F-15EX JA Redacted.pdf

PR#- FD2030-20-32270

New Manufacture of Support Equipment

I certify that the technical/engineering aspects of this “Justification for other than Full and Open Competition” are accurate and complete.

Engineer Signature: ___________________________________________

(Print Name)______________________ Phone: _________________

Office Symbol_____________________ Date Signed______________

“URGENT AND COMPELLING”

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

DLA Aviation/AOA 3001 Staff Drive Tinker AFB, OK 73145

Purchase Request (PR)#: FD2030-20-32270

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

This individual Justification and Approval (J&A) authorizes the use of other than full and open competition procedures to award a delivery order against an already existing Basic Ordering Agreement with Rhinestahl Corporation, Commercial and Government Entity (CAGE) code 5QE71, Contract Number: SPE4A1-18-G-0011 for the manufacture of F110- GE-129E Support Equipment under FAR 6.302-2, Urgent and Compelling need in support of the Rapid Acquisition of the F-15EX Program. Without F110-GE-129E engine support equipment, associated testing and operational fielding of the Unites States Air Force (USAF) F-15EX aircraft would come to a complete halt; the Air Force would not be able to achieve rapid fielding of the F-15EX as directed by Congress and SAF/AQ.

The USAF has determined that rapid fielding of the F-15EX is required to ensure the defense of the United States. To meet this requirement, the initial phase of the F-15EX Program will be accomplished using the Middle Tier of Acquisition (MTA) Rapid Fielding authorities provided by Section 804 of the Fiscal Year (FY) 2016 National Defense Authorization Act (NDAA). The objective of the F-15EX Program is to rapidly field F-15EX aircraft to replace aging F-15C/D aircraft.

The 2018 National Defense Strategy underpins the planned fiscal year 2019-2023 budgets, accelerating the modernization of programs and devoting additional resources in a sustained effort to solidify competitive advantage. The F-15EX acquisition supports this objective and any delays affecting the program have a negative impact on the National Defense Strategy. In order to attain these goals the entire system needs to be in place to include support equipment.

The support equipment is required before August 2020 to support sortie production and repair of engines on the F-15EX. To meet the $3.2B production timeline the F-15EX we are unable to conduct further market research and acquisition planning on the initial purchase of support equipment. The Government will incur $25K per day in aircraft storage costs without the required support equipment. Without immediate award of the batch/set of support equipment to Rhinestahl, the aggressive program timeline will be busted and the F-15EX weapon system fielding will be delayed resulting in serious financial injury to the Government. The support equipment is required prior to arrival of the first eight engines in order to ensure maintenance and aircraft operation requirements are met. The first engines are set to arrive in August 2020.

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEED

New Manufacture of: F110-GE-129E Support Equipment Noun: See attached List of the O-level Support Equipment set

NSN:

P/N:

AMC/AMSC:

Item description and function:

Type of appropriation: 3600 Total Estimated Quantity:

Estimated Unit Price:

Total Estimated Value:

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

The statutory authority which permits other than full and open competition for this acquisition is 10 U.S.C. 2304(c)(2), as implemented by Federal Acquisition Regulation (FAR) 6.302- 2(a)(2) - Unusual and Compelling Urgency.

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 Original Equipment Manufacturer (OEM), GE, licensed Rhinestahl Corporation as the sole company to manufacture subject support equipment. Due to the criticality of these parts, and the delivery requirement timeline of August 2020, Rhinestahl is the only manufacturer that has successfully completed all testing required by GE, the OEM of these items.

Additionally, Rhinestahl is already in production and designated as the sole source manufacturer of this equipment for ongoing Foreign Military Sales (FMS) buys to support FMS aircraft delivery. The Propulsion Directorate asserts that attempting solicitation, award, certification and first article testing to any other source would result in unsurmountable program delays of at least two years to develop/certify and deliver the support equipment from a competitive source. This would delay the delivery of F-15EX aircraft, negatively impacting the National Defense Strategy of an adaptable force posture in the changing global strategic environment.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

In accordance with FAR 5.202(a)(2), the proposed contract action is made under the conditions described in 6.302-2 and the Government would endure serious financial injury.

