FD20301702960_JUSTAPPR_Redacted.pdf

Justification and Approval (J&A) 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): FD2030-17-02960

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 Follow-On, Non-Commerical, Firm-Fixed-Price, Indefinite Delivery

“D” requirements-type contract. This is not a Bridge action. The contemplated contract is for overhaul services of the B-52 Bypass Ducts NSNs 1560-00-775-3339FG, 1560-00-775-3340FG, 1560-00-775-

3341FG, 1560-00-775-3342FG, 1560-00-795-4375FG and 1560-00-795-4376FG from Merrill

Corporation DBA Mission Support (MSI), Commercial and Government Entity (CAGE) code 0JXZ1. In accordance with (IAW) FAR Part 16, a one-year basic period and four one-year option periods is considered appropriate for this acquisition. This contract will include the Option to Extend Services clause (FAR 52.217-

8). The total estimated value of this contemplated contract is with an estimated award date of

February 2019.

Current Contract Number: FA8119-14-D-0008

Award Date: 2 Sep 14

Estimated Completion Date: 1 Sep 19

Basis of Award: Sole-Source

Previous Contract Number: FA8119-14-C-0007

Award Date: 12 Mar 14

Completion Date: 11 Mar 15

Basis of Award: Sole-Source

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

Under the contemplated contract, MSI will provide the following overhaul services of multiple B-52

Bypass Ducts:

Contract Summary

Estimated Dates Estimated Dollars

Basic Feb 2019 – Feb 2020

Option I Feb 2020 – Feb 2021

Option II Feb 2021 – Feb 2022

Option III Feb 2022 – Feb 2023

Option IV Feb 2023 – Feb 2024

6 Month Extension Feb 2024 – Jul 2024

PR line item 0001

Overhaul of NSN: 1560-00-775-3339FG

P/N: 35-8271

Noun: Duct Assembly Repair

Application: B-52

Item description and function: The engine bypass duct aligns and directs airflow from the engine fan blades to provide the thrust required for flight.

Type of appropriation: 97X4930

Total Estimated Dollars for PR Line Item 0001:

PR line item 0002

Overhaul of NSN: 1560-00-775-3340FG

P/N: 35-8272

Noun: Duct Assembly Repair

Application: B-52

Item description and function: The engine bypass duct aligns and directs airflow from the engine fan

Total Estimated Dollars for PR Line Item 0002:

Year BEQ Unit Price Estimated Dollars (Ordering Period or Period of Performance)

Basic 17 ea Feb 2019 – Feb 2020

Option I 17 ea Feb 2020 – Feb 2021

Option II 17 ea Feb 2021 – Feb 2022

Option III 17 ea Feb 2022 – Feb 2023

Option IV 17 ea Feb 2023 – Feb 2024

6 Month

Extension

8 ea Feb 2024 – Jul 2024

Year BEQ Unit Price Estimated Dollars (Ordering Period or Period of Performance)

Basic 16 ea Feb 2019 – Feb 2020

Option I 15 ea Feb 2020 – Feb 2021

Option II 17 ea Feb 2021 – Feb 2022

Option III 16 ea Feb 2022 – Feb 2023

Option IV 16 ea Feb 2023 – Feb 2024

6 Month

Extension

8 ea 0 Feb 2024 – Jul 2024

PR line item 0003

Overhaul of NSN: 1560-00-775-3341FG

P/N: 35-8275-1

Noun: Duct Assembly Repair

Application: B-52

Item description and function: The engine bypass duct aligns and directs airflow from the engine fan

Total Estimated Dollars for PR Line Item 0003: $12,273,416

PR line item 0004

Overhaul of Input NSN: 1560-00-775-3342FG

Input P/N: 35-8275-2

Noun: Duct Assembly Repair

Application: B-52

Item description and function: The engine bypass duct aligns and directs airflow from the engine fan

Total Estimated Dollars for PR Line Item 0004:

Basic 46 ea Feb 2019 – Feb 2020

Option I 48 ea Feb 2020 – Feb 2021

Option II 49 ea Feb 2021 – Feb 2022

Option III 48 ea Feb 2022 – Feb 2023

Option IV 48 ea Feb 2023 – Feb 2024

6 Month

Extension

24 ea Feb 2024 – Jul 2024

Year BEQ Unit Price Estimated Dollars (Ordering Period or Period of Performance)

