Redacted_JA_14-01031.pdf

FD2030-14-01031

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

Materiel Support Contracting Division

AFSC/PZA

3001 Staff Drive

Tinker AFB, OK 73145

Purchase Request (PR) # FD2030-14-01031

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 obtain a firm-fixed price requirements type contract. The contemplated contract is for a remanufacture from Moog, Inc., Commercial and

Government Entity code 0ZWK8. In accordance with FAR Part 16, a one-year basic contract with four, 1-year options is considered to be appropriate for this acquisition. The estimated total value of this award is $27,080,000 with an estimated award date of 5 Oct

15.

Previous Contract Number: FA8118-11-D-0002

Date of Award: 5 Oct 10

Completion Date: 4 Oct 15

Basis of Award: Sole Source

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

AGENCY’S NEEDS

Under the contemplated contract, the B-1 assets shall be initiated for remanufacture.

Dollar values listed below reflect the anticipated value instead of PR value, as the PR value reflects a lower value based on latest acquisition cost on current contract FA8118-

11-D-0002.

CONTRACT SUMMARY

Estimated Dates Estimated Dollars

Basic Oct 15 - Oct 16

Option I Oct 16 - Oct 17

Option II Oct 17 - Oct 18

Option III Oct 18 - Oct 19

Option IV Oct 19 - Oct 20

Total Contract Oct 15 - Oct 20 $27,080,000

PR Line Item 0001

Remanufacture/Modification of NSN:

Input NSN: 1650-01-248-8541

Input P/N: 2022124-8-1

Output NSN: 1650-01-483-0542

Output P/N: 2022124-8-2

Noun: WBDPDU

Application: B-1

Item Description and Function: Drive unit that transmits hydraulic power to rotary mechanical power; 1.00 foot wide x 2.00 feet high x 2.00 feet long; 54.00 pounds

Type of Appropriation: 97X4930

Total Estimated Dollars for PR Line Item 0001:

Year Qty Unit

Price

Estimated Dollars (Ordering

Period or

Period of

Performance)

Basic 5ea Oct 15 - Oct 16

Option I 5ea Oct 16 - Oct 17

Option II 5ea Oct 17 - Oct 18

Option III 5ea Oct 18 - Oct 19

Option IV 5ea Oct 19 - Oct 20

PR Line Item 0002 Remanufacture of NSN: 1650-01-483-0542

P/N: 2022124-8-2

Noun: WBDPDU

Application: B-1

Item Description and Function: Drive unit that transmits hydraulic power to rotary mechanical power; 1.00 foot wide x 2.00 feet high x 2.00 feet long; 54.00 pounds

Total Estimated Dollars for PR Line Item 0002:

Estimated Dollars (Ordering

Period or

Period of

Performance)

Basic 5ea Oct 15 - Oct 16

Option I 5ea Oct 16 - Oct 17

Option II 5ea Oct 17 - Oct 18

Option III 5ea Oct 18 - Oct 19

Option IV 5ea Oct 19 - Oct 20

PR Line Item 0003

Remanufacture of NSN: 1650-01-248-8541

P/N: 2022124-8-1

Noun: WBDPDU

Application: B-1

Item Description and Function: Drive unit that transmits hydraulic power to rotary mechanical power; 1.00 foot wide x 2.00 feet high x 2.00 feet long; 54.00 pounds

Total Estimated Dollars for PR Line Item 0003:

Estimated Dollars (Ordering

Period or

Period of

Performance)

Basic 30ea Oct 15 - Oct 16

Option I 30ea Oct 16 - Oct 17

Option II 30ea Oct 17 - Oct 18

Option III 30ea Oct 18 - Oct 19

Option IV 30ea Oct 19 - Oct 20

Line Item 0004

Data

Not Separately Priced

PR Line Item 0005

Over and Above

Total Estimated Dollars for PR Line Item 0005:

Estimated Dollars (Ordering

Period or

Period of

Performance)

Basic TBD TBD Oct 15 - Oct 16

Option I TBD TBD Oct 16 - Oct 17

Option II TBD TBD Oct 17 - Oct 18

Option III TBD TBD Oct 18 - Oct 19

Option IV TBD TBD Oct 19 - Oct 20

Due to the circumstances described below in Sections V, IX and XI, there are no immediate actions that could be taken to develop competition. Therefore, it is considered appropriate to seek approval for more than one fiscal year’s requirements. If other qualified or approved sources become known at any time during the contract, this J&A will not be utilized to exercise remaining options.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 U.S.C. 2304 (c), as implemented by FAR 6.302-1.

