JAFD2020-20-00341 v.4 approved_Redacted.pdf

FD2020-20-00341

I. CONTRACTING ACTIVITY:

Defense Logistics Agency DLA Aviation at 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: FD2020-20-00341

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 LC-130 Direct Linear Valves. This requirement is for support of the LC-130 Landing Gear Sustainment Program and will be used by the Air Force LC-130 weapon system. The contract will be awarded to:

Eaton Aerospace Cage Code 99643

B. Contract Type & Structure: A Firm Fixed Price contract to procure a total quantity of 20 each Direct Linear Valves will be issued. The estimated award date is July 2020 with performance expected through September 2022.

C. Type J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED MEETING THE

AGENCY’S NEEDS:

A. This requirement is for 20 ea Direct Linear Valves NSN 4810-01-523-2947/Part Number 50900. This requirement is for new manufacture only.

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 the new manufacture of a highly specialized component whose design is currently limited to Eaton Aerospace. As per the 417 SCMS/GUEA Engineer the LC-130 Direct Linear Valve is unique to the LC-130. It is designed and certified to Eaton Aerospace owned Drawing 50900. Per this drawing/ specification, the Linear Valve was tested and certified to perform per the LC-130 design requirements, which includes failure, fatigue, stress, and corrosion analysis.

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 Direct Linear Valve by any other supplier other than Eaton Aerospace. The proprietary data owned by Eaton Aerospace, available to the Air Force is a top-level drawing only, which cannot be used for the design or manufacture of the Linear Valve. Eaton Aerospace is the only firm capable of providing the requirement for the supplies described in Section III above, without the government experiencing substantial duplication of costs that could not be expected to be recovered through competition. Reverse engineering costs are estimated at .

C. On 4 Sep 2019 a data rights request was sent to Tom Griffith at Eaton Aerospace, Cage Code 99643, to provide a no-cost itemized ROM for the data required to produce the valve, which included the sell/license of unlimited license rights, government purpose rights, form, fit and function rights, and operations, maintenance, and installation data (OMID). Eaton Aerospace has claimed proprietary rights to their data and are not willing to remove the rights to this data. On 12 Nov 2019 a response to the data rights request was received. Eaton Aerospace is not willing to sell/license the data rights because this asset was developed with their funds.

D. The USAF did not submit a request for data rights to Air New Zealand as the Government’s market research concludes that Air New Zealand does not posess the drawings needed to produce new manufacture of the LC-130 Direct Linear Valve. Air New Zealand has developed proprietary drawings which are used for repair purposes only, however, the repair drawings are not sufficient for new manufacture. Air New Zealand is only capable of supporting this requirement from a repair standpoint and will not be specifically solicited for this requirement of new manufacture.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE:

A. A Solicitation was posted 21 January 2020 and closed 21 February 2020, advising industry of the pending acquisition and soliciting inquiries from interested parties. No responses were received from industry except from Eaton Aerospace.

B. This requirement has been synopsized in Beta.sam.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. 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, was conducted per FAR 10.001.

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

1 September 2019, a review of the procurement history for this item. The NSN identified Eaton Aerospace, Cage Code 99643, as being the only manufacturer utilized in the procurement of this item.

2 September 2019, the 761 AMN/AMSC Screening Analysis Worksheet only indicated Eaton Aerospace as a source for new manufacture. The search did not yield any additional approved sources.

3 October 2019, a search and review of the below internet sites was accomplished in which no additional sources were identified.

o Google (http://www.google.com) o ThomasNet (http://www.thomasnet.com) o IHS Haystacks (http://login.ihserc.com/cgi-bin/ihslogin) o PRPS(https://prps.cce.af.mil/PRPS/)

4 Information was gathered using office corporate knowledge and experience with commercial airframes. Contacted knowledgeable individuals in Government regarding market capabilities to meet requirements. The USAF IPT consisting of the LC-130 Program Manager, Item Manager, and system Engineer, through market research and years of combined professional knowledge of the LC-130 weapon system, have concluded with a high level of confidence that there are no additional sources capable of meeting the government’s needs.

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

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

OPEN COMPETITION:

None

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:

Another source would be permitted to manufacture this seal provided they pass all applicable testing requirements and meet all of the technical data specifications required of the asset per 417 SCMS. The technical data is proprietary to the sole source contractor. AMC/AMSC of 3/R has been assigned with a 5 year review date as authorized by the OO-ALC spares breakout.

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)).