Vertex J_A Redacted.pdf

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

CUI

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I. Agency and Contracting Activity.

The Requirement Office is the Air Force Sustainment Center (AFSC), 638 Supply Chain Management Group (SCMG), 408 Supply Chain Management Squadron (SCMS)/GULB and AFSC/PZABB. The purchase request number is FD2060-23-00106.

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

Due to the circumstances described herein, the activity requests authority to acquire the repair 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 Class Justification will result in the award of a follow-on contract, which will be a five-year Firm Fixed Price Requirements Indefinite Delivery Contract (IDC). The IDC will be structured to include a one-year basic ordering period and four additional out-year ordering periods. Based on the projected contract award date, orders can be issued 02 April 2024 through 01 April 2028.

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

Vertex Modernization and Sustainment, LLC (Vertex) 6125 East 21st Street Indianapolis, IN 46219-2001

CAGE: 96JA0

Large Business

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

This effort is for the repair of the National Stock Number (NSNs) cited below for the AN/ALQ-172 system on the B-52, C-130 Fleet and AN/ALQ-161A system on the B-1B Fleet.

AN/ALQ-172:

NSN Part Number Nomenclature RMSC

5895-01-497-2529 EW G234624-1 LIMITER, ELECTRICAL R5R

5895-01-498-1190 EW G234623-1 CONVERTER, FREQUENCY R5R

5985-01-256-4284 EW 0085001-8 SWITCH, RADIO FREQUENCY R5R

6130-01-551-5132 EW G635700-1 POWER SUPPLY R5R

AN/ALQ-161:

NSN Part Number Nomenclature RMSC

5985-01-240-4223 EW 0063001-3 Antenna (Band 8 Antenna/ Directional Receiver) R3R

5985-01-238-7922 EW 0061001-2 Antenna Control (Band 6 Antenna/ R3R Directional Receiver)

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Requirement IDC through completion of all task orders. This acquisition will be funded with Consolidated Sustainment Activity Group-Supply Division Defense Working Capital Fund 4930 appropriations.

The overall program acquisition strategy supports the J&A conclusion by removing and overcoming barriers to competition and enabling competition in the near future with the ALQ-172 redesign efforts.

This Class J&A covers the award of the basic Requirements IDC and all task orders issued against it.

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

The agency's minimum needs can only be satisfied by the unique services available from only Vertex Modernization and Sustainment LLC, who possesses unique capabilities demonstrated as follows.

The AN/ALQ-172 EW System is described as a "combat proven" system. System design features include full automation, multi band coverage, simultaneous multiple threat recognition and jamming, and digital computer control, advanced jamming techniques, a high effective radiated power value, threat re-programmability, a high-gain antenna array, a threat warning display, dual Military Standard (MIL- STD)-1553B data bus interfaces and extensive built-in test capabilities. An automatic diagnostics system allows flight-line crews to run a system self-test and obtain probable cause of failure down to the shop-replaceable unit level.

The AN/ALQ-161A system on the B-1B provides 360-degree simultaneous receive and jamming coverage against multiple concurrent threats. The Electronic Counter Measures system sorts threats by priority and reacts against them automatically while allowing for “man-in-the-loop” intervention. The AN/ALQ-161A is a totally integrated radio frequency countermeasures system that is made up of over 108 Line- Replaceable Units (LRU), weighing over 5,000 pounds, consuming about 120 kW of power. The AN/ ALQ-161A, which was initially delivered in the 1980's, has been sustained through a series of Operational Flight Program block cycle upgrades and hardware upgrades to incorporate modifications necessary to detect and counter the ever-changing threat.

ITT (now L3Harris) was the prime integrator of the ALQ-172 and ALQ-161A system and they subcontracted to Raytheon for these particular ALQ-172 and ALQ-161A NSNs. The previous ALQ-172 and ALQ-161A system repair contract for these NSNs was awarded under the terms of a Defense Logistics Agency corporate contract. Contract SPRBL1-15-D-0017 was awarded sole source to Raytheon. This contract expired 26 September 2022. In December 2021, Raytheon went through a divestiture and sold their Defense Training and Mission Critical Solutions Business Lines to Vertex. This sell gave Vertex exclusive licenses to access and utilize the Raytheon technical data for the purpose of performing sustainment/repair of the ALQ-172 and ALQ-161A NSNs. Vertex provided confirmation of proper sell-off to them of all ALQ-172 and ALQ-161A proprietary data required for repairs. As such, all future sustainment/repair requirements will be performed by Vertex. Therefore, this acquisition will be a follow-on contract for the continued provision of highly specialized services.

