JA_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

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

This Class Justification & Approval (J&A) authorizes the use of other than full and open competition procedures in support of requirements generated by the 448th Supply Chain

Management Wing which include the procurement of performance based repair and overhaul or remanufacture of commercial and non-commercial items identified in

Attachment A. Individually issued Firm, Fixed Price (FFP) contract actions including

Requirements, Indefinite Delivery Indefinite Quantity (IDIQ) or Definitive Quantity contract actions may be utilized under this Class J & A. The estimated total value of this

J&A is $

The contemplated contract actions issued utilizing this Class J & A are follow-on acquisitions from Hamilton Sundstrand doing business as (dba) United Technologies

Aerospace Systems (UTAS) , and its entities, to include the various Commercial and

Government Entity (CAGE) codes, 99167, 73030 and 0CAM5. Contracts issued pursuant to this J&A will be funded by the Defense Working Capital Fund, and the

Contract Types will be established on each individual contract document. UTAS is the current sole source provider for the items listed in Attachment A. This J&A will cover an aggregate of acquisitions over a seven-year period from Jul 2017 – Jul 2024 or until the dollar threshold is reached, whichever comes first.

Previous Contract Award information can be found in column “D” of Attachment A.

Attachment A is the list of all the UTAS assets that will be included in this Class J&A.

Approval for use of this J&A must be obtained by the 429 SCMS/GUMAB, utilizing

Attachment B to gain approval. Attachment C addresses the Rules of Engagement.

Approval will be requested before solicitation and final dollar value assigned before contract award. While scope determination is the Procuring Contracting Officer’s (PCO) decision, this Class J&A authority is limited to the award value of the contract. Any overages will require coordination through the 429 SCMS/GUMAB. Market Research and Sources Sought Synopsis (SSS) will be re-published annually in the month of

October, along with a request to the Original Equipment Manufacturer (OEM) to purchase the data.

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

AGENCY’S NEEDS

Under these contemplated contracts, UTAS will provide repair, overhaul, or remanufacture of the items listed in Attachment A, also including line items for Over and

Above, Beyond Economical Repair, No Fault Found, Item Unique Identification

Description (IUID) and Data.

The dollar ceiling for this Class J&A is $ . This dollar amount is reflective of the projected seven-year requirement for the assets listed in Attachment A, the projected unit cost (with inflation) and a 10% variance factor to address such elements as unexpected variation in demand and/or price.

Due to the circumstances described below in Sections V, IX and XI there are no immediate actions that could be taken to develop competition. Therefore, it is considered appropriate to seek approval for more than one fiscal year’s requirements. If other qualified or approved sources become known for any of the stated NSNs, full and open competition will be considered and utilized to the maximum extent practicable after identification.

Should the recurring market research outlined in Section VI and VIII of this J&A result in a change in the marketplace leading to a competitive environment, full and open competition will be considered and utilized to the maximum extent practicable.

Type of appropriation: 97X4930

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)(ii) (A and B).

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE

USE OF THE AUTHORITY CITED ABOVE (APPLICABILITY OF

AUTHORITY)

This document addresses the 448th SCMW requirements with UTAS for the items described in Attachment A.

Some factors categorically limit the ability of the Government to obtain competition in all instances. For this Class J & A effort involving the 17 NSNs on Attachment A, market research has revealed 2 catagories of limitation to competition, those catagories are:

(1) No Data Available and No Special Tooling Available and (2) Data is Available, qualification requirements apply however there is currently only one qualified source.

Narrative for the two catagories and the NSNs that fall under each catefory are stated below.

(1) NSNs with No Data Available or items that require *special test tooling:

2835-99-783-6322FL

6115-01-265-2872FW

1680-01-372-5194FW

6625-01-305-8713FW

2925-01-456-6010RK

6685-01-224-7778TP

6110-01-317-2372FW

2995-01-512-4702JY

6115-01-162-3302HS

*6110-01-248-1751HY

The Original Equipment Manufacturer (OEM), UTAS is the only known source that has the repair/overhaul/remanufacture procedures, parts, expertise, tools and test equipment necessary to sufficiently meet the Government’s needs. UTAS, has provided these highly specialized supply/services on previous sole-source contracts annotated in Attachment A.

