REDACTED_J A_FD20301500608-FA811815C0008.pdf

FD2030-15-00608

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

Materiel Support Contracting Division

AFSC/PZA

3001 Staff Drive

Tinker AFB OK 73145-3032

Purchase Request (PR): FD2030-15-00608

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

This Justification and Approval (J&A) authorizes the use of Other Than Full and Open Competition

(OTF&OC) procedures to obtain a Firm-Fixed Price (FFP), Fixed Quantity contract. The contemplated contract is for the remanufacture of 125 each F-16 Air Pressure Regulators that have been identified as sole source to the Original Equipment Manufacturer (OEM), Honeywell International, Inc., Commercial and Government entity code 59364. The contemplated contract will provide support pending award of

PR FD2030-12-35948, which was submitted as a multiple CLIN, five year requirements type PR on

September 2012 as a follow-on to contract F34601-00-D-0371. PR FD2030-12-35948 is currently pending DCAA pricing audit and is not expected to award until approximately June/July 2015. In accordance with FAR Part 16, a FFP, Fixed Quantity contract is considered appropriate for PR FD2030-

15-00608 pending award of the follow-on. The estimated total value of this award is with an estimated award date of 30 May 2015.

Previous Contract Number: F34601-00-D-0371

Date of Award: 15 October 2000

Expiration Date: 19 October 2013

Basis of Award: Sole Source, Award Fee, Corporate Contract

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

AGENCY’S NEEDS

Honeywell International, Inc. will provide the following remanufacture of the Air Pressure Regulator for the F-16 aircraft. The dollar values listed below reflect the anticipated value.

PURCHASE REQUEST SUMMARY

Estimated Dates Estimated Dollars

Year One May 2015 – May 2016

PR Line Item 0001

Incoming NSN/PN:

1660 01 445 9556, PN 3214806-4-1

Remanufacture and Deliver As Outgoing NSN/PN:

1660 01 445 9556, PN 3214806-4-1

Noun: Air Pressure Regulator

Application: F-16

Item Dimensions: 10”L x 5”W x 9.5”H, 7.2 lbs.

Material Content: Aluminum

Description/Function: Spring-loaded pneumatically actuated butterfly valve used to regulate pressure of engine bleed air delivered to environmental control system.

Type Appropriation: 97X4930

Total Estimated Dollars for PR Line Item 0001: with an application pursuant to FAR 6.302-

1(b)(2).

PURCHASE REQUEST ITEM 0001 SUMMARY

Year Quantity Unit Price Estimated Dollars Period of Performance

One 125 each May 2015 – May 2016

PR Line Item 0002

Data:

Not Separately Priced

PURCHASE REQUEST ITEM 0002 SUMMARY

One 1 Lot Not Separately Priced $0 May 2015 – May 2016

PR Line Item 0003

Over and Above:

Total Estimated Dollars for PR Line Item 0003:

PURCHASE REQUEST ITEM 0003 SUMMARY

One 1 Lot May 2015 – May 2016

Due to the circumstances described in Sections V, IX and XI, there are no immediate actions that could be taken to develop competition. If other sources become known during the life of this contract, the

Government will assess their qualifications and work with any interested parties with respect to Source

Qualification Requests for future requirements.

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), with an application pursuant to FAR 6.302-1(b)(2).

V. DEMONSTRATION THE CONTRACTOR’S UNIQUE QUALIFICATIONS OR

NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED

ABOVE (APPLICABILITY OF AUTHORITY)

Honeywell International, Inc. has provided this highly specialized service which includes effective process control as a function of the quality of equipment and tooling, shop practices, knowledge of process-material interrelationships, and quality assurance surveillance necessary to minimize technical risk. If this award is not made in a timely manner, the Government will not be able to support the F-16 fleet and a Mission Incapable Awaiting Parts (MICAP) situation will occur. This F-16 Air Pressure

Regulator is a spring loaded, pneumatically actuated butterfly valve used to regulate the pressure of the engine bleed air delivered to the Environmental Control System (ECS). This acquisition will be a continuation for remanufacturing of this highly specialized service.