The 408 SCMS/GULB has determined 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 and unacceptable delays in fulfilling the Government's requirements. This repair effort has been sole source due to the complex nature of these component and next higher assemblies, unique military performance requirements, and lack of Government owned production facilities, knowledge and production level drawings and data packages.

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Vertex is the OEM, lead designer developer, integrator, producer, and depot maintainer of the ALQ-172 and the ALQ-161A. Vertex has the necessary facilities, equipment, and TDP to repair these ALQ-172 and ALQ-161A System assets. Vertex has the engineering design, repair, test, and evaluation expertise required to support the ALQ-172 and ALQ-161A systems. The Government has approved the Vertex procedures for repair of these NSNs.

The Government does not possess the TDPs for the ALQ-172 or the ALQ-161A or their subassemblies to qualify new vendors(s) as a source of repair for these NSNs. The Government reached out to Vertex to inquire if they were willing to sell the repair technical data to the Government. This request was denied on 11 July 2023, as Vertex stated they had a worldwide, fully paid, royalty-free license to use the data associated with the ALQ-172 and ALQ-161A program. Without the repair TDPs, comprehensive specifications, designs, manufacturing processes, and specialized test equipment, a new vendor(s) would not have the capability to repair these NSNs individually or as a whole.

The ALQ-172 Line Replaceable Units (LRUs) are being redesigned as part of the ALQ-172 Maintainability And Reliability System (MARS) program. The redesign effort will provide a complete data and drawing package for the ALQ-172 to the Government which will enable competition of repair of the ALQ-172 components once fielding of the redesign is completed. The newly designed MARS LRUs are currently awaiting flight testing which is estimated for late 2023. The redesigned LRUs will be fielded through attrition and legacy LRUs will then be phased out.

An engineering assessment was completed for the ALQ-161 specific NSNs to determine the feasibility of a reverse engineering effort. The estimate is based on similar projects and industry standards. The estimated cost breakdown to reverse engineer these 10 NSNs is as follows:

• Non-Recurring Engineering (NRE): - Includes research, product analysis, disassembly and component analysis, design development, and prototyping.

• Specialized Equipment: - Includes Special Test Equipment, instrumentation, test equipment, and measurement devices. This assumes equipment synergies with like assets.

• TDP Development: - Includes expenses to reverse engineer and develop technical specifications, drawings, models, and testing/repair/usage instructions. This assumes synergies with like assets.

• Qualification Testing / Flight Testing: - Includes costs to qualify and flight test to meet ALQ-172/ ALQ-161A specifications and performance standards. This assumes synergies with like assets.

• Labor: - Includes Engineers, Technicians, Program Managers, Quality Assurance, and testing oversight.

• Other Associated Costs: - Includes program management, quality assurance, purchasing logistics, and potential unforeseen expenses.

The estimated cost to reverse engineer the NSNs is . The ALQ-161A system is forecast to be in use until 2043. At a 20% competitive savings, it would take approximately 47 years to achieve a return on investment .

Engineering estimates the time required to establish competitive or organic repair capability is nine (9) years. The timeline incorporates synergies between like assets, therefore reduces the overall time required

March 2023 CUI Page 9 of 11 since multiple NSN repair capability can be developed and tested in parallel. This estimated timeline is based on Engineering expertise. The timeline estimate is based on at least three (3) years for NRE tasks listed, three (3) years to develop/acquire required STE and develop test program sets, one (1) year for testing, and in the case of a competitive repair contract, an additional two (2) years. A nine-year delay to support repair of these NSNs is unacceptable and would highly impact the supportability of the ALQ-161A and ALQ-172. Currently the contract supports aircrafts such as AC-130, MC-130, HC-130, B-52H, and the B-1B. Any degradation in repair support would leave warfighters vulnerable against the United States' adversaries. A nine-year delay would cause aircraft to be grounded, due to the high usage of the Limiters and Antennas for both systems. Any delay in award would allow adversaries to exploit the absence of electronic countermeasures and disrupt or degrade the weapon system, with this risking the safety and life of our warfighters. The repair support of the ALQ-161A and ALQ-172 is essential to maintaining our nation's military superiority and for deterrence.

Accordingly, Vertex is the only firm capable of providing the supplies and services described in Section III above without the Government experiencing 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 (SS) / Request for Information (RFI) synopsis for this effort was posted to SAM.gov on 20 Jul 2022, under Notice ID FA8522RALQ172161, with a due date for responses of 19 Aug 2022. No responses were received.

This requirement will be synopsized on SAM.gov in accordance with FAR 5.201, citing conditions which preclude full and open competition. 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.

