17_GFM.pdf

DEPARTMENT OF THE AIR FORCE

AIR FORCE LIFE CYCLE MANAGEMENT CENTER

HILL AIR FORCE BASE UTAH

31 January 2020

MEMORANDUM FOR RECORD

FROM: AFLCMC/EBHJ

6044 Dogwood Ave, Bldg 1256 Hill AFB, UT 84056-5816

SUBJECT: Cartridge Actuated Devices and Propellant Actuated Devices (CAD/PAD) Purchase Request FD2020-20-50109 Government Furnished Property (GFP)

1. The CAD/PAD Office primarily provides end-item sustainment activities to include:

CAD/PAD spares procurement, field assistance, accident investigation, second source qualification and in-service engineering.

2. In accordance with DFARs PGI 245.103-70 Furnishing Government Property to contractors, the following elements were reviewed:

Element 1: In the Government’s best interest.

a. Economy – Furnishing government property is the lowest cost or price alternative. The current cost of new units is $13,800. At $6500 per unit, the remanufacture cost is 47% of the new cost.

b. Standardization – The rotary actuator is manufactured to a published standard.

The Government provided property was originally manufactured by the same vendor in accordance with their intellectual property data package.

c. Security – Government property/material is needed due to national security issues/concerns: The factor of Security is not applicable to this contract.

d. Expedite production – Government property is crucial to any remanufacturing effort. Government provided property reduces the delivery time by more than a year.

e. Scarcity – The government is the sole source of rotary actuator carcasses for remanufacture. Providing those carcasses is vital for the execution of a remanufacturing contact.

f. Maintain the industrial base – Government property is not needed to ensure future capability to obtain a particular supply item or service. The factor of maintaining the industrial base is not applicable to this contract.

g. Contract type – Government property will allow the Government to secure a contract for remanufacturing rather than a more costly new buy.

Element 2: Overall benefit. Remanufacturing cost to the government is less than half of manufacturing cost from the same, and currently sole vendor. Additional efficiency in delivery times results in an overall benefit to the Government.

Element 3: Government assumption of risk. The government property provided is past its shelf/service life and is not usable to the government. Remanufacturing these units eliminates the Government cost to demil/dispose of these explosive components. Units that are provided to the vendor that do not meet suitability for remanufacturing during the tear down inspections would be disposed of by the vendor, further reducing Government demil/disposal obligations. With more than 600 units available for remanufacture in inventory, timely delivery and replacement of defective units is not a concern for this contract. Ageing and surveillance testing would be unaffected.

Element 4: Government requirements cannot otherwise be met. Government requirements cannot be met within the same financial and time constraints. Both cost and delivery time would more than double under a new manufacture contract.

3. All GFP associated with this effort has been reviewed and evaluated for this program. IAW FAR 45.102(b), it is in the Government’s best interest to provide the GFP listed in attachments for the above listed contract.

ANDREW S. O’ROURKE, CTR, USAF

CAD/PAD Program Manager

1st Ind, AFLCMC/EBHKB

MEMORANDUM FOR AFLCMC/EBHJ

1. The Government and the contractor will review the property management processes proposed for this contract. The contractor proposed a Property Management Plan (PMP), which is located with their proposal under Tab 17 of the contract file, that discussed the practices and standards they intend to follow. The Government Program Manager reviewed the plan for adequacy and did not take any exceptions (reference Tab 26).

2. Based on the above, the determination has been made that these items are available for contractor use, each of the requirements of FAR 45.102 have been satisfactorily addressed, IAW FAR 45.102(b) providing this property to the contractor is clearly:

a. To be in the Government’s best interest;

OROURKE.ANDREW.

SCOTT.1149170088

Digitally signed by

OROURKE.ANDREW.SCOTT.1149170

Date: 2020.02.11 07:11:38 -07'00'

b. That the overall benefit to the procurement significantly outweighs the cost of administration, including ultimate disposal;

c. That providing the property does not substantially increase the Government’s assumption of risk;

d. That Government requirements cannot otherwise be met.

RYAN P. WALKER, CIV, USAF

Contracting Officer

WALKER.RYAN.PO

RTER.1250501427

Digitally signed by

WALKER.RYAN.PORTER.12505014

Date: 2020.02.11 08:46:16 -07'00'