JA_FD2030_16-90795_Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

FD2060-16-90795

I. CONTRACTING ACTIVITY

This Justification for Other Than Full and Open Competition supports requirements generated for the Air Force Life Cycle Management Center (AFLCMC/WNY), Common Avionics Branch (AFLCMC/WNYB), Navigation Section (AFLCMC/WNYBBB). The contracting activity for this requirement is Defense Logistics Agency (DLA) Aviation (DLA/AWB). The purchase request number supporting this contracting action is

FD2060-16-90795.

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

This J&A is being submitted to procure Lower Helmet Vehicle Interface (LHVI) and Quick Mounted Bracket (QMB) spares for the Joint Helmet Mounted Cueing System (JHMCS) United States Air Force (USAF) and Foreign Military Sales (FMS) customers. Due to the circumstances described herein, this activity requests authority to acquire the items/spares 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 follow-on replenishment spares contract. This effort will be a Fixed Price with Prospective Redetermination Indefinite Delivery Indefinite Quantity (IDIQ) contract with a three-year basic and three one-year option periods. This sole source requirement will be purchased from the following company:

Teledyne Reynolds Inc. (TRI)

5005 McConnell Ave.

Los Angeles, CA 90066

CAGE: 99747

Large Business

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

Under the contemplated contract, TRI will manufacture and deliver the following LHVI cables and QMB replenishment spares. This equipment is required to support the F-15 and F-16 USAF and FMS aircraft in sustainment of the JHMCS program.

Basic (Ordering Periods 1 through 3) Ordering Period 1 Estimated Period of Performance: 31 Jan 2017 – 30 Jan 2018

NSN NOUN QTY UNIT PRICE TOTAL PRICE

6150-01-504-5576 F-15 LHVI USAF 1-49

6150-01-586-0115 F-16 LHVI FMS 1-54

6150-01-521-3205 F-16 LHVI FMS 1-47

6150-01-598-4363 F-16 LHVI USAF 1-25

5340-01-470-1155 QMB USAF/FMS 1-1260

Ordering Period 2 Estimated Period of Performance: 31 Jan 2018 – 30 Jan 2019

NSN NOUN QTY UNIT PRICE TOTAL PRICE

6150-01-504-5576 F-15 LHVI USAF 1-49

6150-01-586-0115 F-16 LHVI FMS 1-54

6150-01-521-3205 F-16 LHVI FMS 1-47

6150-01-598-4363 F-16 LHVI USAF 1-25

5340-01-470-1155 QMB USAF/FMS 1-1260

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 JHMCS is a highly sophisticated and specialized helmet mounted avionics system that provides enhanced situational awareness for aircrew personnel. It provides the capability to cue sensors and weapons onboard the aircraft while simultaneously receiving target, weapon, and flight data, and threat warning information from high boresight angles (regardless of where the aircrew is looking) while maintaining visual contact with the target or targets. This signals data is transmitted through the high voltage LHVI cable, displayed inside the helmet’s visor, and used to acquire and/or engage potential air and ground targets. The QMB is attached to the pilot’s torso harness to absorb the shock load produced by the Upper Helmet Vehicle Interface (UHVI) cable disconnecting from the LHVI cable at the Quick Disconnect Cable (QDC) during ejection and egress instead of imparting the load to the pilot’s head or neck. The QMB includes a low intensity magnet that activates a switch in the QDC providing a confirmation Built-in Test (BIT) on the pilot’s display when the QDC is properly seated in the QMB. Given the system includes both aircraft and life support aircrew components, any change to the system or system support requires extensive coordination and testing to include full First Article qualification, environmental testing, ejection testing, and flight testing.

The government does not own the technical manufacturing data for the JHMCS. Prior to the inception of the full rate production of the JHMCS system in 2003, the JHMCS Joint Program Office (JPO) sought to procure the manufacturing data under the USAF Engineering & Manufacturing Development (EMD) and Low Rate Initial Production (LRIP) contracts. Under the EMD contract awarded in January 1997, Vision Systems International (VSI) was competitively chosen to be the developer of the JHMCS by the Boeing Corporation, and TRI was selected as a subcontractor to VSI to design and produce the LHVI and QMB components. VSI and TRI have asserted limited data rights on delivered data, and proprietary rights on undelivered data generated during the course of the program.

After the JHMCS Program transitioned from Wright-Patterson AFB, OH to Robins AFB, GA for sustainment, the DLA Aviation Contracting Office awarded production contract # SPRWA1-14-D-0001 on 31 Jan 2014 to support the requirements listed in Section III above. This Firm Fixed Price IDIQ contract was awarded to TRI with three ordering periods. The period of performance for this effort will end 30 Jan 2017.

Only TRI has possession of the required technical data or knowledge to integrate Reliability and Maintainability (R&M) improvements for the LHVI and QMB to ensure compatibility of the equipment.

The contractor specializes in producing high voltage connectors and subassemblies for unique pilot helmet mounted display systems, and maintains highly skilled technicians, engineers, and support staff dedicated to JHMCS production. The contractor has also invested capital equipment, technology, and a cable manufacturing shop required to produce these components. In addition, the LHVI and QMB components are not commercially available items. Accordingly, TRI is the only source capable of providing the assets described in Section III. Therefore, this acquisition will be a follow-on contract for the continued production of highly specialized equipment.

