FD20301500906_JandA_redacted.pdf

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

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Choose the funding level for this J&A Document:

< $650K > $650K and < $12.5M > $12.5M and < $85.5M > $85.5M

Contracting Activity: AFSC/PZAAB Office, Tinker AFB OK

Purchase Request / Local ID Number: FD2030-15-00906

Program / Project (and PE, if applicable): Remanufacture of F110-129 Fuel Nozzles

Program Type (PEO or Other Contracting): Other Contracting

Authority (include full title): 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1 (a)(2) Estimated Contract Cost (including options): $565,020.00 J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

19 Jun 2015

Project Lead / Program Mgr / Requiring Activity

421 SCMS/GUMCA / (405) 736-3328

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

23 Jun 2015

Contracting Officer

Amanda Rossi

AFSC/PZAAB / (405) 734-4633

Signature

I. Contracting Activity.

Materiel Support Contracting Division

AFSC/PZA

3001 Staff Drive Tinker AFB, OK 73145

Purchase Request (PR): FD2030-15-00906

II. Nature and/or description of the action being processed.

This individual Justification and Approval (J&A) authorizes use of other than full and open competition procedures to obtain a new contract for the remanufacture of the F110-129 Fuel Nozzles, with the Original Equipment Manufacturer (OEM):

Parker Hannifin Corporation 14300 Alton Parkway Irvine, CA 92618-1814

This Sole Source J&A is for a fixed quantity contract for each of the three fuel nozzles. The award will be non-commercial under FAR Part 15. At this time, Parker Hannifin is the only known qualified source to remanufacture the F110-129 Fuel Nozzles. The estimated dollar value for this requirement is $565,020 with an estimated award date of Sep 15.

III. Description of supplies/services required to meet agency needs.

NOUN: Engine Fuel Nozzles

ENGINE: F110-129

AIRCRAFT: F16

NSN: Part Number:

2915-01-308-5486PR 6850093E1 or 9559M41G01

2915-01-347-0854PR 6900031E1 or 1755M38P01

ITEM DESCRIPTION: The General Electric F100-129 Engine Fuel Nozzles are welded assemblies that deliver carefully calibrated precisely patterned fuel spray for combustion in a gas turbine engine.

FUNCTION: The main fuel nozzle is designed to inject precisely metered fuel in a precisely shaped cone to the combustion chamber of the engine. The nozzle includes a double tube that separates primary and secondary flow. At low fuel pressure, fuel is directed through the primary metering set. As fuel pressure increases, fuel is directed through both the primary and secondary metering sets. The cone of the secondary spray is wider than the primary cone, thereby surrounding the primary spray pattern.

QUANTITY & COST:

NSN: 2915-01-347-0854PR

Year Period of Performance Best Est Qty URC Est Total Basic Oct 15 - Oct 16 200

NSN: 2915-01-308-5486PR

Year Period of Performance Best Est Qty URC Est Total Basic Oct 15 - Oct 16 660 Total $565,020

ACQUISITION HISTORY:

Date of Award Contract Awardee Total w/Options

13 August 2003 F34601-03-D-0108 Parker Hannifin $1,046,320 12 May 2008 FA8104-08-D-0015 Woodward FST $2,547,000 24 September 2009 FA8121-09-D-0016 Parker Hannifin $5,348,490

Woodward FST was awarded a non-commercial contract FA8104-08-D-0015, May 2008 based on adequate price competition. Woodward FST was not initially identified as an approved source on the 762, it was determined to be an oversight and they were added. Woodward FST was unable to perform the contract requirements as they could not make or repair cracked valves and could not obtain new valves from the OEM. Option I was not exercised due to their inability to perform. The contract expired at the end of the basic contract period. Woodward FST was removed from the 762 as a qualified source and was notified of this action.

IV. Statutory authority permitting Other than Full and Open Competition.

The Authority for this action is 10 U.S.C. 2304 (c)(1), as implemented by FAR 6.302-1 with an application pursuant to FAR 6.302-1 (a)(2).

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

Parker Hannifin has provided this highly specialized service on a sole-source contract, FA8121-09- D-0016. This fuel nozzle injects fuel to the combustion chamber of the F110-129 engines which support the F-16 Fighting Falcon. This item is considered highly specialized because this fuel nozzle injects precisely metered fuel in a precisely shaped cone to the combustion chamber. The nozzle includes a double tube that separates primary and secondary flow. At low fuel pressure, fuel is directed through the primary metering sect. As fuel pressure increases, fuel is directed through both the primary and secondary metering sects. The cone of the secondary spray is wider than the primary cone, thereby surrounding the primary spray pattern. Therefore, this acquisition will be a follow-on contract for continued remanufacturing of this highly specialized service.

