JA_14-50267_ATEC_(5)_Redacted.pdf

COORDINATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

ACQUISITION GREATER THAN BUT NOT EXCEEDING

PR Number(s) _ F1TEBH-14-50267____ _________________

Estimated Value: ____ ________________

Category: Other Contracting

Authority: 10 U.S.C. 2304(c) (1__)

Based on the justification provided herein, acquisition of the supplies/services is recommended using Other than Full and Open Competition (OTF&OC) using the authority cited above.

COORDINATION AND APPROVAL

Staff Judge Advocate _______________________ ($650K +)

Digitally signed by COPELAND.CONSTANCE.S.1064606693

1103770811C Typewritten Text

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated for the 404th Supply Chain Management Squadron (SCMS)/GUOBB. The contracting authority for this requirement is AFLCMC/WNKAAB. The Purchase Request number supporting this contracting action is F1TEBH-14-50267.

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

Due to the circumstances described herein, the activity requests authority to acquire the item listed in this document 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 action will result in the award of a new contract, which will be a firm-fixed price contract with a basic requirement and four options. This sole source requirement will be purchased from the following source:

ATEC Inc 12600 Executive Drive Stafford, TX 77477-3604

CAGE: 09552

Small Business

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

AGENCY’S NEEDS:

National Stock Number (NSN) 4920-01-197-5666RN, Part Number AHT56038, Pressure Test Set, is designed to examine the performance characteristics of the F100-PW-220/229 jet engines manufactured by Pratt and Whitney, as described in Technical Order 2J-F100-

94. The test set is a fully militarized and portable unit which measures, computes and displays engine air, oil, and fuel pressure parameters during organizational/intermediate level engine troubleshooting. The Pressure Test Set has the capability to store data for later recall and for down loading to other equipment. The Pressure Test Set is not a commercial item; it is used only on military F100 fighter engines.

PERIOD ESTIMATED

UNIT COST

ESTIMATED

QUANTITY

TOTAL ESTIMATED

COST

BASIC 2 EA

Option 1 1-3 EA Option 2 1-3 EA Option 3 1-3 EA Option 4 1-3 EA Total 1-14 EA

The total estimated cost of this acquisition, including all options and maximum quantities is which is based on current projected costs for supplies and derived from escalation factors applied to historical prices.

Delivery is required 240 days ARO/exercise of option, as applicable.

MIPR funds are applicable to the basic year requirement. Applicable funds will be identified at time of option exercise.

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 Sources, and No Other Supplies or Services Will Satisfy Agency Requirements.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE

USE OF THE AUTHORITY CITED ABOVE

United Technologies Corporation (UTC), Pratt and Whitney Division, is the original equipment manufacturer (OEM) of this test set and retains proprietary rights to the data.

However, ATEC has been the sole manufacturer and provider to the AF for this test set since 1997. Howell Instruments was at one time technically capable of manufacturing this item. However, they previously advised the Air Force that the circuit cards manufactured by them were determined to be obsolete for this test set and UTC had not provided them with updated drawings. They confirmed in March 2010 they have no idea of the current design of the H605 type tester as engineering revisions stopped in 1989.

History reflected in CIDS does not reflect Howell as ever having provided this test set directly to the AF.

This test set is not considered a Commercial off the Shelf (COTS) equipment. An extensive web search did not produce any other manufacturers presently providing a piece of commercial test equipment that is form, fit, and function (F3) equivalent or that could be modified to be F3 equivalent with this military-unique test set.

On 25 Sep 2014 Kevin T. Rich, Pratt & Whitney F100-PW-220 Program Manager, advised P&W is unwilling to sell the technical data package to the Government. To develop a competitive data package, a full re-engineering effort would be required. This would require extensive involvement from the F100 engine manufacturer to include providing engine performance parameters, specifications and testing parameters, information they are not willing to provide to the Government. Efforts to reverse engineer this test set for purposes of competition would require extensive duplication of cost and would create significant delays. Reverse engineering would require providing a pressure tester as well as an engine and necessary support equipment to a new manufacturer for their use in developing testing parameters or technical data. The Robins AFB Program Manager advises there are no spare pressure testers available to support a reverse engineering effort. Further, the F-100 Program Office at Tinker AFB confirmed there are no spare engines which could be provided nor do they have funding to procure a new engine to support reverse engineering efforts for this tester.

) required for any reverse engineering effort is approximately more than the estimated cost of acquiring these 14 test sets on a sole source basis from ATEC.

Also, it is determined that reverse engineering is cost prohibitive based on an economic cost-benefit study accomplished during the business case analysis (BCA) of a similar tester in scope and complexity that was designed by the Boeing Company, Saint Louis, MO from 2009 through 2011. This tester, the Secondary Power System Test Set (SPSTS), was originally designed for the South Korean Air Force and subsequently adapted to USAF use. Using an average buy rate of two per year and the 2020 Equipment Replacement System cost estimate, to buy our projected five year requirement. The resultant SPSTS effort and two (2+) years before final acceptance by the Air Force/Air Combat Command which would consume considerably more resources than our entire requirement.

Although, this aircraft engine test set supports the F-16 aircraft which has a current life expectancy to 2030, costs associated with a reverse engineering effort would result in a substantial duplication of costs which could not be recouped based on the low number of assets projected to be acquired through new buys (beyond the quantities covered by this J&A) in the future. It is anticipated that the field will be primarily repairing, not replacing units in the future.

For the above reasons, reverse engineering is not considered to be a viable/economically sound alternative and Atec is currently the only known source in possession of the requisite data required to successfully manufacture and deliver this test set and thus the only source capable of meeting our needs.

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 as required by FAR 5.201. 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 this tester 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 overall cost of this acquisition will be fair and reasonable to the Government. In accordance with FAR 15.403-4, the contractor will be required to provide 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 costs, 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 the 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

Market Research was accomplished on 26 Sep 14, as required by FAR Part 10.001 and 10.002, and has been on-going since 1997. The techniques used to arrive at market research findings are review of information from past documentation in the Program Execution and Tracking System (PETS) database, past documentation from the PRPS database, past FedBizOpps postings (which have generated no interest from new source(s)). An internet search of http://www.atec.com, http://www.howellinst.com, http://www.pratt-whitney.com , www.ILSMART.com , and www.google.com was also accomplished. The search revealed that ATEC is the latest supplier for this tester and Howell no longer supports. P&W does not build this test set and if solicited would forward the requirement to ATEC.

A small business dynamic search was conducted for any firm with keyword “F-100”, and “Engine Test”. This search revealed six vendors; however, the lack of a technical data package or a spare tester and engine for reverse engineering efforts negates consideration of these six as potential sources for this acquisition.

- Advanced Projects Research, Incorporated

- Quality Aeroparts, Inc.

- Associated Aerospace Activities Inc.

- A A A Machine Metal Stamping & Manufacturing Co Inc.

- Interorbital Systems

- Analytical Engineering, Inc.

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

UTC, Pratt & Whitney Division, retains configuration control of the F100 engine and proprietary rights to the data for this test set and are unwilling to sell the data to the Government.

This aircraft engine test set supports the F-16 aircraft which has a current life expectancy to 2030. Costs associated with a reverse engineering effort would not be recouped based on the low number of assets projected to be acquired through new buys (beyond the quantities covered by this J&A) in the future. It is anticipated that the field will be primarily repairing, not replacing units in the future. The Government will reassess the feasibility/possibility of procuring the data by elevating the request to upper management within ATEC or acquiring and providing an F100 engine to a new source in a reverse engineering scenario, if future buy requirements support it being economically in the best interest of the Government.

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)).