FD20202001044_Redacted.pdf

FD2020-20-01044

B. Total estimated cost is: . This estimate is based on USAF mission requirements as computed by the D200 Requirements Determination System. 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 Hydro-Aire, Inc. Per the 417 SCMS/GUEA Engineer, the B-52 Brake Metering Valves are considered highly specialized because the geometry, materials and processing requirements are specific to the B-52 landing gear system. If the wrong materials, processes or geometry are used for the Brake Metering Valve Assembly, it could be ineffective, unreliable, or both. Therefore, this acquisition will be for the procurement of highly specialized assets.

B. The Air Force does not own the data rights as Crane Hydro-Aire maintains proprietary ownership of the data associated with this asset. On 10 December 2020 a data rights request was sent to Crane Hydro-Aire (Cage Code 81982) to provide a no-cost itemized ROM for the data sale/license rights required to produce the anti-skid valve, which included unlimited license rights, government purpose rights, form, fit and function rights, and operations, maintenance, and installation data. On 10 December 2020 a response to the data rights request was received from Mike Agnew, Western U.S. Regional Business Manager for Crane Aerospace. Mike Agnew indicated that Crane/Hydro-Aire is not willing to sell the data rights.

The government does not possess the design, data, or license rights required to allow full and open competition for the manufacture and procurement of the B-52 Brake Metering Valve.

C. The 417 SCMS/GUEA Engineer has determined that reverse engineering costs to develop a qualification package and encourage competition are estimated to exceed

Based on this cost it would take over 137 years to break even. The parameters for this component are limited to the Original Equipment Manufacturer (OEM) with the designs, data and drawings created at Crane Hydro-Aire’s own expense.

Since the data required to manufacture the B-52 Brake Metering Valves is limited to Crane Hydro-Aire, interested vendors would have to be willing to invest the time, funding and manpower required to reverse engineer the entire B-52 Brake Metering Valve at their own expense.

D. Although Ogden Logistics is listed on the approved sources list, the government does not intend to solicit them for this procurement for the following reasons. Ogden Logistics does not have access to the proprietary tooling needed in order to manufacture the B-52 Brake Metering Valve. According to procurement history Ogden Logistics has never provided this item to the government.

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 was posted to Beta.sam.gov on 20 January 2021. The only response received by the contracting office was a response from the OEM, Hydro-Aire, Inc.

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: 417th SCMS engineers regularly pursue discourse with industry manufacturers who may be interested in reverse engineering, or redesigning the B-52 Brake Metering Valve Assembly in an effort to expand the manufacturing base.

Furthermore, the 417th SCMS IPTs regularly inquire approved manufacturers as to the possibility of sharing or selling data rights to proprietary technology, designs, or processes utilized in military aircraft landing gear manufacturing.

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.

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

1. On 04 Nov 2020 a review of commercial catalogs, company literature, proprietary data rights and individual experience was initiated by IPT members. The review indicated no other alternate commercial item or non-developmental item (NDI) will meet the requirement, nor can the requirement be modified to permit use of existing commercial items or NDIs.

2. Contacted knowledgeable individuals in Government regarding market capabilities to meet requirements. The USAF IPT consisting of the B-52 LMS Shelly Jackson, Equipment Specialist Adam Evans, Item Manager Gerald Begay, and System Engineer Celina Lopez, through market research and years of combined professional knowledge of the B-52 weapon system, have concluded with a high level of confidence that there are no additional sources capable of meeting the government’s needs.

3. On 04 Nov 2020 a review of the procurement histories for this item. NSNs identified

Hydro-Aire Inc., Cage Code 81982, as being the only manufacturer utilized for procurement of this item.

4. On 04 Nov 2020 the Government’s Purchase Request Process System (PRPS) was also searched using the item’s NSN, in which the results showed the only approved and viable source as Hydro-Air, Inc., Cage Code 81982. Additionally, the 761 AMC/AMSC Screening Analysis Worksheet indicated Hydro-Aire, Inc as the only manufacturing source that is actually capable of repairing this item.

5. On 04 Nov 2020 a search and review of the below internet sites was accomplished in which no additional manufacturing sources were identified.

- Google (http://www.google.com)

- ThomasNet (http://www.thomasnet.com)

- Boeing (http://www.boeing.com)

- Airbus (http://www.airbus.com)

C. The 761 screening action for NSN 1630-01-240-3373. Part Number 8631500-10, was reviewed for consistency. No discrepancies were found and only Hydro-Aire, Inc. was identified as an approved source.

D. 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 non-developmental 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:

The 417 SCMS/GUMC team contacted Mike Agnew at Crane Hydro-Aire (Cage Code 81982). on 10 Dec 2020 regarding data rights status to NSN 1630-01-240-3373, P/N 8631500-10 Crane Hydro-Aire stated that they are unwilling to sell or provide government use rights to this data. Crane Hydro-Aire owns the technical data sufficient to manufacture the parts and is unwilling to sell or give permission to the government to use such data for a competitive procurement.

The following companies were contacted in efforts to have more than one competitor in the form 761 SAW: Parker-Hannifin, Sargent Aerospace, and Thomas Instruments. Parker was contacted in 09 SEP 2020 and stated they were not willing to support the B-52 Brake Metering valve at the moment. Sargent Aerospace was contacted on 06 NOV 2020 and the Government received no response back from them. Thomas Instruments was informed that the Government does not own the rights to the drawing or data for Crane’s Brake Metering Valve drawing and would need to provide a technical package for further approval on 19 NOV 2020. Thomas Instrument was interested in submitting a qualification package and requested to loan sample parts in order to conduct dimensional measurements as part of a reverse engineering effort. Due to parts unavailability and time constraints, this request was not met.

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:

The Air Force regularly inquires the manufacturers in regards to sharing or selling the proprietary data rights for use in free and open solicitations. Furthermore, the Air Force regularly performs analysis to determine the feasibility and cost effectiveness of reverse engineering the proprietary technology.

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)).