HVOF_J_and_A_Final_Revision_18_May_15_Redacted.pdf

COORDINATION AND APPROVAL DOCUMENT

Contracting Activity: AFMC OL:H PZAAB Purchase Request Number: FD2020-15-00366 Project/Program Name: HVOF Implementation Estimated Contract Cost: $3.75M Type Program: Other Contracting Authority: 10 USC 2304(c)(1), as implemented by FAR 6.302(1) Type J&A: Individual

Approved:

FD2020-15-00366

21 April 2015

Digitally signed by

MARTIN.BRAD.H.1256609564

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=MARTIN.BRAD.H.1256609564 Date: 2015.05.08 08:10:32 -06'00'

Brad Martin, 417 SCMS/GUEA, 586-6908 LW Engineering Flight Chief/HVOF Program Manager

Approved:

JONES.ASHTON.ROBERT.1235414534

OBERT.123541453

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=JONES.ASHTON.ROBERT.1235414534 Date: 2015.05.08 10:26:56 -06'00'

TSgt Ashton R. Jones, AFSC OL:H/PZAAB, 775-6966 Contracting Officer

BASSETT.MICHAEL.D.1406950111

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=BASSETT.MICHAEL.D.1406950111 Date: 2015.05.11 11:35:17 -06'00'

Michael D. Bassett

AFSC 75 ABW/JA, 586-4191

Legal Advisor

Kevin Flinders

AFSC OL:H/PZC, 777-6549

Competition Advocate

MARTIN.BRAD

.H.1256609564

JONES.ASHTON.R

BASSETT.MICHA

EL.D.1406950111

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY:

United States Air Force

AFMC OL:H PZAAB

6050 Gum Lane, BLDG 1215 Hill AFB UT, 84056 Contracting Officer: TSgt Ashton R. Jones PR Number: FD2020-15-00366

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED:

A. Upon approval to use other than full and open competitive procedures, the Air Force will issue a new contract to procure engineering services for the implementation of High Velocity Oxygenated Fuel (HVOF). Subject contract is an engineering services follow-on effort. The contract will be awarded to:

Engineering and Software Systems Solutions (ES3), Inc.

1346 S. Legend Hills Drive Clearfield, UT 84015

CAGE: 1PHL4

B. Contract type & structure: An engineering services contract for the implementation of

HVOF coatings within the 309 MX facility with an anticipated Firm-Fixed-Price arrangement will be issued. The estimated award date is 4 June 2015 with performance expected up to 31 March 2020. Estimated value is $3.75M and includes a continuous period of performance of five years from date of contract award for engineering services.

C. Type J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED MEETING THE

AGENCY’S NEEDS:

A. An engineering services contract is needed in order to assist the Air Force with the completion of implementation efforts for HVOF coatings within the 309th MX facility. A memorandum from the Under Secretary of Defense, dated 8 April 2009 directs that hexavalent chrome emissions be reduced to stay within Occupational Safety and Health Administration (OSHA) standards. This memo also directed that the Defense Acquisition Regulation Council prepare a clause for defense contracts prohibiting use of hexavalent chrome which culminated into DFARS subpart 223.73 (Minimizing the Use of Materials Containing Hexavalent Chromium). The Landing Gear Systems Engineering Group qualified and begun implementation in 2005 utilizing HVOF applied coatings for Hard Chrome Plate replacement. This effort has been ongoing for multiple years utilizing numerous engineering service contracts, all of which have been executed and performed by

ES3.

Subject engineering services require contractor support to provide HVOF coatings assistance to the 309th MX facility.

B. Total estimated cost is $3.75M. This action will utilize CSAG-S and GSD Element of

Expense and Investment Code (EEIC) 583 funds. The expected CLIN structure for the contract contains five CLINs, The first three CLINs have the Unit of Issue as Lot, Pricing Arrangement: Firm Fixed Price (FFP); one FFP CLIN for labor/services performed with progress payments, and two non-separately priced CLINs for data and data rights: The two final CLINs are both Cost Reimbursable No-Fee, one each for material and travel. This approval is for more than one fiscal year. There are no feasible actions that could be developed during the period of performance of this acquisition.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

10 USC 2304(c)(1), as implemented by FAR 6.302(1).

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF AUTHORITY

CITED ABOVE (APPLICABILITY OF AUTHORITY):

A. 417 SCMS/GUEA 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 in fulfilling the Air Force’s requirement.

B. Over the past decade, ES3 has acquired the highly specialized knowledge and skill set in order to develop the necessary deliverables this contract demands. ES3 has produced landing gear component specific application and grinding fixtures as well as customized process order layout. Additionally, in order to provide this type and level of service, ES3 generated detailed and component specific computer models to include Finite Element Analysis (FEA) and limit/ultimate load calculations. Subject follow-on contract will be executed within the 309th MX facility located at Hill AFB. This facility has multiple types of grinding, machining, and spraying equipment as well as coating and stripping methods. ES3 was required to develop each process in order to adhere to the specific equipment requirements of this maintenance facility. This highly unique and specialized process is only applicable to the unique and individual mission of the 309th MX facility which ES3 has intimate and full knowledge of. Upon completion of this contract the data will become property of USAF and the government will have unlimited usage rights to the developed equipment and data.