The Government does not have the necessary manufacturing drawings, repair technical data, test equipment, tooling, or parts to perform the required remanufacture. The OEM, Honeywell International, Inc. is the only known contractor that has the data, parts, expertise, tools and test equipment necessary to remanufacture this item to proper specifications. Honeywell has proprietary rights. Honeywell is not willing to release the rights to the drawings. As of 28 April 2015, Honeywell has not sold, leased, licensed or relinquished any of their proprietary rights to any other sources. Government engineering will continue to work with the OEM to ensure the remanufacture is accomplished to the satisfaction of the

Government. Although the Government has unlimited rights in technical data pertaining to form, fit, and function, as well as operation, maintenance, installation, and training, the data currently available is insufficient to meet the current need.

The 848 Supply Chain Management Group (848 SCMG) has determined that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Without award of a contract to the OEM, the Government would have no choice but to purchase new replacement spares at a significantly higher cost. Based on historical pricing, the forecasted cost of a new Air Pressure Regulator is approximately each versus the remanufacture cost of approximately each. The increased cost is not effective in our constrained budgetary environment.

The Government will continue efforts to ensure the contractor provides the data required by 10 U.S.C.

2320, but the critical need for this remanufacture process requires that the Government move forward with the current acquisition.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED

FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

A Sources Sought Synopsis for PR # FD2030-15-00608 was posted to the Federal Business Opportunities

(FedBizOpps) website for 15 calendar days from 17 Nov 2014 to 3 Dec 2014. Three businesses showed interest (as listed in section X), however, no Source Approval Request packages have been received for engineering review.

In accordance with FAR 5.201, this requirement shall be synopsized and the Request for Proposal (RFP) will be posted to the FedBizOpps website. Consideration shall be given to potential sources, prior to award. It has been determined that is it unreasonable to specify qualification requirements as the

Government does not have access to data rights for developing requirements.

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 by utilizing other than certified cost and pricing data and a technical evaluation from the Defense Contract Management Agency (DCMA) to aid in the evaluation of the contractor’s proposal. Audit assistance from the Defense Contract Agency (DCAA) shall be requested if considered 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 conducted in accordance with FAR Part 10.001 (a)(2) by a multi-functional team consisting of the Engineer, Contracting Officer, and Production Management Specialist. The market research was completed 3 Dec 2014. The sources of information used in this market research included

Haystack, Google, Thomas Register and other industry participants. No new sources were found. Market research has also revealed the remanufacture processes for this requirement are not commercial processes and commercial processes cannot be modified to meet the requirement. It has also been determined that the requirement cannot be restated to permit the use of commercial processes for this valve. These are non-developmental repair processes.

Based on the market research, the OEM, Honeywell International, Inc., was found to be the only known source available to fulfill the anticipated contract. No other companies in the marketplace possess the applicable technical data, tooling, parts, test equipment and expertise required to remanufacture to the

Government’s specifications.

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

COMPETITION

Due to the lack of technical data and qualification requirements, the Government does not expect that another source could become qualified in time to avoid unacceptable delays in meeting the Government’s requirement. The F-16 Air Pressure Regulator, NSN 1660 01 445 9556 currently has 63 each backorders and a quarterly demand rate of 49 each. Due to the expiration of contract F34601-00-D-0371 and the delay of award for follow-on PR FD2030-12-35948, there is currently no source of remanufacture available.

The Government does not have the capability to qualify a source for this remanufacture due to lack of source qualification data. To the Government’s knowledge, the OEM has not received any requests to qualify additional remanufacture sources as of 28 April 2015.

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

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

At this time, the Air Force does not have valid technical data for the F-16 Air Pressure Regulator, NSN

1660 01 445 9556. In an effort to identify and remove barriers to competition, the 848 SCMG will continue to monitor the marketplace for remanufacture source development, and will continue discussions with the OEM regarding additional approved remanufacture sources. The Government will continue to synopsize the requirement, rescreen the item, and attempt to acquire the data use rights necessary to qualify additional sources.

XII. CONTRACTING OFFICER’S CERTIFICATION

The Contracting Officer’s signature on the COORDINATION AND APPROVAL DOCUMENT is evidence that she has determined this document to be both accurate and complete to the best of her knowledge and belief.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidenced by their signatures on the COORDINATION AND APPROVAL DOCUMENT, the technical and/or requirements personnel have certified that any supporting data contained herein which is their responsibility is both accurate and complete.