J&A_Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

United States Air Force

AFSC/PZA

3001 Staff Drive Tinker AFB, OK 73145

Purchase Request (PR) FD2030-18-02651

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 new, follow on, firm-fixed price, requirements-type contract. The is not a Bridge Action. The contemplated commercial contract is for overhaul of the KC-135 Clutch Assembly from Original Equipment Manufacturer (OEM) Ontic Engineering, Commercial and Government Entity (CAGE) code 45934. A performance period of a 1-year basic contract with four, 1-year options is considered appropriate for this acquisition. The estimated total value of this award is $ with an estimated award date of 15 May 2019.

Previous Contract Number: FA8118-14-D-0008 Date of Award: 29 January 2014 Completion Date: 28 January 2019 Basis of Award: Sole Source

III. DESCRIPTION OF SUPPLIES/ SERVICES REQUIRED TO MEET AGENCY NEEDS

Under the contemplated service contract, Ontic, Inc will overhaul the KC-135 Centrifugal Clutch Assembly Unit. The internal mechanical engaging component of the Auxillary Electrical Drive Unit (National Stock Number (NSN)1680-00-839-4111) moves the next higher assembly (NHA) stab trim actuator to position the horizontal stabilizer trim on KC-135/ Flight Control System. Additionally, replacement of P/N 129695-03, magnetic power clutch may be required. The contractor will provide all material, parts, engineering and technical support, training and touch labor necessary to fulfill the requirements of the overhaul. Dollar values below reflect the anticipated values.

Year Estimated Period of Performance

Estimated Dollars

Basic May 2019-May 2020 $ Option I May 2020- May 2021 $ Option II May 2021- May 2022 $ Option III May 2022- May 2023 $

Option IV May 2023- May 2024 $

Total Contract May 2019- May 2024 $

CONTRACT SUMMARY

PR Line Item 0001 Minor Repair/Overhaul of Input NSN: 1615-00-808-0746JY, Input P/N 129696-07;

Output NSN 1615-00-808-0746JY Output P/N: 129696-07 Noun: Clutch Assembly, Centrifugal Application: KC-135 Item Description and Function: Internal mechanical engaging component which moves the NHA stab trim actuator Type of appropriation: 97X4930 Total Estimated Dollars for PR Line item 0001: $

Year Qty

(BEQ)

Unit Price

Estimated Dollars

Period of Performance

Basic 25 EA $ $ May 19-May 20 Option I 25 EA $ $ May 20- May 21 Option II 25 EA $ $ May 21- May 22 Option III 25 EA $ $ May 22- May 23 Option IV 25 EA $ $ May 23- May 24

NOTE: All assets shall be inititated under the lowest level, minor repair/overhaul. Should it be determined that an asset has not been properly categorized at the appropriate repair level, the Government shall be notified, and the contract modified to include the appropriate FFP funding, as required.

PR Line Item 0002 Major Repair/Overhaul of Input NSN: 1615-00-808-0746JY, Input P/N 129696-07;

Output NSN 1615-00-808-0746JY Output P/N: 129696-07 Noun: Clutch Assembly, Centrifugal Application: KC-135 Item Description and Function: Internal mechanical engaging component which moves the NHA stab trim actuator, and replacement of P/N 129695-03, magnetic power clutch Type of appropriation: 97X4930 Total Estimated Dollars for PR Line item 0001: $

(BEQ)

Unit Price Estimated Dollars

Period of Performance

Basic 25 EA $ $ May 19-May 20

Option I 25 EA $ $ May 20- May 21 Option II 25 EA $ $ May 21- May 22 Option III 25 EA $ $ May 22- May 23 Option IV 25 EA $ $ May 23- May 24

NOTE: All assets shall be inititated under the lowest level, minor repair/overhaul. Should it be determined that an asset has not been properly categorized at the appropriate repair level, the Government shall be notified, and the contract modified to include the appropriate FFP funding, as required.

PR Line Item 0003 Description: Over and Above Type of Appropriation: 97X4930 Total Estimated for PR Line Item 0003: $

Unit Price

Estimated Dollars

Period of Performance

Basic 1 LOT $ $ May 19-May 20 Option I 1 LOT $ $ May 20- May 21 Option II 1 LOT $ $ May 21- May 22 Option III 1 LOT $ $ May 22- May 23 Option IV 1 LOT $ $ May 23- May 24

PR Line Item 0004 Description: Data Not Separately Priced (NSP), IAW CAVAF SOR and CDRLs Total estimated dollars for PR Line Item 0004: $

Unit Price

Estimated Dollars

Period of Performance

Basic 1 LOT NSP NSP May 19-May 20 Option I 1 LOT NSP NSP May 20- May 21 Option II 1 LOT NSP NSP May 21- May 22 Option III 1 LOT NSP NSP May 22- May 23 Option IV 1 LOT NSP NSP May 23- May 24

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 life of this contract, full and open competion will be considered and utilized to the maximum extent practicable.

