SPRWA123R0018_Redacted.pdf

Controlled Unclassified Information

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

FD2060-23-30401, FD2060-23-00011

I. Agency and Contracting Activity.

This Justification and Approval (J&A) request authority for Other Than Full and Open Competition to support requirements generated for the Air Force Life Cycle Management Center (AFLCMC)/Common Avionics Branch (AFLCMC/WNY) in conjunction with the Air Force Sustainment Center (AFSC)/Common Avionics Supply Chain Management Squadron (AFSC/407 SCMS). The contracting agency for this requirement and Justification for Other Than Full and Open Competition is the Defense Logistics Agency Aviation (DLA). The purchase request numbers supporting this contracting action are FD2060-23-30401 (Production) and FD2060-23-00011 (Repair).

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

This J&A is being submitted to establish a follow-on contracting vehicle to procure and repair Joint Helmet Mounted Cueing System (JHMCS). This J&A is to support United States Air Force (USAF), Navy and Foreign Military Sales (FMS) customer requirements for the Joint Helmet Mounted Cueing System (JHMCS) components including consumable and Depot Level Reparable (DLR) spares. Due to the circumstances described herein, the activity requests authority to acquire the supplies listed and services in this document using Other Than Full and Open Competition as prescribed by Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. The contemplated action will result in the award of a follow-on Firm Fixed Price Requirements Indefinite Delivery Contract (IDC). The planned period of performance is 72 months including a three (3) year Basic Ordering Period, plus three (3) One-Year Ordering Periods. In addition, contract clause FAR 52.217-8, “Option to Extend Services” will be included to allow up to a maximum 6-month extension to the period of performance for awarded task/delivery order(s). In the event a modification to add pricing for the Ordering Periods 4, 5, and 6 is not executed by the date of expiration, TDE will accept contract extension(s) utilizing range pricing from the latest priced ordering period until negotiated prices are incorporated by contract modification.

This sole source requirement will be purchased from the following company:

Teledyne Defense Electronics, LLC (TDE) 5005 Mcconnell Ave Los Angeles, CA 90066-6715

Large Business pricing from the latest priced ordering period until negotiated prices are incorporated by contract modification.

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

10 U.S.C 3204(a)(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 the nature of the acquisition requires use of the authority cited above (applicability of authority).

Teledyne Defense Electronics, LLC (CAGE 99747) is the current source identified through the Market Research with the technical data, facilities, test equipment and expertise required to manufacture and repair items needed in this acquisition. TDE has been the sole source of manufacture and repair for the JHMCS LHVI cables since its inception and 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), now Collins Elbit Vision Systems (CEVS), was competitively chosen to be the developer of the JHMCS by the Boeing Corporation, and Teldyne Reynolds Inc, now TDE, was selected as a subcontractor to CEVS to design and produce the LHVI and QMB components. CEVS and TDE have asserted limited data rights on delivered data, and proprietary rights on undelivered data generated during the course of the program.

In 2009, Source of Repair Analysis (SORA) 07-053 was approved designating the JHMCS systems, including the LHVI, as core workload with a Depot Maintenance Interservice (DMI) decision of 50% contractor / 50% organic repair. Per 10 U.S.C. 2466, “Not more than 50% of the funds made available in a fiscal year to a military department may be used for the performance by non-Federal Government personnel” and 10 U.S.C.

2464 “the performance of core logistics workloads shall assign facilities sufficient workloads to ensure cost efficiency and technical competence”. As such the contractor has direction to preform up to 50% of all repairs while the government repair facility is obligated to at least 50% of the repair requirements unless waived by the Secretary of Defense.

No other company has expressed an interest or has proven they are qualified in repairing the LHVI. The Government does not possess the capability to independently validate the operational capability range of end item repairs or qualify a new source for production.

Any data available to the Government consists of line drawings for cataloging purposes and illustrated parts breakdowns, which do not provide enough detail for competition.

TDE has been supporting the JHMCS for over a decade and have continuously demonstrated the ability to meet USAF increased ops-tempo requirements. They continue to meet all production and repair needs on the two current contracts for production (SPRWA1-17-D-0003) and repair (FA8539-19-D-0001) respectively.

The last sole source repair contract with TDE, LLC. Was IDIQ contract FA8539-19-D- 0001. This contract was awarded on 21 Feburary 2019 and expires on 20 Feburary 2024.

The last sole source production contract with TDE, LLC. Was IDIQ contract SPRWA1- 17-D-0003. This contract was awarded on 28 April 2017 and expires on 27 April 2023.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under FAR 5.202 applies.

A Sources Sought Synopsis (SSS) was posted to www.sam.gov on 21 June 2021 with a response date of 14 July 2021 under Solicitation Number SPRWA1-23-R- JHMCS_LHVI. The Sources Sought Synopsis (SSS) requested responses from interested vendors which possess the expertise, capabilities, and experience to meet qualification requirements for this effort. Zero (0) vendors responded to the solicitation. Additional market research was conducted to include reviewing results of the previous market research completed for these repair/production efforts, as well as Internet searches.

