PR-00210_J&A_(Redacted).pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 7

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: DLA/AW

Purchase Request / Local ID Number: FD2060-19-00210

Program / Project (and PE, if applicable): APY-1/2 RF Switch Buy

Program Type (PEO or Other Contracting): Other Contracting

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

23 Jan 2019

Project Lead / Program Mgr / Requiring Activity

Signature

Date Contracting Officer

Date Local Legal Reviewer

Date Competition Advocate

APPROVAL (AFFARS 5306.304(a) )

Date Competition Advocate [ Official Signature Block ]

March 2018 FOR OFFICIAL USE ONLY Page 2 of 7

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), 407 Supply Chain Management Squadron (SCMS)/GULB. The contracting activity for this requirement is DLA Aviation. The purchase request number supporting this contracting action is FD2060-19-00210.

II. Nature and/or description of the action being processed.

Due to the circumstances described herein, the activity requests authority to acquire the purchase of new hardware 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 Firm-Fixed Price (FFP) three year, basic year and two options, contract.

This sole source requirement will be acquired from:

Mercury Systems, Inc.

2 Henderson Dr B West Caldwell NJ 07006-6608

CAGE: 3FDH9

Large Business

III. Description of supplies/services required to meet agency needs.

This contract action is necessary to acquire manufacturing services for new avionics electronic hardware of the APY-1/2 surveillance radar system on the E-3 Airborne Warning and Control System (AWACS) aircraft. The E-3 AWACS provides senior leadership with time-critical information on the actions of friendly and enemy forces aircraft.

The contractor shall furnish the material necessary for the manufacture, functional testing, inspection, packaging, and delivery of the items identified below. The Consolidated Sustainment Activity Group (CSAG) Defense Working Capital fund, Appropriation 4930, will fund this contract.

NSN NOUN QTY UNIT COST TOTAL ESTIMATED COST

Basic Year:

5841015518554CW RF Switch 24 P/N: A249001-1

Option 1:

5841015518554CW RF Switch 10 P/N: A249001-1

Option 2:

5841015518554CW RF Switch 10 P/N: A249001-1

Total:

March 2018 FOR OFFICIAL USE ONLY Page 3 of 7 deliveries could begin forty-two weeks After Receipt of Order (ARO) at a rate of three each per week. The Government's expectation is that all twenty-four new items of the basic year will be delivered within twelve months after contract award. Early deliveries of completed hardware are encouraged.

Screening action has resulted in these NSNs being assigned an Acquisition Method Code (AMC)/Acquisition Method Suffix Code (AMSC) of 3/B. This assignment is defined as follows:

AMC 3: Acquire, for the second or subsequent time, directly from the actual manufacturer, and AMSC B: 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.

IV. Statutory authority permitting other than full and open competition.

10 USC 2304(c)(1), as implemented by FAR 6.302-1(a)(2), 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 available from Mercury as they only possess the capability to manufacture this non-commercial designed electronic circuitry, control of radio frequency energy generation, maintain specifically designed digital logic programming, and provide integration design and test capabilities for the APY-1/2 system. The Government does not possess the technical data to allow for competitive solicitation.

. No other sources with the capability to manufacture these components were found due to the complexity of the item and unique application/operating environment.

. Mercury Systems, Inc. is and qualified source to manufacture this approved configuration.

On 2 July 2018 the Government Integrated Product Team (IPT) requested via email Rough Order of Magnitude (ROM) pricing for the purchase of five to twenty-five pieces of the 8554 NSN along with a request for ROM pricing for the Government to purchase the manufacturing and repair technical information for this item.

Reverse engineering of the 8554 NSN

March 2018 FOR OFFICIAL USE ONLY Page 4 of 7

The manufacturing data and test processes are proprietary to Mercury and a complete data package is not available for competitive solicitation.

This acquisition will be a new sole source contract for the production of non-commercial avionics unique to the APY-1/2 system and the AWACS mission.

Estimated Award Date (EAD) for this sole-source effort is June 2019.

NSN 8554 is an electronic component item that controls and monitors electrical power for RF transmission for radar system operation.

