SSJ -72639 VDATS 13 Dec 2021_Redacted.pdf

CUI

SOLE SOURCE (INCLUDING BRAND NAME) JUSTIFICATION

Simplified Procedures for Certain Commercial Items

I. Contracting Activity.

This Sole Source Justification (SSJ) is to request authority for Other Than Full and Open

Competition supporting requirements generated for the 402d Electronics Maintenance Group

(EMXG), 569th Electronics Maintenance Squadron. The contracting activity for this requirement is AFSC/PZIMA.

II. Nature and/or Description of the Action Being Processed.

Due to the circumstances described herein, the activity requests authority to acquire Versatile

Diagnostic Automatic Test Station (VDATS) parts listed in the document using ‘Other than Full and Open Competition’ as prescribed by 10 U.S.C. 2302b, Implementation of Simplified

Acquisition Procedures (41 U.S.C. 1901). This action will result in the award of a new contract which will be firm fixed price. The estimated award date is 15 January 2022. The delivery date for these items is 10-months after receiving the order (ARO) or 15 November 2022.

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

Tyonek Engineering and Agile Manufacturing, LLC

DBA: TEAMCOR

44 Green Street

Warner Robins, GA 31093-2606

CAGE: 3YWE9

Small Disadvantaged Business, Native Owned

III. Description of the Supplies/Services Required to Meet Agency Needs.

This requirement is for procurement of eight (8) Calibration Interface Test Adapters (ITAs) and five (5) Self-test ITA's. These parts are required to ensure configuration control of the testers and compatibility with all software developed for the testers.

The VDATS is an organically designed test station with Open Architecture and Virtual Modular

Equipment (VME) Extensions for Instrumentation (VXI) technology. The test station contains flexible hardware and software architectures that are fully expandable and customizable, and eliminate or reduce the need for active ITAs.

The VDATS consists of standardized, commercially available test equipment, components and software. There are two configurations of VDATS, the Digital Analog (DA)-1 and DA-2.

Additionally, there are augmentations that provide additional capability to the core DA racks:

Auxiliary Bays, Mission Equipment Support Sets and Radio Frequency rollup racks. This acquisition is technical data driven by assembly instructions on Air Force Drawing 200819851 and Operational Instruction under Technical Order 33D7-45-300-2.

The nominal contract line item number (CLIN) for parts covered by this SSJ are shown below:

CLIN Part Name/ Number # of Units Price Total

0001 Self-Test ITA 200625700-30 5 EA

0002 Calibration ITA, 201213560-10 8 EA

IV. Statutory Authority Permitting Other Than Full and Open Competition.

AFFARS 5313.501 - 10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures

(41 U.S.C. 1901)

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

Tyonek/TEAMCOR. Tyonek is the Original Equipment Manufacturer (OEM) for these parts and is the only source capable of providing these parts. These parts are tested and approved for the VDATS. Acquisition must remain restricted to the controlled baseline that is approved and tested for the VDATS.

This instant acquisition is necessary for the continued production of a highly specialized system.

Tyonek/TEAMCOR has been the source of supply for the VDATS and has produced 102 ITA’s

(CAL and Self-test combined). Tyonek/TEAMCOR has assembled these ITA's for VDATS in the SIL (Software Integration Lab). Tyonek/TEAMCOR is the only vendor that possesses all drawings and technical data required to assemble the Self-Test ITAs and Calibration ITAs.

AFLCMC/WNA maintains Operational, Safety, Suitability, and Effectiveness (OSS&E) authority. The part numbers in this requirement may be altered but form, fit and function of the parts will not change. As such, minor configuration changes may be required to accommodate operational needs or avoid obsolescence. Configuration changes are approved by

AFLCMC/WNA. EMXG is the procuring source for the group. When obsolescence occurs, the

581st SIL will research the replacement parts and provide recommendations to WNA. All materials must be purchased as new, direct from the OEM in order to maintain configuration control and performance according to test station specifications. The remaining life cycle for the VDATS system is 30 years.

To maintain strict configuration control of current production efforts and to comply with the technical requirements identified in the VDATS system technical documentation, the exact part number is required and must be procured in order to maintain the configuration control baseline and promote transportability of workload between test stations. In accordance with the DoD

Automated Test Station (ATS) Selection Guide, which can be found at the following link:

https://www.acq.osd.mil/log/MPP/ats library.html, program managers are mandated to select from appropriate, DoD approved ATS families to satisfy testing requirements.

Acquisition must be restricted to the part number controlled baseline that has been approved and tested for the VDATS ATS. Any change to the VDATS configuration potentially impacts every

VDATS user and creates a ripple effect for software and firmware within Test Program Sets for

Line Replaceable Units or Shop Replacement Units tested on the VDATS Support Equipment.

The Government does not own the data rights to these proprietary Tyonek/TEAMCOR items. A request for purchase of data from Tyonek was sent on 03 June 2020. Tyonek replied that they would not sell the technical data for any of these items to the Government. Another request for purchase was sent via email on 9 December 2021. The contractor called the Government back on

10 December 2021 and again indicated that that Tyonek was unwilling to sell the technical data.

The DoD ATE framework that is shared by Air Force, Navy, Marines, and Army is structured around the use of Commercial Off The Shelf (COTS) instruments. This is due to the difficulty of re-engineering those components; the measurement science that is required for National

Institute of Standards and Technology - traceable calibration adds a great degree of complexity to the design and sustainment of these instruments. In the event of obsolescence, AFLCMC/WNA would qualify a substitute COTS item.

