Redacted_Justification_and_Approval_14-D-0021.pdf

FD2060-13-01090

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

PR FD2060-13-01090

I. CONTRACTING ACTIVITY

This Individual Justification and Approval is being executed to request authority for Other Than Full and Open Competition to supports requirements generated by the Air Force Sustainment Center (AFSC), 448 Supply Chain Management Wing (SCMW), 638 Supply Chain Management Group (SCMG), 409 Supply Chain Management Squadron (SCMS) /GUMAB. The type program this action is supporting is Other Contracting. The contracting authority for this requirement is AFSC/PZAAA located at Warner Robins Air Logistics Center. The purchase request number supporting this contracting action is FD2060-13- 01090.

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

The action being process is to obtain depot-level overhaul services for C-5 Fire Suppression System (FSS) components listed below in Section III. The action will result in the award of a new firm-fixed-price requirements contract that will consist of a basic year and one (1) one-year ordering period for a total performance period of two (2) years. Due to the circumstances described herein, the activity request authority to acquire the overhaul services using Other Than Full and Open Competition as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services will satisfy agency requirements. This sole source requirement will be acquired from the following company:

Parker Hannifin Corporation DIV Aerospace Group Headquarters 14300 Alton Parkway Irvine, Ca. 92618-1814 Cage Code: 59211 / Large Business (Facility Cage Code 92003 replaced with Facility Cage Code 3H889)

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

AGENCY’S NEEDS

Under the contemplated contract, Parker Hannifin Corporation will provide Depot-level overhaul coverage for C-5 FSS components listed below, in sustainment of the C-5 aircraft.

The depot-level overhaul to be performed requires the contractor to complete teardown, evaluation, repair, testing, procurement of components, packaging, handling, storage, transportation, as well as data collection while maintaining a prompt delivery schedule.

These services provide assets to reduce current backorders and meet quarterly demand rates that will support Air Force sorties and aircraft Programmed Depot Maintenance (PDM).

Basic Year:

NSN Est. Unit Repair Cost Best Estimated

Quantity Total Est. Cost

1680-00-425-7542 4 1680-01-070-4375 10 equipment manufacturer.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

This requirement will be synopsized on the Federal Business Opportunities (FedBizOpps) web page citing conditions, which preclude Full & Open Competition. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Although the Government does not own data to support acquisition of overhaul services from any other source, any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential for subcontracting possibilities.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE

The cost of this acquisition will be fair and reasonable to the Government. In accordance with FAR 15.403-3, the contractor will be required to provide data other than certified cost or pricing data to be used in supporting the Government’s evaluation of the proposed cost.

The proposed skill mix of labor, labor hours, types and quantities of material, other direct cost, and direct and indirect rates will be negotiated by the Government based on recommendations from the Defense Contract Management Agency (DCMA) and expert technical personnel supporting the program. The contract price will be negotiated in accordance with procedures in FAR Part 15 ensuring the ultimate cost to the Government is fair and reasonable.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS

NOT CONDUCTED

These items were designed specifically for the C5 aircraft and must meet the requirements of the C-5 Fire Suppression System and the aircraft mounting. It must be Form, Fit, & Function compatible with the current system. The system has been qualified with these particular components. Any changes or redesign would require re-qualification of the entire system. The sole source vendor, Parker Hannifin Corporation, is the only company with the technical knowledge to successfully overhaul this item.

These items are required for the C5 FSS. The items are peculiar to and will only be used on the C-5 aircraft. The items are proprietary to Parker Hannifin Corporation. The Government does not own nor have the rights to all the data required for the overhaul of these items. The previous repair contract, FA8524-10-D-0014, was a 3-year sole source requirements contract to Parker Hannifin Corporation for an estimated maximum value of $687,624.00. The Government Logistics Manager contacted a Parker Hannifin representative via e-mail on 01 Nov 2012 to determine if Parker Hannifin would be willing to sell the rights and data to the Government. A response was received on the same day indicating that Parker Hannifin was not willing to sell any proprietary data to the Government.

Three of the items were screened and coded with a Repair Method Code (RMC)/Repair Method Suffix Code (RMSC) of R3P (3: Repair, for the second or subsequent time, directly from the actual manufacturer; P: The rights to use the data needed for contract repair of this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part. This code is used in situations where the Government has the data but does not own the rights to the data.)

Two of the items were screened and coded with a Repair Method Code (AMC)/Repair Method Suffix Code (RMSC) of R3R (3: see above; R: The Government does not own the data or the rights to the data needed to contract repair of this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights.).

These parts was designed, qualified and manufactured exclusively for a military application, the C-5 heavy cargo transport aircraft. Some companies make similar equipment but these parts are not interchangeable with any part found on any other military or commercial aircraft. Engineering has determined that this item is C-5 unique and is non-commercial.

The commercial acquisition procedures outlined in FAR Part 12 (Acquisition of Commercial Items) are not applicable to this requirement.

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

OPEN COMPETITION

The right to all the data needed to overhaul these parts from additional source(s) is not owned by the Government and cannot be purchased, developed, or otherwise obtained. The Government Logistics Manager contacted a Parker representative via e-mail on 01 Nov 2012 to determine if Parker would be willing to sell the rights and data to the Government. A response was received on the same day indicating that Parker was not willing to sell any proprietary data to the Government.

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

The only available action to remove the competitive barriers to full and open competition and locate additional sources would be reverse engineering (RE) efforts to develop test equipment, tooling, and technical data. Based on previous efforts, RE could require $5- $10M in additional funding, engineering manpower (organic or contract), and take 6-7 years to develop data, equipment, and tooling, as well as validate the overhaul process. Since there is no guarantee of success, RE is an improbable solution. RE effort cannot be economically justified nor could the C-5 program successfully complete mission requirements with the extensive delays required to accomplish a reverse engineer effort.

XII. CONTRACTING OFFICER’S CERTIFICATION

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)).