JA_PR FD2060-22-00102_final_Redacted.pdf

Controlled Unclassified Information

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. Agency and Contracting Activity.

This Justification and Approval is to request authority for Other than Full and Open Competition to support requirements for the C-5 Flutter Damper as generated by the 448th Air Force Sustainment Center (AFSC), 638th Supply Chain Management Group (SCMG), 409th Supply Chain Management Squadron (SCMS)/GUMAB. The contracting activity for this requirement is DLA/AWB. The purchase request number supporting this activity is FD2060-22-00102.

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

Due to the circumstances described herein, the activity requests authority to acquire the spares listed in this document using Other Than Full and Open Competition as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This action will result in the award of a new five (5) year, Firm-Fixed Price (FFP) Requirements Indefinite Delivery Contract (IDC). This requirement will be purchased from the Original Equipment Manufacturer (OEM):

Eaton Aerospace LLC 4690 Colorado Boulevard Los Angeles, CA 90039-1106 Cage Code: 99643 / Large Business Valerie Rigoni DiDomenico P: (818) 409-0324 ValerieRigoni@eaton.com

III. Description of supplies/services required to meet agency needs (including the estimated value).

The Air Force has a requirement for the procurement of the Flutter Damper for the C-5 Aircraft, NSN: 1650-01-211-5433UC, PN: 68130. This item is used on the Air Force C-5 Galaxy transport aircraft. There is one flutter damper on each inboard elevator; 2 per aircraft. Their purpose is to prevent elevator flutter that could be induced in certain flight conditions. This item will be used on the C-5 aircraft until the expected aircraft retirement in 2040. The minimum buy quantity required by Eaton below meets the current Air Force requirement for the next 4 years.

The intent of this contract effort is to establish a firm fixed price contract for a spares buy as shown below. This contract will be funded with Consolidated Sustainment Activity Group- Supply Division CSAG-SD funds. Required delivery for this contract will be 240 days after award of contract. The projected requirements are as shown below:

F 22 FY23 FY24 FY25 FY26 Total

Quantity

Funding

*Basis 3% inflation

IV. Statutory authority permitting other than full and open competition.

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.

V. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above (applicability of authority).

The item was screened on 01 Oct 2021 IAW Department of Defense Spare Parts Breakout Program; expiration 6 June 2023. The item was assigned Acquisition Method Code/Acquisition Method Suffix Code (AMC/AMSC) of 3P; 3: acquire directly from the actual manufacturer, whether or not the prime contractor is the actual manufacturer, P: the rights to the data needed to purchase this part from additional sources is not owned by the Government and cannot be purchased.

Due to the lack of any technical data package to provide, a complete redesign would be required by any company other than the OEM, therefore no other companies are currently capable of manufacturing this item in the timeframe for the requirement. Award to any company other than the OEM would result in accepting unnecessary high risk for failure, additional costs and delay in production delivery schedule pending vendor qualification as a source from concept to proven Form, Fit, Function, Interface and Test capability. Based on engineering experience and past reverse engineering efforts, it is anticipated that a reverse engineering effort would cost at least $2.5M and would require 2-5 years to complete with no guarantee of success. A recent reverse engineering case of PTA (Pitch Trim Actuator) incurred 12 years and $10 million dollars for funding of similar magnitude of this effort. The estimated costs and duration of this effort was reduced by 75 percent in comparison to the PTA due to differences in size and complexity.

Furthermore, to justify such an effort future demands would need to offset the cost of the reverse engineering effort. A ROI economic analysis spreadsheet was processed and indicated that there would be no return on this investment.

VI. 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.

A Sources Sought Synopsis (SSS) was posted for 10 days in Oct 2021 for the flutter damper, NSN: 1650-01-211-5433UC. Responses were due 03 Nov 2021. No responses were recieved.

Other efforts to identify possible sources include internet data base searches. Several small businesses were identified, but ruled out due to lack of data rights by the government.

This requirement will be synopsized on Sam.gov as required by FAR 5.201. It is anticiptated that sources having an interest in subcontracting may be identified through synopsis. Although the Government does not own data to support acquisition of the actuators from any other source, any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as potential for subcontracting possibilities.

VII. Determination by the Contracting Officer that the anticipated cost to the

Government will be fair and reasonable.