Qualification of substitute parts only occurs due to obsolescence, which is difficult to forecast as it is based on technological improvements by commercial entities, developmental efforts on different airframes, and/or diminishing sources of supply. The review of substitute parts is completed at a part number level, and each new part requires extensive regression testing to ensure uninterrupted production on over 2500 Test Program Sets that currently run on the

VDATS platforms. The research required to qualify a part includes approximately 12 months of review/testing. The cost of 12 months of analysis, testing, and integration for one part in any of the VDATS configurations is estimated at $127,154.

Substitute Qualification Estimates Cost for all parts =Unit Cost for all parts + Cost for analysis, testing of all parts

$312,091.52 + ($127,154 x 12) = $1,837,939.52

Requalification of individual parts from another vendor would add additional administrative costs such as duplication of contract efforts and supplying multiple vendors with required

Government Furnished Property for testing. It would also have significant detrimental effects to the delivery and EMXG’s manufacturing schedule as planning/forecasting obsolescence is difficult, if not impossible, to accomplish with enough certainty and lead time to establish alternate vendor procurement methods to meet existing performance requirements. Therefore, requalifying individual parts through alternate vendors is not a viable option. The VDATS program is capitalizing on commercial off the shelf items with pricing and availability directly tied to the commercial marketplace. On average, commercial pricing in the market fluctuates +/-

10%. Historically, the Government has received catalog pricing and quantity discounts up to 7% which will likely be lost if multiple alternate vendors are utilized. Based on historical purchase data, the most a competitive market would offer would be an additional 3% savings (see breakeven analysis below); therefore, it would take thirty-three years to breakeven (recoupment of additional upfront costs through potential long-term savings); however the life expectancy of some of the parts is less than the breakeven due to the rapid changes in technology and obsolescence.

Accordingly, Tyonek/TEAMCOR is the only firm capable of providing the supplies and services described in Section III above without the U.S. Air Force experiencing a substantial duplication of cost to the Government that is not expected to be recovered through competition.

VI. Description of Efforts Made to Ensure that Offers are Solicited From as Many

Potential Sources as Practicable.

A Sources Sought (SS) / Request for Information (RFI) was posted to Sam.gov on 24 November

2021 under Notice number F3QCCM72639 titled Teamcor VDATS Self Tester and Calibration

Tester with a response date of 15 December 2021. No responses were received.

It should be noted that a previous SS/RFI synopsis was posted to beta.SAM on 26 May 2020 with a response date of 26 June 2020 under Notice Number: VDATSTC6653 titled Versatile

Diagnostic Automated Test Station Parts. The parts being purchased in this current requirement were also included in that notice. The SS/RFI requested responses from interested vendors that possess the experience to meet qualification requirements for this effort. The Government received a response from Tyonek and one other vendor, Hiller Measurements, LLC. Hiller

Measurements, LLC was deemed incapable because they lack the proprietary data required to produce the individual parts within the kits and is not identified by the OEM as an authorized reseller and has no current relationship with the OEM.

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 15.403-3, the Contracting Officer will require the submission of other than certified cost or pricing data. Price analysis or cost analysis based on “information other than certified

Breakeven analysis Average Part Cost $ 26,007.63

3% Savings per Part $ 780.23

Requalification cost per part $ 153,161.63

Breakeven - # of buys 196

Avg Qty Purchased per year 6

# of years to Breakeven 33 cost or pricing data” will be used to examine and evaluate the proposed prices to determine fair and reasonable pricing. Price analysis techniques include comparison of proposed prices to historical prices paid for a same or similar item; comparison with published price lists, offered catalog prices and prices obtained through market research for a same or similar item;

comparison of proposed prices with independent Government estimate; or analysis of data other than certified cost or pricing information.

VIII. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research was not Conducted.

Market research pursuant to FAR Part 10.001 and 10.002 was finalized on 10 December 2021.

Techniques used included posting SS/RFI synopsis as well as a search using the Small Business

Administration Dynamic Small Business Search (DSBS) engine.

As described in Section VI above, a SS/RFI was posted to SAM.gov advising industry of the pending acquisition and soliciting inquiries from interested vendors. The SS/RFI was posted 24

November 2021 under Notice number F3QCCM72639 titled Teamcor VDATS Self Tester and

Calibration Test with a response date of 15 December 2021. No responses were received. Prior

SS/RFI posted 26 May 2020 yielded two responses, Tyonek and Hiller Measurements, LLC.

Tyonek was determined the only capable vendor. Tyonek has no third party resellers and does not offer these parts on a General Services Administration schedule.

The DSBS engine was used for query using North American Industry Classification System code

334515 (Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals) and key words “Test Equipment.” A search for HUBZone, 8(a), Veteran, Woman Owned and

Service Disabled Veteran Owned businesses was conducted and returned 111 vendors. Several sources for “test equipment” were identified, however, due to the proprietary nature of the parts being procured, none are capable of satisfying the requirement. A small business, Tyonek

(TEAMCOR), is the only known vendor who possesses the proprietary data needed to maintain configuration control and performance according to test station specifications.

These items are considered commercial items as defined by FAR 2.101. These items are used by both the military and commercial aviation industry.

The market research concluded that Tyonek/TEAMCOR is the only vendor capable of fulfilling the Government’s requirement.

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.

Acquisition of these parts must remain restricted to the controlled baseline that is approved and tested for the VDATS. Tyonek/TEAMCOR possesses the necessary technical data and is the approved vendor of these items. A request for purchase of technical data was sent to Tyonek on 9

December 2021. Tyonek responded they are not willing to sell the technical data for any of these items to the Government.

While the current market research indicates a sole source environment for the VDATS, the

Government will continue to engage with the OEM to determine the feasibility of procuring the

TDPs. Alternate sources of supply for equivalent parts are constantly being reviewed/evaluated in order to increase competition and system responsiveness. If a replacement for the VDATS is required in the future, competition would be considered.

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