2000469_JUSTAPPR_with_CAD_REDACTED.pdf

JUSTIFICATION FOR OTHER T HAN

FULL AND OPEN C OMPETITION

I. CONTRACTING A C T I V I T Y

United States Air Force

AFSC/PZA

3001 Staff Drive

Tinker AFB, OK 73145

Purchase Request (PR): FD2030-17-00500 USAF

FD2030-17-30870 FMS

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, firm-fixed price Requirements type contract. The contemplated contract is for overhaul services from Woodward

FST Inc. (Woodward), Commercial and Government Entity (CAGE) 65065 code. In accordance with FAR Part 16, a 3-year basic contract with two 1-year options is considered appropriate for this acquisition. The estimated total value of t his award is $7,494,653 with an estimated award date of 30 Sep 17.

Previous Contract Number: FA8121 -15-C-0002

Date of Award: 3 Mar 15

Completion Date: 3 1 M ar 1 6

Basis of Award: Sole Source

III. DESCRIPTION OF THE S U P P L I E S /SERVICES REQUIRED TO MEET

T H E A G E N C Y N E E D S

Under the contemplated contract, Woodward will provide the following services for overhaul of the Spray Ring Assemblies, of the F-15 and F-16 aircraft.

Contract Summary

Estimated Dates Estimated Dollars

Basic Oct 17 - Oct 18 $1,139,706

Basic Oct 18 - Oct 19 $1,477,608

Basic Oct 19 - Oct 20 $1,557,472

Option I Oct 20 - Oct 21 $1,659,933

Option II Oct 21 - Oct 22 $1,659,933

Total Contract Oct 17 - Oct 22 $7,494,653

PR line item 0001 (USAF and FMS)

Repair of NSN: 2915-01-550-3637

P/N: 4081806

Noun: Injector Assembly

Application: F100 Engine

Item description and function: 7 inches long X 40 inches wide X 44 inches high, weighing 11 lbs, and composed of nickel alloy. This item is designed to provide atomized fuel during augmentation.

This item is designed to provide atomized fuel for augmentation of bypass air.

Type of appropriation: 97X4930

Total estimated dollars for PR line item 0001: $

USAF Requirements:

Year

USAF

BEQ

Unit Price

Estimated

Dollars

Period of

Performance

Basic 54 $ $ Oct 17 - Oct 18

Basic 117 $ $ Oct 18 - Oct 19

Basic 129 $ $ Oct 19 - Oct 20

Option I 150 $ $ Oct 20 - Oct 21

Option II 150 $ $ Oct 21 - Oct 22

Total 600 $ $ Oct 17 - Oct 22

FMS Requirements:

FMS

BEQ

Unit

Price

Estimated

Dollars

Period of

Performance

Basic 33 $ $ Oct 17 - Oct 18

Basic 33 $ $ Oct 18 - Oct 19

Basic 33 $ $ Oct 19 - Oct 20

Option I 33 $ $ Oct 20 - Oct 21

Option II 33 $ $ Oct 21 - Oct 22

Total 165 $ $ Oct 17 - Oct 22

PR line item 0002 (USAF and FMS)

Repair of NSN: 2915-01-333-9600NZ

P/N: 4071274

Noun: Spray Ring Assembly

Application: F100 Engine

Item description and function: 5.30 inches long X 36.11 inches wide X 42.01 inches high, weigh 8lbs, and composed of nickel alloy. This item is designed to provide atomized fuel for augmentation.

Total estimated dollars for PR line item 0002: $

USAF Requirements:

USAF

BEQ

Unit

Price

Estimated

Dollars

Period of

Performance

Basic 146 $ $ Oct 17 - Oct 18

Basic 143 $ $ Oct 18 - Oct 19

Basic 147 $ $ Oct 19 - Oct 20

Option I 143 $ $ Oct 20 - Oct 21

Option II 143 $ $ Oct 21 - Oct 22

Total 722 $ $ Oct 17 - Oct 22

FMS Requirements:

FMS

BEQ

Unit

Price

Estimated

Dollars

Period of

Performance

Basic 38 $ $ Oct 17 - Oct 18

Basic 38 $ $ Oct 18 - Oct 19

Basic 38 $ $ Oct 19 - Oct 20

Option I 38 $ $ Oct 20 - Oct 21

Option II 38 $ $ Oct 21 - Oct 22

Total 190 $ $ Oct 17 - Oct 22

PR line item 0003

Over and Above

Total estimated dollars for PR line item 0003: $ (to be negotiated)

*Note: Over and Above estimate is based on historical experience of % of the current repair line items 0001-0002 price and rounded to the nearest dollar.

PR line item 0004

Contract Data Requirements List: Commercial Asset Visibility Air Force (CAV AF)

Statement of Work

Not Separately Priced (NSP)

PR line item 0005

Noun: Data – Not Separately Priced

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

IV. STATUTORY AUTHORITY P E R M I T T I N G O T H E R THAN FULL

AND OPEN COMPETITION

10 U.S.C. 2304(c)(l ), as implemented by FAR 6.302-l (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)

This acquisition will be a follow on contract for overhaul of this highly specialized service. This service provides augmented flight capability for the

F100-PW-220 engine on the F-15 and F-16 aircraft. This service is considered highly specialized because these items are critical safety components of the Fl00-

PW-220 engine, utilizing unique alloy specifications and strict overhaul tolerances.