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

Based upon (1) certified cost or pricing data provided in the offeror's proposal in accordance with FAR 15.403-4; (2) the program office or expert technical personnel analysis of the offeror's Basis of Estimates;

(3) inputs from the Defense Contract Management Agency, the contracting officer expects to determine the anticipated cost to the Government to be fair and reasonable.

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

Market research was conducted 18 Jul 2022 through 07 Mar 2023 pursuant to FAR Part 10.001 and 10.002.

The Market Research Report was completed on 07 Mar 2023. The market research techniques used are as follows:

As described in Section V above, a SS/RFI for this effort was posted to SAM.gov on 20 Jul 2022, under Notice ID FA8522RALQ172161. No responses were received.

Internet and Government database searches were conducted to identify potential sources of repair.

Databases and online searches include the Small Business Administration (https://web.sba.gov/pro-net/ search/dsp_quicksearch.cfm), Google.com, and SAM.gov. Key terms used in these searches for ALQ-172

March 2023 CUI Page 10 of 11 repair was Part Number "P/N" repair, NSN "NSN" repair, ALQ-172 "Nomenclature" repair and ALQ-161A "Nomenclature" repair. The search terms with quotations around them indicate they are searched using the replacement values referenced below one at a time.

"P/N" = G234624-1 / G234623-1 / 0085001-8 / G635700-1 "NSN" = 5895-01-497-2529 EW / 5895-01-498-1190 EW / 5985-01-256-4284 EW / 6130-01-551-5132

EW

"Nomenclature" = Limiter, Electrical / Converter, Frequency / Switch, Radio Frequency / Power Supply P/N" = 0063001-3 / 0061001-2 / 0073001-2 / 0072001-2 / 0074002-3 / 0064001-5/6 / 0062001-3 / 0164030-2 / 0077001-2 / 0078001-5 "NSN" = 5985-01-240-4223 EW / 5985-01-238-7922 EW / 5985-01-217-7425 EW / 5985-01-217-7376 EW / 5985-01-335-4937 EW / 5985-01-240-4224 EW / 5821-01-239-9984 EW / 6110-01-239-9184 EW /

5985-01-240-8402 EW / 5985-01-240-3271 EW

"Nomenclature" = Antenna, Directional Receive / Converter, Frequency / Antenna, Directional Receive / Antenna, Transmitter / Antenna, Basic / Antenna, ADR / Antenna, Directional Receive / Regulator Assembly / Band 8 D/T LRU AFT Antenna / Band 8 D/T LRU FWD Antenna

Other than Raytheon/Vertex, other potential vendors identified through these searches were evaluated and shown to have previous experience with manufacturing and repairing equipment/components within the ALQ-172 or ALQ-161A system but not for the specific components involved in this repair activity.

Even with prior ALQ-172 or ALQ-161A system experience, no Government-owned/non-proprietary repair data exists to provide another company to support repair and testing of these items, thus no additional sources other than Raytheon/Vertex were identified as a source of repair for these items.

A search was conducted through JEDMICS database for the ALQ-172 and ALQ-161A assets listed. The search yielded limited results, indicating there is not enough technical data available in JEDMICS to procure or repair the assets. The search yielded drawings that contain a top-level outline for each NSN listed. These drawings do not include building or repair instructions. This data is not adequate for the government to procure or repair the assets for the ALQ-161A.

These items are not available in the commercial marketplace because they have military application only.

No current item exists that can be customized, modified, or tailored to meet requirements. This is a custom-made MIL-spec device built to meet design requirements of current drawings. There are no commercial or non-developmental items that meet the requirements.

The market research concluded Vertex is the only vendor capable of fulfilling the Government's ALQ-172 and ALQ-161A repair requirements.

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

None

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

See Section V above.

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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.

The plan to break barriers to competition is to continue to pursue acquisition of IP, TDP, or Government purpose rights to the technical data to support future competitive repair acquisition and/or organic sustainment for the ALQ-161A EW system. An inquiry will be sent to Vertex annually and elevated to higher levels within the Vertex company hierarchy, if necessary.

The ALQ-172 specific items are being redesigned as part of the ALQ-172 EW system redesign effort. The redesign effort will provide a complete data and drawing package for the ALQ-172 to the Government which will enable competition of repair of the ALQ-172 once fielding of the redesign is completed. The estimated final redesign completion date is currently in May 2026.

The prior DLA J&A did not include a specific plan to break barriers to competition for the ALQ-172 and ALQ-161A but it included action to advertise requirements on SAM.gov (formerly FedBizOpps), “…in order to ensure that potential alternate sources are aware of the requirement and can identify interest in support of these items.” In addition, “…conduct market research to ascertain if changes occur in the marketplace that would enable future actions for these items to be competed.” These actions were completed for this instant requirement.

XI. Certification by the Contracting Officer.

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

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.