JA_Triple_Hydraulic_Stand_Redacted.pdf

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

FOR OFFICIAL USE ONLY

25 May 2018 FOR OFFICIAL USE ONLY Page 1 of 6

NOTE: If a Justification was approved for the preceding acquisition, a copy of the approved Justification for the predecessor action must be included in the staff package for approval of the instant Justification. This applies to Justification staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor Justification will be used as a reference document by the approving official.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: >SAT and < $700K > $700K and < $13.5M

Contracting Activity: 48th Contracting Squadron, Bldg 977, Boston Drive, RAF Lakenheath, Brandon, Suffolk, IP27 9PN

Purchase Request / Local ID Number: F2P2MX9171AW02

Program / Project (and PE, if applicable): Three- system Hydraulic Test Stand

Program Type (PEO or Other Contracting): N/A

Authority: AFFARS 5313.501 - 10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901)

AFFARS 5313.501 - 10 U.S.C. 2304a, Special Emergency Procurement Authority (41 U.S.C. 1903)

Estimated Contract Cost (including options): Justification Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

APPROVAL (AFFARS 5306.304(a) )

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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I. Contracting Activity.

48th Contracting Squadron Bldg 977, Boston Drive RAF Lakenheath, Brandon, Suffolk, IP27 9PN

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

48th Contracting Squadron intends to award a new firm-fixed price contract to Hydraulics International, Inc. for Three-system Hydraulic Test Stand, Diesel Part Number (P/N) 4920-01-615-6002 (15 ea). The items will be procured in accordance with FAR Part 12, Acquisition of Commercial Items, and Simplified Procedures for Certain Commercial Items in accordance with FAR Subpart 13.5. The NAICS code for this requirement is 333318. The estimated value for the procurement is. The anticipated award date is September 13, 2019.

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

48 EMS/MXMG requires replacement of 15 diesel universal triple hydraulic test stands (UTHTS). The UTHTS provides hydraulic pressure to aircraft hydraulic systems without running the aircraft engines. UTHTS support the purification of hydraulic fluid to reduce the waste stream and expand the life of aircraft hydraulic components and hydraulic test stands in support of the Air Force hazard/toxic chemical reduction initiatives. The Universal Triple Hydraulic Test Stand will replace all legacy 3-system Hydraulic Test Stands (UHTS) in which 90% have surpassed their life expectancy of 20 years and reduce the current configurations of legacy 3-system HTSs to two useable configurations. The diesel configurations include a fault diagnostic alert system and Hydraulic Fluid Purifier (HFP). Funded under fiscal year 2019 3400 appropriations, 48 EMS/MXMG requires the following UTHTS to support all F-15 aircraft configurations at RAF Lakenheath.

CLIN 0001; UTHTS, Diesel Configuration with fault diagnostic alert system and HFP (model 120755-100):

Estimated CLIN 0002; Shipping: Estimated Total: Estimated

Estimated Delivery: 40 weeks after receipt of order

In accordance with the Hydraulic Test Stand Program Office (HTSPO), the UTHTS manufactured by Hydraulic International Inc. and listed above are the only UTHTS approved for use within the USAF (Attachment 1). The HTSPO is currently in the process of establishing a new contract with Hydraulic International Inc. to provide the USAF with hydraulic servicing equipment. The J&A for the program, which includes the UTHTS referenced here, is currently under review/approval and the estimated award date is July 2020 with deliveries commencing in 2021. The HTSPO has encouraged bases to purchase approved hydraulic servicing equipment with local funding prior to award of their contract, if funding is available. 48 CONS has confirmed with Mr. Larry McBride, Hydraulic Servicing Equipment Program Manager, that 48 EMS/MXMG may purchase the UTHTS outside of the HTSPO using FY19 3400 (O&M) funds.

IV. Statutory authority permitting other than full and open competition.

Other than Full and Open Competition Procedures in accordance with FAR 13.501(a) Sole source (including brand name) acquisitions.

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 hydraulic stands that will be replaced by the Diesel UTHTS covered in this J&A were purchased 20-25 years ago and were purchased through NSN ordering procedures by requiring organizations. Local contracting

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

25 May 2018 FOR OFFICIAL USE ONLY Page 3 of 6 offices were not authorized to purchase the items. The Diesel UTHTS covered by this J&A are the next generation of hydraulic stands approved for use by the HTSPO but are not currently available for unit NSN ordering. As a result, there is no other Air Force acquisition history of hydraulic stands for the models requested in this J&A. 48 CONS received approval from the HTSPO to purchase the Diesel UTHTS directly from Hydraulic International, Inc.

