Redacted JA 25D0002.pdf

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

NEGOTIATION SENSITIVE

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United States Air Force

AFSC/PZAAB

3001 Staff Drive Tinker AFB, OK 73145 Purchase Report (PR) #: FD2030-23-01369

The purpose of this commercial class J&A is to authorize the use of other than full and open competition procedures to obtain the next follow-on, Firm-Fixed Price (FFP), Indefinite Delivery Requirements Type Contract. This acquisition is not a bridge contract. The contemplated contract is for Level II repair, as defined in the Performance Work Statement (PWS), of the J85 Main Engine and Accessory Gearbox Bearings in support of the T-38 aircraft with Bearing Inspection Incorporated (BII), henceforth known as BII Commercial and Government Entity (CAGE) code: 09111.

NSN: 3110012533236OK/PN: 5014T13P06 - The Bearing, Roller, Cylindrical functions when it reduces friction.

NSN: 3110013597143OK/PN: 5045T46P02 - The Bearing, Ball, Annular functions when it is used as internal support of spur gear shaft in PTO housing.

NSN: 3110006185880OK/PN: 327B430P1 - The Bearing, Roller, Cylindrical functions when it is used as the J85 PTO Radial drive shaft upper bearing.

NSN: 3110008254869OK/PN: 327B622P1 - The Bearing, Ball, Annular functions when it supports the Axis D gear shaft.

NSN: 3110008256048OK/PN: 841B585P1 - The Bearing, Roller, Cylindrical functions when it supports the internal position of the Axis A gearshaft.

NSN: 3110008265078OK/PN: 841B772P1 - The Bearing, Roller, Cylindrical functions when it supports the internal position of Axis F gearshaft.

NSN: 3110009898932OK/PN: 4002T82P01 - The Bearing, Roller, Cylindrical functions when it supports the internal position of Axis B gearshaft.

NSN: 3110010538959/PN: 5040T17P01 - The Bearing, Ball, Annular functions when it supports the engine from the number 2 position.

NSN: 3110012955754OK/PN: 5053T80P04 - The Bearing, Ball, Annular functions when it is used as internal support for Axis E spur gearshaft.

NSN: 3110012782945OK/PN: 6051T94P01 - The Bearing, Roller, Cylindrical functions when it supports the compressor rotor front spool while the engine is in operation.

NSN: 3110006181388OK/PN: 327B431P1 - The Bearing, Ball, Annular functions as the PTO Drive Assembly Bearing.

A class J&A is appropriate based on the expectation that there will be multiple task/delivery orders generated from the basic contract. Because the task/delivery orders will be authorized by the basic contract, the orders will be for in-

August 2023 NEGOTIATION SENSITIVE Page 3 of 9August 2023 NEGOTIATION SENSITIVE Page 3 of 9 scope work. In accordance with (IAW) Federal Acquisition Regulation (FAR) Part 16, a one-year base and four one-year option periods are appropriate for this acquisition.

The estimated total value of this acquisition is $5,201,412.37 with a projected award date of 31 October 2024.

Previous Contract Number: FA8122-19-D-0009 Contractor Name: Bearings Inspection Inc.

Period of Performance: 31 October 2019 - 30 October 2024 Basis of Award: Sole Source

This acquisition will be a follow-on, commercial repair effort of the J85 bearings. Under the contemplated contract, BII will help maintain the J85 engine by inspecting and repairing the J85 Main Engine and Accessory Gearbox Bearings.

Estimated Ordering Period and Dollars for this Service Contract:

One-year Basic: October 2024 - October 2025 Four one-year Options: October 2025 - October 2029

Appropriation: 97X4930 for all Contract Line Item Numbers (CLINS)

Contract Summary Year Estimated Period Best Estimated Estimated Dollars of Performance Quantity (BEQ) Basic Oct 24 - Oct 25 Option I Oct 25 - Oct 26 Option II Oct 26 - Oct 27 Option III Oct 27 - Oct 28 Option IV Oct 28 - Oct 29 6 Month Extension of Services Total Contract Oct 24 - Oct 29

*Each year above includes for O&A ( for 6 month extension)

PR line item summary is as follows:

Estimated Delivery: The estimated delivery is 40% of delivery order quantity to be delivered 30 days after receipt of order, 30% in 60 days, and the final 30% in 90 days.

