1601468_J A_Redacted.pdf

COORDINATION AND APPROVAL DOCUMENT

Contracting Activity: AFSC/PZA Purchase Request/Local Identification Number: FD2030-16-00775 Program Name: Remanufacture of LEF PDU used on the F-16 Aircraft;

NSN: 1650-01-340-6328

Estimated Maximum Program Cost: $ Type Program: Other Contracting Authority: 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2) Type J&A: Individual

COORDINATION

5/20/2016

X Lea Anne Hensley 423 SCMS/GUMF Program Manager Signed by: HENSLEY.LEA.ANNE.1251410840

5/23/2016

X Tonya Kirk AFSC/PZAAB Contracting Officer Signed by: KIRK.TONYA.DAWN.1267084978

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): FD2030-16-01468

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

This individual Justification and Approval (J&A) authorizes the use of restricted qualified sources. The contemplated contract is for remanufacture of the F-16 Leading Edge Flap Power Drive Unit (LEF PDU) from Moog, Inc., Commercial and Government Entity (CAGE) code 0ZWK8. Due to lack of contract coverage, this acquisition will be an “Urgent” fixed quantity contract. The estimated total value of this award is $ with an estimated award date of 30 Jun 16.

Previous Contract Number: FA8118-15-C-0016 Date of Award: 22 Sep 15 Completion Date: 22 Sep 16 Basis of Award: Limited Source

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET

THE AGENCY’S NEEDS

Under the contemplated contract, the F-16 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 the latest acquisition cost on current contract FA8118-15-C-0016.

PR Line Item 0001 Remanufacture of NSN: 1650-01-340-6328 P/N: 16M002-821 Noun: Leading Edge Flap Power Drive Unit Application: F-16 Item description and function: When electrically activated, the LEF PDU drives the Leading Edge Flap Actuators to properly position the flaps.

Urgent Fixed Quantity: 7ea Unit Price: $ Type of appropriation: 97X4930 Total estimated dollars for PR line item 0001: $

PR Line Item 0002 Data Not Separately Priced

PR Line Item 0003 Over and Above Total Estimated dollars for PR Line Item 0003: $

Due to the circumstances described below in Sections V, IX and XI, there are no immediate actions that could develop competition within the performance period of this contract. If other qualified or approved sources become known at any time during the contract, this J&A will not be utilized.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND

OPEN COMPETITION

10 U.S.C. 2304 (c), as implemented by FAR 6.302-2.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES

THE USE OF THE AUTHORITY CITED ABOVE (APPLICABILITY OF

AUTHORITY)

Government purpose rights to the remanufacture data and acceptance test procedures needed to remanufacture these assets competitively are not available to the Government, nor is it possible to draft adequate specifications for the remanufacture for a competitive solicitation. Engineering previously requested funding from AFMC and the F-16 SPO to re-write the technical order, however, CSAG Engineering funds cannot be used for tech order development and/or correction. Until Engineering is able to correct the deficiencies in the technical order and test data, increasing competition is not feasible. Qualification requirements were previously established in 2012 but have since been found to be inaccurate due to the lack of technical data.

Moog, Inc. has provided this highly specialized remanufacture 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 LEF PDU. 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 would occur. This F-16 LEF PDU drives the Leading Edge Flap Actuators to properly position the flaps. Moog, Inc. has provided this highly specialized remanufacture on a competitive contract, FA8103-08-D-0076. Therefore, this acquisition will be a follow-on contract for remanufacture of this highly specialized item. PR # FD2030- 12-36009 was submitted to contracting in June 2012 for follow-on contract support.

Award of this PR has been delayed due to legal review remarks on the Market Research report, Acquisition Plan, AFMC Form 762, and Statement of Work, as well as a request for a Limited Source J&A. The estimated award date for PR

#FD2030-12-36009 is currently 31 Aug 2016. Due to the lapse in contract coverage, Urgent PR #FD2030-14-00544 was submitted to contracting in February 2014 for a fixed quantity of 7ea. This PR resulted in contract FA8118-14-C-0003, which was awarded 17 Apr 2014 to Moog, Inc. and is production complete. Urgent PR #FD2030-14-01561 was submitted to contracting in March 2014 for a fixed quantity of 7ea. This PR resulted in contract FA8118-14-C-0005, which was awarded 23 May 14 to Moog, Inc. and is production complete. Urgent PR #FD2030-15-00426 was submitted to contracting in Nov 2014 for a fixed quantity of 7ea. This PR resulted in contract FA8118-15-C-0003 which was awarded 22 Jan 15 to Moog, Inc. and is production complete. Urgent PR #FD2030-15-01904 was submitted to contracting in Jul 2015 for a fixed quantity of 7ea. This PR resulted in contract FA8118-15-C-0016 which was awarded 22 Sept 15 to Moog, Inc. and is production complete.Urgent PR #FD2030-16-00775 was submitted to contracting in Jan 2016 for a fixed quantity of 7ea. This PR has an estimated award date of 28 Apr

