Voltage Regulator Class JA Signed_Redacted.pdf

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

CONTROLLED UNCLASSIFIED INFORMATION

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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:

Contracting Activity: AFNWC/PZNT 7330 Sentry Blvd. Bldg 469 Post C6 Tinker AFB OK 73145-3032

Purchase Request (if available) / Local ID Number: FD2030-24-30679

Program / Project (and PE, if applicable): Voltage Regulator (VR) Service Life Extension Program (SLEP)

Program Type (PEO, Enterprise, of Operational): AFPEO/Strategic Systems (SS)

Authority:

6.302-5 – 10 USC 3204(a)(5), Authorized or Required by Statute Estimated Contract Cost (including options): J&A Type: Class Individual

! ! Provide estimated cost of all contracts.

COORDINATION ( DAFFARS 5306.304(a))

Date

19 Mar 2024

Date

19 Mar 2024

Date

19 Mar 2024

Date

25 Mar 2024

Date

28 Mar 2024

Date

10 May 2024

Date

20 May 2024

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APPROVAL ( DAFFARS 5306.304(a))

Date

21 May 2024

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I. Agency and Contracting Activity.

United States Air Force

AFNWC/NDM/PZNT

7330 Sentry Blvd, Bldg 469 Tinker AFB, OK 73145 PR Number: FD2030-23-32292

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

A. Upon approval to use other than full and open competition procedures, the Air Force will issue a definitive contract to produce VRs to a Woman Owned Small Business (WOSB). The contract will be a non-commercial supply contract.

Contract will be awarded to: Frontier Electronic Systems Corp.

4500 W Sixth Ave Stillwater, OK 74074 CAGE code 63812

This is a one time effort to perform a fleet wide replacement of all VRs within the Air Launched Cruise Missile (ALCM) fleet to sustain the ALCM until end of service life in year 2030+. The service life estimate for the VR is 2028. Overall, ALCM, which is an integral part of the Nuclear Triad, could be impacted if VRs do not begin installs by this date.

B. The previous contract (SPRTA1-15-D-0014) was awarded by the Defense Logistics Agency (DLA) in FY2015 to Frontier Electronic Systems Corp (CAGE: 63812), which resulted in the production of 69 VRs. The previous award was competitive; a sole source award is now being pursued based on the statutory authority provided in FAR 6.302-5(b)(7), authorizing sole source awards under the WOSB Program.

C. The estimated contract amount is . The estimated award date is October 2024. The anticipated pricing arrangement will be firm-fixed-price (FFP). The basic award will be for a two-year qualification period, with the option for six additional one-year options for production; therefore, the estimated contract period will be October 2024 through October 2032.

D. Type of J&A is class.

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

A. Voltage Regulator (VR), National Stock Number (NSN): 6110-01-627-5329; PN: CMSYHAD001-001 provides a regulated voltage within the AGM086 DC Generator. Power for operation of the regulator is provided by the Permanent Magnet Generator (PMG) fullwave rectifier bridge CR1 through CR6 with filtering and noise suppression provided by capacitor C7.

The power supply provides a regulated voltage for the remaining circuits. The VR comprises the bulk of the circuitry. The input voltage is reduced to control voltage levels by resistors R106 and R110. This voltage is compared to a reference voltage at operational amplifier AR102.

