CAD-JA_COMBINED_REDACTED.pdf

JUSTICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

Materiel Support Contracting Division

AFSC/PZA

3001 Staff Drive Tinker AFB, OK 73145

Purchase Request (PR): FD2030-16-02457

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 commercial indefinite-delivery, indefinite-quantity requirements-type contract. The contemplated contract is for the overhaul of the F108 100 Main Engine Control (MEC) from Woodward, Inc. DBA Woodward Turbine Systems (hereinafter: Woodward), Commercial and Government Entity (CAGE) Code: 66503. In accordance with FAR Part 16, a two-year basic contract with one one-year option is considered appropriate for this acquisition. The estimated value of this award is $6,124,791 with an estimated award date of July 2018.

Previous Contract: FA8122-14-D-0007 Date of Award: 28 July 2014 Completion Date: 27 July 2017 Basis of Award: Negotiated

Note: This item was solicited in a competitive environment, however, only one bid was received. There was no previous J&A.

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

AGENCY’S NEEDS

Under the contemplated contract, Woodward will provide the overhaul for NSN(s): 2915- 01-209-9046PN and 2915-01-192-5419PN for the F108 100 MEC.

There are two (2) NSN(s) that are included in this request for overhaul. The F108 100 MEC provides control of fuel flow, variable bypass valves (VBV) and variable stator vanes (VSV) position on the engine. Additionally, the MEC schedules the proper amount of fuel during acceleration and deceleration, regulates the flow during steady state operation to

Input P/N(s): 8062-482 (9278M96P10) and 8062-469 (9278M96P09) Output NSN(s): 2915-01-209-9046PN and 2915-01-192-5419PN Output P/N(s): 8062-482 (9278M96P10) and 8062-469 (9278M96P09) Noun: Data Application: F108 Engine/KC-135R Item Description and Function: F108 100 MEC Contract CDRL IAW PWS Type of Appropriation: Not Applicable Total Estimated Dollars for PR Line Item 0004: Not Separately Priced (NSP)

Line Item 0005 Description: Over and Above Input NSN(s): 2915-01-209-9046PN and 2915-01-192-5419PN Input P/N(s): 8062-482 (9278M96P10) and 8062-469 (9278M96P09) Output NSN(s): 2915-01-209-9046PN and 2915-01-192-5419PN Output P/N(s): 8062-482 (9278M96P10) and 8062-469 (9278M96P09) Noun: Fuel Control, Main Engine Application: F108 Engine/KC-135R Item Description and Function: Over and Above work in support of PR Line Items 0001 and PR Line Items 0002 Type of Appropriation: Contract Depot Maintenance (CDM Funds), 97X4930 Total Estimated Dollars for PR Line Item 0003: To Be Negotiated

Line Item 0005: Over and Above Year Period of Performance Qty Unit Repair Cost Estimated Dollars

Basic Year I July 2018 – July 2019 TBN $0.00 TBN Basic Year II July 2019 – July 2020 TBN $0.00 TBN Option Year I July 2020 – July 2021 TBN $0.00 TBN

Total Estimated Dollars for PR Line Item 0003 TBN

Due to the circumstances described below in Sections V, IX and XI, there are no foreseeable actions that could be taken to develop competition. Therefore, it is considered appropriate to seek approval for more than one fiscal year. If other sources become known during the life of this contract, competition will be utilized to the maximum extent possible.

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), modified to reflect the procedures in FAR 13.5 in accordance with 41 U.S.C 1901.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF THE

AUTHORITY CITED ABOVE (APPLICABILITY OF AUTHORITY)

A. As the OEM, Woodward has provided the government the highly specialized commercial remanufacture under the previous negotiated contract listed in Section II.

The F108 100 MEC is a highly specialized, vital and complex Aviation Critical Application Item (CAI) and involves the intricate processes that affect the integrity and durability of the F108 100 MEC. As GEES Cincinnati and Woodward are the only known capable sources of support for the F108 100 MEC, and GEES Cincinnati has since ceased production for the F108 100 MEC, this leaves Woodward as the only qualified source and the only company with the special tooling, equipment, and technical data to satisfy the government’s need.

B. As the OEM, Woodward, is the only known contractor that has the data, expertise, and processes necessary to overhaul the F108 100 MEC sufficiently to meet the government’s requirement. The scope to overhaul the F108 100 MEC includes specific proprietary knowledge and data on certain systems and applications that are not available to anyone else, except the qualified sources. Qualification Requirements (QR) have been developed for this service that allows potential sources the opportunity to submit Source Approval Requests (SAR). As Woodward is the OEM and owns the proprietary data, the government does not have the ability to competitively solicit the overhaul of the F108 100 MEC. The data needed is not physically available and is not possible to draft adequate specifications of the overhaul for a competitive solicitation without the data. While QRs are published, the OEM is the only entity capable of approving a new source at this time.