TDE is the only source identified through the market research that possesses the technical data, facilities, test equipment, and expertise required to manufacture and repair the JHMCS LHVI. TDE, being the OEM, has been the sole source of manufacture and repair for the LHVI cables since inception. The Government does not possess a technical data package to support a competitive award, nor does the Government have the capability to independently validate the operational capability range of end repair or production items.

The incumbent, TDE was determined to be the only capable vendor.

The requirement will be synopsized in SAM.gov in accordance with 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 subcontracting possibility.

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 determined fair and reasonable to the Government before contract award. In accordance with FAR 15.403-4, the contractor will be required to provide certified cost or pricing data to be used supporting the Government’s evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types and quantities of material and 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. Based on the foregoing, the Contracting Officer hereby determines the anticipated cost to the Government will be 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 February 2023, included Sources Sought Synopsis (SSS), reviewing the results of recent market research undertaken to meet similar or identical requirements, and Internet searches. The results of Market Research efforts and Vendor Surveyindicate that no commercial product exists and no sources were found that possess the expertise, capabilities, and experience to perform production and repair which could meet these requirements.

The Government engineering team conducted research through review of up to date AFMC Form 762 and AFMC Form 761 worksheets for each NSN, and CRSAW documents completed IAW AFMCI 23-113.

Internet searches were conducted on item descriptions specific to the covered NSNs.

Results returned specific to JHMCS, its part numbers, NSNs, and component nomenclatures identified only TDE as the vendor. No other potential sources could be found through the multiple search engines. TDE is the only source that possesses both the capability and the data necessary to repair and produce these items.

Review of the subject NSNs procurement history was conducted to identify if the Government had previously contracted for these requirements from a company other than TDE. Analysis of the procurement history indicates that the OEM/TDE has been providing contract depot repair support for JHMCS end item hardware, as well as JHMCS procurement efforts.

The Joint Engineering Data Management Information and Control System (JEDMICS) was searched for part number information to locate what data was available and if that data was sufficient to allow for competition The results turned up no data that could be utilized by the Government to meet the requirements.

The Small Business Administration (SBA) website (http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm) was utilized to determine whether or not there were any potential opportunities for 8(A), HUB Zone, and Certified Disadvantaged small business companies. The NAICS code 811219 and 334511, along with the keywords "Cable Management" and “Cable Manufacturing and Helmet” were used. While there were numerous results, there are no known companies that have the technical data to complete repairs and manufacturing of the JHMCS components.

Numerous Market Research efforts have been conducted over the past years to determine any other potential sources for many of the items listed, but due to lack of technical data, no other sources have been found.

The operational requirements of the JHMCS system are militarily unique and used on the F-15, F-16 and F-18 aircrafts. There is no commercially available or equivalent system and no opportunity to customize or modify a commercial asset.

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

JHMCS is currently in production and repair at TDE and the Government has not acquired reprocurement level data necessary to support organic repair of the system.. All support equipment needed to produce the JHMCS spares is currently located at TDE.

Therefore, the primary barrier to commercial competition is the lack of a technical data package. Additionally, TDE has denied all requests by the government to purchase repair and procurement data over the JHMCS system (see Section XI).

X. List of any sources that expressed, in writing, an interest in the acquisition.

None.

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 currently possess unlimited data rights or government purpose rights needed for the production or organic repair of the JHMCS components. These rights are retained solely by the OEM (TDE). The Government requested a quote from the OEM on 12 September 2019 to procure either unlimited or Government purpose data rights, and the OEM declined to provide a quote. On 7 February 2023, the 407th SCMS made a request to contractor for repair and production data. On 13 February 2023, Teledyne Defense Electronics responded to request and declined to sell their proprietary data associated with the LHVI and QMB product line. Additionally, there are no commercial product sheets, test data, qualification data, support manuals, or related data available to the Government. The JHMCS team was therefore unable to resolve the issue and relinquished their pursuit of acquiring the data at this time. Therefore, without data availability, no action will be taken to remove barriers to competition. However, DLA Aviation will continue to synopsize future requirements to allow industry the opportunity to identify competitive items. Any items that subsequently become competitive after award will be removed from the contract.

The JHMCS sustainment Program Office (PO) at WR-ALC will continue to assess the contractor’s willingness to sell data to the Government, and periodically request new quotes. However, successful results seem unlikely. Surveillance of these systems will continue to be reviewed throughout the ordering periods to ensure the acquisition meets the stated criteria.

XII. Certification by the Contracting Officer.

As evidenced by my signature on the Coordination and Approval Document (CAD), 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 their signatures on the CAD, any supporting data that is the responsibility of technical or requirements personnel and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

Attachment 1: JHMCS Tables for Repair and Production