J&A_Updated_Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition i NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action I 1 must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review I I and approval at a level above the contracting officer. T/Je predecessor J&A will be used as a reference document by t/Je approving official. J l _________________________________________________________________________________ J

Choose the funding level for this J&A Document:

D ::;_ S700K D > $700K and :::;. $13.SM ['gl >$13.5Mand::;: $93M

Contracting Activity: AFSC/PZABC

Purchase Request I Local ID Number: FD2030-17-00022

Program I Project (and PE, if applicable): Overhaul of the KC-135 Fan Ducts and Cowling

Program Type (PEO or Other Contracting): Other Contracting

Authority (include fu!I title): 10 U.S.C. 2304(c)(l), as implemented by FAR 6.302-1

D > $93M

Estimated Contract Cost (including options): J&A Type: D Class !SJ Individual

COORDINATION !AFFARS 5306.304(a))

Date

Date l!o Date n Nt11 1'4i Date

Date

Z~o..f \ l...J)

Requiring Activity

424 SCMS/CL

Contracting Officer

AFSC/PZABC

'0 1~AllW/:ii1Q

Chief of the ContractlngOff1ce (COCO)

AFSC/PZA

Competition Advocate

Competition Advocate

APPROVAL rt:iFFARS 5306.304(a))

Date Senior Contracting Official (SCO or SCCO) ioa Mr. Frank Washburn

448 SCMW/Cl 2.Dl(, Updated: 15Mar16

Signature

FD2030-17-00022

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

Materiel Support Contracting Division

AFSC/PZABC

3001 Staff Drive Tinker AFB, OK 73145

Purchase Request (PR): FD2030-17-00022

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

This individual Justification and Approval (J&A) authorizes the use of Other than Full and Open Competition procedures to obtain a firm fixed price, requirements-type contract. The contemplated contract is for overhaul service from Boeing Corporation, Commercial and Government Entity (CAGE) code 0PXV4. In accordance with FAR Part 16, a 3-year basic contract with two 1-year options is considered to be appropriate for this acquisition. The estimated total value of this award is with an estimated award date of Jan 18.

Previous contract number: FA8119-12-D-0013 Date of award: 31 Aug 12 Date of completion: 29 Aug 17 Basis for award: Sole Source Acquisition

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

AGENCY’S NEEDS

The contractor will provide all required labor, direct materials, parts, facilities, test equipment, and supplies to accomplish overhaul and return to the government completely functional assets.

Note: The estimated dollar value represents the average total costs for all NSNs under contract FA8119-12-D-0013.

Year Estimated Dates Estimated Dollars 3 Year Basic Jan 18 – Jan 21 Option Yr 1 Jan 21 – Jan 22 Option Yr 2 Jan 22 – Jan 23 Total Contract Jan 18 – Jan 23

PR Line Item 0001

Overhaul of NSN: 1560-01-148-4262 Part number: 65C18604-507 Noun: Left Hand Fan Cowling Application: KC-135 Aircraft Item dimensions: L 39.0000ʺ X W 74.1250ʺ X H 89.0000ʺ Weight: 575.00 pounds Material content: Fiberglass Honeycomb

Item description and function: Provides engine cover and smoothes airflow around the engine.

Type of appropriation: 97X4930 Total estimated dollars for PR line 0001:

Year BEQ Unit Price Estimated Dollars

Period of Performance

3 Year Basic 44 Jan 18 - Jan 21 Option Yr 1 14 Jan 21 - Jan 22 Option Yr 2 15 Jan 22 - Jan 23

PR Line Item 0002

Overhaul of NSN: 1560-01-148-4263 Part number: P/N 65C18604-646 Noun: Right Hand Fan Cowling Application: KC-135 Aircraft Item dimensions: L 39.0000ʺ X W 74.1250ʺ X H 89.0000ʺ Weight: 575.00 pounds Material content: Fiberglass Honeycomb Item description and function: Provides engine cover and smoothes airflow around the engine.

Total estimated dollars for PR line 0002:

Period of Performance

3 Year Basic 17 Jan 18 – Jan 21 Option Yr 1 5 Jan 21 - Jan 22 Option Yr 2 7 Jan 22 - Jan 23

PR Line Item 0003

Overhaul of NSN: 1560-01-149-6602 Part number: 65C18554-772 Noun: Inlet Nose Cowling Application: KC-135 Aircraft Item dimensions: L 105.0000ʺ X W 85.0000ʺ X H 64.0000ʺ Weight: 1,040.00 pounds Material content: Metal Alloy, 2024 CLAD Aluminum, Honeycomb Bonded Item description and function: Provides engine cover and smoothes airflow into the engine inlet to optimize performance.

