JA - F108 Fuel Gear Motor - Updated 26 June 19_Redacted.pdf

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

NEGOTIATION SENSITIVE

March 2018 NEGOTIATION SENSITIVE Page 1 of 6

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.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition:

Contracting Activity: AFSC/PZAAB

Purchase Request / Local ID Number:

Program / Project (and PE, if applicable): F108 Fuel Gear Motor

Program Type (PEO or Other Contracting): Other Contracting

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

16 Jul 2019

Project Lead / Program Mgr / Requiring Activity

Signature

Date

16 Jul 2019

Contracting Officer

Signature

Date

23 Jul 2019

Local Legal Reviewer Signature

Date

23 Jul 2019

Chief of the Contracting Office (COCO) Signature

APPROVAL (AFFARS 5306.304(a) )

Date

23 Jul 2019

Competition Advocate Signature

March 2018 NEGOTIATION SENSITIVE Page 2 of 6

I. Contracting Activity.

United States Air Force

AFSC/PZAAB

3001 Staff Drive Tinker AFB, OK 73145

Purchase Request (PR)

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 new follow-on, firm-fixed price, commercial, requirements-type contract for remanufacture. The contemplated contract is for the remanufacture of the F108 Fuel Gear Motor from Eaton Corporation, Commercial and Government Entity (CAGE) Code: 59875. This is not a bridge contract effort. A five-year requirements type contract with a one-year basic, and four one-year options is considered appropriate for this acquisition. The total estimated value of this award is with an estimated award date of 10 Jan 20.

Previous Contract Number: FA8122-14-D-0001

Date of Award: 29 Jan 14

Completion Date: 28 Jan 19

Basis of Award: Competitive

Previous acquisition indicated two sources, Eaton and CFMI - however only Eaton submitted a proposal. The contract was awarded in accordance with DFARS 215.371-3(b). CFMI is not qualified to remanufacture the Fuel Gear Motor.

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

The anticipated contract is for remanufacture of the following:

INPUT NSN: 3010-01-141-5947PN, 3010-01-229-1008PN, 3010-01-367-2917PN

OUTPUT NSN: 3010-01-367-2917PN

INPUT P/N: 396800-6, 396800-7, 396800-8

OUTPUT P/N: 396800-8

Noun: Fuel Gear Motor Engine: F108 Aircraft: KC135

ITEM DESCRIPTION: The Fuel Gear Motor consists of two bearing plates and a gear housing and motor. This item is part of the F108 Bleed Valve.

FUNCTION: The Fuel Gear Motor controls the position of engine bleed valves. The Fuel Gear Motor is a positive displacement gear driven by high pressure fuel.

Funds anticipated for this action are

BEST ESTIMATED QUANTITY & COST:

PR Line Item 0001: Repair F108 Fuel Gear Motor

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Year Dates BEQ Unit Price Estimated Dollars Basic 10 Jan 20 - 09 Jan 21 Option I 10 Jan 21 - 09 Jan 22 Option II 10 Jan 22 - 09 Jan 23 Option III 10 Jan 23 - 09 Jan 24 Option IV 10 Jan 23 - 09 Jan 25 Estimated CLIN Total Dollars

PR Line Item 0002: Accident/Mishap Investigation Year Dates BEQ Unit Price Estimated Dollars Basic 10 Jan 20 - 09 Jan 21 Option I 10 Jan 21 - 09 Jan 22 Option II 10 Jan 22 - 09 Jan 23 Option III 10 Jan 23 - 09 Jan 24 Option IV 10 Jan 24 - 09 Jan 25 Estimated CLIN Total Dollars:

PR Line Item 0003 Description: Contract Data Requirements List (CDRL), as follows: Not Separately Priced (NSP) A001: Contract Depot Maintenance (CDM) Production Report A002: Tear-down Deficiency Report A003: Report of Shipping and Packaging Discrepancy (Supply Discrepancy Report (SDR)) A004: Deficiency Reporting A005: Comprehensive Engine Management System (CEMS) - AF Form 1534 A006: Test Inspection Report A007: Counterfeit Prevention Plan (CPP) A008: Commercial Asset Visibility Air Force (CAV AF) Reporting A009: Government Property Inventory Report

Each of the reports listed above are provided IAW PR Line Item 0003; however, no tangible items or items to be used for future development, such as drawings, will be provided under this line item. Therefore, it is NSP.

Due to the circumstances described below in Sections V, IX, and XI, there are no additional 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)(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 is a next iteration firm-fixed price, commercial, requirements-type contract for continued remanufacture

March 2018 NEGOTIATION SENSITIVE Page 4 of 6 of highly specialized equipment. This part is a highly complex Flight Safety Critical Part (FSCP) that involves complex remanufacture processes that affect the integrity and durability of the Fuel Gear Motor. Possibility of failure would be unacceptable from the standpoint of safety for personnel and/or equipment. The cognizant engineering activity has determined that data to define and control reliability limits cannot be obtained nor is it possible to draft adequate specifications for this purpose. Pre-Award Qualifications Requirements (QRs) are required IAW DFARS 209.270 to assure quality and durability, engineering input has determined that RQR-PSD-A Basic Revision is the applicable QR. Therefore this acquisition is for continued performance of a highly specialized nature.

This item is source controlled to Eaton Corporation, CAGE 59875. Technical data is proprietary and special tooling/test equipment/facilities are required to remanufacture the Fuel Gear Motor. Government data/data use rights, or manufacturing knowledge are not available to permit development of a competitive bid package. Eaton Corporation possess unique capabilities derived from knowledge and expertise gained during previous remanufacture of this item. This remanufacture will be the continued production of a highly specialized part for a major system. Eaton Corporation was awarded the previous contract on 29 Jan 14.

