SSJ_Redacted.pdf

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

NEGOTIATION SENSITIVE

August 2023 NEGOTIATION SENSITIVE Page 1 of 6

Was a J&A approved for the preceding acquisition where that acquisition required a J&A? Yes No

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

Is this a Bridge Action as defined at DAFFARS 5302.101? Yes No

Dollar Value of this Acquisition: < $750K > $750K and < $15M > $15M and < $100M > $100M

Contracting Activity: PZ/ABC

Purchase Request (if available) / Local ID Number: FD2030-24-02302

Program / Project (and PE, if applicable): KC-135 INFLIGHT REFUELING SHROUD

Program Type (PEO, Enterprise, of Operational): Enterprise

Authority:

6.302-1 – 10 USC 3204(a)(1), Only One Responsible Source - No Other Supplies or Services Will Satisfy Agency Requirements Estimated Contract Cost (including options): $ 723,833 J&A Type: Class Individual

! ! Provide estimated cost of all contracts.

COORDINATION ( DAFFARS 5306.304(a))

Date Project Lead / Program Mgr / Requiring Activity [ Name ] [ Office Symbol / Phone Number ]

Signature

Date

09 Aug 2024

Contracting Officer

Signature

APPROVAL ( DAFFARS 5306.304(a))

Date Chief of the Contracting Office (COCO) [ Official Signature Block ]

Signature by

August 2023 NEGOTIATION SENSITIVE Page 2 of 6

I. Agency and Contracting Activity.

United States Air Force (USAF)

AFSC/PZA

3001 Staff Drive Tinker AFB, OK 73145

PR FD20302402302

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

This class Justification and Approval (J&A) authorizes the use of other than full and open competition procedures to obtain a new non-commercial, Firm-Fixed Price, requirements-type contract. This is not a bridge action. The contemplated contract is for repair services of the KC-135 Inflight Refueling Shroud National Stock Number (NSN) 1680-01-441-6921 with Mission Systems Davenport Inc. (Mission) Commercial and Government Entity (CAGE) code 72429. In accordance with (IAW) Federal Acquisition Regulation (FAR) Part 16, Contract Types, a one-year basic period and four one-year option periods is considered appropriate for this acquisition. This contract will include the Option to Extend Services clause (FAR 52.217-8), which allows the potential for up to six months extension of the final option period. The total estimated value of this contemplated contract is $723,833.00 with an estimated Period of Performance (PoP) of OCT 2025 - OCT 2030.

Current Contract:

Contract Number:[FA8119-20-D-0008] Dollar Value: [Awarded: $5,508.00, Current: $68,181.00] Date of Award:[31 MAR 2020] Completion Date:[30 MAR 2025] Basis of Award: [Sole Source]

Previous Contract:

Contract Number:[FA8119-13-C-0007] Dollar Value: [$60,000.00] Date of Award:[25 JUL 2013] Completion Date:[25 JUL 2018] Basis of Award: [Sole Source]

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

Under the contemplated contract, Mission Systems Davenport Inc. will provide the following repair services of the KC-135 Inflight Refueling Shroud. The dollar values listed below reflect the anticipated value:

Contract Summary Year Estimated Dollars Estimated Period of Performance Basic Year $123,255.00 Mar 2025 - Mar 2026 Option 1 $ Mar 2026 - Mar 2027 Option 2 $ Mar 2027 - Mar 2028 Option 3 $ Mar 2028 - Mar 2029 Option 4 $ Mar 2029 - Mar 2030 6 Month $ Mar 2030 - Sept 2030

PR Line Item 0001 Repair of NSN: 1680-01-441-6921FL P/N: 400671-4 Noun: SHROUD, INFLIGHT REF Application: KC-135

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Item Function: INFLIGHT REFUELING SHROUD Type of appropriation: 97X4930 Total estimated dollars for PR Line Item 0001: $658,030.00

Year Period of Performance BEQ Unit Price Estimated Dollars Basic Mar 2025 - Mar 2026 10ea $ $ Opt 1 Mar 2026 - Mar 2027 10ea $ $ Opt 2 Mar 2027 - Mar 2028 10ea $ $ Opt 3 Mar 2028 - Mar 2029 10ea $ $ Opt 4 Mar 2029 - Mar 2030 10ea $ $ 6 Mo Mar 2030 - Sept 2030 $ $

