SSJUST_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 Air Force Sustainment Center (AFSC), 638th Supply Chain Management Group (SCMG), 409th Supply Chain Management Squadron (SCMS) /GUMCA. The contracting activity for this requirement is AFSC/PZAAB at Robins Air Force Base. The purchase request number supporting this contracting action is FD2060-23- 00017.

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

Due to the circumstances described herein, this activity requests authority to acquire the repair services listed in this document using Other Than Full and Open Competition as prescribed by 10 U.S.C. 3572, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901). This action will result in the award of a follow-on Requirements Indefinite Delivery Contract (IDC) which will be Firm-Fixed Price with a basic one (1) year ordering period, four (4) additional one-year ordering periods, and a six-month option in accordance with terms of FAR 52.217-9, Option to Extend Terms of the Contract. Based on the projected contract award date, task orders can be issued 11 May 2023 to 10 May 2028, or extended to 10 November 2028 if the six-month option is exercised.

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

Calculex, Inc.

132 W Las Cruces Ave.

Las Cruces, NM 88001-1231 CAGE Code: 0D6N8 Small Business

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

This requirement is for the repair of the F-15 Flight Data Recorder (FDR) (Part Number:

0300056-001 / National Stock Number (NSN): 6610-01-648-3516FX) and the Recorder Integrated Processor and Router (RIPR) (Part Number: 0300066-001 / NSN: 5836-01-633- 1211FX). The FDR is an Airborne Data Recorder (ADR) applicable to the F-15E and the RIPR is an ADR applicable to the F-15C/D. The FDR and RIPR are Line Replaceable Units on the Air Combat Command F-15 platform. The FDR and RIPR are ADRs that are custom designed and utilized to record data required to validate aircraft configurations and to ensure that specifications are met related to design, performance, and safety requirements.

Each lay-in of materials (materials with long lead time) will support 2-years of requirements as determined by Calculex due to replacement percentages.

The Total Estimated Value is $ The BEQs for this effort are based on forecasted repair requirements from the March 2021 Automated Budget Compilation System. An inflation factor of 5% was applied to unit prices for out-year ordering periods. The Government’s required delivery schedule for repairs is 30 days after receipt of asset. The period of performance will continue through completion of all task orders. This acquisition will be funded using Working Capital Fund (4930) appropriation.

The Repair Method Code (RMC) / Repair Method Suffix Code (RMSC) assigned for these items is R3/R. The assignment of RMC “R3” means that repair, for the second or subsequent time, is directly from the actual manufacturer. The assignment of RMSC “R” means that data or rights to use the data needed to repair these items from additional sources are not owned by the Government. It has been determined to be uneconomical to buy the data or rights to the data and to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights.

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

10 U.S.C. 3572 (formerly 10 U.S.C. 2302b), Implementation of Simplified Acquisition Procedures in accordance with procedures of FAR 13.5, Simplified Procedures for Certain Commercial Items.

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 and services available from Calculex, Inc. Calculex is the OEM and is the only company with the full source documentation detailing the design, operation, manufacturing, and repair details of the FDR and RIPR. Calculex designed and manufactured the FDR and RIPR for the F-15C/D/E and has the only known capability to perform depot-level repair and testing of the critical components of this acquisition. Calculex also has the proprietary rights to the technical data. The FDR and RIPR must conform to the OEM engineering drawings and F-15C/D/E specifications.

This requirement can only be fulfilled by a source that possesses the highly specialized and unique capability required to provide engineering and technical support in the troubleshooting, fault isolation, and repair of the FDR and RIPR. To provide this service, a vendor is required to have knowledge and expertise regarding the operation, functionality, interface, troubleshooting, diagnostics, and repair of the FDR and RIPR.

Calculex has demonstrated the knowledge and expertise required to comply with contract requirements on contract FA8538-18-D-0003. The current repair contract was awarded 11 May 2018 on a sole source basis and will expire on 10 May 2023.

The Government did not acquire a complete Technical Data Package (TDP) during initial efforts of production for these items when provisioned by Wright Patterson AFB. The Government does not possess any test data, qualification data, support manuals, or related data that defines the performance and repair characteristics of the FDR and RIPR. The technical data and specifications for these items were developed by Calculex, Inc. and are considered proprietary.

Research and review of the FDR and RIPR for both commercial and military markets found no existing ADRs that meet the firmware and software integration requirements of the F-15C/D/E aircraft.

The Government requested data rights from Calculex via email on 01 March 2022 to which Calculex responded they were not willing to sell, lease, or loan any data to the Government.

Previously, requests were sent on 15 March 2021 and 30 November 2021. Calculex responded both times that they consider their technical and product data to be highly proprietary and that the cost would be extremely high and prohibitive to the Government since the data represents 35 years of innovation and product development. While no exact price was provided with each of these responses, the company did previously stated the TDP would cost $ back in 2016.

The Government analyzed comparative reverse engineering data as well as previous studies that are outlined in further detail below to conclude that purchasing repair data rights from Calculex is not cost effective for breaking barriers to competition given the life cycle of the FDR and RIPR; the F-15C/D models are planned for retirement in 2041 and the F-15E in 2045. It is uneconomical to reverse engineer both the FDR and RIPR since any new source will have to develop and pass qualification as well as safety of flight testing to ensure compatibility and integration with other systems across the F-15 platforms. The FDR and RIPR have proprietary firmware and hardware which are exceedingly difficult to reverse engineer. A tester would also be required throughout a reverse engineering project and would only add to the development cost and schedule of a redesign effort.