The overall cost of this acquisition will be fair and reasonable to the Government. In accordance with FAR 15.404, it is anticipated that negotiations will be conducted using information other than cost and pricing from the contractor. Thorough price analysis will be conducted using available information and approved pricing techniques. This will support the contracting office in making a determination that the price is fair and reasonable to the Government.

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

Market Research was conducted as outlined by FAR 10.002 utilizing the following market research techniques:

A Sources Sought Synopsis (SSS) was posted for 10 days in Oct 2021 for the flutter damper, NSN: 1650012115433UC. Responses were due 03 Nov 2021. No responses were recieved.

Internet search at https://www.sam.gov/portal/SAM/#1 to verify the cage and company name listed on the Screening Analysis Worksheet. Found contact information for Eaton:

Eaton Aerospace 4690 Colorado Boulevard Los Angeles, CA 90039-1106 Cage Code: 99643 / Large Business Valerie Rigoni DiDomenico P: (818) 409-0324 ValerieRigoni@eaton.com

• A Small Business Administration (SBA) search was conducted on Nov 18, 2021 at http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm. NAICS Code 336413 (Other Aircraft Parts and Auxiliary Equipment Manufacturing), keywords “flutter, damper”. The search resulted in four companies.

• Internet search at http://www.thomasnet.com/suppliers/. Searched for “aircraft dampers” under product/service category; found 22 suppliers. Narrowed companies down to just manufacturers which resulted in 20 companies.

From the results of the database searches, a general evaluation of each potential supplier’s possible capability to manufacture aircraft mechanical Flight Control Flutter Damper was determined by reviewing the specific capabilities identified by each company by researching their website when possible or reviewing their capabilities/services/manufacturing synopsis available on the databases utilized. However, the Government does not own the rights or have in its possession any technical data for these parts; therefore it is impossible for the Government to determine if any other companies are truly capable of accomplishing manufacture for these specific items unless a potential source supplies to the Government their own technical data drawings for evaluation, test reports and 2 proven First Article production unit(s). As stated above, the only data available from the Government to any company that is interested in attempting to qualify to manufacture this item is basic item specification such as length, weight and limit load. There are also not any assets to provide for any type of reverse engineering effort.

While the IPT was able to find companies that may be capable of manufacturing the C-5 Flutter Damper, due to the lack of any technical data package to provide, a complete redesign would be required by any company other than the OEM, therefore none of the companies are currently capable. Award to any company other than the OEM would result in accepting unnecessary high risk for failure, additional costs and delay in production delivery schedule pending vendor qualification as a source from concept to proven Form, Fit, Function, Interface and Test capability. Since a complete technical data package is unavailable to openly compete and qualify a new source, the OEM, Eaton Aerospace is the only known vendor/manufacturing source with the required equipment, tooling, and data to provide the required item for this requirement.

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

None.

X. List of any sources that expressed, in writing, an 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.

The Government will continue to attempt to purchase or otherwise acquire the needed data from the OEM if subsequent buy requirements occur. The data for the manufacture of the C-5 Flutter Damper is not owned by the Government. Eaton Aerospace is the Original Equipment Manufacturer for this part. As the original manufacturer Eaton has the capability and capacity to meet our schedule and immediate needs. The LMS contacted Ms. Valerie Rigoni DiDomenico at Eaton by e-mail on Nov 19, 2021, to verify that the manufacturing data is proprietary to Eaton.

Ms. Rigoni DiDomenico responded on Nov 22, 2021. Her response confirmed that this item is proprietary to Eaton. The response stated that Eaton is not willing to sell or lease the manufacturing data to the Government.

At this time, the cost of a reverse engineering effort realistically would not be justified. As stated, any type of reverse engineering effort would take at the minimum 2 to 5 years to complete and at least an additional $2.5 million dollars for funding. A recent reverse engineering case of PTA (Pitch Trim Actuator) incurred 12 years and $10 million dollars for funding of similar magnitude of this effort. Furthermore, to justify such a reverse engineering effort future demands would need to offset the cost of the reverse engineering effort, and at this time this item has only a guaranteed current demand for 42 EA without guaranteed out year requirements past FY26.

XII. Certification by the Contracting Officer.

As evidenced by my signature on the Coordination and Approval Document (CAD), I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) on the CAD, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete IAW FAR 6.303-2(c).