JA-FD2030-15-02505_2May16_(Redacted).pdf

FD2030-15-02505

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) # FD2030-15-02505

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. This contract is for a remanufactured supply of hydraulic servomechanisms used on the E-3 from Parker Hannifin

Corp., Commercial and Government Entity (CAGE) code 82106. In accordance with (IAW)

FAR Part 16, a 1-year basic contract with one, 1-year option is considered to be appropriate for this acquisition. The estimated total value of this award is $1,392,836.00 with an estimated award date 30 Dec 2016.

Previous Contract Number: FA8118-15-C-0013

Date of Award: 30 Sept 2015

Completion Date: 13 Nov 2015

Basis of Award: Sole Source

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

AGENCY’S NEEDS

Dollar values listed below reflect the anticipated value. Under the contemplated contract, Parker

Hannifin Corp will provide the remanufacture of the E-3 Hydraulic Servomechanism, a supply acquisition.

Estimated Dates Estimated Dollars

Basic 30 Dec 16 – 29 Dec 17 $659,896.00

Option 30 Dec 17 – 29 Dec 18 $732,940.00

Total Contract 30 Dec 16 – 29 Dec 18 $1,392,836.00

PR Line Item 0001 Remanufacture of NSN: 1650-01-052-0382

P/N: 231600-1005 Noun: Hydraulic Servomechanism

Application: E-3

Item Dimensions: 20 inches long, 5 inches wide, 11 inches high

Function: To position an aircraft rudder surface in response to commands from the aircrafts yaw damper control system.

Type of Appropriation: 97X4930

Total Estimated Dollars for PR Line Item 0001: $1,387,836.00

Year Qty Unit Price Estimated Dollars Period of

Performance

Basic 18ea $36,522. $657,396 30 Dec 16 – 29 Dec 17

Option 20ea $36,522. $730,440 30 Dec 17 – 29 Dec 18

PR Line Item 0002

Over and Above

Total Estimated Dollars for PR Line Item 0002: $5,000

Year Qty Unit Price Estimated Dollars Period of

Performance

Basic TBD TBD $2,500 30 Dec 16 – 29 Dec 17

Option TBD TBD $2,500 30 Dec 17 – 29 Dec 18

Line Item 0003

Data

Not Separately Priced

Due to the circumstances described below in Sections V and XI, there are no additional 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)(1), 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 E-3 Hydraulic Servomechanism described in Section III are highly specialized components of the E-3 aircraft due to the function of positioning the aircraft rudder surface in response to commands from the aircrafts yaw damper control system. The Government has established

Qualification Requirements (QR) for this item that a prospective source must satisfy prior to being identified as an approved source. The establishment of QR has been justified in writing, as required by FAR 9.202(a), on a Justification for Qualification Requirements coordinated through

Small Business and Competition Advocate, approved by the Chief of the Contracting Office. This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source requires acquisition of the part from the approved source. An alternate source must qualify in accordance with the design control activity's procedures, as approved by the cognizant Government engineering activity.

The item identified in Section III above contains critical characteristics and, at a minimum, meets the requirements of a critical application item as defined in the Aviation Critical Safety Item

Management Handbook. Additionally, this part is considered complex in accordance with

AFMCI 23-102, para 14.4.7.2. The complexity of this item and its criticality to safe operation of the aircraft requires that the source of remanufacture be an approved source possessing the data, experience, skills, and equipment necessary to restore this item to a like new condition. Parker-

Hannifin, Original Equipment Manufacturer (OEM), is currently the only known qualified source possessing the required tech data, test equipment, and special tooling to perform this remanufacture. The Government owns the necessary tech data to facilitate competitive remanufacture; however, it is currently suspected that issues with this tech data could be the cause of several aircraft failures discussed in paragraph 4 below. Additionally, no additional sources submitted any Source Approval Request (SAR) for evaluation IAW the JQR which was synopsized.

Should another responsible source submit a SAR package and become qualified during the life of this contract, if feasible any remaining options will not be exercised and this J&A will not be used to support any acquisitions using other than full and open competition.

