JA for FD20202000437 Redacted.pdf

FD2020-20-00437

B. Total estimated cost is . This estimate is based on the Automated Budget Compilation System-Buy Load List from the D200A Requirements Determination System with an estimated unit cost of . 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 Northrup Grumman Corporation.

As per the 417 SCMS/GUEA Engineer the T-38 Nose Landing Gear Piston is unique to the T-38. It is designed and certified to Air Force Drawing 3-41606. Per this drawing/ specification, the T-38 Nose Landing Gear Piston must perform per the T-38 design requirements, which includes failure, fatigue, stress, and corrosion analysis. The only source capable of meeting these requiremest for the T-38 Nose Landing Gear Piston is the OEM, Northrop Grumman.

B. The Air Force does not control the design, nor does the government possess the data or the rights to the data required to manufacture the T-38 Nose Landing Gear Piston by any other contract other than by Northrup Grumman Corporation. Partial proprietary data, owned by Northrup Grumman Corporation, that is available to the Air Force is a top-level drawing only, which cannot be used for the design or manufacture of the T-38 Nose Landing Gear Piston. The last attempt to obtain the data was 19 March 2020. The 417 SCMS/GUMC team contacted Cathy Highsmith, Contract Administrator via email regarding Northrop Grumman’s willingness to sell or license the data to the government. Northrop Grumman responded that they are not willing to sell or license the data to the government.

C. The 417 SCMS/GUEA Engineer has determined that reverse engineering costs are estimated to exceed These costs map out exactly what it would cost the Air Force to duplicate the workload/product already being provided by the sole source contractor. It would take approximately 16.9 years to break even based on current costs associated with reverse engineering.

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 (RFI/SSS) was posted to FedBizOpps.gov on 19 March 2020. The RFI/SSS closed on 2 April 2020 and no response from industry was received by the contracting office.

B. This requirement will be synopsized in FedBizOpps.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 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. There were no interested sources.

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

1 January 2020, a review of the procurement history for this item. The NSN identified Northrup Grumman Corporation, Cage Code 76823, as being the only manufacturer utilized in the procurement of this item.

2 January 2020, the Governments Purchase Request Process System (PRPS) was also searched using the item NSN, in which the results showed the only approved source as Northrup Grumman Corporation, Cage Code 76823. Additionally, the 761 AMN/AMSC Screening Analysis Worksheet only indicated Northrup Grumman Corporation as a source. The search did not yield any additional approved sources.

3 January 2020, a search and review of the below internet sites was accomplished in which no viable, authorized source, was identified.

o Google (http://www.google.com) o ThomasNet (http://www.thomasnet.com) o ILSmart (http://www.ilsmart.com)

4 Contacted knowledgeable individuals in Government regarding market capabilities to meet requirements. The USAF IPT consisting of the T-38 Program Manager , Item Manager and System Engineer , through market research and years of combined professional knowledge of the T-38 weapon system, have concluded with a high level of confidence that there are no additional sources capable of meeting the government’s needs.

C. Commercial items cannot serve, nor could be modified to serve this application. The Nose

Landing Gear Piston is specific to the T-38.

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 nondevelopmental items which could be utilized to meet needs or which could be modified to meet the needs of the government.

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

OPEN COMPETITION:

No further action will be taken at this time to obtain competitive procurement. A 5 year expiration date has been assigned and approved by the spares breakout Program Manager.

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

ACQUISITION:

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:

None

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)).