Woodward is the only known source that has the parts, tools, test equipment, and facilities necessary to overhaul these items sufficiently to meet the Government's needs. The overhaul process involves the use of caustic chemicals used in the cleaning of the items resulting in complex environmental protection measures and high associated costs. Woodward has an established supply chain relationship with this vendor and parts on hand necessary to perform this overhaul.

The 421st SCMS believes that award to any other source would result in unacceptable delays in fulfilling the Air Force's requirements. Any other source would have to perform an Initial Production Evaluation (IPE) before being considered fully qualified. The IPE will require lab destructive and non-destructive testing to be performed and the process could exceed 5 months (15 weeks for remanufacture, 2-3 weeks for lab testing, and 2-3 weeks for cognizant engineer to evaluate lab results and document qualification results). A potential source is also required to obtain the piece parts required to complete an IPE. Both spray ring assemblies require an to accomplish repair. Since the tubes are unique in shape there are limited sources that manufactures the part, which leads to longer lead times for any source to acquire the part. It would take approximately 18 months to approve a new source. Woodward as an established supply chain relationship with manufacturers of the special tubing and parts on hand necessary to perform this overhaul.

Accordingly, Woodward is the only firm capable of providing the Spray ring

Assembly overhaul described in Section III above without the Air Force experiencing unacceptable delays in fulfilling its requirements.

See Section IX for more information.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS

ARE SOLICITED FROM AS MANY POTENTIAL SOURCES AS

DEEMED PRACTICABLE

A Sources Sought Synopsis (SSS) was posted under both InjectorAssemblies – F100-

PW-220 Augmentor Module – 2915-01-550-3637 and Spray Ring Assemblies – F100-

PW-220 Augmentor Module – 2915-01-333-9600 to Federal Business Opportunities

(FedBizOpps) on 23 Dec 16 containing the Repair Qualification Requirements

(RQRs) and Required Data List (RDL). To date, no responses have been received as a result of this posting. Additionally, as required by FAR 5.201, this requirement will be synopsized with the RQRs and RDL on the FedBizOpps website. Any interested source will be invited to submit a Source Approval Request (SAR) package. The cognizant engineer was queried for sources and concurred the only approved source for this item is currently Woodward.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT

THE ACTICIPATED 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 and/or Defense

Contract Audit Agency may be contacted to 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

As described in Section VI above, market research, in accordance with Far Part 10, was conducted by synopsis of the proposed acquisition advising industry of the pending acquisition and soliciting inquiries from interested parties. Additionally, a multifunctional team consisting of the Engineer, Contracting Officer, and Production

Management Specialist conducted further research, which was completed on 3 Oct

16, by reviewing AFMC Form 762, the subject NSNs procurement histories, and internet searches on websites such as SBA.gov and Google.com.

This research revealed that there is not a commercial process available to meet this requirement. These components 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 spray ring assembly.

There are no other qualified sources to perform this overhaul. There are several businesses, large and small, registered under the North American Industry Classification

System (NAICS) 336412 and identified under the Product Service Code (PSC) J028. To date, only one source approval request (SAR) has been received. On 5 Dec 12, Wood

Group Component Repair Service, now Doing Business As (DBA) Ethos Energy (Ethos), submitted a SAR package which was conditionally approved on 17 May 13. Ethos is required to perform an Initial Production Evaluation (IPE) before being fully approved and authorized to commence production. On 17 Apr 14, Ethos informed the Government of the costs to procure the equipment necessary to complete the IPE and the volume of work they would require to make such an investment. To date, Ethos has not completed the IPE. On 27 May 15, Ethos stated the scope of the previous contract was not enough to satisfy a business case for the workload or to even be able to be competitive.” The value of the previous contract is approximately $ and required overhaul of all five spray ring assemblies in the engine. It is comparable in value to this effort and the

Government does not expect a proposal from Ethos for this reason. The SAR package for both 762s for Zone 1 and 3 expired FY16. As a result, Industrial Mobilization was not established. The engineer updated 762 by deleting Ethos Energy as a potential source.

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

AND OPEN COMPETITION

The Government has in its possession the necessary data to qualify a new source to overhaul the item specified in the Section III. Prospective sources must build and submit a SAR package in accordance with the established Qualification Requirements and submit their information to the Cognizant Engineering Authority for review/approval. Once the SAR package is submitted and then approved, the prospective sources must accomplish all tasks associated with the IPE as stated in

Section V. See Section VIII for market research information concerning previously qualified sources. At this time, no SARs have been submitted for review.

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

THE ACQUISITION

Woodward FST CAG E Code: 65065

700 North Centennial

Zeeland, MI 49464

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 Government will continue to monitor the marketplace for overhaul source development, and will continue discussions with the OEM regarding additional approved repair sources. The Government will continue to periodically synopsize the

Repair Qualification Requirements in pursuant to FAR 9.204(a)(1).

See Section VIII for more information.

XII. CONTRACTING OFFICER'S CERTIFICATION

The Contracting Officer's signature on the Coordination and Approval Document evidences 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. 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 any supporting data contained herein, which is their responsibility, is both accurate and complete.