JA-00293_Redaction.pdf

(CMO Control Number: 2022-007) / (Previous J&A: )

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

(JA-00293)

1. Contracting Agency:

Army Contracting Command - Detroit Arsenal (ACC-DTA) is the procuring activity responsible for this action.

2. Description of Action:

ACC-DTA intends to award a new Firm-Fixed Price (FFP) 3-year Requirements contract to Moog, Inc. of Elma, NY. This sole-source contract is anticipated to be awarded three one-year ordering periods. Current requirements are for the contractor to provide services necessary to repair two servo valves that are

The anticipated obligations are in FY 2022 – FY2025, using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services:

The hydraulic servo valves, part numbers B38736-1 and A57780-1, are electrically controlled, hydraulic fluid flow control valves

This procurement will provide repair services

The estimated quantity of servo valve repairs is shown in the table below. The total maximum estimated value of this contract is

NSN Moog PN Year 1

Estimated QTY Year 2

Estimated QTY Year 3

Estimated QTY

1650-01-211-6309 B38736-1

4810-01-221-0648 A57780-1

4. Authority Cited:

The statutory authority permitting other than full and open competition is: 10 USC 2304(c)(1) as implemented by FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”. Specifically, FAR 6.302-1(a)(2)(iii) “For DoD, NASA, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition”.

5. Reason for Authority Cited:

a) Moog, Inc. is the original equipment manufacturer (OEM) for both servo valves. It is capable of meeting the Government’s requirements without a substantial duplication of costs.

b) Moog, Inc. is the Original Equipment Manufacturer (OEM) and owns the intellectual property and technical data package (TDP) for both servo valves.

Moog has the knowledge and production capability to produce and/or source the necessary internal components, and the expertise in determining the maximum allowable wear limits permitted to restore unserviceable servo valves to fully serviceable condition.

Moog has demonstrated the ability to successfully repair/remanufacture and deliver these items to meet Government requirements on past Tank-automotive and Armament Command (TACOM) service contracts. The Government does not have the pertinent technical data for either servo valve to enable competition.

c) The Contract Specialist reached out to Moog, Inc. on January 6th, 2021, and asked if they were willing to sell the technical data package and/or data rights.

Moog, Inc. responded to the request on January 20th, 2021, and stated that the proprietary Technical Data Rights for both servo valves are not for sale.

d) The CCDC Armament Center project engineer estimated a cost of to reverse engineer the two servo valves and develop a TDP suitable for competitive repair service.

e)

6. Efforts to Obtain Competition:

Effective competition: Competition will not be pursued for this acquisition for the reasons stated in paragraph 5 above. In accordance with FAR 5.201, this procurement will be synopsized in beta.SAM.gov, and any bids or proposals received will be considered by the Government.

Subcontracting competition: Unless the contract is awarded to a small business, the solicitation and resulting contract will include FAR clauses 52.219-8, "Utilization of Small Business Concerns"; 52.244-5, "Competition in Subcontracting"; 52.219-16, "Liquidated Damages--Subcontracting Plan";" and Defense Federal Acquisition Regulation Supplement (DFARS) 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)," to maximize small business opportunities and utilization.

7. Actions to Increase Competition:

The Government does not have the pertinent technical data to enable competitive re-procurement and is taking no further action to increase competition at the prime contractor level for this procurement. Moog, Inc. is unwilling to sell the TDP and the Requiring Office will continue to monitor Moog’s willingness to sell or license rights to their proprietary TDP. The Government will continue to survey the marketplace and review the acquisition strategy, should additional information be received.

8. Market Research:

a) A Sources Sought Notice was posted to beta.SAM.gov on 2 February 2021 with a closing date of 19 February 2021. No responses were received as a result of the Sources Sought Notice.

b) Searched terms included "Moog servo valve repair”, "Moog A57780-1 servo valve repair", and "Moog B38736-1 servo valve repair".

Findings:

1. www.moog.com

Navigated to Moog’s Services/Aircraft Services Military Sustainment brochure using menu selections on its website; which identifies East Aurora, NY repair site and declares its capability to execute factory-level repair on their products.

2. www.moogglobalsupport.com/repairs-spars/factory-repairs.html

The search returned a separate URL for Moog, Inc. factory level repair information.

3. www.moogvalvepro.com

The site advertises repair capability four specific Moog servo valve series, none of which apply to Moog PNs B38736-1 or A57780-1.

4. www.precisionfluidpower.com

The URL did not work and received an error code (HTTP error 414) when accessing the site.

c) Contacted the contractor to request consideration for the U.S. Government to purchase the intellectual property.

9. Interested Sources:

To date, no other sources have expressed an interest. The notices required by FAR

5.201 will be published and any proposals received shall be considered.

10. Other Facts:

Procurement History:

a) Contract Number: W56HZV-15-D-0020 Award Date: 20 February 2015 Contractor: Moog, INC.