-MITEQ is the lowest risk across all categories.

A Sources Sought request was posted on Federal BizOps. The only respondent was Teledyne, who claimed to be qualified to build this component. Although a previous source, Teledyne is not qualified as they have not built this component within the past three years. Teledyne last produced this component in 2006. Award to Teledyne would require a redesign or reverse engineering effort, which as described above, is not in the best interest of the Government.

Market research identified L-3 Narda-MITEQ as the only qualified source to build this item. L-3 Narda- MITEQ has stated that they will not provide or sell the internal technical drawings required to build this item. A redesign and/or reverse engineering project is not feasible due to cost, schedule, and technical risk. L-3 Narda-MITEQ is considered the only 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

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

L-3 Narda-MITEQ is unwilling to provide or sell the proprietary internal technical drawings required to build this item. A redesign and/or reverse engineering project 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.

For reasons previously explained in this Justification, the Program Office will not pursue future efforts to improve the competitive status of this item unless Narda changes its position on selling data rights.

Should a proposal be provided, the Program Office will budget to procure data if economically feasible.

XII. CONTRACTING OFFICER’S CERTIF ICATIO N

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 P ERSONNEL’S CERTIF ICATION

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)).