22C0001_JA_Redacted.pdf

PR Line Item 0001: Remanufacture of NSN Input: 6695-01-237-0241 P/N: 8534- 0101/Input: 6695-01-363-3031 P/N 1369M58P01 Output: 6695-01-363-3031 P/N 1369M58P02 and/or P/N: 8524-1012 Noun: F110-110129 Motional Transducer Application: F110 Engine Item Description and Function: The Motional Transducer provides an electrical signal to the Digital Electronic control informing the control system of the position of the Exhaust Nozzle. The Motional Transducer’s dimensions are approximately 1.62 inches high x 1.62 inches wide x 22.00 inches in length, weighing 6.5 lbs and composed of stainless steel alloys.

PR Line Item 0002: Data-Not separately priced.

CLIN Max Qty Unit Price Estimated Dollars Period of Performance 0001 Sep 21-May 22

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

The authority for this action is 10 U.S.C. 2304 (c) (1), as implemented by FAR 6.302- 1(a)(2), and required by FAR 6.303-2(b)(4). The FAR reference sub-paragraph is FAR 6.302-1(a)(2)(iii).

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES USE OF

THE AUTHORITY CITED ABOVE (APPLICABILITY OF AUTHORITY)

A. The Motional Transducer informs the Digital Electronic Control of the Exhaust

Nozzle position for the F110 engine on the F16 aircraft. This remanufacture is considered highly specialized because these parts are highly complex aviation Critical Safety Items that involve critical remanufacturing processes which affect the integrity and durability of the motional transducer. Ametek has previously provided this highly specialized remanufacture of the F110 Motional Transducer (NSN 6695-01- 363-3031PR) on sole source contract FA8122-16-D-0003, FA8122-18-C-0010, and FA8122-20-P-0003 with the United States Air Force (USAF).

B. Ametek, the OEM, is the only known contractor that has the data, parts, and expertise to remanufacture these items to meet the Government’s requirements. The remanufacture data and acceptance test criteria needed to accomplish remanufacture of the motional transducer competitively are not available to the Government and it is not possible to draft adequate specifications for the remanufacture of this item or Ametek’s unique and highly specialized capabilities without that data.

C. Efforts by the Government to purchase the data from the OEM have not been successful in the past. The government contacted Ametek on 18 Apr 18 by letter sent via email to request the data usage rights be provided/sold to the Government.

AFSC/PZA received a ROM for the purchase of data/licensing rights to the F110 Motional Transducer, NSN 6695-01-363-3031 in the amount of $2-4 million. It is not currently economical to purchase the licensing agreement from the OEM. The estimated licensing cost of $2-4 million coupled with the actual price of the overhaul would require significant analysis to determine if the business case is feasible and if this cost could be recovered through competition. The possibility for developing an engineering project with the prospect of reverse engineering the Motional transducer in hopes of developing a complete competitive data package is estimated at a cost of $20M and take an estimated 5 years which is considered an unacceptable option.

Accordingly, Ametek is the only firm capable of providing the remanufacture of the Motional Transducers described in section III above without the U.S. Air Force experiencing excessive costs that cannot be expected to be recovered through As such, Ametek is the only approved source capable of fulfilling the Air Force requirement.

VI. 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: A Sources Sought Synopsis, Remanufacture of F110

Motional Transducer, NSN 6695-01-363-3031, P/N 8524-0102, was posted January 12, 2021 on the beta.SAM.gov website with responses due back January 26, 2021.

According to the results of the posting, there were no responses from additional sources.

B. In accordance with FAR 5.201, this requirement was synopsized and the request for Proposal posted to the beta.SAM.gov website. The government does not have qualification requirements as the OEM, Ametek, approves additional sources.

C. Other actions: A previous J&A from 27 Jun 18 stated the Government would qualify any interested sources if the remanufacture data became available. The Government contacted Ametek on 18 Apr 18 to request data usage rights be provided/sold to the Government. AFSC/PZA received a ROM for the purchase of data/licensing right to the F110 Motional Transducer, NSN 6695-01-363-3031PR, in the amount of $2-4M.

To date, the cost to reverse engineer this item is estimated to be $20M and the effort would take approximately 5 years. Due to the lack of coverage on these assets, the purchase of data will be contemplated but will not hold up the continuation of services of this highly anticipated requirement of the fixed quantity contract.

VII. 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 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 if necessary. The Contracting Officer will seek audit assistance from the Defense Contract Audit Agency (DCAA) if necessary.”

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH

WAS NOT CONDUCTED

Market research was previously performed across a multi-functional team consisting of the Engineer, Production Management Specialist, and Program Manager thru website searches which were completed May 18, 2020. The Production Management Specialist along with Contracting posted a sources sought Synopsis (SSS) on January 12, 2021, responses were due by January 26, 2021 and resulted with no additional interested vendors. The SSS posted on beta.SAM.gov along with the draft. SOW. A DD Form 2579 will be routed through the Small Business Office (SBO) to determine if any other Small Businesses (SB) exists. Internet search on Google for the Motional Transducer remanufacture resulted in the following: a link to a previous State of work for

, a site which specializes in helping contractors bid on government contracts; a link to Ametek, the OEM of the Motional Transducer, and a link to a motional transducer (made in China.com). None of the manufacturers listed dealt with the F110 Motional Transducers manufacturing or repair. The Market Research revealed Ametek as the only military approved source and that there is no commercial sources to meet this need. The Motional Transducer in this system is used in military applications and no non-developmental substitutes are available. There are no applicable industry standards, regulations, trade journals, or process guides that apply to the remanufacture of the F110 Motional transducer. Market Research also allowed the government team to identify the same sole-source market condition that has existed since these parts originally were manufactured by the OEM. Ametek was found to be the only source available to fulfill the requirements.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION

The cost to reverse engineer this item is estimated to be $20 million and the effort would take at least 5 years to establish. The estimate is based on evaluation of items of similar complexity that have been reverse engineered by the Air Force in recent history. This art is a Critical Safety Item and would therefore require accelerated mission and flight testing in order to qualify a reverse engineered part. With an annual remanufacture budget of for FY20 and less for FY21, it would be cost prohibitive to expend $20 million in the pursuit of additional sources as this cost could not be fully recovered through competition. As this system will not become obsolete and is forecasted for repair through FY25, the reverse engineering cost is not expected to be recovered through competition over the life of the weapon system. It is not possible to draft adequate specifications without substantial duplication of cost to the government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Air Force’s requirements.

X. LIST OF ANY SOURCES THAT EXPRESSED, IN WRITING, AN INTEREST IN

THE ACQUISITION

Ametek Aerospace & Defense CAGE: 97424 50 Fordham Rd Wilmington, MA 01887-2717 978-988-4345

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

Because of the cost to acquire data/licensing, it is not in the best interest of the Government to purchase the data/licensing rights. If at any time it becomes financially feasible for the Government to purchase data/licensing rights and the government can recover the cost through competition through the life of the program, this effort will be revisited. Market Research will continue with every effort to document the current situation and acquisition plan forward.

Per DFARS PGI 206.304(a)(S-70)-As indicated by signature on the coordination and Approval document, the previous J&A has been reviewed and the Approval authority determines that all stated actions to remove barriers to competition have been accomplished.

XII. CERTIFICATION BY THE CONTRACTING OFFICER

As evidenced by my signature above, 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) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.