Award to any other source would result in substantial duplication of cost to the Government estimated from $ that is not expected to be recovered through competition or poses unacceptable delays in fulfilling the Government’s requirements under this acquisition. The only viable alternative the government has in production of the LHVI and QMB is to attempt reverse engineering. Given the advanced technologies and high voltage aspects of these parts, it is considered high risk to reverse engineer. If reverse engineering is ever attempted, the government would have to submit the Program Objective Memorandum for funding, negotiate/award contract, perform reverse engineering, and conduct a wide range of testing activities on the new system including first article qualification, ejection, windblast, environmental, and flight testing. Government engineers performed two reverse engineering estimates. The first was completed in support of this J&A by the 407 SCMS/GUEA and AFSC/FZC-R Cost Division and is based on a past similar engineering acquisition to redesign the UHVI performed under Boeing contract # F33657-01-D-0026-0059-04 in 2010. In order to complete this effort, Boeing subcontracted the work to TRI. The estimated cost to reverse engineer the LHVI and QMB is . The return on investment for this full and open competition reverse engineering effort is 20 years The JHMCS will begin retirement by Calendar Year 2040. Based on this assessment, a full and open competition acquisition to reverse engineer the LHVI and QMB components for follow-on and future acquisitions is considered non-cost effective for the government. The second assessment is an independent government estimate completed 24 Jun 2016 by AFLCMC Avionics Engineering for the organic cable shop to reverse engineer the LHVI and QMB. This estimated cost is The estimated time to complete the project, perform all required testing, conduct a competitive acquisition to procure the LHVIs and QMBs, perform first article qualification, and complete production activities is at least 3 years. The current stock on hand is not sufficient to support the warfighter’s missions or FMS production lines during this total time of 3 years and will cause MICAPs and delay production installations.

Accordingly, TRI is the only firm capable of meeting government requirements described in Section III above without the US Air Force experiencing substantial cost that could not be expected to be recovered through competition.

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

MANY POTENTIAL SOURCES AS PRACTICABLE

This requirement will be synopsized on 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 the data to support acquisition of this type 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.

A sources sought synopsis was published in FedBizOpps on 6 Apr 2016 under Solicitation Number #6150- 01-504-5576 to identify potential sources that may possess the expertise, capabilities and experience to meet the requirements for qualification and production of the JHMCS LHVIs and QMB components. This synopsis contained a list of the JHMCS NSNs, part numbers, and descriptions of each component. Only the incumbent contractor, TRI, responded to the synopsis and no other sources were identified.

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 Audit Agency (DCAA) 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

Market research for this contracting action was completed on 24 Jun 2016. This process included posting a sources sought synopsis to the FedBizOpps website and researching data in government systems such as DLA’s PUBLOG FLIS Database and the Joint Engineering Data Management Information and Control System (JEDMICS). This activity permitted the government to determine if any other potential sources existed in meeting the government’s requirements and to determine if the data on-hand was sufficient enough to pursue a competitive acquisition. Internet searches and queries were also performed using multiple search engines including www.thomasnet.com, www.google.com, www.yahoo.com, and the Small Business Administration (SBA) website. Given market analysis and other considerations outlined above, it has been determined that TRI is the only responsible source for the procurement of these items. This conclusion is based primarily on the OEM ownership of the data, their unique knowledge of the system as the OEM, and their active role in platform integration. Based on the subcontracting plan for the previous contract, a healthy percentage of work is subcontracted to small businesses, small disadvantaged businesses, woman and veteran owned small businesses. TRI continues efforts to locate and qualify potential service disabled veteran owned and HUBZone small businesses. In addition, there is no opportunity to modify a commercial asset to meet the government’s requirements. The LHVI and QMB components were custom-designed to interface with the aircraft’s high voltage power supply and signal processor Line Replaceable Units (LRUs), and these assets have been strenuously tested in accordance with the MIL-STD-810 environmental military specification to ensure the equipment can resist the effects of natural and induced environments that are peculiar to military operations. Given the unique characteristics of JHMCS requirements and capabilities, only TRI is qualified to perform this effort.

No other asset will be able to meet these requirements without major modifications to the equipment.

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

COMPETITION

Throughout the period between 2002 and 2003, the JPO questioned the assertion of limited data rights on delivered data and proprietary rights on undelivered technical data generated by the contractor under the EMD and subsequent production contracts; which includes TRI’s proprietary data. The JPO’s efforts to obtain data rights and discount TRI’s limited and proprietary rights assertions were unsuccessful. The JPO sought legal recourse to acquire this data, but JAG has advised a successful challenge of VSI’s assertion of ownership of the data is high risk and poses a severe threat to timely program execution.

The JPO was therefore unable to resolve the issue and relinquished their pursuit of acquiring the data.

Since transitioning to Warner Robins, additional attempts have been made to obtain the data rights to the technical data. Most recently in Apr 2016, the program office requested that TRI provide a price quote on the technical data package with either unlimited or government purpose rights; however, the contractor’s general management representative sent an official contracts letter declining to release the data rights or provide a quote for this effort.

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 submitting periodic requests to TRI to obtain the data rights to the technical data and will further explore the possibility to reverse engineer the LHVIs and QMB through an organic capability. The contract structure for this acquisition will consist of a three year basic period and three one-year option periods. This will afford the Government the maximum flexibility to continue with OEM support during the time period to reverse engineer the LHVIs and QMBs, conduct a competitive acquisition, and qualify a new source. Should a new source be qualified during the life of this sole source contract, the Government can choose not to exercise an option(s).

XII. CERTIFICATION BY THE CONTRACTING OFFICER

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. CERTIFICATION BY THE TECHNICAL/REQUIREMENTS PERSONNEL

As evidenced by our signatures above, we certify that any supporting data contained herein, which is our responsibility, is both accurate and complete.