16. The resulting contract will not support our current requirement due to PR #FD2030-12-36009 being delayed further than expected. Due to the continued lack of contract coverage and support of the F-16 LEF PDU, this acquisition will be the sixth “Urgent” fixed quantity contract for remanufacture of the F-16 LEF PDU. At this time, there are a total of 4ea backorders. With a QDR of 6 and zero serviceable spares, we can anticipate generating 5ea MICAPs per quarter until follow-on or interim support is awarded. This will greatly impact support for the United States Air Force F-16 world warfighter combat missions.

Current Backorder Total: 4ea Current MICAP Total: 0ea Current Due In Total: 0ea

QDR: 6

Total Urgent PR Quantity: 7ea

The 848 SCMG has determined 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, 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 LEF PDU is approximately$ while the cost for remanufacture is approximately $ . The forecasted cost for a new LEF PDU is based on the last historical purchase and is likely significantly higher. The increased cost is simply not effective in our constrained budgetary environment.

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

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

On 19 Feb 16 this requirement was synopsized and posted in Federal Business Opportunities (FedBizOpps) for 30 calendar days under FD2030-16-01468. As of 21 Mar 16, five businesses showed interest by the response date , however, the Government is not aware of the OEM approving any additional sources at this time.

In accordance with FAR 5.202(a)(2), this “Urgent”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.

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 shall be required to provide other than certified cost or pricing data as necessary. A detailed cost analysis and price analysis will be accomplished. The Defense Contracting Management Ageny (DCMA) and/or Defense Contract Audit Agency (DCAA) may be contacted to assist with the analysis, and may assist with inputs throughout the life of the contract.

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 was conducted over a period ending on 12 Apr 16 which revealed five other companies showed interest in the remanufacture of these assets (see section X). A non-developmental remanufacture capability suitiable to meet the requirement is available from the Original Equipment Manufacturer (OEM). Although other sources exist within the market place that perform similar efforts, none were identified as having access to the necessary technical data to meet the Government’s requirement. JEDMICS, PDM Gateway and MEDALS were used to research available technical data; none was found that could be used to qualify additional sources. Additional 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.

In 2008, Moog Inc. responded to the Government’s RFI to purchase data with a price of $ . This has not been funded by the F-16 SPO or Engineering services contract vehicles to date.

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

AND OPEN COMPETITION

Due to the lack of government purpose rights to the necessary remanufacture data, 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 July 2016, the 848 SCMG would be unable to provide an adequate supply of LEF PDU’s to support the F-16 fleet. The fleet would be impacted with MICAP backorders materializing within weeks.

Reverse engineering the remanufacture process is not feasible within allowable timeframes. Any effort to reverse engineer the remanufacture process would take a minimum of 5 years from the initiation of a CSAG (Consolidated Sustainment Activity Group) Sustaining Engineering project. This timeframe includes the budget request period, Purchase Request processing, contract negotiation and award, period of performance, qualification testing of the reverse engineered process, and source qualification of remanufacture sources. Additionally, the necessary use rights would need to be negotiated with the Moog to utilize the available proprietary technical data in the Government’s possession to support the reverse engineering project. The Government has access to proprietary manufacturing technical data, but this data is insufficient to define the remanufacture process. A cost estimate to complete this project has not been generated due to the unknown nature of some of the project’s elements such as securing government use rights to the technical data, lack of historical project cost information for similar equipment, and the scope of qualification testing required to ensure OSS&E (Operational Safety, Suitability, and Effectiveness).

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

ACQUISITION

Moog, Inc.

CAGE: 0ZWK8

400 Jamison Rd East Aurora, NY 14052 Email:

Phone:

Airway Aerospace, Inc.

2150 NW 95th Doral, FL 33172-2338 Email:

Phone:

ADVE Financials Reno NV 89506 Email:

Phone:

Boeing Aerospace Operations, Inc.

6001 S Air Depot Blvd Oklahoma City, Ok 73135-5922 Email:

Phone:

Proposal Support Center 17025 West Rogers Drive New Berlin, WI 53151-2232 Email:

Phone:

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 own Government purpose rights to the remanufacture data and acceptance test procedures needed to remanufacture the LEF PDU nor is it possible to draft adequate specifications for the remanufacture for a competitive solicitation. 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 rights necessary to qualify additional sources.

XII. CONTRACTING OFFICER’S CERTIFICATION

The Contracting Officer’s signature on the Coordination and Approval Document evidences that the Contracting Officer has determined this document to be both 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 and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.

FULL AND OPEN COMPETITION