FD2060-17-00087_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 Activity for this requirement is Defense Logistics Agency (DLA)/Aviation Warner Robins. The purchase request number supporting this contracting action is FD2060-17- 00087.

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 action will result in the award of a new contract which will be firm fixed price, Indefinite Delivery (ID)contract with a single five (5) year period of performance. 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. The AN/APN-232 is responsible for correctly identifying the altitude of the aircraft to the pilot. The signal generator TE-8062 Altitude Simulator provides simulated altitudes to the Versatile Depot Automatic Test Stations (VDATS) for use in testing, fault isolation, and alignment of the AN/APN-232(V) Combined Altitude Radar Altimeter (CARA) Receiver-Transmitter (RT). This signal generator provides simulated altitudes to the VDATS to verify that the altimeter is correctly identifying the altitude. At this time, two out of the 402d EMXG’s three CARA testers are inoperable due to failures of this signal generator. With three shifts, the 402d’s production is severely limited with only one CARA tester.

ROM for selling the data is ; however, even though the data would include licensing rights, they stated it would be for Government use only.

The Government does not own the proprietary technical data rights required to manufacture these items. Therefore, an award to a vendor other than the OEM, NavCom, would require a redesign or reverse engineering effort. This is not only uneconomical to pursue, but would also result in unacceptable delays. An economic analysis was performed February 2017 which showed that the estimated breakeven point of such a reverse engineering project would not occur until FY59 which does not represent a reasonable amount of time to recoup investment costs.

The parameters used for the economic analysis included previous cost with a 4% inflation rate.

Historical engineering projects of like items: F-15 Automatic Intermediate Systems (AIS) Signal Generator, Depot Automatic Test Station-A (DATSA) Signal Generator, and 8662A Signal Generator were considered as like items that were similar in function and cost, on average, $2.7M, adjusted for inflation. According to the CARA Program Office, CARA and associated testers are projected to remain in use until FY40. Therefore, this acquisition will be a follow-on contract for the continued production of highly specialized equipment.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

The Sources Sought Synopsis was posted under Solicitation number 6625-01-560-4252 to FedBizOpps (www.fbo.gov) on 16 Sept 2015 with a response date of 25 Sep 2015. The SSS was to identify potential sources that may possess the expertise, capabilities, and experience to meet the requirements for qualification and production of the 6625-01-560-4252KV, Signal Generator.

No responses were received.

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.

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 or 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 conducted March 2017 states this is a non-commercial manufactured item because it is unique to the specifications that are required for the VDATS. The Signal Generator P/N TE-8062 was produced specifically to meet the Government’s requirements and the item being purchased under this effort is not commercially available. Additionally, there are no commercial items available in the marketplace that can be modified to replace this item. None of the contacted vendors had a form-fit-function replacement available or commercial supply that could provide the basic requirements of desired frequencies and amplitudes to be adapted into the current TE-8062.

The engineer conducted an internet search using NSNs and P/Ns, company information, and to determine current and past sources in an effort to identify potential sources for this procurement.

The web sites below were used as research, https://www.google.com/, using item name, NSNs, and P/Ns for background information, company information, and to determine current and past sources:

PRPS: https://www.my.af.mil/prps/PRPSS3/

SAM: https://www.sam.gov/portal/SAM/#1#1

Conducted Haystack search http://haystack.ihserc.com/Code/Flis Search.asp that provided the Federal Supply Catalog searches across over 70 U.S. Army, Navy, Air Force, and commercial related databases to provide procurement history.

Conducted search of HUB zone and ownership/self-certs (minority, veteran, woman, etc.) and Dynamic Small Business Search (DSBS), http://dsbs.sba.gov/dsbs/search/dsp dsbs.cfm, with criteria consisting of keywords pertaining to items name and description. See screenshots below.

In addition, conferred with VDATS system engineers within the government to identify potential sources. The engineer determined that no small companies were identified that had the knowledge, experience, or data rights required to manufacture this item. A vendor survey was conducted to examine which contractors have the capability to meet the Government’s requirements. Three companies listed in the search results were researched in further detail along with the current qualified source, NavCom. The two other companies were determined not capable of meeting the Government’s requirement. Other companies found in the vendor survey cannot reproduce this part because NavCom is the proprietary owner of the parts and manufacturing drawings. They would need the proprietary technical data to be considered a qualified source. At this time, NavCom is the only qualified Source of Supply (SoS) that possesses the proprietary technical data, expertise, and equipment to manufacturer this item at this time.

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 FEB 2017 about selling the data and requested a rough order of magnitude (ROM) for the cost of the data. NavCom Defense Electronics, Inc.

(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. Based on current forecast, no additional action is anticipated. If future requirements increase substantially, the Government will reassess the feasibility of reverse engineering/re-design or acquiring technical data from NavCom.Ongoing market surveillances will continue through the review of technical literature, discussions with other engineers and collecting information from various expos for access to new potential repair capabilities.

XII. CONTRACTING OFFICER’S CERTIFICATION

As evidenced by his/her signature, the contracting officer 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, 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))