PR Line Item 0001 - Repair of NSN: 3110-01-253-3236OK P/N: 5014T13P06 - Noun: Bearing, Roller, Cylindrical Year BEQ Unit Price Estimated Dollars Basic Option I Option II Option III Option IV 6 Month Extension of Services Total

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PR Line Item 0002 -Repair of NSN: 3110-01-359-7143OK P/N: 5045T46P02 -Noun: Bearing, Ball, Annular Year BEQ Unit Price Estimated Dollars Basic Option I Option II Option III Option IV 6 Month Extension of Services Total

PR Line Item 0003 -Repair of NSN: 3110-00-618-5880OK P/N: 327B430P1 -Noun: Bearing, Roller, Cylindrical Year BEQ Unit Price Estimated Dollars Basic Option I Option II Option III Option IV 6 Month Extension of Services Total

PR Line Item 0004 -Repair of NSN: 3110-00-825-4869OK P/N: 327B622P1 -Noun: Bearing, Ball, Annular Year BEQ Unit Price Estimated Dollars Basic Option I Option II Option III Option IV 6 Month Extension of Services Total

PR Line Item 0005 -Repair of NSN: 3110-00-825-6048OK P/N: 841B585P1 -Noun: Bearing, Roller, Cylindrical Year BEQ Unit Price Estimated Dollars Basic Option I Option II Option III Option IV 6 Month Extension of Services Total

PR Line Item 0006 -Repair of NSN: 3110-00-826-5078OK P/N: 841B772P1 -Noun: Bearing, Roller, Cylindrical

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Option II Option III Option IV 6 Month Extension of Services Total

PR Line Item 0011 -Repair of NSN: 3110-00-618-1388OK P/N: 327B431P1 -Noun: Bearing, Ball, Annular Year BEQ Unit Price Estimated Dollars Basic Option I Option II Option III Option IV 6 Month Extension of Services Total

PR Line Item 0012 - Contract Data Item Report Year BEQ Unit Price Estimated Dollars Basic Option I Option II Option III Option IV 6 Month Extension of Services Total

PR Line Item 0013 - Over and Above Year BEQ Unit Price Estimated Dollars Basic N/A Option I N/A Option II N/A Option III N/A Option IV N/A 6 Month Extension of Services Total

. This percentage was used based on historical inflation rates across squadron contracts. It is understood that the overall Unit Price and Total Estimated Price's will increase like everything else has for future work. We are not anticipating any Intellectual Property (IP) pricing; therefore, the CLIN structure does not include separately priced CLINs for IP or IP rights. This J&A covers all contract actions including options, task orders and delivery orders for CLINs detailed in the CLIN table above.

Developing competition within this period of performance would not be feasible.

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The purpose of this follow-on contract is for BII to provide Level II repair of the J85 Main Engine and Accessory Gearbox bearings, this includes 11 NSN's. As such, this service requires a qualified source to ensure continuity of operation and mission. BII, is currently providing this service successfully completing task orders on contract FA8122-19-D-0009. BII is the only contractor determined to have the capability to provide this service at this time.

This acquisition is subject to prequalification requirements IAW AFMCI 23-113. Therefore, this is a follow-on contract for the continued performance of a highly specialized service.

Since this part requires engineering source approval by the design control activity to maintain the quality of the part, BII is the only feasible contractor for this effort. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source require acquisition of the part from the approved source. An alternate source must qualify in accordance with the design control activity procedures, as approved by the cognizant government engineering activity. When qualification requirements are established IAW FAR Part 9, AFMCI 23-113 provides the procedures for qualification of new manufacture and repair sources to ensure Source Approval Requests (SAR) are submitted with complete information and evaluated thoroughly and consistently. Per AFMCI 23-113, Repair Qualification Requirements (RQR) are in place for this acquisition and are required for Critical Safety Items (CSI). As the OEM, BII is the only qualified source for this effort. A Sources Sought Synopsis was posted for 30 days, no responses received, therefore, this acquisition will be a follow-on contract for the continued performance of a highly specialized service.