Hydraulic fluids are a critical, safety-of-flight material for all Air Force aircraft. Hydraulically actuated mechanisms are responsible for a large number of aircraft functions ranging from highly sophisticated flight controls to applications such as accessory door actuation. The aircraft cannot reliably function without clean hydraulic fluid.

Hydraulic International, Inc. is the sole manufacturer and distributor of the of the UTHTS system. Hydraulic International, Inc. is the only contractor that has manufactured a Hydraulic Test Stand with an on board hydraulic fluid purification system and an on board inline Contamination Sensor (CS) which reads particulate contamination class of the hydraulic fluid that has been approved for use on Air Force equipment and aircraft.

Furthermore, the UTHTS system is supplied with a touch screen Human Machine Interface (HMI) digital display panel with built in fault diagnostic activation system. If a fault exists before system operation or a fault occurs during system operation, fault conditions will immediately report to HMI message field and an audible warning horn is activated notifying the operator. The fault diagnostic alert system will save the warfighters hours of troubleshooting/diagnostic time.

The proprietary rights for the UTHTS belong to Hydraulic International Inc. The Government does not have the equipment, facilities or personnel capable of developing and manufacturing this equipment. The Government does not have the technical data or resources to form, fit and functional test this equipment as it relates to Air Force aircraft weapon systems. The Government does not have the technical data or Commercial Item Description to develop a Purchase Description for the UTHTS to compete this requirement to include an on board Hydraulic Fluid Purifier (HFP).

In order to use HFP equipment on Air Force equipment, the HFP must be certified by the Air Force as required by Air Force Technical Manual 42B2-1-3 (Fluids for Hydraulic Equipment). Hydraulic International, Inc. HFP was approved by the AFRL on 14 May 2007 and is published in Technical Order Manual 42B2-1-3, para. 4.4, Fluid Purification. As of Jan 2011, the Air Force discontinued this operation and no new sources can be certified as there is no government agency currently available to qualify any new sources for HFP. The HTSPO has made multiple contacts with various government agencies in regard to hydraulic fluid purification certification/ approval and no new certification sources have been identified. Based on the responses received with no changes anticipated in the immediate future, Hydraulic International, Inc. is he only source who can currently meet the Government requirements without substantial delays.

The Hydraulic Test Stand Program Office (HTSPO) has thoroughly researched the hydraulic servicing equipment acquisition and award to any other source would result in unacceptable delays in fulfilling the Air Force's requirements to implement hydraulic fluid purification. Although the Government is the configuration control authority for this equipment, this equipment is in sustainment and procurement from the current source is necessary to maintain standardization and interchangeability of parts. In addition, the Government does not own the technical drawings data, and reverse engineering is not economically feasible. The proposed source for this equipment acquisition (Hydraulic International Inc.) has completed and passed all examination and testing requirements. The results are documented, approved and will be on file in the Support Equipment and Vehicles Safety Office. Hydraulic International, Inc. equipment has met or surpassed military examination and testing and will require no new examination or testing. The UTHTS is uniquely qualified to meet the legacy 3-system Hydraulic Test Stand replacement requirements and was proven through extensive testing. A Bailment Agreement written by AFLCMC/WNKAAA, Robins AFB, GA between the USAF and Hydraulic International, Inc. signed 7 January 2013 authorized this office to test Hydraulic International, Inc. Diesel

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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UTHTS on the F-15 aircraft assigned to Nellis Air Force Base, Nevada in June 2013. The testing of was successful and met or exceeded all government testing requirements.

Hydraulic International, Inc. UTHTS surpassed all Particulate Level (NAS 1638) and Water Content (PPM) requirements established by the Air Force. Hydraulic International, Inc. UTHTS can be utilized both in the backshop and on the flight-line without any additional equipment to operate the unit. Training for the warfighters will be minimum because the UTHTS is configured the same as the units it will replace and can be accomplished in one day if necessary.