The Original Equipment Manufacturer (OEM), Parker Hannifin, is the only known contractor that has the data, parts, expertise, tools and test equipment necessary to remanufacture sufficiently to meet the Government's needs. The remanufacturing data and acceptance test criteria needed to foster competition is not available to the Government presently, and it is not possible to draft adequate specifications for the remanufacture. Efforts by the Government to purchase the data use rights from the OEM were not accepted. The most recent attempt occurred on 02 April 2015 when the PCO called the OEM requesting to purchase the data rights. The OEM responded and stated they would not sell the data rights.

The 421st SCMS believes that award to any other source would result in unacceptable delays in fulfilling the Air Force's requirements. Parker Hannifin is the only qualified source for this item.

No other sources have been qualified to produce this engine component. The Government does not have the capability to qualify a source for this item. The Government anticipates a minimum of two years would be required for the OEM to process and validate an alternate supplier's approach. To the Government's knowledge, the OEM has not received any requests to qualify additional sources for this component. Delays in new procurement have the potential of causing a work stoppage of the F110 engines, thereby grounding related aircraft and leaving the Air Force unable to meet critical mission requirements. Additional information can be found in Section IX.

Accordingly, Parker Hannifin is the only firm capable of providing the supplies and services as described above in Section III without the U.S. 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 practicable.

In accordance with (IAW) FAR 5.201, a synopsis and solicitation will be posted to FedBizOpps. A Waiver of Qualification Requirements exists for the F110 Fuel Nozzles and is not required to be posted. The F110 Fuel Nozzles are source controlled. Although General Electric (GE) is the OEM of the F110 engine, Parker Hannifin is the OEM of the Fuel Nozzle. GE's blueprints state to purchase the item from Parker Hannifin because GE does not have the data to manufacture or remanufacture the item. At this time the OEM would have to qualify sources for this effort and they have not expressed a desire to qualify new sources or sell proprietary data/parts needed in the repair process.

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 remanufacture described herein is negotiated at a fair and reasonable price to both the Government and the contractor. A detailed price analysis will be accomplished. The Defense Contracting 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, market research, in accordance with FAR Part 10, will be conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. Market Research consisted of internet searches; request for ROM, sources sought synopsis and historical data. Three websites were searched by NSN, noun, and keywords with no results. A Sources Sought Synopsis was posted to FedBizOpps on 19 April 2013 with no response. On 6 April 2015, Source Development Office stated there were no pending source approval requests for this requirement at this time. On 02 April 2015 the contracting officer contacted the OEM for a ROM to purchase the data and the OEM did not approve. Proprietary data rights and the USAF's inability to acquire or develop data will not allow any new sources to become qualified or perform this effort. Through this research the USAF team has determined that no other sources can fulfill this requirement.

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

USAF has a recurring need for the remanufacture of the Fuel Nozzles. Failure to obtain the service requested will cause unanticipated loss of thrust and control of critical engine functions leading to mission abort and/or in-flight shut down. This is a Critical Safety Item (CSI). The necessary technical, manufacturing, and engineering data and rights to repair this item were not initially purchased by the Government from the OEM. It is neither cost effective nor feasible to acquire technical, manufacturing and engineering data required to develop proper qualification requirements. As a result, the Government does not possess the necessary information and equipment to qualify a new source. Therefore, no corrective actions will be considered at this time.

Currently, Parker Hannifin is the only known source having all of the required engineering drawings, source data, unique tooling and test equipment necessary to perform this repair. The component function and design are too complex to consider reverse engineering initiatives. No actions to develop competitive documents are being considered at this time.

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

Parker Hannifin Corporation (CAGE: 59211) 14300 Alton Parkway

Irvine, CA 92618-1814

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.

Competitive barriers exist for this acquisition based on nonavailability of technical data required to develop qualification requirements. The Government does not possess the necessary information nor the expertise to determine the exact requirements needed to remanufacture these nozzles.

Government engineering has acquired a waiver from the development of qualification requirements due to the proprietary data owned by Parker Hannifin. On 6 April 2015, the Source Development Office stated there were no pending source approval requests for this requirement at this time.

Proprietary data rights and the USAF's inability to acquire or develop data do not permit any further actions to remove this barrier; however, the Government will continue to monitor the marketplace for source development and continue discussions with the OEM regarding additional approved sources.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.