JA 19-00880 v2 dated 11 Sep 19_Redacted.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

United States Air Force

AFSC/PZA

3001 Staff Drive Tinker AFB, OK 73145

Purchase Request # FD2030-19-00880

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

This individual Justification and Approval (J&A) authorizes the use of other than full and open competition procedures to obtain a new firm fixed priced (FFP), requirements type sole source contract through a partnership effort between Moog and OC-ALC 76 MXW (hereinafter OC-ALC). The contemplated noncommercial contract will be to overhaul or repair multiple B-2 Flight Control Actuators (FCAs). The Original Equipment Manufacturer (OEM) is Moog, Inc. (hereinafter Moog), Commercial and Government Entity (CAGE) code 94697. In accordance with (IAW) FAR Part 16, a 3-year requirements type contract with one 1-year basic and two 1-year options is considered to be appropriate for this acquisition. This acquisition is not a Bridge Action as defined in the Air Force Bridge Action Reduction Plan.

The estimated total value of this award is $ $57,918,487.75 with an estimated award date of May 2020.

Previous Contract Number: FA8118-15-D-0001 Contractor Name: Moog, Inc.

Cage Code: 94967 Date of Award: 8 May 2015 Completion Date: 8 May 2020 Basis of Award: Sole Source

The previous contract, FA8118-15-D-0001, was accomplished through a direct sales partnership between Moog and OC-ALC 76 MXW (hereinafter OC-ALC). Under the partnership agreement, OC-ALC provides the people using government equipment, in a government facility. Moog provides material, parts, technical expertise, and data necessary to fulfill the requirements of the full overhaul and repair maintenance concept.

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

AGENCY’S NEEDS

Under the contemplated service contract, the contractor will overhaul or repair the FCAs used on the B-2 aircraft. The FCAs control the critical positioning of a specific flight control surface in response to commands received from the Actuator Remote Terminal (ART). This contract will be accomplished through a continued partnership effort between OC-ALC maintenance and the contractor through a direct sales partnership agreement.

Under the partnership agreement, OC-ALC will provide manpower and touch labor, using government equipment in a government facility. The contractor will provide material, parts, technical expertise, and data necessary to facilitate 100 percent organic capability for the overhaul and repair of the seven NSNs identified below.

PR Line Item 0001 Overhaul of NSN: 1650-01-376-1088FW P/N: B43871-1 Noun: Flight Control Actuator Application: B-2 Item Function: Controls the critical positioning of a specific flight control surface in response to commands received from the actuator remote terminal (ART).

Item Material: aluminum, steel, rubber Type of Appropriation: 97X4930 Total estimated dollars for PR Line Item 0001:

Year Best Est

Qty. (BEQ) Unit Price Estimated

Dollars Estimated Period of Performance

Basic 9 EA May 20 – May 21 Option

9 EA May 21 – May 22

Option

9 EA May 22 – May 23

PR Line Item 0002

Overhaul of NSN: 1650-01-381-3209FW P/N: B43872-1 Noun: Flight Control Actuator Application: B-2 Item Function: To position flight control surfaces when inputs from the pilot are received.

Item Material: aluminum, steel, Teflon and rubber.

Total estimated dollars for PR Line Item 0002:

Year BEQ Unit Price Estimated

Dollars Estimated Period of Performance

Basic 16 EA May 20 – May 21 Option I 16 EA May 21 – May 22 Option II 16 EA May 22 – May 23

Contract Summary Estimated Award Estimated Dates Estimated Dollars Basic May 20 – May 21 Option I May 21 – May 22 Option II May 22 – May 23 Total Contract May 20 – May 23 $57,918,487.75

PR Line Item 0003 Overhaul of NSN: 1650-01-376-1089FW P/N: B43873-1 Noun: Flight Control Actuator Application: B-2 Item Function: Controls the critical positioning of a specific flight control surface in response to commands received from the ART.

Item Material: aluminum, steel, rubber

Total estimated dollars for PR Line Item 0003:

Estimated Period of Performance

Basic 9 EA May 20 – May 21 Option I 9 EA May 21 – May 22 Option II 9 EA May 22 – May 23

PR Line Item 0004 Overhaul of NSN: 1650-01-376-1091FW P/N: B43877-1 Noun: Flight Control Actuator Application: B-2 Item Function: Controls the critical positioning of a specific flight control surface in response to commands received from the ART.

Item Material: steel, aluminum, plastics, electrical wiring.

