JA for PR No. FD 2020-20-00297 v.3 approved-Redacted_Redacted_.pdf

I. CONTRACTING ACTIVITY:

Defense Logistics Agency DLA Aviation Ogden 6051 Gum Lane, Bldg. 1225 Hill Air Force Base UT 84056-5820 Contracting Officer: Rocky Tello Phone Number: (385) 519-8203 Email: Rocky.Tello@DLA.mil PR Number: FD2020-20-00297

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

A. Upon approval to use other than full and open competition procedures, DLA Aviation at Ogden will issue a new Firm Fixed Price type contract to procure C-5 M Ball Screw Assemblies. This requirement will be used by the Air Force C-5 M weapon system. The contract will be awarded to:

Beaver Aerospace & Defense, Inc.

11850 Mayfield

St Livonia, MI 48150-1708 Cage: 088K1

B. Contract Type & Structure: A Firm Fixed Price contract to procure a total quantity of 12ea C-5 Ball Screw Assemblies will be issued. The estimated award date for the new supply contract is July 2020 with delivery expected through September 2023.

C. Type J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED MEETING

THE AGENCY’S NEEDS:

A. The requirement is to procure 12 ea, C-5 M Ball Screw Assemblies, NSN 1620-01-116- 3809 from Beaver Aerospace & Defense, Inc./Part Number B-16751-102B, replacement spares at an estimated unit cost of each. The C-5 Ballscrew Assembly cited herein is the primary component of the nose landing gear kneeling system. Its primary function is to provide the vertical movement which allows the aircraft to be raised and lowered. The Ballscrew Assembly is critical because together they all bear the entire weight of the aircraft and are used for kneeling the aircraft for loading and unloading.

NSN Name Est. Qty. Price per unit Total Est price

1620-01-116-3809 Ballscrew Assembly 12ea $ $

B. Total estimated cost is: $ . This estimate is based on USAF mission requirements as computed by the D200 Requirements Determination System. 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 Beaver Aerospace & Defense, Inc. Per the 417 SCMS/GUEA Engineer, the C-5 Ballscrew Assemblies are considered highly specialized because the geometry, materials and processing requirements are specific to the C-5 landing gear system. If the wrong materials, processes or geometry are used for the Ballscrew Assembly, it could be ineffective, unreliable, or both. Therefore, this acquisition will be for the procurement of highly specialized assets.

B. The Air Force does not control the design or the data required to manufacture the C-5 Ballscrew Assembly. The 417 SCMS/GUMC team contacted Lee Pichan at Beaver Aerospace & Defense, Inc. on 31 Oct 2018 regarding data rights status to NSN 1620-01- 116-3809, P/N B-16751-102B. Beaver Aerospace & Defense, Inc. stated that they are unwilling to sell or provide government use rights to this data. Beaver Aerospace & Defense, Inc. owns technical data sufficient to manufacture the parts and is unwilling to sell or give permission to the government to use such data for a competitive procurement.

The government does not possess the design, data, or license rights required to allow full and open competition for the manufacture and procurement of the C-5 Ballscrew Assembly.

C. The 417 SCMS/GUEA Engineer has determined that reverse engineering costs to develop a qualification package and encourage competition are estimated to exceed $3,184,118.00 Based on this cost it would take over 109.23 years to break even. The parameters for this component are limited to the Original Equipment Manufacturer (OEM) with the designs, data and drawings created at Beaver Aerospace & Defense Inc.'s own expense. Since the data required to manufacture the C-5 Ballscrew Assembly is limited to Beaver Aerospace & Defense, Inc., interested vendors would have to be willing to invest the time, funding and manpower required to reverse engineer the entire C-5 Ballscrew Assembly package at their own expense.

D. Although Lockheed Martin is listed on the approved sources list, the government does not intend to solicit them for this procurement for the following reasons. Lockheed Martin is only listed on 761 as the “Design Activity”, with a Source Code of “N”, meaning “Non-manufacturer. Procurement history dating back to 1993 shows that Beaver Aerospace has been the sole offeror/awardee for the C-5 Ballscrew. According to procurement history Lockheed has never provided this item to the government.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE:

A. A Synopsis was posted to FBO.gov on 30 January 2020 and closed 2 March 2020. The only response received by the contracting office was a response from the OEM, Beaver Aerospace.

B. This requirement will be synopsized in FedBizOpps, 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: 417th SCMS engineers regularly pursue discourse with industry manufacturers who may be interested in reverse engineering, or redesigning the C-5 Ballscrew Assembly in an effort to expand the manufacturing base. Furthermore, the 417th SCMS IPTs regularly inquire approved manufacturers as to the possibility of sharing or selling data rights to proprietary technology, designs, or processes utilized in military aircraft landing gear manufacturing.

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.

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

1. July 2019 a search and review of the below internet sites was accomplished in which no additional manufacturing sources were identified.

- Boeing (http://www.boeing.com)

- Airbus (http://www.airbus.com)

- Google (http://www.google.com)

2. July 2019 Contacted knowledgeable individuals in Government regarding market capabilities to meet requirements. The USAF IPT consisting of the C-5 Program Manager Troy Burgess Item Manager Brooke Gilmore, and System Engineer Dallan Child, through market research and years of combined professional knowledge of the C- 5 weapon system, have concluded with a high level of confidence that there are no additional sources capable of meeting the government’s needs.

3. July 2019 a review of the procurement histories for this item. NSNs identified Beaver Aerospace & Defense Inc., Cage Code 088K1, as being the only manufacturer utilized for procurement of this item.

4. July 2019 the Government’s Purchase Request Process System (PRPS) was also searched using the item’s NSN, in which the results showed the only approved and viable source as Beaver Aerospace & Defense, Inc., Cage Code 088K1. Additionally, the 761 AMC/AMSC Screening Analysis Worksheet indicated Beaver Aerospace & Defense, Inc. as the only manufacturing source. The search did not yield any additional approved sources.

5. The 761 screening action for NSN 1620-01-116-3809. Part Number B-16751- 102B, was reviewed for consistency. No discrepancies were found and only Beaver Aerospace & Defense, Inc. was identified as an approved source. The screening analysis (761) does also list Lockheed Martin Corporation on the 761 (Cage 088K1), however Lockheed Martin no longer manufactures the C-5 Ballscrew. Therefore, there is no expectation of receiving a proposal from Lockheed Martin.

C. 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 non-developmental items which could be utilized to meet needs or which could be modified to meet the needs.

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

AND OPEN COMPETITION:

The 417 SCMS/GUMC team contacted Lee Pichan at Beaver Aerospace & Defense, Inc. on 31 Oct 2018 regarding data rights status to NSN 1620-01-116-3809, P/N B-16751-102B.

Beaver Aerospace & Defense, Inc. Beaver Aerospace & Defense, Inc. stated that they are unwilling to sell or provide government use rights to this data. Beaver Aerospace & Defense, Inc. owns the technical data sufficient to manufacture the parts and is unwilling to sell or give permission to the government to use such data for a competitive procurement.

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

THE AQUISITION:

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:

The Air Force regularly inquires the manufacturers in regards to sharing or selling the proprietary data rights for use in free and open solicitations. Furthermore, the Air Force regularly performs analysis to determine the feasibility and cost effectiveness of reverse engineering the proprietary technology.

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)).