The quality standards and acceptance criteria of these parts are not available to the government, and it is not possible to draft adequate specifications for the items without the technical data or data usage licensing agreements. Although the government realizes that it has unlimited usage right to form, fit, and function data, as well as data related to

Operation, Maintenance, Installation, and Training (OMIT), such rights are insufficient for the government’s needs as they are not detailed enough to accomplish repair/overhaul/remanufacture of the items. Without this data, the Government has no ability to draft adequate specifications to develop qualification requirements or a data package suitable for competition. Drawings are not available in the Joint Engineering

Data Management Information and Control System or the Military Engineering Data

Asset Locator System. This also applies to the assets that require special test tooling.

Not only does the government not have the tooling, but data necessary for the operation of the equipment or trouble shooting is unavailable.

These items are a mixture of critical safety items and critical application items as defined in the Aviation Critical Safety Item Management handbook, and identified in Attachment

A and are considered highly specialized components of the KC-135, KC-135R, B-2 and

F-16 weapons systems. Development of additional sources to produce these items or perform these services is not feasible within allowable timeframes.

(2) NSNs With Qualification Requirements - Data is Available

5998-01-539-1742NZ

6695-01-540-1785NZ

2995-01-520-3563NZ

2915-01-309-7888NZ

5998-01-568-8707NZ

2995-01-519-5438NZ

2915-01-310-2141NZ

The Government owns the necessary data and has established Qualification Requirements

(QR) for these items that a prospective source must satisfy prior to being identified as an approved source. The establishment of QRs has been justified in writing as required by

FAR 9.202(a), on a Justification for Qualfication Requirements document coordinated through Small Business and the Competition Advocate, approved by the Chief of

Contracting Office. This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills and manufacturing knowledge by the qualified source requires acquisition of the part from the approved source. The items identified in Table 2 are a mixture of critical safety items and critical application items as defined in the Aviation

Critical Safety Item management handbook.

An alternate source must qualify in accordance with (IAW) the design control activity’s procedures, as approved by the cognizant Government engineering activity. A significant lead time is required to qualify the potential source once a Source Approval Request

(SAR) package is submitted. See Section IX, Table 2 for additional information.

Currently, the only approved source is the OEM, UTAS.

The 448th Supply Chain Management Wing believes that award of any NSN identified on

Attachment A, to any other source would result in unacceptable delays in fulfilling the

Air Force’s requirements thereby leaving the Air force unable to meet critical mission requirements and hampering the Air Forces’ ability to execute its global mission.

Accordingly, UTAS is the only firm capable of providing the repair/overhaul/remanfacture described in Section III above without the Air Force experiencing substantial duplicaton of cost that is not expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

Additional information can be found in Section IX.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

Market Research for this Class J&A will be reviewed and updated annually. If new sources become qualified or data is obtained for competition, adjustments will be made to

Attachment A.

IAW FAR 5.201, all requirements will be synopsized and the Request for Proposals

(RFP) for each individual acquisition utilizing this Class J & A will be posted to the

Federal Business Opportunities (FedBizOpps) website.

On 25 April 2017 , a Sources Sought Synopsis (SSS) was submitted to the Federal

Business Opportunities (FedBizOps) website, www.FBO.gov as Sources Sought

Number: FA8117-17-SS-0017, FA8117-17-SS-0018 and FA8117-17-0019 which addressed the repair, overhaul or remanufacture of the NSNs listed in Attachment A, with a close date of 25 May 2017. This SSS included the NSN, part number and quantity for http://www.fbo.gov/ each acquisition requesting information, pursuant to FAR 10, in support of the market research to identify potential sources for the repair, overhaul, and remanufacture of the

NSN listed. The SSS was posted in three (3) separate locations within FedBizops to provide the widest dissemination of information to the marketplace. Two vendors, Contractor Capital and Technical Concept Solutions, indicated interest in this acquisition.

At this time, however, none of the interested vendors have submitted SAR packages as stipulated in the established QRs for this item.

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 on each individual acquisition. Depending on the dollar amount and commerciality of each effort, the contractor may be required to provide certified cost or pricing data or other data. A detailed cost analysis and price analysis will be accomplished. The Defense Contracting Management Agency and/or

Defense Contract Audit Agency may be contacted to assist with the analysis, and may assist with inputs throughout the life of the contract.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH

WAS NOT CONDUCTED

For acquisitions using this Class J&A, market research, IAW FAR Part 10, was conducted by a multi-functional team consisting of the J&A Specialists, a Market

Research subject matter expert, Small Business representative, engineer, Contracting

Officer and a Competition Advocate representative for each individual NSN on

Attachment A. This research included inquiries into internet sites including Google, the

Thomas Register, Haystack, Dynamic Small Business, Ability One, IC NSN, ISO

Military and Aviation Parts, DG Market and NSN Now and similar item manufacture’s websites beginning 25 April 2017 and will be on-going throughout the life of this Class J

& A. This research was performed to identify alternate sources or alternate equipment that might fill the Government needs with only minor modifications, within either the commercial or noncommercial market. Additionally, IAW FAR part 10, individual market research will be conducted for new requirement utilizing this Class J & A.