Total estimated dollars for PR Line Item 0004:

Estimated Period of Performance

Basic 6 EA May 20 – May 21 Option I 6 EA May 21 – May 22 Option II 6 EA May 22 – May 23

PR Line Item 0005 Overhaul of NSN: 1650-01-420-5488FW P/N: B43874-2 Noun: Flight Control Actuator Application: B-2 Item Function: Controls critical positioning of flight control surfaces.

Item Material: aluminum, steel, rubber

Total estimated dollars for PR Line Item 0005:

Estimated Period of Performance

Basic 12 EA May 20 – May 21 Option I 12 EA May 21 – May 22 Option II 12 EA May 22 – May 23

PR Line Item 0006 Overhaul of NSN: 1650-01-376-1090FW P/N: B43718-1 Noun: Flight Control Actuator Application: B-2 Item Function: Extends and retracts the flight control surface Item Material: Aluminum, steel, rubber

Total estimated dollars for PR Line Item 0006:

Estimated Period of Performance

Basic 10 EA May 20 – May 21 Option I 10 EA May 21 – May 22 Option II 10 EA May 22 – May 23

PR Line Item 0007 Overhaul of NSN: 1650-01-378-1942FW P/N: B43876-1 Noun: Flight Control Actuator Application: B-2 Item Function: Controls the critical positioning of a specific flight control surface in response to commands received from the ART.

Item Material: Aluminum, steel, rubber

Total estimated dollars for PR Line Item 0007:

PR Line Item 0008 Over and Above

Total estimated dollars for PR Line Item 0008:

Estimated Period of Performance

Basic 13 EA May 20 – May 21 Option I 13 EA May 21 – May 22 Option II 13 EA May 22 – May 23

Year Est Qty. Unit Price Estimated

Estimated Period of Performance

Basic 1 LT May 20 – May 21 Option I 1 LT May 21 – May 22 Option II 1 LT May 22 – May 23

PR Line Item 0009 Data and Reports Total estimated dollars for PR Line Item 0009: Not Separately Priced (NSP)

Estimated Period of Performance

Basic 1 LT NSP NSP May 20 – May 21 Option I 1 LT NSP NSP May 21 – May 22 Option II 1 LT NSP NSP May 22 – May 23

PR Line Item 0010 Repair of NSN: 1650-01-376-1088FW P/N: B43871-1 Noun: Flight Control Actuator Application: B-2 Item Function: Controls the critical positioning of a specific flight control surface in response to commands received from the ART Item Material: aluminum, steel, rubber Type of Appropriation: 97X4930 Working Capital Total estimated dollars for PR Line Item 0010:

Estimated Period of Performance

Basic 1 EA May 20 – May 21 Option I 1 EA May 21 – May 22 Option II 1 EA May 22 – May 23

PR Line Item 0011

Repair of NSN: 1650-01-381-3209FW P/N: B43872-1 Noun: Flight Control Actuator Application: B-2 Item Function: To position flight control surfaces when inputs from the pilot are received.

Item Material: Aluminum, steel, Teflon and rubber.

Total estimated dollars for PR Line Item 0011:

Item Function: Controls critical positioning of flight control surfaces.

Item Material: aluminum, steel, rubber

Total estimated dollars for PR Line Item 0014:

Estimated Period of Performance

Basic 1 EA May 20 – May 21

PR Line Item 0015 Repair of NSN: 1650-01-376-1090FW P/N: B43718-1 Noun: Flight Control Actuator Application: B-2 Item Function: Extends and retracts the flight control surface Item Material: aluminum, steel, rubber

Total estimated dollars for PR Line Item 0015:

Estimated Period of Performance

Basic 1 EA May 20 – May 21

PR Line Item 0016 Repair of NSN: 1650-01-378-1942FW P/N: B43876-1 Noun: Flight Control Actuator Application: B-2 Item Function: Controls the critical positioning of a specific flight control surface in response to commands received from the ART.

Item Material: aluminum, steel, rubber

Total estimated dollars for PR Line Item 0016:

Estimated Period of Performance

Basic 1 EA May 20 – May 21

PR Line Item 0017 Contract Logistics Management Type of Appropriation: 97X4930 Working Capital Total estimated dollars for PR Line Item 0017:

Year Est

Qty.

Unit Price Estimated

Dollars Estimated Period of Performance

Basic 1 LT May 20 – May 21 Option I 1 LT May 21 – May 22 Option II 1 LT May 22 – May 23

Due to the circumstances set forth below in Section V, there are no feasible actions that could be taken to develop further competition within the performance period of this contract. Therefore, it is considered appropriate to seek approval for more than one year’s requirements. However, if it is determined that OC-ALC can fully perform work organically at any time during the period of performance, the government will not exercise remaining option years IAW FAR 17.207(c).

