FD20202000441_Redacted.pdf

FD2020-20-00441-02

with an estimated unit cost of 3 in stock items at per unit for a total amount of and 8 new items a per unit for a total amount of . For a total cost of . This action will use 4930 FC04 working capital funds.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

10 USC 2304 (c) (1) as implemented by FAR 6.302-1 -- Only One (or a limited number of) Responsible Source 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 AUTHORITY CITED

ABOVE (APPLICABILITY OF AUTHORITY):

A. The above authority was selected because the requirement is for manufacture of a highly specialized component whose design is currently limited to Northrup Grumman Corporation.

As per the 417 SCMS/GUEA Engineer the T-38 Main Outer Cylinder is unique to the T-38.

It is designed and certified to Air Force Drawing 7227216-10. Per this drawing/ specification, the Main Outer Cylinder was tested and certified to perform per the T-38 design requirements, which includes failure, fatigue, stress, and corrosion analysis.

B. The Air Force does not control the design, nor does the government possess the data or the rights to the data required to manufacture the T-38 Main Outer Cylinder by any other contract other than by Northrup Grumman Corporation. The proprietary data owned by Northrup Grumman Corporation, available to the Air Force is a top-level drawing only, which cannot be used for the design or manufacture of the T-38 Main Outer Cylinder. The last attempt by the 417th to obtain data rights was on 25 January 2021, Angela Heusser, Contracts Manager for Northrop Grumman responded to the government stating Northrop Grumman is not interested in the sell or licensing of proprietary data for T-38 aircraft.

C. The 417 SCMS/GUEA Engineer has determined that reverse engineering costs are estimated to exceed for NSN 1620-00-264-0750LE, P/N: 7227216-10. Based on this cost it would take over 32 years to break even.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE:

A. A combined Request for Information and Sources Sought Synopsis (RFI/SSS) was posted to

Beta.Sam.gov on 23 December 2020. The RFI/SSS closed on 06 January 2021 and no response from industry was received by the contracting office.

B. This requirement will be synopsized in Beta.sam.gov, as a notice of contract action IAW FAR 5.201. If other 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:

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 cost and pricing data IAW FAR Subpart 15.403. The final step is to include the Price Negotiation Memorandum (PNM). This 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 a Sources Sought Synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. There were no interested sources.

B. In addition, the 417 SCMS/GUMA Integrated Product Team conducted market research that yielded the following results:

1. February 2020, a review of the procurement history for this item. The NSN identified Northrup Grumman Corporation, Cage Code 76823, as being the only manufacturer utilized in the procurement of this item.

2. Contacted knowledgeable individuals in Government regarding market capabilities to meet requirements. The USAF IPT consisting of the T-38 Program Manager, Cami Cottam, Item Manager, Lori Taylor, and system Engineer James Humpherys, through market research and years of combined professional knowledge of the T-38 weapon system, have concluded with a high level of confidence that there are no additional sources capable of meeting the government’s needs.

3. February 2020, the Governments Purchase Request Process System (PRPS) was also searched using the item NSN, in which the results showed the only approved source as Northrup Grumman Corporation, Cage Code 76823.

4. February 2020, a search and review of the below internet sites was accomplished in which no viable, authorized source, was identified:

Google (http://www.google.com) ThomasNet (http://www.thomasnet.com) ILSmart (http://www.ilsmart.com)

D. Commercial items cannot suffice for this application. The Main Outer Cylinder is specific to the T-38.

E. Based on the market research conducted, there is a high level of confidence that there are no additional sources capable of satisfying the agency's need for this proprietary item nor are there any other commercial or nondevelopmental items which could be utilized to meet needs or which could be modified to meet the needs

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

OPEN COMPETITION:

There are no existing alternatives to the current T-38 Main Outer Cylinder in the commercial market. It is concluded after this market research that the best value for the USAF is to procure this item from the current approved sources.

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

AQUISITION:

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 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)).