JA_FD20601701353_Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

ALE-50 Magazine Dispenser Spares

PR Number: FD2060-17-01353

I. CONTRACTING ACTIVITY

This Justification and Approval (J&A) requests authority for Other Than Full and Open Competition and supports requirements generated for the Air Force Sustainment Center, 638th Supply Chain Management Group (SCMG), 408th Supply Chain Management Squadron (SCMS)/GULA. The contracting activity for this requirement is Defense Logistics Agency (DLA) Aviation. The purchase request number supporting this contracting action is FD2060-17- 01353.

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

Due to the circumstances described herein, the activity requests authority to acquire the 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 contract, which will be a firm-fixed price, one time delivery. This sole source requirement will be purchased from the following company:

Meggitt Defense Systems, Incorporated 9801 Muirlands Blvd Irvine, CA 92618-2521 CAGE Code: 62228 Large Business

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

AGENCY’S NEEDS

The activity requests authority to acquire the ALE-50 Magazine Dispenser NSN 5865-01-449- 2053EW on a sole source basis from Meggitt Defense Systems, Inc. This magazine dispenser is imperative to the functionality of the ALE-50 towed decoy system. The 1 X 2 magazine (MX- 11699/ALE), PN G556100-2, provides for storage of decoy assemblies before the decoy ejection, as well as providing appropriate structure to generate and withstand ejection forces to launch the decoy. The magazine provides for reload of decoy assemblies at the organizational maintenance level. Each magazine is capable of carrying two decoy assemblies.

The ALE-50 towed decoy acts as a preferential target that lures enemy missiles away by providing a much larger radar cross section than the aircraft. The ALE-50 towed decoy is currently operational on the F-16 and B-1B aircraft. The towed decoy has provided combat-proven aircraft protection against Radio Frequency missile threats in Kosovo, Afghanistan, and Iraq.

The Government estimate for this item is based on a spares procurement contract in 2002, with a cost of per unit. The new estimated cost of each unit amounts to based on the 2002 price with 5% annual compounded inflation included. The contract will be for a one time buy of 29 units. This quantity will fill and cover requirements until management of item can be transferred to DLA.

The proposed acquisition is depicted in the diagram below:

NSN Part Number

Noun Quantity Unit Price Total Price

5865-01-449-2053EW G556100-2 Magazine Dispenser

The Acquisition Method Code/Acquisition Method Suffix Code (AMC/AMSC) code is 3R for this item, and is used when the Government did not initially purchase the data and/or rights. The delivery requirement for this acquisition is within 12 months after date of contract award, purchased with CSAG funds.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

The statutory authority permitting other than full and open competition is 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 ALE-50 fleet currently uses Meggitt Magazine Dispensers and has a large amount of assets which are repaired by Meggitt. Producing a new source for this acquisition for a very small percentage of assets would not be cost effective to the Government. Any actions to remove competitive barriers should be focused on the repair capabilities. Any redesigns of the Magazine Dispenser (without redesigning the ALE-50 system) would not be approved by the design authority.

The Government does not own the data to produce another source for qualified source to repair or acquire these units. The Government contacted Meggitt to inquire about the acquisition of the data rights for production of Magazine Dispensers. They responded 31 August 2017 with an estimate of over a million dollars. This price is not economically feasible due to the added cost of Government qualification and testing for such a small quantity buy with no other future requirements. Reverse engineering these items is not feasible due to cost, schedule, and technical risk.

There have not been any changes in the marketplace for the purchase of this NSN, as Meggitt is the Original Equipment Manufacturer (OEM). Any prior contracts that were awarded to Raytheon were only pass-thru contracts to Meggitt. The Government requested data rights for production from Raytheon 24 August 2017 and received no reply.

This Magazine Dispenser is not available in the commercial marketplace because it is a military application only. No current item exists that can be customized, modified, or tailored to meet requirements. This is a custom-made MIL-spec device built to meet design requirements of Government drawing G556100-2. There are no commercial or non-developmental items that meet the requirements.

The Government continues to look for opportunities and actions to take to remove competitive barriers. Government has attempted to purchase required drawings, but did not receive an answer to the request. No plans have proven to be cost effective or successful and the Government remains in a sole source environment. The Government would need to redesign the entire ALE- 50 system to accommodate any redesign to the Magazine Dispenser component in order to remove competitive barriers. Redesigning the Magazine Dispenser alone would have to be approved by the design authority causing an unacceptable delay. If a functional redesign was initiated, it would take a minimum of three years to do the testing necessary to have it approved by the configuration approval authority and to have another vendor produce assets. A redesign of this degree is estimated to cost near when paralleled to a similar system redesign effort for the ALQ-131 pod system.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

This requirement was synopsized on the Federal Business Opportunities (FedBizOpps) web page as required by FAR 5.201. It was anticipated that sources having an interest in subcontracting may be identified through synopsis. Although the Government does not own data to support acquisition of the Magazine Dispenser from any other source, any source who responded to the Government as a result of this synopsis would be identified to the prime contractor as a potential for subcontracting possibilities.

The Sources Sought Synopsis was posted to FedBizOpps as synopsis number FD2060-17-01353 Jul 14, 2017 under the title, Request for Interested Manufacturers NSN 5865-01-449-2053 ALE- 50 F-16 Magazine Dispenser. The intent was to gather information on possible or interested sources other than Meggitt the original manufacture of the Magazine Dispenser. The FedBizOpps synopsis closed on Jul 29, 2017 with no responses.

Thorough documentation searches were conducted within Government data bases, combined with various internet searches (Thomas Registry, Information Handling Services Haystack, Google, etc.) for part/national stock numbers and manufacturers. Correspondence is on-file (15- 00101 PHR) with the OEM to document the present status of the item.

Qualified individuals, within the appropriate Government sections including Air Force Sustainment Center (AFSC) and Air Force Life Cycle Management Center (AFLCMC) Engineering, 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. Search results are attached.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The anticipated cost of this acquisition will be fair and reasonable to the Government. The Contractor’s proposal will consist of the skill mix of labor, labor hours performed, and the types and quantities of materials used. Other direct costs as well as 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. Should the Contractor’s proposal be valued less than the Truth In Negotiations Act (TINA) threshold, other than certified cost or pricing data will be utilized to determine the proposed price fair and reasonable. The contract price will be negotiated In Accordance With (IAW) 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

The Government does not possess data on this item to pursue and support a competitive solicitation. Meggitt is the sole owner of the data package and intellectual property for these items. Should another company other than Meggitt want to produce the items, the required drawings are not in Government possession. Meggitt is the only company that has manufactured/repaired and/or is manufacturing/repairing these items.

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 will continue to request for data rights from Meggitt and investigate the viability of reverse engineering of the ALE-50 Magazine Dispensers in future acquisitions. This is not a follow-on acquisition.

XII. CONTRACTING OFFICER’S CERTIFICATION

The Contracting Officer’s signature on the Coordination and Approval Document (CAD) evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief IAW 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 IAW FAR 6.303-2(c).