Total estimated dollars for PR line 0003:

Period of Performance

3 Year Basic 41 Jan 18 - Jan 21 Option Yr 1 13 Jan 21 - Jan 22 Option Yr 2 13 Jan 22 - Jan 23

PR Line Item 0004

Overhaul of NSN: 1560-01-149-6557 Part number: 458-58022-527 Noun: Left Hand Fan Duct Application: KC-135 Aircraft Item dimensions: L 72.0000ʺ X W 87.0000ʺ X H 39.5000ʺ Weight: 377.00 pounds Material content: Steel, Aluminum Alloy Item description and function: Provides cover and smooth airflow around F108 engine

Total estimated dollars for PR line 0004:

Period of

Performance 3 Year Basic 2 Jan 18 - Jan 21 Option Yr 1 1 Jan 21 - Jan 22 Option Yr 2 1 Jan 22 - Jan 23

PR Line Item 0005

Overhaul Panel of NSN: 1560-01-149-6557 Part number: 458-58022-527 Noun: Left Hand Fan Duct Application: KC-135 Aircraft Item dimensions: L 72.0000ʺ X W 87.0000ʺ X H 39.5000ʺ Weight: 377.00 pounds Material content: Steel, Aluminum Alloy Item description and function: Provides cover and smooth airflow around F108 engine

Total estimated dollars for PR line 0005:

Period of

Performance 3 Year Basic 39 Jan 18 - Jan 21 Option Yr 1 12 Jan 21 - Jan 22 Option Yr 2 12 Jan 22 - Jan 23

PR Line Item 0006

Overhaul of NSN: 1560-01-149-6558 Part number: 458-58022-528 Noun: Right Hand Fan Duct Application: KC-135 Aircraft Item dimensions: 5.1ʺ X 10.30ʺ X 3.50ʺ Weight: 377.00 pounds Material content: Steel, Aluminum Item description and function: Provides cover and smooth airflow for F108 engine

Total estimated dollars for PR line 0006:

Year BEQ Unit Price Estimated Period of

Dollars Performance 3 Year Basic 2 Jan 18 - Jan 21 Option Yr 1 1 Jan 21 - Jan 22 Option Yr 2 1 Jan 22 - Jan 23

PR Line Item 0007

Overhaul Panel of NSN: 1560-01-149-6558 Part number: 458-58022-528 Noun: Right Hand Fan Duct Application: KC-135 Aircraft Item dimensions: 5.1ʺ X 10.30ʺ X 3.50ʺ Weight: 377.00 pounds Material content: Steel, Aluminum Item description and function: Provides cover and smooth airflow for F108 engine

Total estimated dollars for PR line 0007:

Period of Performance

3 Year Basic 46 Jan 18 - Jan 21 Option Yr 1 15 Jan 21 - Jan 22 Option Yr 2 15 Jan 22 - Jan 23

PR Line Item 0008

Over and Above (O&A) estimated dollars To Be Negotiated (TBN) Application: KC-135 Aircraft

Total estimated dollars for PR line 0008:

Year Estimated

Period of Performance

3 Year Basic Jan 18 - Jan 21 Option Yr 1 Jan 21 - Jan 22 Option Yr 2 Jan 22 - Jan 23

Note: The O&A estimate is based on a 10% factor of the total estimated contract price. In previous acquisitions, the O&A was approximately 10% of the total contract price.

PR Line Item 0009

Repair Management for Line Item 0001 through Line Item 0007

Total estimated dollars for PR line 0013:

Period of Performance

3 Year Basic 15 Jan 18 - Jan 21 Option Yr 1 5 Jan 21 - Jan 22 Option Yr 2 5 Jan 22 - Jan 23

PR Line Item 0010

Noun: Data and Reports Not Separately Priced (NSP)

IAW DD 1423 CDRL

Commercial Asset Visibility – Air Force (CAVAF) Total estimated dollars for PR line item 0010: $0

Total estimated dollars for contract:

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).

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF THE

AUTHORITY CITED ABOVE (APPLICABILITY OF AUTHORITY)

The contemplated contract will be for the continued overhaul service of the KC-135 fan ducts and cowlings. It is a sole source package as the data needed to acquire this service competitively is not owned by the Government, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate economical description of the material for a competitive solicitation. Boeing is the Original Equipment Manufacturer (OEM) and overhaul contractor for these items under previous contracts and is currently the only known contractor that has the data, parts, tools, facilities, test equipment and expertise necessary to perform this highly specialized overhaul service sufficiently to meet the Government's needs. Only Boeing possesses the specialized knowledge giving them the capability to overcome all obstacles presented during the overhaul of these components.