A request for the data rights was sent to Eaton Corporation on 27 Mar 19 and denied on 2 April 19. The 421st SCMS believes that an award to any other source would result in both duplication of costs and unacceptable delays in fulfilling the Air Force's requirement. The development of a new source for remanufacture procedures without detailed technical data and/or technical manuals is impossible without extensive and costly reverse engineering. A cost estimate to complete this project has not been generated due to the unknown nature of some of the reverse engineering project's elements including but not limited to, securing government purpose rights, obtaining missing data, lack of historical project cost information for similarly complex equipment and the scope of qualification testing, which is required to ensure no impact to the item approved technical baseline and airworthiness certification. When considering other complex reverse engineering efforts undertaken, developing repair capability for this part without any current supporting technical data would be a very high risk endeavor that exceeds . Further, funding has not been requested or approved at this point, and the support posture of this part would not elevate the proposed reverse engineering effort to the level at which funding likely would be approved or budgeted without a positive return on investment. Any potential reverse engineering effort would take a minimum of 10 years based on previous sustaining engineering efforts. Although there has not been one specific named effort, there have been several efforts revealing the following results. Reverse engineering of single components have taken approximately 9-18 months. The Fuel Gear Motor is an assembly that contains over 300 components. Some components will be bench stock items that do not need to be reverse engineered;

however, a majority will require investigation. If component evaluations are processed concurrently, 10 years is the minimum time that would be required to complete the effort. This time-frame includes the budget request period, purchase request processing, contract negotiation and award, period of performance, qualification testing of the reverse engineering process and source qualification. The government does not own the data to the Technical Orders or to the blueprints. To reverse engineer the assembly, the internal components would need to be reverse engineered and approved prior to the reverse engineering of the assembly. Since the assembly affects key performance parameters, testing to include operational and environmental equivalents must be developed and approved, which include an actual engine test, or flight service evaluation. This extended time-line to develop new currently unidentified sources, would drive unacceptable delays in fulfilling the Air Forces' requirements.

CFMI is the Original Equipment Manufacturer (OEM) for the F108 engine and does not currently have an approved SAR package for the Fuel Gear Motor. Eaton Corporation is the OEM vendor for the F108 Fuel Gear Motor. Eaton Corporation is the only approved source. Accordingly, Eaton Corporation is the only firm capable of providing the described supplies in Section III above without U.S. Air Force experiencing substantial duplication of costs and unacceptable delays in fulfilling its requirements.

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VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

A Sources Sought Synopsis (SSS) was conducted during market research. The SSS was posted on the Federal Business Opportunities (FedBizOpps) website under F108 Fuel Gear Motor NSN 3010-01-141-5947PN 3010-01-229-1008PN 3010-01-367-2917PN on 6 Sep 18 with a response date of 21 Sep 18. Eaton Corporation was the only vendor to respond. Approved sources are listed in Section X below. In accordance with FAR 5.201, this requirement will be synopsized and the Request for Proposal (RFP) posted on the FedBizOpps website.

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. IAW FAR 15.403-1(b)(3), the contractor is not required to submit Certified Cost or Pricing Data. A detailed price analysis will be performed to ensure negotiated prices are fair and reasonable to the Government. In determining price reasonableness, the Contracting Officer may rely on information such as established catalog or market prices or previous contract prices available within the Government, from sources outside the Government other than the potential source or, if necessary, information other than cost or pricing data from the potential source. The Contracting Officer may request a technical evaluation from the Defense Contract Management Agency (DCMA) to aid in the evaluation of the contractor's proposal if necessary. The Contracting Officer may seek 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 was conducted September 2018 - April 2019, in accordance with FAR Part 10 advising industry of the pending acquisition and soliciting inquiries from interested parties.

Research included SSS (see VI above) internet searches, FedBizzOpps, Government contacts, contacting known sources, and the previous repair contract for the same item. This research revealed, as to date, there is no other source that can remanufacture the F108 Fuel Gear Motor other than Eaton Corporation.

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

The Government realizes that it has unlimited rights to form, fit, and function data (including source qualification data) as well as data related to operation, maintenance, installation, and training. However, such rights are insufficient to satisfy the current need. Access to production level drawings and remanufacture data is necessary to accomplish the tasks. Efforts by the Government, email requests dated 27 Mar 19, to acquire a license/data from the OEM have been unsuccessful. Eaton Corporation responded, via email on 2 Apr 19, with having no interest in selling the data rights to the Fuel Gear Motor to the U.S. Government at this time. The known source has the ability to remanufacture this item and failure to obtain the items requested in this action will adversely impact the mission and War Readiness Engine (WRE) levels in support of the Air Force mission.

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

Eaton Corporation CAGE: 62452 111 Merchant Street.

Cincinnati, OH 45246-3730

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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 requested data rights from Eaton on 27 Mar 19 via email. On 2 Apr 19, Eaton notified the Government of having no interest in selling data rights to the U.S. Government at this time. Therefore refusal by the Sole Source contractor to provide or license data as well as the unacceptable delay of developing additional sources per Sections V, there are no known additional actions which can be taken to remove barriers to competition and therefore, specific actions and milestones cannot be established.

The previous contract had two qualified sources, and only one submitted a proposal. No proposal was received from CFMI. The contract was awarded in accordance with DFARS 215.371-3(b).

XII. Certification by the Contracting Officer.

The contracting officer's signature on the Coordination and Approval Document evidences that he has determined this document to be both accurate and complete to the best of his 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).