JA_FD2030-24-01830 Repair F107 FSOV_Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

NEGOTIATION SENSITIVE

August 2023 NEGOTIATION SENSITIVE Page 2 of 5

I. Agency and Contracting Activity.

United States Air Force

AFSC/PZAAB

3001 Staff Drive Tinker AFB, OK 73145 Purchase Request (PR)#: FD2030-24-01830

II. Nature and/or description of the action being approved.

The purpose of this non-commercial class J&A is to authorize the use of other than full and open competition procedures to obtain a new, firm-fixed price, Indefinite Delivery Indefinite Quantity (IDIQ) type of contract with United Dynamics, Commercial and Government Entity (CAGE) code 0XWR4. This is a new contract for the repair and overhaul of the F107 Fuel Shut-Off Valve (FSOV). The F107 FSOV is utilized on the program. This acquisition is not a bridge action.

A class J&A is appropriate based on the expectation that there will be multiple task/delivery orders generated from the basic contract. Because the task/delivery orders will be authorized by this basic contract, the orders will be for the in-scope work.

In Accordance With (IAW) Federal Acquisition Regulation (FAR) Part 16, a one-year basic and four one-year option periods with a six-month extension are appropriate for this acquisition.

The estimated total value of this acquisition is $ , with a projected award date of August 2025.

United Dynamics, a small business approved via Source Approval Request (SAR) and listed on the AFMC Form 762 Contract Repair Screening Analysis Worksheet (CRSAW) dated February 12, 2025, is the sole approved source for these services leveraging the government's data. This has been verified/confirmed by Tinker AFB/AFSC Small Business Office on 13 February 2025, that United Dynamics is a small business and that no other vendor has a SAR on file or started. No prior government contracts for F107 FSOV repair/overhaul exist.

No Previous Contract work of this kind has ever been established.

Projected Contractor is United Dynamics Basis of Award is Sole Source

III. Description of supplies/services required to meet agency needs.

The United Dynamics company will provide the following repair and overhaul services for the F107 FSOV, National Stock Number (NSN) 2915-01-241-8855PV, Part Number (PN) 8901-262. The FSOV works with the F107 Main Fuel Control to provide a minimum back pressure and zero leakage on shutdown of the engine.

Estimated Ordering Period and Dollars for this Service Contract:

(1) One-year Basic: August 2025 - August 2026

(4) Four one-year Options: August 2026 - August 2030 (w/ a six-month extension - August 2030 - February 2031) Appropriation: 97X4930

CONTRACT SUMMARY:

Year CLIN Title Quantity Unit Price Estimated Dollars Estimated PoP

Basic 0001 Repair / Overhaul 240 each Aug 2025 - Aug 2026 0002 Over & Above 1 each 0003 Data 1 Lot .

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Option I 1001 Repair / Overhaul 120 each Aug 2026 - Aug 2027 1002 Over & Above 1 each 1003 Data 1 Lot .

Option II 2001 Repair / Overhaul 120 each Aug 2027 - Aug 2028 2002 Over & Above 1 each 2003 Data 1 Lot .

Option III 3001 Repair / Overhaul 120 each Aug 2028 - Aug 2029 3002 Over & Above 1 each 3003 Data 1 Lot .

Option IV 4001 Repair / Overhaul 120 each Aug 2029 - Aug 2030 4002 Over & Above 1 each 4003 Data 1 Lot .

6-mth ext. 5001 Repair/Overhaul 90 each Aug 2030 - Feb 2031 5002 Over & Above 1 each 5003 Data 1 Lot .

Estimated Total Contract Value: $

The following price determination was arrived by using a inflation rate from the current available pricing request. This percentage was used based on historical inflation rates across squadron contracts. It is understood that the overall unit price and total estimated price will increase like everything else has for future work. We are not anticipating any Intellectual Property (IP) pricing; therefore, the Contract Line Item Number (CLIN) structure does not include separately priced CLINs for IP or IP rights.

This J&A covers all contract actions including options, task orders and delivery orders for all CLINs detailed in the CLIN table above.

The Government has taken action to encourage competition by synopsizing the qualification requirements IAW FAR Part 9, and further action will be taken when, and if, potential vendors elect to submit a Source Approval Requests (SARs). The Government acknowledges that the existing SAR process, prescribed by Air Force Material Command Instruction (AFMCI) 23-113 due to the Repair Qualification Requirements (RQRs) in place for these parts, is a barrier to competition. As such, the Government has undertaken actions to streamline the SAR evaluation process to the degree allowed under current Air Force policy and regulations, as well as develop tools to create more visibility around SAR submission and its benefit. Additionally, work has begun to develop tools and guidance aimed at providing greater assistance to industry in the actual preparation and submission of SAR packages. Until such time as these initiatives yield results, the Government will continue to synopsize the requirements to potential sources regularly and monitor, at least annually, for any additional submitted SAR packages.