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 U.S.C. 2304(c) (1), as implemented by FAR 6.302-1 (a) (2) (iii).

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE

USE OF THE AUTHORITY CITED ABOVE (APPLICABILITY OF

AUTHORITY)

The anticipated acquisition is for overhaul or repair of the B-2 Flight Control Actuators (FCA), NSNs 1650013761088FW, 1650013813209FW, 1650013761089FW, 1650013761091FW, 1650014205488FW, 1650013761090FW, and 1650013781942FW. The intended action is a follow-on contract with the OEM that will be accomplished through a direct sales partnership agreement between the contractor and OC-ALC. The FCAs are critical application items, as defined in the Aviation Critical Safety Item Management handbook and are used to control the specific surfaces based on commands received from the Actuator Remote Terminal (ART). Serviceable B-2 FCAs are vitally important to the government to ensure the Air Force is mission ready at all times. The B-2 fleet is the smallest in the USAF inventory and is the only Air Force Bomber with stealth capability. The OEM is the only company with the personnel, experience, technical data, and parts. Therefore, this acquisition is for continued performance of a highly specialized service to support production of this highly specialized component of the B-2 weapon system.

Prior to previous contract award the FCAs were being serviced by OC-ALC organic shop through repair only. The repair practices were similar to the on-condition maintenance concept in which the shop only replaces items necessary to return the assets to serviceable condition. OC-ALC did not possess the knowledge, experience, or technical data needed to perform a full overhaul of these assets. Additionally, given the age of the assets, unknown usage requirements, and parts obsolescence issues it was determined to pursue a partnership with the OEM to develop organic overhaul capability. Overhauling the FCAs to a like-new condition versus buying new projected a cost savings of $262M over 5 years. The partnership that subsequently awarded accomplished many of the actions necessary to establish this capability. Moog has successfully trained OC-ALC personnel, and has worked closely with AFSC technical experts to develop the baseline technical orders (TOs) that are necessary to complete full overhaul of these FCAs. These TOs have been validated and continuous improvements are being made utilizing the current partnership agreement. OC- ALC has completely transitioned from TT&E and repair and is now performing complete overhaul in accordance with the developed basic overhaul maintenance TOs. However, OEM engineering assistance will be required until all TO improvements are finalized.

This contract is a continued effort to establish usage data, finalize parts supportability, establish test equipment contracts, and provide engineering support, which is expected to result in the workload to transition to fully organic overhaul by May 2023. Full organic operational capability was expected to be achieved and streamlined within 5-years of the award of prior contract FA8118-15-D-0001, however, given the program of the requirements, shop capabilities and lack of DLA parts supportability, current assistance from the contractor is still needed to transition from contract support to full organic source of repair. OC-ALC does not currently have the complete package needed to perform a full overhaul of these end items independently from the contractor. Necessary parts contracts, usage data, and test equipment technical support does not exist to support the material requirements of the full overhaul maintenance concept. The proposed contract will be primarily for overhaul but a repair line item has been established to support the Programmed Depot Maintenance (PDM) or field in the event there are unforeseen delays with the overhauled FCA which are still necessary to be facilitated through the partnership.

The 423 SCMS believes that award to any other source would result in a substantial duplication of cost that is not expected to be recovered through competition, and unacceptable delays in fulfilling the Air Force’s requirement. Due to the critical function of these FCA’s and the complexity of the ongoing project, bringing in an inexperienced vendor would create unacceptable cost and schedule risks. Moog is the only contractor capable of uninterrupted performance due to their ongoing involvement in the expiring contract. More than eight million dollars has already been expensed in nonrecurring engineering, and over 12 million in program management costs on the current contract. As the OEM, Moog has been successfully providing spare parts, training, process support, engineering and technical support, quality assurance, data management, program management, and overall controlling inventory, obsolescence, and asset management. In order to accomplish the aforementioned requirements, Moog utilized their proprietary OEM data. This data is not available to any other source, and any vendor, other than Moog, would require tremendous amounts of NRE funding just to attempt to develop the data Moog currently owns, before moving forward with the requirements of this effort (FAR 6.302-1(a)(2)(ii). Even if another source became qualified for overhaul of these FCA’s, they would lack the data and expertise to fulfill the other requirements of this effort, including but not limited to engineering support and manufacturing of spare parts. Additionally, no other vendor would have access to the usage data associated with work performed on this effort to date. The usage data is a critical piece to this follow-on effort, as it is required to initiate the actions necessary to procure components parts for organic transition. Furthermore, OC-ALC has 12 shop personnel dedicated to this partnership workload. Delays associated with award to a different source would not only disrupt the availability of parts to the B-2 aircraft, but would leave several mechanics, schedulers, and planners at a work stoppage. Ultimately, the Air Force would be unable to meet critical mission requirements or execute its global mission.

