JA1477030NammoTalley_Redacted.pdf

FD2020-14-77030 & Various

16 Sept 2013

COORDINATION AND APPROVAL DOCUMENT

Contracting Activity: AFLCMC / EBHKB

Purchase Request Number/Local Identification Number: FD2020-14-77030 & Various

Program Name: US Air Force (USAF) B-1, F-15, U-2 and/or Foreign Military Sales (FMS) T-37, OA-37, Rocket Motor, Bottom Bail; Aerial Refueling Receptacle Ctg; Act,Rot;

Catapult; Actuator, Seat/Foot Retractor

Estimated Program Cost:

Type Program: PEO – Non-ACAT

Authority: 10 U.S.C. 2304(c) (1), as implemented by FAR 6.302-1, Only One Responsible Source

Type J&A: Class

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY:

United States Air Force

AFLCMC / EBHKB

6033 Elm Lane, Bldg. 1247

Hill AFB UT 84056-5805

Contracting Officer: Trevor Braswell

DSN: 777-0280

PR Number: FD2020-14-77030 & Various

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 the items listed in Section III below for use in the egress system in USAF

B-1, F-15, U-2 and/or FMS T-37, OA-37 Aircraft to Nammo Talley 4051 N Higley Rd Mesa, AZ

85215-1210, CAGE Code 12116.

B. Contract Type & Structure: Several new supply contracts to procure a quantity of 308 units with an anticipated Firm-Fixed-Pricing arrangement will be issued. The estimated value is

The estimated award date will be July 2014.

C. Type J&A: Class. This J&A will be used to award four (4) contracts to Nammo Talley, CAGE

Code 12116

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

AGENCY’S NEEDS:

A. Under the contemplated contract(s), Nammo Talley will provide Items 0002 – 0004 considered as “new”; Aerial Refueling Receptacle Ctg; Act,Rot; Catapult; Actuator are part of the F-15, T-37, OA-37 egress systems. This Federal Stock Class includes safety-in-f1ight explosive items consisting of a quantity of propellant (either encased in a cartridge or in molded form) and a means of activation, designed to be inserted into or attached to one or more devices to provide the energy required to operate devices requiring a time delay, or not requiring a time delay, in their operating sequence. The below listed components perform aircraft specific functions that allow the aircrew emergency egress should an ejection event occur.

B. Under the contemplated contract(s), Nammo Talley will provide Items #0001 & 0005 as

“remanufactured” defined by FAR 22.1003-6(a)(1) -- Repair Distinguished from Remanufacturing of Equipment. These items will be torn down, reworked, reassembled to furnish a totally rebuilt item, items will follow similar manufacturing processes, items are restored to original life expectancy, work performed in facility owned/operated by the contractor.

Item

NSN Name AF

QTY

FMS

QTY

Price/Unit Ext. Price

0001 1377012047692ES

Rocket Motor, Bottom Bail 14 0

0002 1377002615371ES

Aerial

Refueling

Receptacle Ctg

108 125

0003 1377008916319ES Act,Rot 0 35

0004 1377011376041ES Catapult 0 6

0005 1377015193359ES

Actuator, Seat/Foot

Retractor

20 0

0006 Data

LATR, ATP,

FAR/CAR

0007 Data ADC 1

C. The period of performance will be from contract award (estimated July 2014 through estimated delivery of parts in December 2016). Approval request is for more than one fiscal year. There are no feasible actions that can be taken to promote competition during the performance of this acquisition as described in Section V of this document.

D. Total Estimated Cost: . This estimate is based on history from contract FA8213-

11-C-0052 and FA8213-10-C-0086. This action is using appropriated 3011 and/or 3400 funds.

Contracts containing FMS actions are FMS funded requirements. All FMS requirements are based on LOA's provided through Hill Air Force Base Life Cycle Management Center Munitions Division

International Branch. The FMS countries needing these requirements have a Letter of Offer and

Acceptance (LOA) to procure CAD/PAD. All LOA requirements are identified on a Blanket Order

LOA Line with corresponding MASL's allowing procurement of items within the 1375, 1376 and

1377 Federal Stock Class. The following LOA(s) CO-D-CAK signed 26 Aug 2010, IS-CAE signed

20 Feb 2013, KS-CAT signed 01 Mar 2013 and case SR-CCZ implemented 30 Aug 2002 will not direct a source.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