The Government has attempted to purchase the necessary data from UTAS many times individually in the past on each of the Attachment A NSNs. UTAS has failed to respond to past inquiries, or has responded with a negative statement. On 22 Feb 2017, 20 Mar

2017 and 14 Apr 2017 a Rough Order of Magnitude Price request was submitted to the

OEM to estimate the cost for the Government to purchase Tech Orders and /or Drawings beyond the form, fit and function or Operations, Maintenance, Inspection, and Test Data.

To date, UTAS has not responded to this request.

Continued Market Research will involve posting a SSS each year along with expected usage for each NSN. Additionally, UTAS will be contacted annually requesting data for items discussed in Table 1 of Section V.

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

OPEN COMPETITION

Table 1 NSNs:

The development of repair or remanufacture procedures without detailed technical data and/or technical manuals is impossible without extensive and costly reverse engineering. A cost estimate to complete this project has not been generated due to the unknown nature of some of the reverse engineering project’s elements including but not limited to, securing government purpose rights, obtaining missing data, lack of historical project cost information for similarly complex equipment and the scope of qualification testing, which is required to ensure no impact to the items approved technical baseline and airworthiness certification. When considering other complex reverse engineering efforts undertaken, it is anticipated that developing remanufacture/repair capability for these parts without any supporting technical data would be a very high risk endeavor likely exceeding $ Further, funding has not been requested or approved at this point, and the support posture of these parts would not elevate the proposed reverse engineering effort to the level at which funding likely would be approved or budgeted without a positive return on investment. This also applies to special test equipment and special tooling. It is expected to be a minimum of 5 years based on previous sustaining engineering efforts from the initiation of a Consolidated Sustainment Activity Group (CSAG)

Sustaining Engineering project for each individual item. This timeframe includes the budget request period, purchase request processing, contract negotiation and award, period of performance, qualification testing of the reverse engineering process and source qualification.

This extended timeline drives unacceptable delays in fulfilling the Air Forces’ requirements. To the Government’s knowledge the OEM has not received any requests to qualify additional remanufacture/repair sources for this item.

Table 2 NSNs

The Government has the necessary data to qualify a new source to repair/overhaul/remanufacture the items specified in the Section III to meet production requirements. Prospective sources must provide documentation for the Government to review and approve that demonstrates how they meet the established QR. Prospective sources must build and submit a SAR package in accordance with established QRs. At this time, no SAR packages have been submitted. It is hopeful that continued posting of annual requirements will foster interest for new sources and increase competition.

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

ACQUISITION

Hamilton Sundstrand Corporation (dba UTAS) CAGE 99167

4747 Harrison Ave

Rockford IL 61108

(860) 654-3321

Hamilton Sundstrand Corporation (dba UTAS) CAGE 73030

1 Hamilton Rd.

Windsor Locks CT 06096

(860) 660-3889

Hamilton Sundstrand Corporation (dba UTAS) CAGE 0CAM5

Hamilton Aerospace Technologies

1007 E. University Dr.

Phoenix AZ 85034

(602) 462-2636 armcor.com Contractor Capital

Washington, DC US

Email: fbo@armcor.com

Phone: (800) 873-4161

Technical Concept Solutions

1323 Butler Drive

San Antonio, Tx 78251-4923

Email: pgalaviz@tech-c-a-s.com

Phone: (210) 396-2808

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 448 SCMS will continue to monitor the marketplace for repair, overhaul, and remanufacture of these assets for other source development. The Government will continue to synopsize the individual requirement through FedBizOpps and rescreen the item. In the event an item is rescreened as competitive, this J&A will not be used as an authority to procure repair, overhaul, and/or remanufacture of this item.

XII. CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on the Justification Review 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(a)(12)).

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

mailto:fbo@armcor.com mailto:pgalaviz@tech-c-a-s.com

As evidenced by their signatures on the J&A signature page, 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(b)).