B. This will be a FFP production contract for VRs for the Air Launched Cruise Missile (ALCM).

C. The anticipated Contract Line Item Number (CLIN) Structure is as follows:

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CLIN Description

0001 Qualification

1001 Production 1st Lot

2001 Production 2nd Lot

3001 Production 3rd Lot

4001 Production 4th Lot

5001 Production 5th Lot

6001 Production 6th Lot

Years est Date CLIN Funding Qty Dollars

Basic 18 Oct 2024- 17 Oct 2026 0001 3020 1

Option I 18 Oct 2026- 17 Oct 2027 1001 3020 94

Option II 18 Oct 2027- 17 Oct 2028 2001 3020 94

Option III 18 Oct 2028- 17 Oct 2029 3001 3020 94

Option IV 18 Oct 2029- 17 Oct 2030 4001 3020 94

Option V 18 Oct 2030- 17 Oct 2031 5001 3020 94

Option VI 18 Oct 2031- 17 Oct 2032 6001 3020 21

D. The total estimated value for this contract is . The methodology used to estimate the value on all CLINS/Options was derived from two sources. These sources include an independent government estimate (IGE) developed by an experienced Government engineer, and the original DLA contract (SPRTA1-15-D-0014) for the 69 VRs noted in Section II.B above. The Government engineer estimated tasks, hours, labor mix, and materials to develop the IGE. The original DLA contract executed 69 VRs on an FFP basis at EA. Additionally, the Government utilized the Consumer Price Index to estimate inflation from the FY2015 contract, which showed a increase in price through inflation. Due to expected start up costs, a two year qualification period, and the anticipated continuous rise in inflation, the Government estimates that this contract will be ( for the First Article Units, for the first article test report, for preproduction materials, for the Certificate of Compliance, and per unit for production) to complete this program.

E. Approval is requested for more than one fiscal year, as this requirement is for a basic 2-year qualification period, with five 1-year option periods for production. No further action will be taken to develop further competition as this requirement is for a finite number of VRs to support the ACLM mission through its currently planned service life and no future buys are planned.

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

A. Per FAR 19.203(c), it is required that "the contracting officer shall first consider an acquisition for the small business socioeconomic contracting programs (i.e., 8(a), HUBZone, SDVOSB or WOSB programs) before considering a small business set-aside".

B. Further, the statutory authority provided in FAR 6.302-5(b)(7) authorizes sole source awards under the WOSB Program.

This section additionally cites FAR 19.1506 for applicable criteria, discussed as follows.

C. Per FAR 19.1506(b):

"A contracting officer shall consider a contract award to a WOSB concern... on a sole source basis... before considering small business set-asides... provided none of the exclusions at 19.1504 apply and--

(1) The acquisition is assigned a NAICS code in which SBA has determined that WOSB concerns are substantially underrepresented in Federal procurement;

(2) The contracting officer does not have a reasonable expectation that offers would be received from two or more WOSB concerns...; and

(3) The conditions in paragraph (c) of this section exist."

D. Regarding the exclusions at 19.1504, none apply, for the following reasons:

- The requirement is not one which an 8(a) contractor is currently performing under the 8(a) program.

- The requirement cannot be satisfied through award to Federal Prison Industries or an AbilityOne participating non-profit agency.

- The contemplated contract is not an order under an indefinite-delivery contract.

- The contemplated contract is not an order against Federal Supply Schedules.

E. Regarding the requirements of 19.1506(b)(1):

- The assigned NAICS is 336413, in which SBA has determined that WOSB concerns are substantially underrepresented in Federal procurement (reference https://www.sba.gov/document/support--qualifying-naics-women-owned-small-business-federal-contracting-program).

F. Regarding the requirements of 19.1506(b)(2):

- The market research indicates to the contracting officer that there is not a reasonable expectation that offers would be received from two or more WOSB concerns. Specifically, there were three respondents to the Sources Sought Synopsis, only one of which was a WOSB concern.

G. Regarding the requirements of 19.1506(b)(3):

- Paragraph (c) of section 19.1506 outlines three conditions, as follows (the condition is provided in quotes, and the evidence of satisfying that required condition is provided immediately after).

- - (1) "The anticipated award price of the contract, including options, will not exceed (i) $7million for a requirement within the NAICS codes for manufacturing; or (ii) $4.5 million for a requirement within any other NAICS codes."

- - - For the contemplated requirement, 19.1506(c)(i) applies; the NAICS code utilized is a manufacturing NAICS code, 336413 "Other Aircraft Parts and Auxiliary Equipment Manufacturing." The total estimated contract value is and is within the $7 million limit for manufacturing.

- - (2) "The... WOSB concern has been determined to be a responsible contractor with respect to performance."

- - - Frontier Electronic Systems Corp has been determined to be a responsible contractor with respect to performance.

Frontier Electronic Systems Corp was the previous awardee for the initial VR contract, and performed well.

- - (3) "The award can be made at a fair and reasonable price."

- - - As outlined in Section VII of this J&A (below), it has been determined that the award can be made at a fair and reasonable price.

H. Regarding the requirements of 19.1506(d)

- The Small Business Administration was contacted and they verified that Frontier Electronic Systems Corp was approved by the SBA for the WOSB program on 8/31/2021.