IV. STATUATORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1 (a)(2)(iii).

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF THE

AUTHORITY CITED ABOVE (APPLICABILITY OF AUTHORITY)

This acquisition is for the overhaul of the KC-135 Centrifugul Clutch Assembly unit, the internal mechanical engaging component of the AEDU (NSN: 1680-00-839-4111), which moves the NHA stab trim actuator to position the horizontal stabilizer trim on KC-135/ Flight Control System. This action is a follow-on buy with the OEM, Ontic, for the overhaul of the Centrifugul Clutch Assembly unit. Overhaul of the Centrifugul Clutch Assembly is a highly specialized service due to the need for process control of the quality of equipment and tooling, shop practices, knowledge of process material interrelationships, and quality assurance surveillance necessary to satisfy the Air Force’s minimum need.

The Government does not have any data defining the repair/ overhaul process available for this effort. The manufacturing drawings, technical data, test equipment, and tooling required to perform the overhaul of these clutch assembly units competitively is not physically available to provide to prospective vendors. The 423rd Supply Chain Management Squadron has determined that Ontic, the OEM, is the only source that has met the defined Qualification Requirements (QR) at this time, and thus has been listed as the only approved source. Efforts by the Government to secure the necessary license rights from Ontic have been unsuccessful.

A Request for Information (RFI) was made to Ontic by the Engineer as recently as 5 March 2018 requesting a price quote to provide the necessary license rights. Ontic responded that it would not be in their best interest to quote. Ontic Engineering has been the only approved source since 2004 and has been performing on this contract since 2014.

The Government has established QRs for the centrifugul clutch assembly unit. Prospective sources must meet these requirements prior to being identified as an approved source. This item requires engineering source approval in order to maintain its quality and technical baseline. The 423 SCMS believes that award to any other source would result in unacceptable delays in fulfilling the Air Force’s requirement. The Government does not expect that any other source could become qualified in time to avoid unacceptable delays (see Section IX for details). Any interested sources would be required to submit a Source Approval Request (SAR) package. At the present time, no SAR packages have been submitted. Once a SAR has been submitted, it can take in excess of one year to qualify the potential source. If deliveries do not begin by February 2019, the 848 SCMG would be unable to provide an adequate supply of Centrifugul Clutch Assembly units to support the KC-135 fleet. The Operations Tempo for item consideration includes flying schedules, Mobility Readiness Spares Packages in readiness base levels, future pilot production and absorbtion as per HQ/AFMC/ A4 Campaign Plan. The monthly demand rate for this asset is 2.33 each and the quarterly demand rate is 7 each. As a result of this need, the fleet would be negatively impacted with mission incapable, awaiting parts (MICAPs) materializing within three to four weeks.

Reverse engineering is not feasible within allowable timeframes. Any effort to reverse engineer the overhaul process would take a minimum of five years from the initiation of a 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 overhaul sources. A cost estimate to complete this project has not been generated due to the unknown nature of the project’s elements such as securing government use rights to the technical data and the scope of qualification testing required to ensure OSS&E (Operational Safety, Suitability, and Effectiveness).

Accordingly, Ontic Engineering is the only firm capable of providing the services 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

On 22 February 2018, a Sources Sought Synopsis (SSS) for this requirement was posted on the Federal Business Opportunities (FedBizOpps) website, www.fbo.gov, for 30 calendar days and closed 23 March 2018. The SSS was posted under FD20301900004. As of 6 April 2018, 12 businesses showed interest by the response date. None of these businesses have provided proof of ability to obtain licensing agreements, manufacturing drawings, technical data, test equipment, tooling or otherwise indicate competency through independently developed maintenance procedures. To date, no SAR packages have been submitted for consideration.

The Government does not have the data needed to adequately define the repair/overhaul process in order to develop a competitive procurement package. Interested vendors would need to submit a SAR package for consideration/approval. See Section X for company information.

This requirement will be synopsized IAW FAR 5.201 and will be posted to http://www.fedbizopps.gov on or about 16 December 2018.

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. IAW FAR as supplemented, the contractor will be required to submit Other Than Cost or Pricing Data, a detailed price analysis will be performed. The Contracting Officer may request a technical evaluation from the Defense Contract Management Agency (DCMA) to aid in the evaluation of the contractor’s proposal.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS,

OR A STATEMENTOF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED

In accordance with FAR 10.001(a)(2), market research that began on 22 February 2018 and concluded on 23 March 2018 has revealed that there are currently no other sources with the ability to overhaul these assets.

