JUSTAPPR_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 Sustainment Center (AFSC), 638 Supply Chain Management Group (SCMG), 410 Supply Chain Management Squadron SCMS/GULA. The contracting authority for this requirement is DLA/AW. The purchase request number supporting this contracting action is FD2060-16- 00108.

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

Due to the circumstances described herein, the activity requests authority to acquire the asset 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 sole source requirement will be purchased from the following company:

NavCom Defense Electronics, Inc.

9129 Stellar St.

Corona, CA 92883-4924

CAGE: 57057

Large Business

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

AGENCY’S NEEDS

Under this procurement acquisition (Budget Code: 8), NavCom Defense Electronics, Inc. will manufacture the NSN below which is required to support the Versatile Diagnostics Automatic Test Station (VDATS) that is responsible for ensuring accurate operation of the AN/APN-232(V) altimeter system:

National Stock Number NOUN Quantity UNIT PRICE TOTAL PRICE 6625-01-560-4252KV Signal Generator 1

TOTAL POTENTIAL CONTRACT VALUE

The estimated unit price for this procurement is based upon a Rough Order of Magnitude (ROM) that was provided by the OEM.

The AMC/AMSC is A3/R – Acquire for the second or subsequent time from the actual manufacturer. The Government does not own the data or the rights to the data needed to purchase 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 code is used when the Government did not initially purchase the data and/or rights.

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 (APPLICABILITY OF AUTHORITY)

The agency's minimum needs can only be satisfied by the unique supplies or services available from only the above cited source, who possesses unique capabilities demonstrated as follows:

NavCom Defense Electronics, Inc. is the original equipment manufacturer (OEM) of the Signal Generator and is the only source with the required Level III data which gives them the ability to manufacture the item down to the component level. The data is proprietary to NavCom and they also own the required interface test adapters for access and the manufacturer information needed for successful integration to the VDATS. A complete data package is not available for competitive solicitation. The Government contacted NavCom on 23 September 2015 about selling the data and requested a rough order of magnitude (ROM) for the cost of the data. NavCom stated that the ROM for selling the data is however, even though the data would include licensing rights, they stated it would be for Government use only.

Reverse engineering is considered cost prohibitive at this time. An evaluation of three like type items, the F-15 AIS EARTS Signal Generator, DATSA Signal Generator, and the 8662A Signal Generator, generate equivalent costs of respectively. Also, based on these systems, it would take 5 years to complete the effort. Based upon the aircraft that utilized the AN/APX- 232, the life of this item, and the test equipment that requires it, is expected to be CY2040.

At this time, the Government does not intend to procure additional spares. The Government has determined that it would be cost prohibitive and not in the best interest of the Government to reverse engineer this Signal Generator.

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. 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.

In addition, DLA submitted Sources Sought Synopsis. Responses were due by 23 September 2015. No responses were received.

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 considered fair and reasonable based upon FAR 15 negotiation procedures using other than certified price or cost analysis as the total value of the contract does not require this information. In the event that limited cost or pricing information is made available, the Government’s negotiation objective will be developed using local technical analysis applied to direct and indirect rate factors recommended by the DCAA and/or DCMA.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED

Market Research conducted September 2015 in accordance with FAR Part 10 states this is a noncommercial manufactured item because it is unique to the specifications that are required for the VDATS. The engineer conducted an internet search using National Stock Numbers (NSNs) and Part Numbers (P/Ns) for background information, company information, and to determine current and past sources in an effort to identify potential sources for this procurement.

Joint Engineering Data Management Information and Control System (JEDMICS), Program Data Management (PDM) Gateway, Federal Logistics Information System (WebFLIS), System for Award Management (SAM), Purchase Request Process System (PRPS), and Small Business Administration (SBA) were searched using P/N to determine what drawings and technical data are available.

During the market research, there were no small businesses, HUBZone, or service disabled veteran companies HUB zone and ownership/self-certs (minority, veteran, women, etc.) was conducted using Dynamic Small Business Search (DSBS) with criteria consisting of keywords pertaining to item name and description. In addition, the engineer determined that no small companies were identified that had the knowledge, experience, or data rights required to manufacture this item.

In addition, DLA submitted Sources Sought Synopsis. Responses were due by 23 September 2015. No responses were received.

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 contacted NavCom on 23 September 2015 about selling the data and requested a rough order of magnitude (ROM) for the cost of the data. NavCom stated that the ROM for selling the data is

; however, even though the data would include licensing rights, they stated it would be for Government use only, which would not allow the Government to utilize for competition purposes.

In addition, an evaluation of three like type items, the F-15 AIS EARTS Signal Generator, DATSA Signal Generator, and the 8662A Signal Generator, generate equivalent costs of , and respectively. Also, based on these systems, it would take 5 years to complete the effort. The life of this item is expected to be CY2040.

Because the Government does not intend to procure additional spares, the Government has determined that it would be cost prohibitive and not in the best interest of the Government to purchase the data or reverse engineer this Signal Generator for this acquisition.

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)).