H. Accordingly, it is demonstrated that the statutory authority of FAR 6.302-5(b)(7) can be applied and a sole source award to

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Frontier Electronic Systems Corp under the WOSB Program is authorized.

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.

The VR requirement cannot be modified nor performed organically by the Government due to the unavailability of manufacturing capability, or equipment. Therefore, the requirement can only be satisfied by a Contractor. The VR's Technical Data Package (TDP) includes Government Rights (unlimited) drawings per 48 CFR 252.227-7022.

AFNWC/NDMPM used the AFMC Form 761 Screening Analysis Worksheet (SAW) provided by the 424th Air Force Sustainment Center (AFSC) Supply Chain Management Squadron (SCMS) to identify qualified sources for this requirement.

SAM.gov was viewed to obtain current qualified source information (contacts, address, phone, email, etc.) and to determine if the qualified sources were still in a 'responsible' state to receive a Government contract award.

A Request For Information (RFI) was sent out to the qualified sources on 4 May 2023. The qualified sources include Frontier Electronic Systems Corp., The Boeing Company (BGRC), ARC Technology Solutions LLC, and PSI Repair Services Inc.

ARC Technology Solutions LLC was contacted and they indicated they have no history of producing VRs and do not meet the Government's requirement of AS9100 compliance. Therefore, they cannot perform the work, and getting them certified would not meet the timeline needed for the VR to be stood up; deeming ARC Technology Solutions as an unqualified vendor. Other than being a qualified vendor based on the 761 SAW form, this company has no known past performance pertaining to the VR. The Government is processing the documentation to remove ARC Technology Solutions from the AFMC Form 761 SAW.

PSI Repair Services Inc. was contacted, and has indicated they do have the ability to produce the VRs, however they have no history in producing the VR, NSN 6110-01-627-5329. While they do have the capability to produce, they do not possess the Technical Data Package (TDP) or drawings, and will require time to develop/prototype/qualify. The Government provided PSI Repair Services Inc. VRs 10 years ago in preparation to reverse engineer and produce a test unit; however, the Government never engaged them contractually and PSI returned the units to the Government. Other than being a qualified vendor based on the 761 SAW form, PSI Repair Services Inc. has no known past performance or experience pertaining to VR; deeming PSI as an unqualified vendor. The Government is processing the documentation to remove PSI Repair Services Inc. from the AFMC Form 761 SAW.

The Boeing Company (BGRC) is capable of producing VRs. They are the developer of the envelope drawing as well as the required drawings to fabricate the VR. They have produced 3 VRs for the purpose of building and qualifying prototypes.

BGRC has reviewed its bill of materials (BOM) and identified no issues; however, they recommended changing to newer technology for the carbon composition resistors due to known reliability issues. The resistors were addressed in the reverse engineer design that BGRC provided in 2014, and is no longer an issue. BGRC has no actual past performance of full production of the VR, NSN 6110-01-627-5329. Boeing has produced three of these VRs for the purpose of building and qualifying prototypes. The Government was unable to purchase the technical data package TDP from Goodrich. Goodrich was the OEM when the ALCM was originally designed in the 1980s. BGRC reverse engineered the VR for the Government in early 2014, and they completed the qualification test under the new TDP as well as developed the Acceptance Test Procedures (ATP) and Environmental Stress Screening. Currently, BGRC is on contract to produce, remanufacture, and repair several parts for the ALCM. This has raised a significant concern within the Government IPT due to the fact that BGRC already has a significant workload and has presented many issues involving quality, delivery schedules, and cost overruns within this workload. Additionally, previous ALCM projects (Fuze, Warhead Arming Device (WAD), Rotary Switch (RS), Guided Missile Flight Controller (GMFC)) that BGRC has worked have not completed qualification in less than two years.