C. The 421 Supply Chain Management Squadron (SCMS) believes that award to any other source would result in substantial duplication of cost to the government that is not expected to be recovered through competition and unacceptable delays in fulfilling the government’s requirement. It is estimated that the cost to reverse engineering this item is estimated to be greater than and the effort would take approximately

; this time period involves reverse engineering design and thorough test process to ensure its capability and safety. Delays in testing could increase both monetary and time values. The component function and design are too complex to consider reverse engineering initiatives. As this overhaul is expected to take no more than to complete, it would be time prohibitive to expend over in the pursuit of additional sources as the delay in time would not be recovered through competition in the current market conditions.

D. Woodward was contacted as recently as 13 October 2017, inquiring if the company might be interested in selling the data rights and querying if Woodward would be interested in selling the unlimited data rights. Woodward responded negatively to this request on 13 October 2017. Woodward was again contacted on 08 January 2018 to inquire if the company would be interested in selling the data rights and again Woodward responded negatively.

E. Accordingly, Woodward is the only contractor capable of providing the overhaul of the

F108 100 MEC as described in Section III above without the government experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable time and monetary delays in fulfilling its requirement.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

A. A Sources Sought Synopsis (SSS) for the F108 100 MEC was posted to the Federal

Business Opportunities (FedBizOpps) website on 16 September 2016, and closed on 05 October 2016, (under Solicitation Number: 2030-16-02457). A Sources Sought Synopsis (SSS) for the F108 100 MEC was again posted to the FedBizOpps website on 29 November 2017, and closed on 12 December 2017, (under Solicitation Number:

FD2030-16-02457).

B. The basic requirement was described in the Sources Sought Synopsis (SSS) as market research along with a draft copy of the Performance Work Statement (PWS).

C. Under Solicitation Number 2030-16-02457, No responses were received and although the government does have licensing rights, as well as, QRs and the ability to approve them, without unlimited data rights, as stated in Section V, there is only one qualified source at this time. Under Solicitation Number FD2030-16-02457, one response was received by Moteren -und Turbinen-Union GmbH (MTU), however, without data rights from the OEM, Woodward, MTU would not be able to become a qualified source.

D. In accordance with FAR 5.201, the requirement shall be synopsized and the Request for Proposal (RFP) will be posted to the FedBizOpps website.

E. A repatriation decision was made for the overhaul of the F108 MEC at the Depot. The

F108 was deemed organic via the Depot Source of Repair (DSOR) in May 1987 and the MEC is one of the remaining components to be repatriated.

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. 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

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. Market research was conducted by a multi-functional team consisting of the Engineer, Program Manager, and Production Management Specialist and completed on 08 February 2017. Market research consisted of Internet Searches and making inquiries of available Air Force data systems, such as, the Joint Engineering Data Management Information and Control System, the Military Engineering Data Asset Locater System, and the Contract Integrated Technical Information System, as well as, posting a Sources Sought Synopsis (SSS), to the Federal Business Opportunities (FedBizOpps) website on 16 September 2016 and closed on 05 October 2016 (under Solicitation Number: 2030-16-2457). This research revealed the same sole-source market condition that has existed since this part has been originally manufactured by the OEM that Woodward has been found to be the only source available to fulfill the requirement.

A Sources Sought Synopsis (SSS) for the F108 100 MEC was again posted to the FedBizOpps website on 29 November 2017, and closed on 12 December 2017, (under Solicitation Number: FD2030-16-02457). One response was received by MTU. While MTU responded to the solicitation, currently the only approved source is Woodward. For MTU to become a qualified source, a source approval package, as well as, process validation through first article testing and possible site visits would be needed. MTU would also need to purchase data rights from Woodward, and as of 08 January 2018, Woodward has declined to sell the data rights.

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

OPEN COMPETITION

No further information.

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

ACQUISITION

Woodward, Inc. CAGE: 66503 501 N 2nd Street Loves Park, Illinois 6111-5808 United States

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

Only one source is approved to repair the F108 100 MEC and no other sources have submitted SAR packages to become an approved source. The Government does not own the data required to qualify a new source. To become an approved source, companies would have to contact Woodward to provide this service to the Government. The government will continue to monitor the marketplace for potential sources, and will continue discussions with the OEM regarding additional approved repair sources.

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 IAW 6.303-2(c).