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 data and acceptance test procedures needed to remanufacture these assets competitively is not physically available, nor is it possible to draft adequate specifications of the remanufacture for a competitive solicitation. The original equipment manufacturer

(OEM), Moog, Inc. is the only known contractor that possesses everything necessary to remanufacture the items to proper specifications. Efforts by the Government to purchase technical orders (TOs) from Moog, Inc. have been unsuccessful. A Request for

Information was made to Moog, Inc. requesting a quote to sell test data in Mar 2014.

Moog, Inc. responded that it would not be in their best interest at present to quote.

Moog, 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. The contractor will continue performing the necessary work to ensure the viability of the Weapons Bay Door Power Drive Unit (WBDPDU). If this award is not made in a timely manner, the Government will not be able to support the B-1 fleet and a Mission Incapable Awaiting Parts (MICAP) situation would occur. This B-1

WBDPDU transmits hydraulic power to rotary mechanical power that operates the

Weapons Bay Door. Therefore, this acquisition will be a continuation for remanufacturing of this highly specialized service.

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. See Section IX for additional information.

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 WBDPDU is approximately each versus the remanufacture cost of approximately each. The forecasted cost for a new

WBDPDU is based on the last historical purchase which occurred in 1997 and is likely significantly higher. The increased cost simply is not effective in our constrained budgetary environment.

Accordingly, Moog, Inc. is the only firm capable of providing the remanufacture described in Section III about without the Government experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

In accordance with FAR 5.201, on 12 May 14 this requirement was synopsized and posted in Federal Business Opportunities (FedBizOpps) for 30 days under

FD2030-14-01031. As of 12 Jun 14, three businesses showed interest by the response date, however, we are not aware of the OEM approving any additional sources at this time.

In accordance with FAR 5.201, this requirement will be synopsized and the Request for

Proposal (RFP) posted to the FedBizOpps website. Consideration shall be given to potential sources, prior to award. It has been determined that it is unreasonable to specify qualification requirements as the Government does not have access to data rights for developing the requirements. A Waiver of Qualification Requirements was approved on 5

May 2014.

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).

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS

NOT CONDUCTED

In accordance with FAR 10.001 (a)(2), Market Research conducted on 23 Jun 14 revealed that no other companies showed interest or the ability to remanufacture these assets and that a non-developmental remanufacture suitable to meet the requirement is available from the OEM. Market Research including inquiries of available data systems, such as

HAYSTACK, Webster’s online, Aviation Week, Fluid Power Monthly, and a web search as well as the synopsis described in Section VI did not yield any additional sources for remanufacture of this item.

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

OPEN COMPETITION

Due to the lack of remanufacture 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. If deliveries do not begin by Oct 2015, the Air Force’s highly specialized B-1 WBDPDU capability would become inoperable and would be impacted immediately with Mission Incapable Awaiting Parts backorders materializing within weeks.

In accordance with 423 SCMS/GUEA Engineering, the B-1 SPO was contacted on 8 Sep

14 to reverse engineer this effort. The estimated cost is not available at this time. The development of repair procedures without the requisite data and/or technical manuals is impossible without extensive and costly reverse engineering. The Government does not have enough experience or historical data to estimate costs with any degree of specificity, but we anticipate that developing a repair capability for these parts without any releasable data would be a very high risk endeavor. Further, funding has not been approved, and the priority of these parts does not rise to the level at which funding likely would be approved or budgeted. It is not possible to draft adequate repair procedures without the technical data required, which would drive unacceptable delays in fulfilling the Air Force’s requirements. The effort would take approximately four years from funding. At this time, reverse engineering is not suitable for this five year requirement.

This data is proprietary to Moog, Inc., and has not been sold, leased, licensed nor have any proprietary rights been relinquished to anyone. Moog, Inc. is not willing to release proprietary rights to any drawings related to this B-1 WBDPDU remanufacture.

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

ACQUISITION

See Section VI above.

Thomas Instrument & Machine Co., Inc.

110 Commerce Ave

Boerne, TX 78006-3060

Phone: 830-331-1325

CAGE: 50LP4

Armcor.com Contractor Capital

8511 State Route 703 Suite C

Celina, OH 45822-2940

Phone: 800-873-4161

CAGE: 5KE56

Thomas Instrument, Incorporated

3440 E First St

Brookshire, TX 77423

Phone: 830-331-1325

CAGE: 5H860

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 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 necessary to qualify additional sources.

XII. CONTRACTING OFFICER’S CERTIFICATION

The Contracting Officer’s signature on the coordination and approval document evidences 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.