Basic 24 ea Feb 2019 – Feb 2020

Option I 24 ea Feb 2020 – Feb 2021

Option II 26 ea Feb 2021 – Feb 2022

Option III 25 ea Feb 2022 – Feb 2023

Option IV 25 ea Feb 2023 – Feb 2024

6 Month

12 ea Feb 2024 – Jul 2024

PR line item 0005

Overhaul of NSN: 1560-00-795-4375FG

P/N: 35-8270-501

Noun: Duct Assembly Repair

Application: B-52

Item description and function: The engine bypass duct aligns and directs airflow from the engine fan

Total Estimated Dollars for PR Line Item 0005:

PR line item 0006

Overhaul of NSN: 1560-00-795-4376FG

P/N: 35-8270-502

Noun: Duct Assembly Repair

Application: B-52

Item description and function: The engine bypass duct aligns and directs airflow from the engine fan

Total Estimated Dollars for PR Line Item 0006:

Basic 18 ea Feb 2019 – Feb 2020

Option I 16 ea Feb 2020 – Feb 2021

Option II 19 ea Feb 2021 – Feb 2022

Option III 18 ea Feb 2022 – Feb 2023

Option IV 18 ea Feb 2023 – Feb 2024

6 Month

Extension

9 ea Feb 2024 – Jul 2024

Year BEQ Unit Price Estimated Dollars (Ordering Period or Period of Performance)

Basic 9 ea Feb 2019 – Feb 2020

Option I 10 ea Feb 2020 – Feb 2021

Option II 10 ea Feb 2021 – Feb 2022

Option III 10 ea Feb 2022 – Feb 2023

Option IV 10 ea Feb 2023 – Feb 2024

6 Month

5 ea Feb 2024 – Jul 2024

PR line item 0007

Data: Not separately priced (NSP)

Type of appropriation: Not Applicable

Total estimated dollars for PR line item 0007:

PR line item 0008

Over and Above: To be negotiated (TBN)

Total estimated dollars for PR line item 0008:

*Note: Over and Above estimate is based on historical experience of 5% of the current overhaul Line

Items 0001-00006 price and rounded to the nearest dollar.

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. If other qualified or approved sources 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)(iii), Only One Responsible Source and No

Other Supplies or Services Will Satisfy Agency Requirements.

V. DEMONSTRATION THAT THE CONTRACTOR'S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF THE

AUTHORITY CITED ABOVE (APPLICABILITY OF AUTHORITY)

Basic 1 lot Feb 2019 – Feb 2020

Option I 1 lot Feb 2020 – Feb 2021

Option II 1 lot Feb 2021 – Feb 2022

Option III 1 lot Feb 2022 – Feb 2023

Option IV 1 lot Feb 2023 – Feb 2024

6 Month

1 lot Feb 2024 – Jul 2024

The B-52 Bypass Ducts perform the highly specialized function of aligning and directing airflow from the engine fan blades to provide the thrust required for flight. Each B-52 uses twelve fully functional Bypass

Ducts in order for the aircraft to be considered mission capable. The Government does not possess the capability to overhaul the Bypass Ducts due to the lack of data and has utilized MSI for the Bypass Duct overhaul since the inception of the requirement in 1991.

MSI has developed their own overhaul technical manuals, proprietary processes, parts specification data, tools, and equipment that maintain critical dimensional and quality control requirements. All of which limit the source of repair to this sole source vendor.

Through the use of their own capital investment, MSI engineerd 3-D computer models of the Bypass Ducts using the original 50-year-old 2-D drawings and production forms. They integrated this data with 3-D metrology equipment to allow them to assemble the Bypass Ducts to meet performance requirements.

Detailed proprietary processes have been developed by MSI to verify fit conformance throughout the overhaul process. B-52 Bypass Ducts require engineering source approval by the design control activity in order to maintain the quality of the part. MSI is the only qualified source of overhaul and owns all of the data rights. The data needed to compete the overhaul is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the repair for a competitive solication. These items are critical application items within the aircraft flight control system on the B-52 aircraft; as such it is a highly specialized component of a major weapon system.

As stated above, the nature of this effort requires sources to be qualified by the cognizant engineering activity. The Government does not possess the requisite data for competitive purposes. While

Qualification Requirements (QR) are established for the B-52 Bypass Ducts, potential new vendors would have to submit a Source Approval Package (SAR) demonstrating the capacity to access the necessary data or license rights, independently developed overhaul procedures and processes or other proof of capability.

