FD20202100353_Redacted.pdf

FD2020-21-00353

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

10 U.S.C. 2304 (c) (1) as implemented by FAR 6.302-1, Only One 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 the manufacture of the B-2 Brake Torque Tube whose design is currently owned by Honeywell, (CAGE 55284).

As per the 417 SCMS/GUMB Equipment Specialist and the 417 SCMS/GUEA Engineer, the design of the B-2 Brake Torque Tube is specifically manufactured for the B-2 aircraft’s size and energy requirements, with the drawings and data created at Honeywell’s own expense. As a result, the Government does not own the data rights and required drawings to the B-2 Brake Torque Tube. Since the drawings and data required to manufacture the B-2 Brake Torque Tubes are proprietary to Honeywell, interested vendors would be required to invest their time, funding, and manpower required for reverse engineering and follow the government qualification requirements and processes needed to become a qualified source to manufacture the B-2 Brake Torque Tubes.

Consequently, the 417 SCMS/GUMB states that based on a recent basis of estimate (BOE) dated 9 Feb 2021, award to any other source would result in a cost to the Government to reverse engineer the part that is not expected to be recovered through competition during the remaining life of the B-2.

B. Honeywell is the sole owner of the data rights and drawings with design control, authorization and documentation to manufacture for procurement the B-2 Brake Torque Tubes. The Air Force possesses a minimal amount of intellectual property, which only allows repair and minor overhaul, not manufacture. This intellectual property is written into the USAF repair manuals. As of 26 Jan 2021, the AF does not possess the OEM data licensing rights and drawings required to support a competitive acquisition buy for the B- 2 Brake Torque Tubes. An attempt to obtain top level preliminary drawings, unlimited license right, government purpose rights, form, fit and function rights, Operations and Maintenance and Installation data to allow full and open competition from Honeywell was initiated on 26 Jan 2021 by the 417 SCMS/GUMB Program Manager. Honeywell responded on 2 February 2021 that they will not sell the data rights as requested.

C. The 417 SCMS believes that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition in fulfilling the AF requirements. The 417 SCMS/GUEA Engineer has determined that reverse engineering costs are estimated to exceed as documented in the Basis of Estimate (BOE). Accordingly, Honeywell is the only source capable of providing the items described in Section III.

D. Therefore, an Acquisition Method code (AMC)/Acquisition Method Suffix Code (AMSC) of 3/R (rights to use data for contracting of this item from other sources are legally unavailable and cannot be purchased) has been assigned and approved by the OO- ALC Breakout Program. The expiration date for this AMC/AMSC is 3 February 2026.

VI. DESCRIPTION OR EFFORTS MADE TO INSURE 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 on 21 April to provide industry and opportunity to inform the government of any interest in, or the capability to manufacture subject item. The RFI/SSS closed on 5 May 2021 and no response from industry was received by the contracting office.

B. This requirement was also 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 GOVERNMENT 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 Officer will obtain certified cost and pricing data IAW FAR Subpart 15.403, when required. The final step is to include the method for determining that the price is fair and reasonable in a Price Negotiation Memorandum (PNM). This detailed documentation and justification of price reasonableness will be documented in the official PNM, to be prepared upon completion of negotiations, which will be placed in the official Procurement/Contract File.

VIII. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS,

OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED:

A. The Market Research was accomplished in accordance with FAR Part 10 by the B-2 IPT team in Jan 2021 and consisted of reviewing electronic databases and manufacturers’ websites, reviewing Honeywell’s proprietary data rights for this item and researching the procurement history of the B-2 Brake Torque Tube.

B. The IPT contacted knowledgeable people within government. The IPT Team consisted of Mr.

Jeff Watterson (Program Manager), Ms. Crystal Chase (Landing Gear Bomber Chief), Mr.

Robert Young (Engineer), Mr. Matt Zaversnik (Equipment Specialist) and Mr. Brady Schow (Item Management Specialist). A review of commercial catalogs, company literature, proprietary data rights and individual experience was initiated by IPT members. Through years of professional experience of working on the B-2 program, it is determined with a high level of confidence that no additional sources of supply are available to meet the needs of the government. The review also 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.

C. January 2021, a search and review of the below internet sites was accomplished in which no viable, authorized manufacturing source, was identified.

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

• Google (http://www.google.com)

• ILSmart (http://www.ilsmart.com)

• WorldWide Warehouse Redistribution Services (WWRS) (https://afsac4.wpafb.af.mil/WWRS)

D. January 2021, a review of the procurement histories (AFMC Form 318) for the item NSNs identified Honeywell, Cage Code 55284, as being the only manufacturer utilized for procurement of this item within the last 24 years.

E. January 2021, the Governments Purchase Request Process System (PRPS) was also searched using the items NSN, in which the results showed the only approved source as Honeywell, Cage Code 55284. Additionally, the 761 AMC/AMSC Screening Analysis Worksheet indicated Honeywell as the only source.

F. 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 or modified to meet the needs of the government.

VIII. 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 ACTION, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING

SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES REQUESTED:

This action will be synopsized in beta.sam.gov as a notice of contract action in accordance with 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 and will be given an opportunity to prove they have access to the necessary data and the ability to manufacture this part. The System Engineer will review requests from contractors interested in becoming a qualified source and provide any available information to conduct self-funded reverse engineering. New potential sources must be approved by the System Engineer prior to contract award.

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(a)(12)).

XIII. TECHNICAL REQUIREMENTS PERSONNEL 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)).