Redacted J&A.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 # FD2030-18-02608

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 non-commercial follow-on firm fixed price

Requirements contract. The contemplated contract will be with the Original Equipment

Manufacturer (OEM), Eaton Industrial Corporation (hereinafter Eaton), Commercial and

Government Entity (CAGE) code 86090, for the remanufacture and upgrade of the KC-

135 aircraft submerged and refueling pumps. In accordance with (IAW) FAR Part 16, a five-year requirements type contract with one 1-year basic and four 1-year options is considered to be appropriate for this acquisition. This is not a Bridge Action as defined in the Air Force Bridge Action Reduction Plan. The estimated total value of this award is

$ with an estimated award date of May 2019.

Previous Contract Number: FA8118-16-D-0023

Date of Award: 9 May 2014

Completion Date: 8 May 2019

Basis of Award: Sole Source

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

AGENCY’S NEEDS

Dollar values below reflect the anticipated values. Under the contemplated contract, Eaton will remanufacture the KC-135 aircraft submerged and refueling pumps. This is a supply effort.

Contract Summary

Estimated Award Estimated Dates Estimated Dollars

Basic May 19 – May 20 $

Option I May 20 – May 21 $

Option II May 21 – May 22 $

Option III May 22 – May 23 $

Option IV May 23 – May 24 $

Total Contract May 19 – May 24 $

PR Line Item 0001

Remanufacture of NSN: 2915-01-418-0072JY

P/N: 6161-20

Noun: Refueling Pump

Delivery: 10 EA every 60 days ARO/REP

Application: KC-135 Aircraft

Item Function: Separate air and vapor bubbles from the fuel being delivered to the fuel lines.

Item Material: Aluminum Alloy

Type of Appropriation: 97X4930 Working Capital

Total estimated dollars for PR Line Item 0001: $

Year Est Qty. Unit Price Estimated

Dollars

Ordering Period or Period of Performance

Basic 50 EA $ $ May 19 – May 20

Option I 50 EA $ $ May 20 – May 21

Option II 50 EA $ $ May 21 – May 22

Option III 50 EA $ $ May 22 – May 23

Option IV 50 EA $ $ May 23 – May 24

PR Line Item 0002

Remanufacture of NSN: 2915-01-480-1668JY

P/N: 6161-21

Noun: Submerged Pump

Delivery: 1 EA every 60 days ARO/REP

Application: KC-135 Aircraft

Item Function: Transfers fuel between tanks in the refueling system

Item Material: Aluminum Alloy

Total estimated dollars for PR Line Item 0002: $

Ordering Period or Period of Performance

Basic 1 EA $ $ May 19 – May 20

Option I 1 EA $ $ May 20 – May 21

Option II 1 EA $ $ May 21 – May 22

Option III 1 EA $ $ May 22 – May 23

Option IV 1 EA $ $ May 23 – May 24

PR Line Item 0003

Remanufacture of NSN: 2915-01-480-1671JY

P/N: 6161-22

Noun: Submerged Pump

Delivery: 1 EA every 60 days ARO/REP

Application: KC-135 Aircraft

Item Function: Supplies the main engine fuel and transfers fuel between tanks.

Item Material: Aluminum Alloy

Total estimated dollars for PR Line Item 0003: $

Ordering Period or Period of Performance

Basic 1 EA $ $ May 19 – May 20

Option I 1 EA $ $ May 20 – May 21

Option II 1 EA $ $ May 21 – May 22

PR Line Item 0004

Over and Above

Total estimated dollars for PR Line Item 0004: $

Ordering Period or Period of Performance

Basic 1 LT $ $ May 19 – May 20

Option I 1 LT $ $ May 20 – May 21

Option II 1 LT $ $ May 21 – May 22

Option III 1 LT $ $ May 22 – May 23

Option IV 1 LT $ $ May 23 – May 24

PR Line Item 0005

Data and Reports Total estimated dollars for PR Line Item 0005: Not Separately Priced (NSP)

Year Est Qty.

Unit Price Estimated Dollars

Ordering Period or Period of Performance

Basic 1 LT NSP NSP May 19 – May 20

Option I 1 LT NSP NSP May 20 – May 21

Option II 1 LT NSP NSP May 21 – May 22

Option III 1 LT NSP NSP May 22 – May 23

Option IV 1 LT NSP NSP May 23 – May 24

PR Line Item 0006

Upgrade/Input NSN: 2915-01-418-0072JY to Output: NSN: 2915-01-480-1668JY

Upgrade/Input P/N: 6161-20 to: Output P/N: 6161-21

Noun: Submerged Pump

Delivery: 1 EA every 60 days ARO/REP

Application: KC-135 Aircraft

Item Function: Transfers fuel between tanks in the refueling system

Item Material: Aluminum Alloy

Total estimated dollars for PR Line Item 0006: $

Ordering Period or Period of Performance

Basic 1 EA $ $ May 19 – May 20

Option I 1 EA $ $ May 20 – May 21

Option II 1 EA $ $ May 21 – May 22

Due to the circumstances described below in Section V, 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 sourced become known during the life of this contract, full and open competition will be considered and utilized to the maximum extent practicable.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

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

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 anticipated acquisition is a follow-on effort for remanufacture of the KC-135 refueling and submerged pumps, NSN 2915-01-418-0072JY, 2915-01-480-1668JY, and 2915-01-480-

1671JY; upgrade of the KC-135 refueling pump NSN 2915-01-418-0072JY to KC-135 submerged pump 2915-01-480-1668JY. The KC-135 submerged pumps supplies engine fuel and transfers fuel between tanks. The OEM, Eaton, is currently providing remanufacture of these items on contract FA8118-16-D-0023 which will expire 8 May 2019. Eaton is the only company with the personnel, and technical data to satisfy the Air Force’s minimum need.

The pumps are critical application items, as defined in the Aviation Critical Safety Item

Management handbook and used within the aircraft aerial refueling system on the KC-135 aircraft; as such it is a highly specialized component of a major weapon system. Therefore, this acquisition will be a follow-on contract for the continued production of highly specialized equipment.

Eaton is the only known source that has the necessary detailed remanufacturing and process data, and parts needed to remanufacture these submerged pumps. The Government has limited form, fit and function data, this data is not sufficient to remanufacture the items described in section III. The 423rd Supply Chain Management Squadron (423 SCMS)

Logistics Officer contacted Eaton on 10 Sep 2018 to request Eaton provide the government the necessary data for competitive remanufacture and upgrade of the KC-135 submerged pumps. At the time Eaton declined to provide this data since it is proprietary. The government has established Qualification Requirements (QRs) for the refueling, submerged pumps. 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 has determined that Eaton, the OEM, is the only source that has met the defined QR at this time and is listed as the only approved source.

The 423 SCMS believes that award to any other source would result in unacceptable delays in fulfilling the Air Force’s requirement. Development of additional sources to remanufacture/upgrade this item is not feasible within allowable timeframes. Any interested sources would be required to submit a Source Approval Request (SAR) for review by the cognizant government engineering authority. The Government does not have technical data or test equipment to provide to interested contractors. Interested vendors will need to submit a SAR package demonstrating their capacity to access the necessary data, independently develop maintenance/remanufacture procedures, or other proof of capability.

At the present time, there have been no SAR packages submitted for approval even though there are sources who indicated interest in this acquisition as described in sections VI and

VIII. Once a SAR has been submitted, it can take in excess of one year to qualify the potential source. During this time the Government must review and approve the SAR package, complete any potential site visits and validate/verify any developed technical requirements. Delays in procurement to allow time for another source to submit a SAR package requiring engineering review, would disrupt the availability of parts to the KC-135 aircraft, thereby leaving the Air Force unable to meet critical mission requirements and hampering the Air Force’s ability to execute its global mission. While there are contractor’s who responded to the sources sought synopsis, no one has submitted a SAR package for review.

Accordingly, Eaton, the OEM, is the only source capable of providing the supplies described in Section III above without the 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 DEEMED

PRACTICABLE

On 29 June 2018, this requirement was synopsized through a Sources Sought Synopsis

(SSS) and posted on the Federal Business Opportunities (FedBizOpps) website at, https://www.fbo.gov, with a closing date of 28 Jul 2018 under Synopsis Number

FD20301802608. There were five vendors that showed interest by the response date (see section X), however no SAR packages were submitted in response to the SSS.

Government defined pre-award qualification requirements of potential sources apply to these items, although potential sources will be required to obtain the necessary data independently or otherwise provide proof demonstrating capability via the SAR process.

All SAR package submissions submitted prior to contract award will be evaluated in a timely manner to ensure the highest level of competition possible. The QRs were synopsized on https://www.fbo.gov 22 June 2017 and can be found by searching for the keyword “RQR-848”.

This requirement will be synopsized in https://www.fbo.gov as a notice of a proposed contract action IAW FAR 5.201. Consideration will be given to potential sources, prior to award.

https://www.fbo.gov/

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 will be required to submit certified cost or pricing data and/or other than certified cost or pricing data. A detailed cost analysis and 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. The Contracting Officer may seek audit assistance from the Defense Contract Audit Agency (DCAA) if necessary.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS

NOT CONDUCED

IAW FAR 10.002(b)(2), market research was conducted on the KC-135 refueling and submerged pumps by a multi-functional team consisting of the government’s Item

Manager, Equipment Specialist, Logistics Officer, and Engineer. This research included inquiries by a Sources Sought Synopsis (see Section VI) and the request to Eaton (OEM) on 10 Sep 18 on their willingness to share the repair data. Response on 11 Sep 19 was denied. This market research was conducted from 16 July 2018 to 11 September 2018.

Other sources manufacture similar items but none have sought qualification against the requirements described in Section III. Further, these requirements can neither be modified nor be satisfied with commercial or modified commercial items.

Based on this market research, the OEM, Eaton, was found to be the only source able to fulfill the requirement described in Section III.

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

OPEN COMPETITION

No further information.

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

ACQUISITION

Eaton Industrial Corporation CAGE: 86090

9650 Jeronimo Rd.

Irvine, CA 92618-2024 USA

Merrill Corporation CAGE: 0JXZ1

Bldg. Z-15 Freeport Center

Clearfield, UT 84016 USA

Thomas Instrument, Incorporated CAGE: 5H860

3440 E First St.

Brookshire, TX 77423-9525 USA

Aero Turbine, Inc. CAGE: 0T790

6800 Lindbergh St.

Stockton, CA 95206-3934 USA

National Flight Services, Inc. CAGE: 6G121

10971 E. Airport Service, Rd.

Swanton, OH 43558 USA

See Section VI for more detail.

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 a result of continued refusal by the sole source contractor to provide or license data as well as the unacceptable delay of developing additional sources per sections V and

IX, 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 DFARS PGI 206.304(a)(S-70) - As indicated by the 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 he has determined this document to be both accurate and complete to the best of his 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.