Storage costs for the new F-15EX aircraft are estimated at $25K per day. The two year best case slip will cost the Government ~$37.5M and unacceptable program delays if the agency complies with the time periods specified in 5.203.

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. The contractor may be required to provide certified cost or pricing data. A detailed cost analysis and price analysis may be accomplished. The Defense Contract Management Agency may be contacted to assist with the analysis.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS

NOT CONDUCTED

Market research consists of definitive Government knowledge of market capabilities in specific regard to the GE F110 engine. The only approved and licensed source for the entire batch/set of support equipment is Rhinestahl.

The F-15EX RFRD was approved by the CSAF on 1 February 2019 with a specific requirement for the GE F110 engine. The Air Force is planning to leverage the existing F-15 production line for FMS aircraft including production of all necessary subsystem production lines and support equipment to minimize costs.

It is the Government’s position that extensive market research for the F110 acquisition would not result in the identification of viable alternative sources capable of meeting the Government’s needs within the required timeframes without substantial duplication of costs to procure these aircraft and associated support and training equipment through any other source.

Based on the above, a high level of confidence exists that Rhinestahl Corporation is currently the only responsible source able to fulfill this requirement.

In accordance with DFARS PGI 206.302-1(d) and AFFARS MP 5301.601(a)(i), the requirement for posting a Request for Information/Sources Sought for the F-15EX acquisition was determined not to be in the best interest of the United States Government and approval to waive the requirement was approved by the AFLCMC SCCO on 07 May 2020.

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

OPEN COMPETITION

The approved F-15EX $3.2B procurement has driven the Propulsion Division program developed Rough Order of Magnitude (ROM) estimate. The ROM was prepared by AFLCMC/LPA Cost Team for a procurement of 480 engines/spares supporting 200 aircraft and required support equipment. The included support equipment is essential for the sustainment of the F110-129E in its designated mission environment with weapon system support concepts and product support strategies consistent with the regulations established in

AFI 63-101/20-101.

These parts require engineering source approval by the design control activity in order to ensure that prospective sources are capable of establishing and maintaining effective process control. An alternate source must qualify in accordance with the design control activity’s procedures, as approved by the cognizant Government engineering activity. Due to the complexity and criticality of these parts, only manufacturers that have successfully completed all testing required by GE (~1 to 4 years per item depending on complexity), the Original Equipment Manufacturer (OEM) of this item, can be considered approved sources for this item.

If the Air Force is required to develop an alternative source, the F-15EX program will experience unacceptable delays and cost overruns. The first delivery of aircraft engines is scheduled for August 2020. F-15EX aircraft will be delivered to the USAF in less than four months, without proper support equipment in place those aircraft will be unusable. The procurement of support equipment is vital to support the arrival of those aircraft. It is critical that the F-15EX program stay on its accelerated timeline because it’s being fielded to replace the F-15C/D aircraft which is not fully mission capable due to serious structural issues. The USAF has lost several F-15C/D aircraft due to catastrophic structural failure inflight.

Accordingly, Rhinestahl Corporation is the only responsible source capable of providing the batch/set of support equipment within the timeline established.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE

ACQUISITION

CAGE: 5QE71

Rhinestahl Corporation 7687 Innovation Way Mason, OH 45040-9695

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:

Future support equipment procurements for the F-15EX will not be on such tight timelines and will allow AFLCMC/LPEA1 to do its due diligence to find and develop additional sources for individual support equipment within the batch/set. AFLCMC/LPEA1 will continue to monitor the marketplace for source development, and will continue discussions with the OEM regarding additional approved sources. The Government will continue to synopsize the requirement and rescreen the items.

XII. CONTRACTING OFFICER’S CERTIFICATION

By signing the coordination and approval document, the contracting officer determines this document to be accurate and complete to the best of the contracting officer’s knowledge and belief.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidenced by their signatures on the coordination and approval document, the technical or requirements personnel certify that any included, supporting data within their area of responsibility is both accurate and complete.