Suitable alternatives to the product offered by Hydraulic International, Inc. are not currently known, however, even if a product was developed and identified in the commercial marketplace, it would take approximately 66 months for that product to be approved for use as follows. The Air Force would require complete First Article Testing (FAT) which takes an average of 20 to 30 months to develop before qualification, compatibility and users testing can begin. Development and full testing (qualification, compatibility and users) adds an additional 30 to 36 months to the procurement lead time. Plus new Technical Order Manuals, Work Guides and training will be required that would add to the lead time of any new product. The HTSPO has conducted market research to identify potential new manufacturers with no results, other than Hydraulic International Inc. The current legacy 3-system Hydraulic Test Stands in use by the Air Force have exceeded their service life of 20 years by an average of 18 years. HII is the only Original Equipment Manufacturer (OEM) still in business for the legacy 3-system HTS. In order to use support equipment on any Air Force aircraft/equipment, the Technical Order (TO) Manual must be verified and validated by the responsible Program Office. The HTSPO completed the validation and verification of the TOs for the UTHTS requested under this J&A in 2014. TO number 33A2-2-111-11 is assigned for the diesel UTHTS.

The TO is loaded in the Air Force TO depository and available for immediate use. The immediate availability of the TO will aid in training the warfighter in operation and maintenance of this equipment.

Accordingly, Hydraulic International Inc. is the only firm capable of providing the diesel UTHTS units described in section III above. Only the UTHTS provided by Hydraulic International Inc. are approved to be added to the Air Force equipment inventory and subsequently supported by the HTSPO throughout its 20-25 year product lifecycle. Even if additional sources become available that could provide suitable alternates in the future, there is a lengthy approval process (approximately 66 months).

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

On 9 July 2019, in accordance with FAR 5.203(a) A Notice of Intent to Sole Source Hydraulic Stands was posted to fbo.gov, encouraging vendors who believe they can meet the requirements to furnish information about its products and services, as well as references from other customers who are using the product and services, to the Contracting Officer. No vendors responded to the notice. The issuance of the Sources Sought did not produce any additional sources.

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

Commercial companies such as Boeing, Lockheed Martin, S&K Logistics Service, Sunjin Shipping, Quality Aircraft Parts Inc., Lear Siegler Services, Blue Aerospace and Derco Aerospace Inc. to name a few have procured and using this equipment at their manufacturing/repair facilities. As a result, methodologies and FAR 12 negotiation procedures will be used to assure fair and reasonable pricing to include commercial pricing techniques utilizing publically offered catalogs, comparison to historical contractor sales and/or analysis of limited cost and pricing information which could be made available by the contractor. In the event that limited

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

25 May 2018 FOR OFFICIAL USE ONLY Page 5 of 6 cost and pricing information is made available, the Government's negotiation objective will be developed using local technical analysis applied to direct and indirect rate factors recommended by the DCAA and/or DCMA. It is anticipated that the vendor will quote fair pricing in response to the Request for Quote. A fair and reasonable determination will be made in accordance with FAR 13.106-3(a)(2) utilizing techniques to include, but not limited to, comparison to historical contractor sales, previous purchases by the government, and/or analysis of other than cost and pricing data.

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

In accordance with the guidance issued by Mr. McBride from the HTSPO stating that only UTHTS from Hydraulic International Inc. could be accepted into the equipment inventory, 48 CONS did not conduct further market research. No alternate sources are available and considered at this time for F-15 approved-for-use testing. No alternate equipment or substitutes exist that might fulfill the Government's needs with only minor modification(s). All market research regarding product and manufacturer availability and acceptability for hydraulic systems equipment is maintained and executed by the HTSPO.

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

Product and manufacturer approval for hydraulic systems equipment is maintained and executed by the HTSPO. As a result of no other vendor identified as completing F-15 approved-for-use testing, no technical data packages, specifications, engineering descriptions, statements of work, or purchase descriptions have been developed for a system other than the Three- system Hydraulic Test Stand, Diesel Part Number (P/N) 4920-01-615-6002.

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

The HTSPO issued a Request for Information/Sources Sought Synopsis on 28 March 2019 with a deadline of 29 April 2019. This resulted in one response, from Hydraulic International, Inc., stating they were interested in this opportunity. An amendment to the 28 March 2019 Request for Information/Sources Sought Synopsis was posted on 12 June 2019, due to a new NSN assignment. The amendment resulted in one response, Hydraulic International, Inc., stating they were interested in this opportunity. In addition, this company has the requisite manufacturing capabilities and expertise, as well as a history of supplying related equipment to the Department of Defense (DOD).

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.

All market research regarding product and manufacturer availability and acceptability for hydraulic systems equipment is maintained and executed by the HTSPO.

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.

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