Frontier Electronic Systems Corp has the capacity to meet our requirements in terms of known schedule needs and the potential for excess capacity to meet critical changes in mission operational tempo. This is based off of an RFI response sent to the Government 18 May 2023. Under the Bill of Materials (BOM) review, Frontier Electronic Systems Corp is anticipating some level of obsolescence. Due to this, Frontier Electronic Systems Corp has proposed a two-year qualification period with

August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 7 of 8August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 7 of 8 a firm fixed price base and option years. During the two-year qualification period, it is anticipated that all obsolescence issues will be resolved for production. Frontier Electronic Systems Corp is a WOSB, and the NAICS code has been identified as being underrepresented by the Small Business Administration in their area. Frontier Electronic Systems Corp is a qualified source listed on the AFMC Form 761 SAW. Frontier Electronic Systems Corp has completed work for the Defense Logistics Agency, producing 69 replacement VRs under contract SPRTA1-15-D-0014. Their BOM was last reviewed in 2019-2020 when follow-on units were proposed, prior to the Request For Information (RFI) being sent out. This product is under configuration control of the Government. Through the most recent updated Source Control Document (2021), Frontier Electronic Systems Corp is a qualified vendor. The Federal Acquisition Regulation (FAR) only asks to re-validate within seven years after being deemed a qualified source. From the data provided within Frontier Electronic Systems Corp's First Article Test Report, all testing on the three first article units they produced successfully passed first article testing. Furthermore, functional testing on the first article units at the Depot was performed and those units successfully passed with VRs installed in Generators for a duration of four hours, which is the required operational time during a mission under contract SPRTA1-15-D-0014. Overall, testing of the three first article units performed by Frontier Electronic Systems Corp was thorough and exceeded expectation. This effort is the same work on a larger scale, which they have indicated they have the capacity and desire to perform.

Frontier Electronic Systems Corp is the only source with full production experience of the VRs. Their performance record and experience prove to be highly valuable to the Government. Frontier Electronic Systems Corp is a WOSB, and the NAICS code for this effort has been identified as being underrepresented by the Small Business Administration in their area. Frontier Electronic Systems Corp is the most suitable choice for this requirement.

As a result of the survey of qualified sources, a sole source contract to Frontier Electronic Systems Corp, WOSB IAW FAR part 19.1506(b) and (c) is the preferred method executing this requirement.

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 supplies described herein are negotiated at a fair and reasonable price and documented in a Price Negotiation Memorandum. IAW the FAR as supplemented, the contractor will be required to submit Certified Cost or Pricing data and/or other than certified cost and pricing data. A detailed cost and price analysis will be performed and documented on the price negotation memorandum. The Contracting Officer will request a technical evaluation from AFWNC/NDME to aid in the evaluation of the contractor's proposal. The Contracting Officer will seek audit assistance from the Defense Contract Audit Agency (DCAA) if necessary.

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

Frontier Electronic Systems Corp, The Boeing Company (BGRC), ARC Technology Solutions, and PSI Repair Services were all on a list from the 424th SCMS and on the AFMC Form 761 SAW as qualified sources in 2018. All of these companies were contacted via the RFI released on 4 May 2023, and the decision point has come to using Frontier Electronic Systems Corp.

Using Frontier Electronic Systems Corp is best due to the fact that their tangible experience in already producing VRs best suits the Government's milestones (2028 SLE). It is also a WOSB, and the NAICS code has been identified as being underrepresented by the Small Business Administration in their area. As a result a sole source contract to Frontier Electronic Systems Corp, WOSB IAW FAR part 19.1506(b) and (c) is preferred.

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

No further information.

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

See Section V

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 described in 15 USC 631(h), the statutory authority of FAR 6.302-5(b)(7) and the associated reference to 15 USC 637(m) within FAR 6.302-5(b)(7) exists with the intent of promoting the interests of WOSB concerns. Market research has not indicated that there are other WOSBs that can be developed to meet this requirement. Accordingly, there is no action that should be taken to counter this intent before making subsequent acquisitions, provided future actions, should they arise, fall within the same exception to full and open competition criteria that exist for this acquisition. Furthermore, this requirement fulfills a need for a finite number of ALCMs through the end of its service life. No follow-on acquisitions are anticipated.

XI. Certification by the Contracting Officer.

As evidenced by their signature (CO Block), the contracting officer certifies that this justification is accurate and complete to the best of their knowledge and belief.

XII. Certification by the technical/requirements personnel.

As evidenced by our signatures (PM/Requirements block) above, we certify that any supporting data contained herein, which is our responsibility, is both accurate and complete.