10 USC 2304 (c) (1) as implemented by FAR 6.302-1, Only One Responsible Source.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS OR

NATURE OF THE ACQUISITION REQUIRES THE USE OF AUTHORITY CITED

ABOVE (APPLICABILITY OF AUTHORITY):

A. The USAF and FMS minimum needs can only be provided by Nammo Talley because they are the only approved source that has demonstrated the unique design capability, manufacturing knowledge, or technical data required to manufacture these items. These parts are critical safety of flight components and require engineering source approval by the design control activity in order to maintain the integrity of the part and escape system. This acquisition requires engineering source approval by the design control activity in order to maintain the integrity of the part. Therefore, this acquisition will be for continued production of highly specialized equipment.

B. Nammo Talley provided top level drawings for cataloging purposes only; cataloging is for assigning a National Stock Number (NSN). The United States Government (USG) has limited data rights. The last attempt to obtain the data from Nammo Talley was via email on 28 Aug 2013 by the program manager. Nammo Talley informed the USAF it is not willing to sell the Data rights, Government Purpose Rights or Form, Fit, Function data to the USG.

C. The Cartridge Actuated Device/Propellant Actuated Device Joint Program Office (CAD/PAD

JPO) believes that award 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 Air Force’s requirement.

1. The estimated cost to reverse engineer the items in Section III is and would take approximately six years to complete. The USAF has limited service returns assets to provide interested potential second source suppliers for reverse engineering activities.

2. Based on a CAD/PAD JPO twenty five year history of qualification programs, a typical qualification process can take three to four years to complete. Reverse engineering of similar components used in the USAF ACES II ejection seat took 9 months to determine overall dimensions, explosive material, and entire sub-component assemblies. In addition to ensure proper configuration management of the new part, the establishment of engineering drawings needed to produce a reproducible part took an additional 9 months. It would take

18 months to reverse engineer and minimum of 36 months to qualify a new supplier. In addition, during initial production, all vendors must submit an inert fit check unit which much be installed on actual platform to ensure their preliminary design does not have any interference or configuration problems in the overall system interface. This process normally results in a 15-20 percent redesign effort that results in a fit check unit that will be acceptable. Delay in awarding this contract could put the USG and/or FMS in a non-support resulting in the use of items in Section III outside the service life which may cause catastrophic results to the aircrew. .

D. Accordingly, Nammo Talley is the only firm capable of providing the items described in

Section III above without the USAF/FMS experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED

FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE:

A. Sources Sought Synopsis: A Sources Sought Synopsis FD2020-14-77030 was posted to

FEDBizOps (FBO) 29 Aug 2013 and closed 13 Sept 2013 requesting information to identify potential sources possessing the engineering and manufacturing knowledge for items identified in

Section III above used on B-1, F-15, U-2, T-37, OA-37 aircraft. No responses were received.

B. This requirement will be synopsized in the FBO as a Notice of Contract Action IAW FAR

5.201. All sources that request a solicitation will be provided one. If other interested sources express interest as a result of this synopsis or other action, they will be listed in the official contract file.

C. Other actions: None

D. Qualifying Country Sources: None

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED

COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE:

A. 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 Office will obtain certified cost and pricing data IAW FAR Subpart 15.403. The Final Step is to include the Price

Negotiation Memorandum (PNM). Detailed documentation and justification of price reasonableness will be disclosed in the official PNM, to be prepared upon completion of negotiations.

VIII. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS, OR

A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT CONDUCTED:

A. 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. Additional market research conducted IAW FAR Part

10 included a July 2013 query from the AFLCMC/EBHJ vendor base, industry summits and workshops. This item is not available commercially nor is any modified commercial item available that will meet the government's requirement. However this requirement is a non-developmental item (NDI) and will satisfy the government need at this time.

B. The current B-1, F-15, U-2, T-37, OA-37 Integrated Product Teams revealed that Nammo

Talley is the only vendor that currently has all of the required data and claims rights to the data needed to produce the items identified in Section III.

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:

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:

None.

XII. CONTRACTING OFFICER’S CERTIFICATION:

The Contracting Officer’s signature on the Coordination and Approval Document (CAD) evidences that he has determined this document to be both accurate and complete to the best of his knowledge and belief (FAR6.303-2(b)(12)).

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION:

As evidenced by their signature on this CAD, 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)).