JA_20-1971_UCA_B-52 Engine Nose Cowl_vF-Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

FOR OFFICIAL USE ONLY

March 2020 FOR OFFICIAL USE ONLY Page 3 of 6

Type of Appropriation: 97X4930

Total Estimated Dollars for PR Line item 0002:

Year BEQ Unit Price Estimated Dollars Period of Performance

Basic 112 EA July 2020 - July 2021

PR Line Item 0003 Material / Replenishment Spares

Description: Material (FFP), as needed

Total Estimated Dollars for PR Line item 0003:

Year QTY Unit Price Estimated Dollars Period of Performance

Basic 1 LO July 2020 - July 2021

PR Line Item 0004 Additional Material / Replenishment Spares ZLI

Description: Material (CS / CPFF), as needed

Total Estimated Dollars for PR Line item 0004:

PR Line Item 0005 O&A Estimated at 10% of the repair price

Description: Over & Above (FFP) TBN, as needed

Total Estimated Dollars for PR Line item 0005:

PR Line Item 0006

Description: Data, not separately priced

Total Estimated Dollars for PR Line item 0006:

Basic 1 LO July 2020 - July 2021

Due to the circumstances described below in Sections V, VIII and XI, this item is currently organically repaired. Due to the COVID-19 pandemic, the repair shop was closed down for an extended period of time. When it was able to re-open, manning was restricted, and only a limited portion of the regular repair work could be accomplished. During this time, Mission Impaired Capability Awaiting Parts (MICAPs) and significant backorders have ensued and increased. This critical situation now warrants an external source repair contract to recoup and meet the continued demand. Therefore, it is considered appropriate to seek approval for a standalone "C" type contract with quantities outlined above. As this is a UCA and by definition a sole source environment, and approved with 848th Supply Chain Management Group (SCMS), this effort will be limited to one approved source for the acquisition of critical repair services.

IV. Statutory authority permitting other than full and open competition.

10 U.S.C. 2304(c)(2), as implemented by FAR 6.302-2, and as required by FAR 6.303-2(b)(4)

March 2020 FOR OFFICIAL USE ONLY Page 4 of 6

V. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above (applicability of authority).

The anticipated contract will be for the repair service of the B-52 left-hand and right-hand Engine Nose Cowls, NSNs 1560-00-856-9394 and 1560-00-856-9395 respectively. Historically, the B-52 Engine Nose Cowl repairs have been 100% organic since manufacturing was completed in 1986. This is the first time that the B-52 Engine Nose Cowl repairs will be performed by a contractor due to the unusual and compelling urgency of the Government's need. The function of the left and right-hand nose cowls are to protect the front of the B-52 engine. The work includes effective process control as a function of the quality of equipment and tooling, shop practices, knowledge of process-material interrelationships, and quality assurance surveillance necessary to minimize technical risk. Due to the nature of the UCA, the Government plans to limit sources based on extensive market research to Northrop Grumman due to proven excellent current and past repair of the same like item (Engine Nose Cowls) on other similar aircraft.

The Government has established Qualifications Requirements (QRs) for the B-52 engine nose cowls. Prospective sources shall 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. Northrup Grumman Corporation and Mission Support Inc. (MSI), are both companies that are currently approved sources for the repair of the B-52 Engine Nose Cowls. They each have a proven past repair capability of repairing similar parts on the B-52 aircraft or the same parts (engine nose cowls) on similar aircraft and are listed as approved sources on the Contract Repair Screening Analysis Worksheet (CRSAW); currently, there are no additional approved sources as this item has been 100% organically repaired since manufacturing was complete in 1986. The Original Equipment Manufacturer, Boeing, is also listed on the CRSAW as a potential source; however, they have not completed repairs recently (at least within the past five (5) years) on same or similar items and are not considered an approved source at this time. Therefore, Boeing was not deemed a viable candidate for the expedited nature of this UCA package.

Market research was processed by a joint integrated program team (JIPT) consisting of individuals in the 424th SCMS and PZABC, to include the Logistics Management Specialist, Equipment Specialist, Engineers, Production Management Specialist, Program Manager, and Procuring Contracting Officer and Specialist. The Contracting Officer and 424th SCMS has determined that the best plan forward is to utilize a UCA and therefore limit to one source. The process included receiving Rough Orders of Magnitude (ROMs) and in-depth requests for information (RFI) from both Northrup Grumman and Mission Support, Inc., followed by a technical and ROM evaluation from the JIPT. The team took into account past performance on contracts by utilizing the Contractor Performance Assessment Reporting System (CPARS) to review past performance on similar contracts. The team also considered the ROMs provided in terms of pricing; however, price was not the only concerning factor due to this being a UCA with unusual and compelling urgency, and not a competition based on cost.

The Government team determined Northrup Grumman was the only company that could meet the expedient needs of the Government

Northrup Grumman has space immediately available at their facility, trained personnel on hand who can start work immediately, and the company is able to meet and exceed the Government's required monthly output of repaired assets. Therefore, it was determined that Northrup Grumman is the approved source that best meets the overall need of the Government in this UCA environment.

The Government believes that award to any other source would result in unacceptable delays in fulfilling the Air Force's requirement. Development of additional sources to repair this item is not feasible within allowable time frames. The Government does not have technical data or test equipment/software to provide to interested contractors as this effort is put on as a dual-source and existing equipment remains in-house for the continued organic repair efforts. Any interested vendors would be required to submit a Source Approval Request (SAR) package demonstrating capacity to access the necessary data, independently develop maintenance/repair procedures, or other proof of capability.

At the present time, the Government has no intention of requesting new SAR packages before 2023, and no SAR packages have been initiated by industry. Once a SAR is requested or independently 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. If deliveries do not begin by , the 848 SCMG would further be unable to provide an adequate supply of left-hand and right-hand nose cowl units to support the B-52 fleet, March 2020 FOR OFFICIAL USE ONLY Page 6 of 6

IX. Any other facts supporting the use of Other Than Full and Open Competition.

No further information.

X. List of any sources that expressed, in writing, an interest in the acquisition.

The following sources submitted ROMs and RFIs to the Government:

Northrup Grumman Corporation (6AUZ3) 4400 Sen J Bennett Johnston Ave Lake Charles, Louisiana 70615-5157

Mission Support, Inc. (0JXZ1) Bldg Z-15 Freeport Ctr Clearfield, Utah 84016

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.

Actions to increase competition on subsequent acquisitions are currently being performed by the Contracting Officer and 424 SCMS. A PR package is currently in the early stages of development for these items, and that package will be competitive in nature. The Government is currently preparing a SSS to be posted no later than July 31, 2020 to identify additional potential sources beyond the sources listed in the CRSAWs.

XII. Certification by the Contracting Officer.

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. 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).