F100_J__A_document_17-30593_Mod_APPROVED9JAN16_Redacted.pdf

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

I. Contracting Activity.

Department of the Air Force

AFSC/PZIEC

Tinker AFB OK 73145-3032

PR: FD2030-17-30593

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

This Justification and Approval (J&A) authorizes use of other than full and open competition procedures to procure the F100 Inlet Fan Compressor Blades Plasma Spray Coating application. This procedure is applied to the 1st, 2nd, and 3rd stage Fan Blades.

The current contract, FA8100-15-D-0001, end date is 18 FEB 17. The intended acquisition is for a modification to the current contract, FA8100-15-D-0001 for the application of Pratt Whitney Aircraft (PWA) 46. The proposed contract is sole source, and will be a firm-fixed-price (FFP), requirements type, negotiated action for extending the current contract for 30 days. The estimated acquisition value of this contract modification is

ACQUISITION HISTORY:

Contract FA8100-15-D-0001 was awarded on a sole source basis to PAS Technologies (CAGE Code 4GMJ6) on 19 February 2015 for one (1) year Basic with one (1) option year for a total estimated cost of $1,020,700.00. Estimate Completion date is 18 February 2017. Contract FA8100-09-D-0001 was awarded on a sole source basis to PAS Technologies on 19 November 2008 for one (1) year Basic with four one (1) year options for a total estimated amount of $8,499,953.00. Completion date was 18 November 2013.

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

Under the contemplated contract, the contractor will provide the following service: PWA 46 D-Gun Plasma Spray Coating Application for the 1st, 2nd, and 3rd Stage Blades on the F100-PW-220/220E Inlet Fan Module. PAS Technologies Inc. (PAS) 1234 Atlanta Street North Kansas City, Missouri is the OEM approved Repair Facility for this coating.

This procurement is to satisfy genuine needs on the F100-PW-220/220E Inlet Fan Modules to support the F100 engines installed on F15 and F16 aircraft.

NSN & PN's NOUN: 1st Stage Fan Blade NSN: 2840-01-503-0962NZ (Set) PN: 4081941 Contract Stage Cost Quan TOTAL Option 1 1st Stage Set 1100

NOUN: 2nd Stage Fan Blade NSN: 2840-01-503-0963NZ (Set) PN: 4081982 Contract Stage Cost Quan TOTAL

Option 1 2nd Stage Set 1555

NOUN: 3rd Stage Fan Blade NSN: 2840-01-434-6916NZ (Set) PN: 4084093 Contract Stage Cost Quan TOTAL Option 1 3rd Stage Set 1204

Note: All the listed quantities are in sets of two.

Total Estimated Modification Repair Cost:

FUNDING: The funding source for the resulting contract is Working Capital Funds.

Failure to obtain the acquisition requested in this action will adversely affect the mission of the Air Force as these blades are required to sustain the F100 engine in order to maintain adequate war fighter readiness levels through aircraft availability.

There is no expectation of competition existing during the contemplated period of performance.

IV. Statutory authority permitting Other than Full and Open Competition.

The authority for this action is 10 USC 2304(c)(1), as implemented by FAR 6.302-1(a)(2), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

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 maintenance and repair of the F100-PW-220/220E 1st, 2nd, and 3rd stage blades has always been a Depot Organic workload. The overhaul/repair process will remain an organic workload except for the coating application of proprietary PWA 46 for the mid span of the blade. Application of PWA 46 requires a specially constructed apparatus which feeds particles of coating materials into the chamber of a gun containing a mixture of oxygen, nitrogen and acetylene which is detonated, heating the particles to plasticity and propelling them at high velocity out of the gun onto the part.

76 Propulsion Maintenance Group (PMXG) successfully completed a source demonstration required by Repair Qualifications Requirements Propulsion items with Source Demonstration-2 (RQR-PSD-2) using PAS Technologies for the PWA 46 coating process. Per the requirements of the RQR and subsequent Cognizant Engineering Authority (CEA) approval, 76 PMXG shall continue production with all sub-vendors specifically used in the source demonstration.

Market research performed by members of the Multi-Functional team confirmed the PWA 46 coating is proprietary to Praxair. Praxair issued a long term license to PAS Technologies, a separate and independent company of Praxair, to use the PWA 46 process. Praxair does not sell their proprietary detonation gun process equipment or license(s); this was confirmed 17 July 2013. PAS, founded in July 2006, was formerly known as Praxair Surface Technologies Inc., Aviation Services Division. PAS is the only approved qualified repair source with the necessary design, re-manufacture, production, and process data capable of providing items that meet the minimum requirements for form, fit, and function.

Pratt and Whitney (OEM) have approved only one source, PAS, to apply PWA 46 Coating. United Technologies and OC-ALC are listed as qualified sources on the AF Form 762 to overhaul/repair the blades; however, they are not licensed to apply PWA 46 D-Gun Coating application and cannot perform the hard coat repair. Per the Cognizant Engineering Authority CEA, the proprietary PWA 46 coating process must be used by any prime contractor repairing the complete part.

The Multi-Functional team believes that award to any other source would result in unacceptable delays in fulfilling the Air Force's requirements. Any newly approved coating sources would also be required by RQR-PSD-2 to complete a source demonstration with 76 PMXG prior to competing for a contract. This process could take up to a year. The delay would cause supply shortage of F100 1st-3rd stage compressor blades.

Within three (3) to five (5) years 76 PMXG fully expects to have the newly approved coating for the mid-span shroud of these blades demonstrated in house per RQR-PSD-2, and not require contract support for this workload.