A similar reverse engineering project for the Flat Panel Upfront Control cost $ Based on the complexity of the FDR and RIPR firmware, a reverse engineering project is estimated to cost $ It is estimated to take 12 to 15 months to gain funding authorization, 18 months to award a competitive effort, 48 months to complete the reverse engineering project and qualification testing, and an additional 24 months to award a competitive repair contract. In total, it is expected that a reverse engineering project and competitive award would take approximately 105 months (i.e., over 8-years). A competitive savings of 20% would yield an approximate annual savings of $ ($ / 5.5 yrs. x 20%). Based on this, it would take approximately 111 years to recoup a reverse engineering investment of $ ($ / $ Accordingly, a reverse engineering project is uneconomical for the FDR and RIPR and would not have a positive return on investment (ROI) before the planned retirements in 2041/2045.

Accordingly, Calculex, Inc. is the only firm capable of providing the supplies and services described in Section III above without the U.S. Air Force experiencing substantial duplication of costs, that could not be 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) synopsis under Notice ID FA8538-21- RIPR_FDR was posted on Beta.SAM.gov 14 September 2021 with response date of 14 October 2021. The SS/RFI requested responses from interested vendors with capability to repair the F-15 FDR and RIPR. No responses to the SS/RFI were received.

This requirement will be synopsized on SAM.gov 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 repair of the FDR and RIPR 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 potential subcontracting possibilities.

VII. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The overall price of this acquisition will be negotiated in accordance with procedures in FAR Part 12 ensuring the ultimate price to the Government is fair and reasonable. The Contracting Officer (CO) will evaluate other than certified cost or pricing data to support the Government's evaluation of the proposed price. Data evaluated may include review of publicly offered catalogs, comparison to historical contractor sales, and analysis of cost and pricing information provided by the contractor. If cost and pricing information is provided by the contractor, the CO may assistance with evaluation from local technical personnel and utilize direct and indirect rate factors recommendations from Defense Contract Audit Agency (DCAA) and/or Defense Contract Management Agency (DCMA).

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

Market research was conducted September 2021 to December 2021 in accordance with FAR Part

10.001 and 10.002. The Market Research Report was completed on 29 December 2021. Market research techniques used were as follows: SS/RFI, previewing the results of recent market research undertaken to meet similar or identical requirements, search of Government databases, and Internet searches.

SS/RFI Notice ID FA8538-21-RIPR_FDR was posted on Beta.SAM.gov on 14 September 2021 with no responses received.

The team conducted a review of several industry-wide searches on the Internet, using multiple search engines. JEDMICS and PDM were searched using part numbers to determine what technical data is available. IHS, WebFLIS, D043A Air Force Master Item Identification Database, and the Internet were searched using NSNs and part numbers for background information, company information, and to determine current and past sources. The key terms used in the search were: Flight Data Recorder and the applicable Part Number and National Stock Number.

https://tosune5.robins.af.mil/pdm gateway/ https://web.sba.gov/pro-net/search/dsp_dsbs.cfm https://www.dla.mil/HQ/InformationOperations/About/Offers/Applications/WebFLIS/ https://www.thomasnet.com/

North American Industry Classification System code 811219 was searched in the Small Business Dynamic Small Business Search. It resulted in several companies but none, other than Calculex are able to repair or manufacture the FDR and RIPR because the Government does not own the TDP, which impedes all manufacturers from becoming an alternate source. The D043A Air Force Master Item Identification Database was also researched along with previous acquisition historical records. D043A includes all qualified sources identified at the time of initial cataloging of these items and through subsequent revisions. There were no other items that could be feasibly modified for compatibility. Calculex was the only qualified repair source identified. The market research concluded Calculex, Inc. is the only capable source with the knowledge, engineering, schematics, configuration control, and technical data necessary to repair the FDR and RIPR.

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 does not possess the necessary data required for repair of the FDR and RIPR.

A request for data rights was sent to Calculex in March 2021, November 2021, and March 2022.

Calculex responded via email that they consider their technical and product data to be highly proprietary and that the cost would be extremely high and prohibitive to the Government since the data represents 35 years of innovation and product development. At the current time, the Government has a requirement to use these parts until the F-15C/D models retire in 2041 and the F-15E in 2045.

The Government estimates it would cost $ and take 105 months to complete a reverse engineering project. It is not considered to be cost effective to attempt to qualify new sources for the FDR and RIPR by means of a reverse engineering effort because a ROI via competitive cost savings of 20% is not expected to be achieved for 111 years.

The plan to break barriers to competition in the prior J&A was, “…to request prior to each ordering period Calculex consideration to selling the technical data at a lesser price.” Written inquiries were made at the dates stated above to cover Ordering Periods III and IV. A Memorandum for Record (MFR) was written by the Program Manager to document verbal requests were made during Ordering Periods I and II. Based on these actions, higher level approval in accordance with DFARS PGI 206.304(a)(S-70)(ii) for this instant SSJ is not required.

The plan to break barriers to competition going forward is for the Program Office to continue to assess Calculex’s willingness to sell the technical data to the Government. An inquiry will be sent to Calculex periodically and if Calculex agrees to sell the technical data and provides a quote, the Program Office will accomplish a cost/benefit analysis to determine if buying the data is economical for the remaining life of the program. If determined economical, the Program Office will take action to obtain funding to acquire the technical data.

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.