C. During execution of past contracts, ES3 generated component specific analysis, designed highly specialized and unique processing guidelines to be utilized on specific 309 maintenance facility equipment, and created process orders to be uploaded into the facilities data base. ES3 executed and delivered on all contract requirements. However, due to

Government facility personnel workload, full implementation was not realized. ES3 is uniquely posed to complete all implementation efforts due to the fact ES3 has completed, and is in possession of the necessary investigations and required documentation. If an additional contractor were to be utilized, all of the information, knowledge, and specific facility experience that ES3 is currently in possession of would have to be regenerated resulting in excessive amounts of duplication of work and expense for the Government.

D. ES3 has supported this effort from its inception and generated all the required analysis on components and equipment within the 309th maintenance facility. For another contractor to gain the intimate and specialized knowledge that is required on this program would necessitate an extended schedule with duplication of work. Program delays would stem from a new contractor requiring extensive schedule to evaluate current shop work practices and layout, equipment capabilities/evaluation and duplication of past prototype design/analysis.

It is estimated that approximately $1.95M in duplicative costs along with a 10-month time lost if other than ES3 is awarded subject contract. Approving this justification to have ES3 perform this program allows both cost and schedule to be minimized at its highest potential.

ES3 is the only firm capable of providing the engineering services described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling requirements.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE:

A. Sources Sought Synopsis: Posted 11 Dec 2014, Number FD2020-15-00366, closed 12 Jan

Description: To identify sources that meet Air Force requirements and possess the capability, experience, and qualifications, to provide engineering services to assist the Air Force with the completion of implementation efforts for HVOF coatings within the 309th

MX facility. Prior engineering service contracts with ES3 have been executed since 2005 for the implementation of HVOF coatings. Subject engineering services require contractor support to provide HVOF coatings assistance to the 309th MX facility.

B. Responses Received: ES3 was the sole respondent.

ES3-Response dated 12 Jan 2015, provided ES3’s technical capabilities and experience, key technical staff for the implementation of HVOF, and gave a thorough review of specifics work produced in previous contracts. All information provided was pertinent to subject solicitation and shows ES3’s intimate knowledge of program goals and objectives. No other responses were received.

C. Synopsis: This requirement was synopsized on FEDBIZOPPS as a notice of contract action

IAW FAR 5.201.

D. Other Actions: None.

E. Qualifying Country Codes: None.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE:

The following steps will be taken to ensure that the anticipated cost of this acquisition will be fair and reasonable. The contracting officer will comply with the procedures and criteria contained in Federal Acquisition Regulation (FAR) under Part 30 – Cost Accounting Standards, Part 31 – Contract Cost Principles and Procedures, Subparts 15.4 – contract Pricing; to include technical evaluations and audits, as appropriate. Additional steps to ensure price reasonableness will be under the guidance of the Contract Pricing Reference Guides; jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology. The contracting officer will obtain certified cost and pricing data IAW FAR 15.403. The final step is to include the Price Negotiation Memorandum (PNM). The detailed documentation and justification of price reasonableness will be disclosed in the official PNM, to be prepared upon completion of negotiations.

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. In addition, the 417 SCMS/GUEA conducted market research that yielded the following results:

a. HVOF technology was chosen by a consortium of DoD and commercial entities as the hard chrome plate alternative. This partnership identified HVOF as the current commercial equivalent for chrome plating. Through multiple years of technical evaluation HVOF became the only qualified alternative for landing gear coatings.

b. There is no qualified commercial available alternative utilized in industry for hard chrome plate replacement. The 417th is currently working with other commercial entities on technologies which have potential such as cold spray and magnetron sputtering, however these are still in development and not qualified for landing gear application.

c. Air Force regulations and policy dictate that any design changes must go through airworthiness qualification certification. This includes engineering evaluation and laboratory testing in accordance with applicable System Program Office (SPO) requirements. HVOF applied coatings have passed all rigorous testing and evaluations and remain the sole approved replacement for hard chrome plate.

d. Information was gathered using office corporate knowledge and experience with commercial airframes.

e. Web-based searches were utilized in researching hard chrome plate equivalencies as well as information gathered through Small Business Innovative Research (SBIR) solicitations.

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

OPEN COMPETITION:

None.

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

ACQUISITION:

ES3 was the sole respondent, see Section VI above.

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:

USAF is in the process of developing specifications to include technical details for future competition. For this effort, a sources sought synopsis was accomplished in order to seek additional interested parties for which only ES3 provided a response. Any future projects will also require this same action and depending on the outcome competition will be considered to the maximum extent practicable. The Air Force will continue ongoing market research efforts.

XII. CONTRACTING OFFICER’S CERTIFICATIONS:

The contracting officer’s signature on the Coordination and Approval Document evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief (FAR 6.303-2(b)(12)).

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 (FAR 6.303-2(c)).