The Qualification Requirements were synopsized on the Government-wide Point of Entry (GPE), Federal

Business Opportunities (FBO) site FedBizOpps.gov, on 22 June 2017 and will remain posted on FBO until they expire on 19 June 2024. No SAR packages have been received from interested vendors as a result of this posting, therefore, only one qualified source exists at this time. The most recent attempt to acquire technical data from MSI occurred on 25 Sep 2017, when the Program Manager sent MSI an email requesting the current status of the sale/licensing of proprietary data to the Government. MSI responded by email dated 10 Oct 2017, and declined to provide Rough Order of Magnitude (ROM).

424 SCMS believes that award to any other source would result in unacceptable delays in fulfilling the Air

Force’s requirements. The development of overhaul procedures without the requisite data is impossible without extensive reverse engineering. Qualfication of a currently unidentified potential vendor would take an estimated four years based upon timeframes associated with other engineering projects of this nature. This estimate includes the initiation of a CSAG (Consolidated Sustainment Activity Group)

Sustaining Engineering Project, budget request period, purchase request processing, contract negotiation and award, period of performance, development of tooling, fixtures and computer models of the complex shape of the bypass duct and finally extensive qualification testing. The estimated four years delay is not feasible within allowable timeframes. Delays in new procurement have the potential for disrupting availability of B-52 aircraft, leaving the Air Force unable to accomplish critical mission requirements. For these reasons, MSI is the only source capable of providing the services described in Section III without the

Air Force experiencing unacceptable delays.

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

FROM AS MANY POTENTIAL SOURCES AS PRACTICABLE

A) A Sources Sought Synopsis (SSS) was posted to the GPE, currently FBO, under solicitation number

FA811917R0038, 29 September 2017, with a closing date of 27 Oct 17, in an effort to solicit interested sources.

B) The SSS received a single response from FMH Aerospace Corporation. However, this response was from a vendor that the Air Force could not qualify. The vendor did not have experience repairing or manufacturing engine bypass ducts with complex curves and shapes. The only experience that the vendor has is with ducts that are simple straight tube or rectangular cross section shaped ducts.

C) IAW FAR 5.201, this requirement will be synopsized in the GPE as a notice of contract action.

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 provide certified cost or pricing data. A detailed cost analysis and a price analysis will be accomplished. The Defense Contract Management Agency may 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

Market research, in accordance with FAR Part 10, was conducted by the multi-functional team consisting of the Logistics Management Specialist, Engineer, Production Management Specialist, and Procuring

Contracting Officer. The conducted research consisted of internet searches, reviews of government databases, reviewed results of recent market research on similar requirements and a Sources Sought

Synopsis posting. A Sources Sought Synopsis was posted on 29 September 2017, for 30 days during which one response was received from . The information provided with their response was insufficient to qualify the respondent as a new source. was redirected to the QR solicitation, so that the respondent has an opportunity to submit a Source Approval

Request (SAR). .

The market research revealed that there is not a commercial process available to meet this requirement.

The Bypass Ducts are used in military applications and no commercial or non-developmental substitutes are available. There are no applicable industry standards, regulations, trade journals, or process guides that apply to the overhaul of the Bypass Ducts. Market research also allowed the Government team to identify the same sole source market condition that has existed since the inception of the requirement in the early

1990s. MSI was found to be the only source able to fulfill the requirement.

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

COMPETITION

The complexity and criticality of the B-52 Bypass Ducts and the associated processes and facilities necessary to overhaul them requires engineering source approval, therefore, B-52 Bypass Duct overhaul will never be suitable for full and open competition. While future competitive procurement is a possibility, it requires substantial time investment for interested parties to become qualified and verified through the

SAR process.

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

XI. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING

SUBSEQUENT ACQUISTIONS FOR THE SUPPLIES OR SERVICES REQUIRED

The 424 SCMS will continue to monitor the marketplace for repair source development. The

Government will continue to synopsize future requirements IAW FAR 5.201, rescreen the item, an attempt to acquire the data necessary to qualify additional sources. Two years prior to contract expiration the 424

SCMS will engage with Merrill requesting the sale/licensing of proprietary data, rescreen the items and monitor the market place by posting a sources sought notice to FEDBIZOPS.

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

XII. CERTIFICATION BY THE CONTRACTING OFFICER

The Contracting Officer's signature on the coordination and approval document evinces 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. CERTIFICATION BY THE TECHNICAL/REQUIREMENTS PERSONNEL

By their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified as accurate and complete all supporting data, which is their responsibility, contained herein IAW FAR 6.303-2(c).