Accordingly, Mercury Systems, Inc. is the only firm capable of providing the requirements described in Section III above without the U.S. Air Force experiencing unacceptable delays and in fulfilling its requirements.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

A Sources Sought (SS) synopsis was posted to Federal Business Opportunities (FedBizOpps) on 18 Jul 2018 with a response date of 02 Aug 2018 under Solicitation Number 5841-01-551-8554. The SS synopsis requested responses from interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this effort. The synopsis yielded no other vendor response for this NSN.

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. Although the Government does not own data to support the manufacture of these APY-1/2 components 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

March 2018 FOR OFFICIAL USE ONLY Page 5 of 7 potential candidate for subcontracting possibilities.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer will determine the overall cost of this acquisition to be fair and reasonable to the Government.

In accordance with FAR 15.403-3, the contractor will be required to provide other than 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 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 not conducted.

Market research was performed by the 407th SCMS program office 24 Aug 2018 pursuant to FAR Part 10. Various methods were used to perform the market research to identify capable and potential sources. Joint Engineering Data Management Information and Control System (JEDMICS) and Product Data Management (PDM) were searched using Part Number (P/Ns) A249001-1 to determine what technical data is available. IHS Information Systems, WebFLIS, Business Identification Number Cross-Reference System (BINCS), Purchase Request Process System (PRPS) and the internet were searched using National Stock Number (NSN 5841015518554CW) and Product Identification Numbers (PINs) showed no other companies capable to provide a Form, Fit, and Function (F3) item.

The government requirements team searched government databases, conducted internet searches, and conducted a small/disadvantaged business search. The details of each search are as follows:

Search of government databases such as Joint Engineering Data Management Information and Control System (JEDMICS), https://jedmics.af.mil/webjedmics/index.jsp, and Program Data Management (PDM) Gateway, https:// tosune5.robins.af.mil/pdm_gateway/, were searched using the respective part numbers to determine whether technical data is available. The team interrogated The Federal Logistics Information System (WebFLIS), http://www.dlis.dla.mil/ webflis/pub/pub_search.aspx, System for Award Management (SAM), https://www.sam.gov/index.html/, Business Identification Numbers Cross-referencing (BINCS) System, https://www.dlis.dla.mil/bincs/begin_search.aspx, Purchase Request Process System (PRPS), https://www.my.af.mil/prps/PRPSS3/, Small Business Administration (SBA) and conferred with qualified government personnel.

A search for HUB zone and ownership/self-certs (minority, veteran, women etc.) was conducted using Dynamic Small Business Search (DSBS), http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm, with criteria consisting of keywords pertaining to item name and description.

An internet search was conducted, utilizing www.google.com, using NSN and P/N for background information, company information, and to determine current and past sources.

Results of the market research are as follows: A vendor survey was conducted to determine which contractors have the capability to meet the minimum performance specification. The Original Equipment Manufacturer (OEM), Mercury Systems, Inc., is the only manufacturer and only source with the technical data and rights to the current USAF approved configuration.

March 2018 FOR OFFICIAL USE ONLY Page 6 of 7

Market research identified no other sources capable of manufacturing this configuration of non-commercial military electronics and radar components. There are no capable small business vendors identified through market research.

In accordance with FAR Part 2, this does not fall under the scope of a commercial item, nor does it fall under the streamlined acquisition procedures in FAR Part 12. There are no commercial applications for this item; form, fit and function are unique to the E-3 AWACS system.

There was no response to the Government's request for interested vendors to manufacture the assets.

Mercury Systems is the designer, manufacturer, and only known source with the technical data and expertise to meet this requirement. The Government does not possess the technical data to allow for competitive solicitation. It is recommended to purchase directly from Mercury Systems.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

None.

X. List of any sources that expressed, in writing, an 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 does not possess the TDP for the RF Switch Assembly to support full and open competition. An inquiry for selling of the TDP was sent to Mercury on 2 July 2018. The contractor responded 27 July with ROM pricing for new hardware and were non-responsive with any interest in selling the TDP.

The only available action to remove competitive barriers to full and open competition for manufacture would be reverse engineering the hardware to develop the necessary drawings for a manufacturing technical data package.

While the Market Research indicates Mercury Systems, Inc. as the only qualified source to manufacture this NSN, there

March 2018 FOR OFFICIAL USE ONLY Page 7 of 7

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 my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.