Therefore, Moog is the only company capable of providing the services identified in the sections above, without the Air Force experiencing both substantial duplication of cost and unacceptable delays in fulfilling its requirements.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

On 23 Oct 2018, this requirement was synopsized through a Sources Sought Synopsis (SSS) and posted on the Federal Business Opportunities website at, https://www.fbo.gov, with a closing date of 23 Nov 2018 under Synopsis Number FD20301900880. There were seven vendors that showed interest by the response date (see section X), however no source has been identified as having the capability to perform all services required for this effort. The Tinker Small Business (SB) office was contacted on 10 Sep 2019 and as of that date, no source approval request (SAR) packages were submitted for any of the NSNs on this acquisition. Government defined pre-award qualification requirements of potential sources are identified and documented on the repair qualification requirement (RQR). All SAR package submissions received prior to contract award will be evaluated in a timely manner to ensure the highest level of competition possible. The QRs were synopsized on 18 Jun 2019 and can be found by searching for keyword “RQR-848” at https://www.fbo.gov.This requirement will be synopsized in https://www.fbo.gov as a notice of a proposed contract action IAW FAR 5.201. Consideration will be given to potential sources, prior to award.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE

The Contracting Officer will ensure that the items described herein are negotiated at a fair and reasonable price to the Government. IAW FAR as supplemented, the contractor will be required to submit Certified Cost or Pricing data and/or Other Than Certified Cost or Pricing Data. A detailed cost analysis and price analysis will be performed. The Contracting Officer will request a technical evaluation from the Defense Contract Management Agency (DCMA) to aid in the evaluation of the contractor’s proposal. The Contracting Officer will seek audit assistance from the Defense Contract Audit Agency (DCAA) if necessary.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS

NOT CONDUCED

IAW FAR 10.002(b) (2), market research was conducted on the B-2 FCA’s by a multi-functional team consisting of the government’s Item Manager, Equipment Specialist, Logistics Officer, and Engineer. This research included inquiries by a Sources Sought Synopsis (see section VI) on 23 Oct 2018. The current market research document was finalized as of 28 Feb 2019. Market research, however, is ongoing. No other sources have sought qualification against the requirements described in section III. Further, these requirements can neither be modified nor be satisfied with commercial or modified commercial items.

Based on this market research, the OEM, Moog was found to be the only source able to fulfill the requirement described in section III.

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

OPEN COMPETITION

No further information.

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

ACQUISITION

Overhaul Support Services, LLC. CAGE: 52VE4 5 Connecticut S Dr.

East Granby, CT 06026-9738 USA

Thomas Instrument, Incorporated CAGE: 5H860 3440 E First St.

Brookshire, TX 77423-9525 USA

Technical Concept Solutions CAGE: 1TF32 1323 Butler Dr.

San Antonio, TX 78251-4923 USA

Texas Aerospace Services, Inc. CAGE: 3L037 3550 Maple St Abilene, TX 79602-7130 USA

Turbine Controls, Inc. CAGE: 8T088 5 Old Windsor Rd Bloomfield, CT 06002-1311 USA

Maynard Enterprises, Inc. CAGE: 4UPA3

7471 NW 37 CT

Fort Lauderdale, FL 33319-4936 USA

Moog Inc. CAGE: 94697 400 Jamison Rd Plant 26 Elma, NY 14059-9497 USA

See section VI for more detail.

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 purpose of this partnership effort is to finalize the actions necessary to facilitate full organic overhaul capability. While it is not anticipated future contract support will be needed for the requirements specified in this J&A, the exact timeframe is unknown.

Per DFARS PGI 206.304 (a)(s-70)- As indicated by signature on the Corrdination and Approval Document, the previous J&A has been reviewed and the Approval Authority determines that all stated actions to remove barriers to competition while taking longer than originally expected, are successfully moving toward completion and are anticipated to achieve full capability of organic overhaul by the end of this acquisition period.

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.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

By their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified as accurate and complete all supporting data, which is their responsibility, contained herein IAW FAR 6.303-2(c).