The 421 SCMS believes that award to any other source would result in unacceptable delays in fulfilling the Air Force's requirement. Award to another source would require receipt of a SAR for each NSN, followed by review, evaluation, and approval of the SAR. The qualification approval process takes in excess of two years after a vendor submits a SAR. Such a delay would disrupt the availability of parts to the J85 Engine, thereby leaving the Air Force unable to meet critical mission requirements and hampering the Air Force. Aircraft will be grounded, and the Government will experience unacceptable delays.

Accordingly, BII is the only company capable of providing services described in Section III above without the U.S.

Air Force experiencing unacceptable delays in fulfilling the Air Force's requirement.

The Source Sought Synopsis (SSS) was posted on the https://sam.gov website on 24 October 2023 under reference number FD20302301369 with a closing/response date of 24 November 2023. No responses were received from this request.

This requirement will be synopsized in https://sam.gov as a notice of proposed contract action IAW FAR 5.201.

The Small Business Office (SBO) has confirmed as of 15 December 2023 that no other companies have submitted a SAR package, nor is there any SAR package in the evaluation process.

The Contracting Officer will ensure that the items described herein are negotiated at a fair and reasonable price to the Government. IAW FAR as supplemented, the contractor will be required to submit Certified Cost or Pricing Data and/or Other Than Certified Cost or Pricing Data, as required. A detailed cost analysis or price analysis will be

August 2023 NEGOTIATION SENSITIVE Page 8 of 9 performed. The Defense Contracting Management Agency and/or Defense Contract Audit Agency may be contacted to assist with the analysis and will assist with post-award management throughout the life of the contract.

IAW FAR 10.002(b)(2), market research was conducted by web-search on Parts Manufacturer Approvals, IHS Haystack, Google, Bing and AbilityOne. The market research was conducted by the Program Manager between October 2023 and November 2023. Web searches were unsuccessful in revealing any additional sources for this item. Current contract has a commercial service determination and was awarded under commercial procedures, therefore, this acquisition is considered a commercial service. This item is unique to J85 military engines. The SSS was posted on https://sam.gov during the market research effort and no responses were received from the request.

Finally, there have been no additional SAR packages submitted for this requirement.

Based on the above, Bearing Inspection Inc. is the only responsible source able to fulfill the requirement.

No further information.

Bearing Inspection Inc.

4422 Corporate Center Dr.

Los Alamitos, CA 90720-2539

The 421 SCMS/GUMA will continue to monitor the marketplace for potential sources. The Government will continue to synopsize qualification requirements for potential sources, periodically screen the item for changes in data and source availability and encourage submission of SAR packages by potential contractors in order to competitively procure these items in the future.

In addition, to lower barriers for any potential new vendors, the Government has undertaken actions to streamline the SAR evaluation process to the degree allowed under Air Force policy and regulation, as well as develop tools to create more visibility around SAR submission and its benefits. Under this effort, work has begun to develop tools and guidance aimed at providing greater assistance to industry in the actual preparation and submission of SAR packages.

While these efforts are on-going, as outline above, the Government team will continue to synopsize the requirements to potential sources regularly and monitor, at least annually, for any additional submitted SAR packages.

Finally, to ensure that the Government is maximizing competition where possible, the Government will conduct annual reviews of the market for potential vendors and/or whether any additional sources have been approved for the specific NSN being ordered. If another source submits a SAR and is approved as a qualified source for any NSN during the life of this contract, the Government will immediately pursue full and open competition and discontinue use of this J&A for the identified NSN upon a competitive award. However, until such time as additional vendors elect to submit SAR packages, BII will remain the only qualified source for repair.

As evidenced by their signature, the contracting officer certifies that this justification is accurate and complete to the

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As evidenced by their signatures, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.