To ensure that the Government is maximizing competition where possible, prior to the issuance of any task/delivery order under this contract, the Government will verify whether any additional sources have been approved for the specific NSNs being ordered. If another source submits a SAR and is approved as a qualified source for this item during the life of this contract, the Government will pursue full and open competition at the earliest opportunity contemplating the ability for the Government not to exercise the next option and to pursue a competitive follow-on contract to include the additional qualified sources. Until such time as additional vendors elect to submit a SAR package, the Government only has one approved source. Therefore, it is considered appropriate to seek approval for more than one year of requirements.

IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above.

The F107 FSOV is utilized on the program. As such, this service requires a qualified source to ensure continuity of operation and mission. United Dynamics, CAGE code 0XWR4, completed the reverse engineering project of this item late last fall (2024). The outcome provided the Government with a new complete technical package, technical orders and testing equipment for the sole purpose of bringing this acquisition process to bare.

United Dynamics was able to completely demonstrate their abilities and was approved as a source of repair with a SAR on

August 2023 NEGOTIATION SENSITIVE Page 4 of 5 file by the Tinker AFB Engineering team. This acquisition is subject to prequalification requirements IAW AFMCI 23-113. At this time, it has been confirmed by the Small Business Office (SBO), that United Dynamics has completed those requirements and is the only source on file (with a approved SAR package) approved to perform the services required for this acquisition.

An award to any other source would result in unacceptable delays in fulfilling the Air Force's requirement. It currently takes up to two years for the processing, evaluation, and approval decision of a SAR once received.

Accordingly, United Dynamics is the only firm capable of providing the repair and overhaul services described in Section-III above without the U.S. Air Force experiencing unacceptable delays in fulfilling its requirements.

V. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under

FAR 5.202 applies.

The Source of Sought Synopsis (SSS) was posted on the https://sam.gov website under reference number FD2030-24-01830 with a posting date of 26 November 2024 and a closing/response date of 26 December 2024. The SSS yielded only one interested vendor, however, that vendor does not have a SAR on file nor have they started the process per latest inquiry to the SBO on 13 February 2025.

This requirement will be synopsized in https://sam.gov as a notice of proposed contract action IAW FAR 5.201.

VI. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

Based on (1) other than certified cost or pricing data, (2) the program offices' technical analysis of the offeror's Basis of Estimates (BOE), and (3) inputs from the Defense Contract Management Agency (DCMA), including from the Administrative Contracting Officer (ACO) input, the Contracting Officer expects to be able to determine that the anticipated cost to the Government will be fair and reasonable. The Contracting Officer will utilize FAR Subpart Part 15.4 for the purposes of determining the proposal's price as fair and reasonable.

VII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

IAW FAR 10.002(b)(2), market research was conducted by reviewing Parts Manufacturer Approvals, IHS Haystack, and a web search of Google, Bing, and AbilityOne. The market research was conducted by the Project Manager between August 2024 and January 2025. Web searches were unsuccessful in revealing any additional sources as expected. This research also revealed, that there are no commercial items available to meet this requirement as this is a Military Unique item used on a Military Unique engine/program. As stated in Section III above, this item is used on a military application only and no commercial or non-development substitutes are available. This item is unique to the program and

. The SSS was posted on https://sam.gov during the market research effort to notify Williams International licensees, vendors, or other sources with access to the necessary data of the pending acquisition. Only one interested vendor responded to the SSS (Drake Air, Inc.) while the other (United Dynamics) expressed interest on a prior SSS to this acquisition.

Per confirmation from the SBO on 13 February 2025, there is only one approved SAR in the SAR Tracking System IES, and that is the one for United Dynamics. No other packages are on file and no other packages have been initiated at this time.

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Based on the above, United Dynamics is the only responsible source able to fulfill the requirement.

VIII. Any other facts supporting the use of Other Than Full and Open Competition.

No further information.

IX. List of any sources that expressed, in writing, an interest in the acquisition.

United Dynamics Aerospace & Defense | CAGE Code 0XWR4 | Approved SAR on file 211 N. Robinson, North Tower Suite 300, No. 346 Oklahoma City, OK 73102-7122 (facility located in Shawnee, OK)

Drake Air, INC | CAGE Code 0GDJ0 | No SAR on file, nor initiated with SBO 4085 Southwest Blvd

X. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

The United States Air Force will continue to engage with other potential interested vendors to seek SAR approval.

Additionally, the Government will continue to periodically synopsize the requirement to allow potential vendors the opportunity to seek SAR approval to mitigate any potential barriers to allow for future efforts to be under a competitive acquisition effort.

Per PGI 206.304(a)(S-70) as indicated by signature on the Coordination and Approval Document, the Approval Authority had determined that all stated actions to remove barriers to competition have been accomplished.

XI. Certification by the Contracting Officer.

As evidenced by their signature, the contracting officer certifies that this justification is accurate and complete to the best of their knowledge and belief.

XII. Certification by the technical/requirements personnel.

As evidenced by their signatures, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.