Accordingly, PAS Technologies, Inc. is the only firm capable of providing the PWA 46 coating described in Section III above without the U.S. Air Force experiencing unacceptable delays in fulfilling its requirements.

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

At the present time, the only known source is:

Cage Code: 4GMJ6

DODAAC: EZ4152

PAS Technologies, Inc.

1234 Atlanta Street North Kansas City, MO. 64116

Priorly, Praxair Surface Technologies and Flight Support, Inc. expressed interest, but are not approved sources for applying the PWA 46 coating to these blades. Pending Pratt & Whitney approval, any newly approved coating sources would also be required by RQR-PSD-2 to complete a source demonstration with PMXG prior to competing for a contract.

IAW FAR 9.204(a)(1), A Sources Sought synopsis, including Repair Qualifications Requirements was conducted and posted to FBO on 03 May 2016 with a response date of 13 May 2016 for NSN's 2840-01-503-0962NZ, 2840-01-503-0963NZ, and 2840-01-434-6916NZ. The synopsis number is 2840015030962NZ. The purpose of this was to identify sources interested in the requirement and capable of satisfying the scope of services which is to apply proprietary coating PWA-46 (Hardface) on Mid-span of the F100-PW-100-200/220/220E 1st, 2nd, 3rd Stage Compressor In-Let Fan Rotor Blades.

In accordance with (IAW) FAR 6.305(a) the justification shall be made publicly available within 14 days after contract award.

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 and Contractor. Cost and Pricing Data will be requested, as required, to ensure the prices proposed and negotiated are fair and reasonable. The Contracting Officer will perform price analysis, verify history, and request a technical evaluation from the 76 PMXG to aid in the evaluation of the Contractor's proposal.

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

IAW FAR 10.001(a)(2) and (3), market research has revealed this is not a commercial item, and any existing commercial item cannot be modified to meet the requirement. It has also been determined the requirements cannot be restated to permit the use of commercial items. This is a non-developmental repair process. PAS is the only contractor qualified to apply PWA 46 D-Gun Coating application to the F100 fan blades, therefore the only source that can complete the entire repair of the F100 blades.

Per the CEA, any prime contractor performing the repair must use PAS as the vendor to apply the coating on the F100 engine components as they are the only source with approval from Pratt and Whitney.

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

These items are critical to the performance of the F100 engine and the government must have a reasonable assurance that all performance and safety requirements can be met. The AFMC Form 762 Contract Repair Screening Analysis Worksheet reflects vendors that are approved to repair the whole blade, which means they have proved they are using a qualified source to spray the mid span (i.e. they contract out the mid span coating to a subcontractor authorized to spray the Praxair coating, but perform the remainder of the repair themselves). PAS is currently the only manufacturer that can provide PWA 46 D-Gun Plasma Spray Coating Application to meet our requirement. Failure to obtain the components requested will cause delays in production of the next higher assembly F100-PW-220/220E Inlet Fan Module. The impact will be depletion of all war readiness spare engines and could result in failure of assigned Air Force missions

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

PAS Technologies CAGE Code: 4GNJ6 1234 Atlantic St.

North Kansas City, MO 64116-4142

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.

The reliability of this service is dependent upon establishing and maintaining effective process control.

This item requires engineering source approval by the CEA or Pratt and Whitney in order to assure that prospective offerors are capable of establishing and maintaining effective process control.

OC-ALC/LPSEA established a change to a Component Improvement Program (CIP) task, via CIP Msg #275 in April of 2014, with Pratt and Whitney on the F100 engine to self-qualify the repair of the mid-span shrouds using AMS 2447-7 coating as opposed to the proprietary PWA 36206-1. The original CIP task was to replace the proprietary PWA 46 coating that uses proprietary hardware to apply the coating to a proprietary coating PWA 36206-1 that uses commercial off the shelf hardware. This task that initiated in April 2014 had a kick-off meeting in June 2014. The preliminary design review was held in September 2014 with a final review in November 2014.

The support prior to equipment requirement documents (SERDs) were approved in December 2014 with 19 tools, with a design and delivery of the tools planned for October 2015. A meeting was held in June 2015 between United States Air Force (USAF) and Pratt and Whitney where an addition of seven (7) tools for in-process measurements were approved. This pushed the tooling delivery from October 2015 to April 2016.

Then in February 2016 the USAF requested Pratt and Whitney to qualify OC-ALC using the PWA 36206-1 proprietary coating as originally planned.

In March 2016 the tooling was delivered and a fit check was accomplished on all tooling by June. Some changes to the tooling are required for a successful repair. Currently Pratt and Whitney and 76 PMXG are working on tooling design changes. Pratt and Whitney is also currently working with the USAF to develop a non-revenue bearing license (Government purpose rights). With these issues still to be resolved it is felt that it will take up to three (3) to five (5) years before OC-ALC will be organically capable of this repair.

In order to foster competition, the Government, in accordance with FAR 9.204, will periodically conduct a synopsis of repair qualification requirements in FBO. If any other company is to be considered, the company would have to obtain license rights to use D-Gun technology to apply PWA 46 from Praxair and submit a Source Approval Request (SAR) package to the Small Business Office. Sources who submit a SAR package will be evaluated IAW Source Approval procedures.

The alternate coating development through the Component Improvement Program would increase competition; as it is an industry wide coating that many can perform. Once complete, repair vendors will have to prove that they are either spraying the Praxair coating, PWA 46, or PWA 36206-1, the alternate coating, on the mid spans from an approved source to become an approved repair source.

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.