The 848th Supply Chain management Group has determined that award to any other source would result in unacceptable delays in fulfilling the Air Force’s requirements. This is currently an organic workload, needed to support Program Depot Maintenance (PDM) and field demand requirements. The Ogden Air Logistics Complex (OO) Rudder Power Control Unit (PCU) Shop

(MNCL9H) is constrained for production due to issing pre-test fixtures and possible tech data issues. Recently many PCU's overhauled by OO have failed on PDM aircrafts causing rejections and PQDRs. These issues are resulting in significant delays to the PDM schedule and has increased the quarterly demand rate for the PCU's from 1 per quarter to 3 per quater.Without this contract, backorder posture will continue to increase and the E-3 Hydraulic Servomechanism will have continued visibility as a Mission Impaired Capability Awaiting Part (MICAP) driver.

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

FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

On 22 Sep 15, a Sources Sought Synopsis was posted in Federal Business Opportunities

(FedBizOpps) for 30 days under FD2030-15-02505. As of 22 Oct 15, ten businesses showed interest by the response date; Altman Browning and Company, Prototype Engineering, Inc., Connectec Company, Inc., Moog, Inc., Triumph Accessory Services -Grand Praire, Inc., Armcor.com Contractor Capital, STS Operating, Inc., Parker-Hannifin Corporation, and Diamond

Hydraulics, Inc. however, no SAR packages have been received for engineering review. See section X for details.

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. Government defined pre-award qualifications of new sources has been identified and documented in the QRs. All SAR package submissions submitted prior to contract award will be evaluated in a timely manner to ensure the highest level of competition possible.

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 certified cost or pricing data. A detailed cost analysis and a price analysis will be accomplished. The Defense

Contracting Management Agency and/or Defense Contract Audit Agency may be contacted to assist with the analyses, and may assist with input 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

Market research, in accordance with FAR Part 10, was conducted by a multi-functional team consisting of the Item Manager, Equipment Specialist, Logistics Officer, and Engineer. This research included inquiries into internet sites including Google, the Thomas Register, Haystack, and similar item manufacturer’s websites and was conducted over a period ending 22 Oct 15.

Other sources manufacture similar items but none have been identified as having access to the data described in Section V necessary to meet the requirement described in Section III. Further, this requirement cannot be modified nor be satisfied with a commercial or modified commercial item.

A Sources Sought Synopsis was also conducted; see Section VI for more details.

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

COMPETITION

None

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

ALTMAN BROWNING AND

COMPANY

1724 NE GLISAN ST PORTLAND, OR

972322843 US

Email: altman@altmanbrowning.com

Phone: 5032337789

Cage Code: 3HGY4

CONNECTEC COMPANY, INC.

1701 REYNOLDS AVE IRVINE, CA

926145711 USA

Email: elizabeth@connectecco.com

Phone: 8008007000

Cage Code: 0EFR2

PROTOTYPE ENGINEERING, INC.

140 E 162ND ST GARDENA, CA

902482802 USA

Email: barrybordbar@prototypeeng.com

Phone: 3105326305

Cage Code: 0B1B6

MOOG, INC.

300 JAMISON RD EAST AURORA, NY

140520000 USA

Email: Tdavis2@moog.com

Phone: 3104901720

Cage Code: 6FTF7

TRIUMPH ACCESSORY SERVICES -

GRAND PRAIRIE, INC

1038 SANTERRE DR GRAND

PRAIRIE, TX 750501937 USA

Email: sdeppenger@triumphgroup.com

Phone: 9729269346

Cage Code: 5KM29

ARMOR.COM CONTRACTOR CAPITAL

Washington, DC US

Email: fbo@armcor.com

Phone: 800-873-4161

Cage Code: 3CK69

STS OPERATING, INC.

2301 WINDSOR CT ADDISON, IL

601011480 USA

Email: bfoy@sunsrce.com

Phone: 9136695368

Cage Code: 4HLS6

PARKER-HANNIFIN CORPORATION

14300 ALTON PKWY IRVINE, CA

926181814 USA

Email: bheath@parker.com

Phone: 9498098267

Cage Code: 59211

DIAMOND HYDRAULICS, INC.

6776 FM 2004 HITCHCOCK, TX

775633039 US

Email:hhensley@diamondhydraulicsinc.com

Phone: 4099863957

Cage Code: 3DLZ1

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

No action is required. The Government has the necessary data to qualify a new source to produce the item specified in Section III. Prospective sources must provide documentation for Government review and approval that shows how they meet the established QR. Prospective sources must build and submit a SAR package in accordance with the established Qualification Requirements.

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 her signature on the Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, are both accurate and complete.