There are no feasible actions that could develop future competition and it is reasonable to seek approval for more than one fiscal year's requirements

The 424 SCMS believes that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Currently, the Government does not have the capability to qualify a source for this repair due to lack of source qualification data. To the best of the Government's knowledge, the OEM has not received any requests to qualify additional overhaul sources for these items. The Government realizes that it has unlimited rights to form, fit, and function data (including source qualification data) as well as data related to operation, maintenance, installation, and training; however, such rights are insufficient to satisfy the current requirement.

Accordingly, Boeing is the only firm capable of providing the overhaul services described above without the U.S. Air Force experiencing substantial duplication of cost that is not expected to be recovered through competition.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

In accordance with FAR 5.201, this requirement shall be synopsized and the Request for Proposal will be posted to the Federal Business Opportunities (FedBizOpps) website;

however, the Government does not have qualification requirements as only the OEM approves additional sources. There are no qualified sources aside from the OEM.

A Sources Sought Synopsis under solicitation number “Repair_of _KC135_Cowling_Ducts” was posted to FedBizOpps on 27 June 16. There were no qualified candidates that responded.

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. Certified cost or pricing data will be requested from the contractor. A detailed cost analysis and price analysis will be performed.

Technical and price evaluations from Defense Contract Management Agency (DCMA) and a field audit from Defense Contract Audit Agency (DCAA) may be contacted to assist with the evaluation of the contractor’s proposal 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

Market research, in accordance with Far Part 10, was conducted by the multi-functional team consisting of the Engineer and Production Management Specialist. The conducted research reviewed Parts Manufacturer Approvals (PMA), HAYSTACK, and a web search, completed on 25 July 2016. This research revealed that there is not a commercial process available to meet this requirement. The ducts and cowling are used in military applications and no commercial or non-developmental substitutes are available. A sources sought synopsis was posted on FBO.gov between 27 June 2016 and 29 July 2016 seeking vendors with interest and capability to overhaul the ducts and cowling. There were four responses to the posting. While these companies had repair experience for similar commercial items, none of the companies had access to the required proprietary data. Additionally the Navy was contacted about the sources of repair used for the E-6 inlet and fan cowling. This cowling is very similar to that used on the KC-135 and share many of the same manufacturing drawings required for overhaul. It was found that the Navy does not have a standalone depot level overhaul for the cowling. E-6 cowling is repaired at Government facilities using field level repair manuals or per Navy engineering direction. There are no applicable industry standards, regulations, trade journals, or process guides that apply to the repair of the fan ducts and cowlings. Boeing was found to be the only source able to fulfill the requirement.

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

OPEN COMPETITION

The 424 SCMS engineering community evaluated the possibility of reverse engineering this repair effort. Although the Government does not have enough experience or historical data to estimate costs with specificity, the cost to reverse engineer the fan ducts and cowlings and subsequent repair procedures are estimated to be more than and 7 years, based on evaluation of items of similar complexity that have been reverse engineered by the U.S. Air Force in recent history. It is also anticipated that developing a repair capability for these parts without any releasable data would be a very high risk endeavor.

The development of repair procedures without the requisite data and/or technical manuals is impossible without extensive and costly reverse engineering. Even if it were possible to recover these costs over the life expectancy of the parts, the time it would take to await that course of action makes it unfeasible to meet the current need. The cost to reverse engineer is not expected to be recovered over the life of the weapon system.

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

ACQUISITION

Airway Aerospace FAA: 19LR020B

EASA.145.6563

2150 NW 95 Avenue Doral, FL 33172 Phone Number: (305) 684-6666

Triumph Airborne Structures 115 Centennial Drive Hot Springs, AR 71913 Cage Code 059S2 DUNs Number 95-836-1438

The Nordam Group 11200 E Paine Street Tulsa, OK 74116 Cage Code: 29957 DUNs Number: 148317472

Aero Composites and Repair 2929 Vista Court Ponder, TX 76259 Phone Number: (469) 236-9470

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

Engineering will continue to monitor the marketplace for overhaul source development and will continue discussions with the OEM regarding additional approved overhaul sources.

The Government will continue to synopsize the requirement, re-screen the item, and attempt to acquire the data necessary to qualify additional sources.

XII. CONTRACTING OFFICER’S CERTIFICATION

The Contracting Officer’s signature on the coordination and approval document evidences the Contracting Officer has determined this document to be both accurate and complete to the best of the Contracting Officer’s knowledge.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidenced by the 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.