PR Line Item 0002 Over and Above (OA): To Be Negotiated (TBN) Type of appropriation: 97X4930 Total estimated dollars for PR Line Item 0002: $65,803.00

Year Period of Performance BEQ Unit Price Estimated Dollars Basic Mar 2025 - Mar 2026 1LT $ $ Opt 1 Mar 2026 - Mar 2027 1LT $ $ Opt 2 Mar 2027 - Mar 2028 1LT $ $ Opt 3 Mar 2028 - Mar 2029 1LT $ $ Opt 4 Mar 2029 - Mar 2030 1LT $ $ 6 Mo Mar 2030 - Sept 2030 $ $

PR Line Item 0003 Data: Data, Not Separately Priced (NSP), IAW Commercial Asset Visibility Air Force (CAV AF) Reporting Requirements and Contract Data Requirements List (CDRLs) DD FORM 1423 Type of Appropriation: 97X4930 Total estimated dollars for PR Line Item 0003: $0.00

These estimated dollar values are based on previously executed repair orders on similar contracts with Mission. This CLIN structure does not include separately priced Data or IP rights. The preceding IP rights strategy is consistent with the Acquisition Strategy as approved by the appropriate authority. This J&A covers all contract actions including options, task orders and delivery orders for all CLINs detailed in the CLIN table above.

Due to the circumstances described below in Sections V, IX, and XI, there are no immediate actions that could be taken to develop competition. Therefore, it is considered appropriate to seek approval for more than one fiscal year. If other qualified or approved sources become known during the life of this contract, full and open competition will be considered and utilized to the maximum extent practicable.

IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above.

This anticipated contract will be for the repair of the KC-135 Inflight Refueling Shroud. This item is repaired directly by the Original Equipment manufacturer (OEM) Mission Systems Inc. who is the only company with the special tooling/equipment, personnel and technical data to satisfy the USAF's needs. Due to the complexity and criticality of this component, market research revealed there is only one qualified source, Mission. This KC-135 item is a critical application items as defined in the Aviation and Critical Safety Item Management handbook. Repair of this NSN is a highly specialized service due to the need for process control of the quality of equipment and tooling, shop practices, knowledge of process material interrelationships, and quality assurance surveillance necessary to satisfy the USAF’s minimum need for the KC-135 weapons system. This repair is imperative to allow the Government to be mission ready at all times. Therefore, this

August 2023 NEGOTIATION SENSITIVE Page 4 of 6 acquisition will be a follow-on contract for the continued repair of highly specialized equipment.

Mission is the only known source that has the necessary detailed process data and parts necessary to repair the KC-135 Inflight Refueling Shroud. The repair data and acceptance test criteria needed to foster additional competition for the repair is not available to the Government. The contemplated contract is sole source as the data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. Therefore, this acquisition will be for a new multi-year contract for the performance of a highly specialized service. Mission has been the repair contractor for this item under previous contracts and is the only known, qualified contractor that has the data/repair data, parts, expertise, tools, facility, test equipment, and repair processes necessary to perform this highly specialized repair service sufficiently to meet the Government’s needs. Efforts by the Government to secure the necessary data rights from Mission have been unsuccessful. A Request for Information (RFI) was made to Mission by the Engineer as recently as 25 July 2024 requesting a quote to provide the necessary data rights. Mission responded that it would not be in their best interest to quote. Mission has been the only approved source since 2012. The Government has established Qualifications Requirements (QRs) for the KC-135 items. Prospective sources must meet these requirements prior to being identified as an approved source. This item requires engineering source approval in order to maintain its quality and technical baseline. The 424th Supply Chain Management Squadron (SCMS) has determined that Mission is the only source that has met the defined QRs at this time, and thus has been listed as the only approved source.

The 424th SCMS believes that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. These costs are estimated to be $150 million based on evaluation of items of similar complexity that have been reverse engineered by the USAF in the past five years. The development of an additional source to produce these items would take at least seven years. Delays in new procurement have the potential for disrupting availability of the KC-135 Inflight Refueling Shroud, leaving the USAF unable to fulfill critical mission requirements. This would also result in technical issues, as described above, which would lack the overall cost and performance benefits in the difficult (if at all possible) attempts to overcome. Accordingly, Mission is the only firm capable of providing the repairs described in Section III above without the USAF experiencing substantial duplication of cost that could not be expected to be recovered through competition, unacceptable delays in fulfilling its requirements, and substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