Other sources provide similar overhaul service but none have been identified as being approved to meet the requirement described in Section III. Market research included inquiries into internet sites including Google, the Thomas Register, Haystack, Webster’s online, Aviation Week, Fluid Power Monthly, a Sources Sought Synopsis, and similar item manufacturer’s websites. Market research did not yield any additional qualified sources for the overhaul of this item.

Based on the market research, the OEM, Ontic, was found to the be the only known source available to fulfill the anticipated contract. This requirement has been determined commercial on a previous acquisition.

The commercial item determination has been documented on contract FA8118-14-D-0008.

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

COMPETITION

No further information.

http://www.fedbizopps.gov/

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

Ontic Engineering and MFG, Inc 20400 Plummer St.

Chatsworth, CA 91311-5371 Comm Ph: 818-725-2379 CAGE Code: 45934

Patriot Dynamics, LLC 1950 NW 20th Ave Miami, FL 33125-1426 Comm Ph: 305-321-4641 CAGE Code: 5NWM6

AVBorne Accessory Group Inc.

7500 NW 26th St Miami, FL 33122-1414 Comm Ph: 786-336-4613 CAGE Code: 1V3Z8

Armcor.com Contractor Capital Ltd 6564 Loisdale Court Ste 900 Springfield, VA 22150-1822 Comm Ph: 703-922-4500 CAGE Code: 1MRZ0

Air Quality Aviation, Inc 5773 Miami Lakes Dr.E Hialeah, FL 33014-2417 Comm Ph: 305-821-0316 CAGE Code: 1U2L6

Airway Aerospace Inc.

2150 NW 95th Ave Doral, FL 33172-2338 Comm Ph: 305-684-6666 CAGE Code: 6U3K1

Technical Concept Solutions 1323 Butler Dr.

San Antonio, TX 78251-4923 Comm Ph: 210-473-7231 CAGE Code: 5ZLC3

Turbine Controls, Inc 5 Old Windsor Rd Bloomfield, CT 06002-1311 Comm Ph: 860-761-7554

CAGE Code: 8T088

Aero Turbine, Inc 6800 Lindbergh St Stockton, CA 95206-3934 Comm Ph: 209-983-1112 CAGE Code: 0T790

Aero Engineering Support Group, Inc.

3601 Commerce Blvd, Ste F Kissimmee, FL 34741-4604 Comm Ph: 407-401-9853 CAGE Code: 7W0A6

Merrill Corporation Bldg Z-15 Freeport Ctr Clearfield, UT 84016 Comm Ph: 801-773-7900 CAGE Code: 0JXZ1

Airjet Services, Inc 10651 SW 137th St Miami, FL 33176-6628 Comm Ph: 305-234-8966 CAGE Code: 1XAM1

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

As stated in Section V, Ontic, the sole source contractor, is the only company which possesses the technical data capable of satisfying the Air Force’s requirement. As a result of the continued refusal by Ontic to provide the technical data as well as the unacceptable delay of developing additional sources, there are no known additional actions which can be taken to remove barriers to competition and therefore, specific actions and milestones cannot be established.

Per PGI 206.304(a)(S-70)- As indicated by signature on the Coordination and Approval Document, the previous J&A had been reviewed and the Approval Authority determines that all stated actions to remove barriers to competition have been accomplished.

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 all supporting data contained herein, which is their responsibility, is both accurate and complete.

COORDINATION AND APPROVAL DOCUMENT

Contracting Activity: AFSC/PZA Purchase Request/Local Identification Number:

FD2030-18-02651

Program Name: Overhaul of KC-135 Centrifugal Clutch Assembly Unit

NSN: 1615-00-808-0746JY

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)(iii) Type J&A: Individual

COORDINATION

10/17/2018

Jack Burke Program Manager Signed by:

10/18/2018

Tiffany Rodriguez Contracting Officer Signed by:

10/18/2018

Mark Davidson Local Legal Advisor Signed by:

10/18/2018

Tommy Nicholson Chief of the Contracting Office Signed by:

Contracting Activity: AFSC/PZA Purchase Request/Local Identification Number:

FD2030-18-02651

Program Name: Overhaul of KC-135 Centrifugal Clutch Assembly Unit

NSN: 1615-00-808-0746JY

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)(ii) Type J&A: Individual

APPROVAL

10/25/2018

Gregory A. May Competition Advocate Signed by: