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 # FD2030-19-00635

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, cost plus fixed fee, sole-source contract.

The contemplated contract will be with the configuration control manager or Original Equipment Manufacturer (OEM), Northrop Grumman Corporation, specifically the Northrop Grumman Systems Corporation, Commercial and Government Entity (CAGE) code 5FVX5. Northrop Grumman Systems Corporation will henceforth be referred to as “NGC”. The acquisition is for non-commercial engineering services to resolve known and anticipated obsolescence issues related to the B-2 aircraft Fuel Vent Valve. This is not a Bridge Action. This is a new engineering services effort.

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

AGENCY’S NEEDS

This requirement is to acquire non-commercial engineering services to resolve known and anticipated obsolescence issues related to the B-2 Fuel Vent Valve. This is a non-commercial requirement. The estimated total value of this award is $4,068,238 with a period of performance of two years. This estimate is based on an evaluation of the scope of work, comparison to similar engineering services efforts, market research, and budgetary estimates.

This is an 848 SCMG engineering services effort to evaluate available technical data and to identify and propose corrective action to known and anticipated obsolescence issues related to the manufacture of the following item. The B-2 Fuel Vent Valve is both a Critical Safety Item (CSI) and a Hardness Critical Item (HCI) that controls both positive and negative pressure in the aircraft’s fuel tanks.

Contract Summary Obsolescence Estimated Dates Estimated Dollars 4810-01-380-9046 September 2019 - September 2021 $4,068,238

CLIN 0001

Engineering services associated with resolution of known and anticipated obsolescence issues related to NSN 4810-01-380-9046.

NSN: 4810-01-380-9046

Part Number: 2880001-105 Item Description and Function: The fuel vent control valve functions as a pressure control to limit both positive and negative pressure differentials within the fuel tanks encountered during ascent or descent.

Total Estimated Dollars:

Type of Appropriation: 97X49303400 (O&M)

CLIN 0002

Travel associated with the engineering services accomplished on CLIN 0001.

Total Estimated Dollars:

Type of Appropriation: 3400 (O&M)

CLIN 0003

Technical Data deliverables associated with the engineering services accomplished on

CLIN 0001.

Total Estimated Dollars: Not separately priced Type of Appropriation: 3400 (O&M)

Engineering services man-hours cannot be specified for this program. This acquisition is for specific engineering tasks and deliverables, not a pre-defined number of man-hours.

Due to the circumstanced described below in Sections V and IX, there are no immediate actions that could be taken to develop competition for this two year engineering services effort.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 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)

NGC, as the configuration control manager or OEM for the B-2 weapon system, is the only source capable of providing the required service. The Fuel Vent Valve is currently unsupportable for repair, overhaul/remanufacture, and new manufacture due to numerous obsolescence issues. Resolution to these obsolescence issues will result in changes to the product’s approved configuration baseline. In accordance with the B-2 Platform Systems Engineering Plan (January 2019 version), NGC is responsible for maintaining the configuration baseline of the B-2 weapon system. Additionally, special consideration must be given to the unique nature of this equipment due to its designation as both a CSI and HCI. NGC is the only firm that can evaluate and approve changes to HCIs as the aircraft OEM and weapon system integrator.

No other known source has access to the detailed design data that is needed for this requirement. While potentially technically capable, performance of this contract will require access to detailed design data that is not available to small businesses. Further, consideration has been given to acquiring a new design to replace the existing testers, but ultimately this is not in the best interest of the Air Force due to the substantial duplication of cost.

NGC possess highly specialized experience developing and sustaining state-of-the-art aircraft including requirements for electronics/software integration and nuclear missions.

The Fuel Vent Valve is a specialized piece of equipment critical to the safe operation of the aircraft and success of the weapon system’s mission. This requirement, to resolve obsolescence within the Fuel Vent Valve, must be satisfied by a firm that fully understands the functional requirements of the aircraft fuel system, nuclear survivability, electronics/software integration, and flight safety critical item design.

Additionally, obtaining access to technical data is not sufficient to accomplish the specified requirement. The government is in possession of form, fit, and function data, procurement specifications, and an unverified technical order, however these data alone cannot be used to accomplish the engineering service. During execution of this requirement, the awardee will be required to identify replacement items not currently defined by the technical data package in the government’s possession. Identification of replacement/redesigned items can only be done by a firm with significant experience with this kind of equipment and its associated requirements. Further, resolution of the obsolescence issues will require some minimum level of qualification of the proposed solutions because of the CSI/HCI designation. This item is a highly integrated component within the fuel and electronics (the aircraft computer) systems. Qualification can only be accomplished by the aircraft OEM.

The 423 SCMS/GUEA believes that award to any other source would result in unacceptable delays in fulfilling the Air Force’s requirement. Presently the Air Force has one Mission Incapable – Awaiting Parts (MICAP) backorder and four routine backorders.

In addition to these MICAPs/backorders, the B-2 Programmed Depot Maintenance (PDM) production line is in need of two Fuel Vent Valves (informal MICAPs). These valves must be cannibalized from incoming aircraft to meet production requirements;

cannibalization is the act of removing items from incoming aircraft to meet requirements of an outgoing aircraft.

This item currently has an active repair contract, FA8118-18-D-0040, but the repair source, Parker Hannifin Corporation, cannot produce this item due to the obsolescence issues mentioned above. Parker Hannifin is not a viable source for this engineering service because they do not have the authority nor capability to resolve and qualify the technical changes needed to resolve the obsolescence issues facing this item.

Finally, this effort was funded through the Consolidated Sustaining Activity Group (CSAG) Sustaining Engineering (SE) process. The program’s category code is “Mission Critical Degradation – Existing” (MCD-E) with a mission degradation date of 6 May 2017. This designation was supported through the current supply posture (described above), current production (or lack thereof), numerous no-bid responses to new procurement acquisitions, and out-year requirements for this item. The CSAG-SE program was submitted and approved by key stakeholders, including Global Strike Command and HQ AFMC/FM, acknowledging the technical scope of the program, the proposed solution (i.e. acquisition strategy), and justification for the program’s category designation (MCD-E).

Accordingly, NGC is the only firm capable of providing the required engineering services described in Section III above without the Air Force experiencing unacceptable delays.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

On 5 Feb 2019, this requirement was synopsized through a Sources Sought Synopsis (SSS) posting on https://www.fbo.gov. The SSS was posted for 30 days under the title “B-2 Valve Assembly, Manifold; NSN 4810-01-380-9046FW; PN 2880001-105”. The post’s closing date was 07 Mar 2019. Two sources, Northrop Grumman Services Corporation (CAGE 5FVX5) and Advantech, LLC (CAGE 65MY9), responded to the SSS as interested vendors. Advantech, LLC is not a viable source for this acquisition.

According to the Small Business Administration’s vendor profile, Advantech, LLC is an engineering services firm with experience in pressure vessel design, pipe stress analysis, and specification design of tanks (pressure vessels), pumps, heat exchangers, and valves.

According to their performance history, it appears most of their engineering service work has been in support of the energy (oil/natural gas) industry. Their performance history did not identify any major aerospace projects. Although this firm likely has the experience to accomplish some portion of the engineering service required, they provided no evidence or supporting information documenting their ability to accomplish all tasks specified under this requirement. See the Market Research Report for additional details regarding this vendor’s capabilities.

This requirement will be synopsized on https://www.fbo.gov as a notice of proposed contract action IAW FAR 5.201. The expected date of publication of this requirement is August 2019.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE

https://www.fbo.gov/

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 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 will request a technical evaluation from the Defense Contract Management Agency (DCMA) to aid in the evaluation of the contractor’s proposal. The Contracting Officer will 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 CONDUCTED

In accordance with FAR 10, market research was conducted on this requirement by a multi-functional team consisting of the program manager and engineer for the Fuel Vent Valve. This research included requests for consideration through a Source Sought Synopsis on https://www.fbo.gov. Two interested vendors responded but only one was found capable of performing this service; see Section VI above for more information.

Additionally, research was conducted through internet searches to evaluate commercially available products and engineering service firms. This market research was conducted from 24 November 2018 to 29 March 2019. Given the unique, military specific application of this Fuel Vent Valve, and considering the critical nature of the valve as a CSI and HCI, no commercial products or engineering service firms were found that could satisfy this requirement. Further, this requirement cannot be modified nor be satisfied with a modified commercial item.

Based on this market research, NGC 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

There are no additional facts supporting the use of other than full and open competition.

Reverse engineering of this item is not acceptable given the item’s CSI and HCI designation.

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

ACQUISITION

Northrop Grumman Systems Corporation 2340 Dulles Corner Blvd Herndon, VA 20171-3400

POC:

Email:

Phone:

CAGE: 5FVX5

Advantech, LLC 11474 Glenhaven Drive Baton Rouge, LA 70815-6115

POC:

Email:

Phone:

CAGE: 65MY9

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

The services being acquired will affect the technical baseline of the Fuel Vent Valve and must undergo qualification testing. NGC, as the aircraft OEM and system integrator, is the only known firm who can qualify items on the B-2 weapon system. Due to the unique nature and mission of the B-2 weapon system, and the specialized processes required to sustain the weapon system, there are no known additional actions which can be taken to remove barriers to competition, and therefore specific actions and milestones cannot be established.

XII. CONTRACTING OFFICER’S CERTIFICATION

By signing the coordination and approval document, the Contracting Officer determines this document to be 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 certify that any included supporting data within their area of responsibility is both accurate and complete in accordance with FAR 6.303- 2(c).