V. 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 under solicitation number KC_135_Shroud_SSS, 23 Apr 2024, with a closing date of 22 May 2024, in an effort to solicit interested sources. The SSS received zero responses and to date, no Source Approval Request (SAR) packages have been submitted for consideration. Government defined preaward Quality Requirements (QR)s of potential sources apply to these items, although potential sources will be required to obtain the necessary data independently or otherwise provide proof demonstrating capability via the SAR process. The Government does not have the data needed to adequately define the repair process in order to develop a competitive procurement package. A Request for Information (RFI) was sent to the contractor on 25 JUL 2024 in an effort to obtain the data necessary to establish organic repair. Mission responded via email declining to sell the data. Interested vendors would need to submit a SAR package for consideration/approval. All SAR package submissions submitted prior to contract award will be evaluated in a timely manner to ensure the highest level of competition possible. This requirement was be synopsized on www.sam.gov as a notice of proposed contract action IAW FAR 5.201 with a publication date of 13 June 2024. Consideration shall be given to potential sources, prior to award.

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

The Contracting Officer will ensure that the items described herein are negotiated at a fair and reasonable price to the Government. IAW FAR as supplemented, the contractor will be required to submit Other Than Certified Cost or Pricing Data.

A detailed cost analysis and price analysis will be performed. The Contracting Officer will request a technical evaluation from the Defense Contract Management Agency (DCMA) to aid in the evaluation of the contractor’s proposal. The Contracting Officer will seek audit assistance from the Defense Contract Audit Agency (DCAA) ifnecessary.

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VII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

Market research, in accordance with FAR 10.001(a)(2), was conducted by the Multi-Functional Team consisting of the Logistics Management Specialist, Engineer, Production Management Specialist, and Procuring Contracting Officer. This research included inquiries by a SSS (see Section VI), and searches into Internet sites including Google secure components, the Thomas Register, Haystack, Dynamic Small Business Search (DSBS), System for Award Management (SAM), and Federal Procurement Data System (FPDS) were queried for potential sources. Searches included part number, nomenclature, and like items. This market research, which began on 23 Apr 2024 and concluded on 22 May 2024, has revealed that there are currently no other sources with the ability to repair these assets. Other sources provide similar repair services but none have been identified as being approved to meet the requirement described in Section III. Further, these requirements can neither be modified nor satisfied with commercial or modified commercial items. The KC-135 Inflight Refueling Shroud is used in military applications and no commercial or non-developmental substitutes are available. There are no applicable industry standards, regulations, trade journals, or process guides that apply to the repair of the KC-135 Inflight Refueling Shroud and associated parts. Based on the market research, Mission was found to be the only known source available to fulfill the requirement described in Section III.

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

The Government realizes that it has unlimited rights to form, fit, and function data (including source qualification data) as well as data related to operation, maintenance, installation, and training. However, such rights are insufficient to satisfy the current need. Access to repair data is necessary to accomplish the tasks. Efforts by the Government to acquire a license from Mission have been unsuccessful. The most recent attempt by the government to acquire the data or rights to the data occurred via email on 25 July 2024, when the Government asked Mission if they would consider selling the data and Mission declined to provide a Rough Order of Magnitude (ROM) for the sale/licensing of proprietary data.

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

MISSION SYSTEMS DAVENPORT INC.

2734 HICKORY GROVE RD

DAVENPORT IA, 52804-1203

X. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

As a result of continued refusal by the Sole Source contractor to provide or license data as well as the unacceptable delay of developing additional sources per Sections V and IX, there are no known additional actions which can be taken to remove barriers to competition and therefore, specific actions and milestones cannot be established. The Government will continue to synopsize future requirements IAW FAR 5.201, rescreen the item, and attempt to acquire the data necessary to qualify additional sources. Two years prior to contract expiration the 424th SCMS will engage with Mission requesting the sale/ licensing of proprietary data, rescreen the items and monitor the market place by posting a sources sought notice to www.sam.gov.

Per Defense Federal Acquisition Regulations (DFARS) Procedures, Guidance and Information (PGI) 206.304(a)(S-70), as indicated by signature on the Coordination and Approval Document, the previous Justification and Approval has been reviewed and the Approval Authority determines that all stated actions to remove barriers to competition were attempted without success.

XI. Certification by the Contracting Officer.

As evidenced by my signature above, I certify that this justification is accurate and complete to the best of my knowledge and belief.

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XII. 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.