Justification and Approval_Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

FOR OFFICIAL USE ONLY

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I. Contracting Activity.

This Justification and Approval is to request authority for Other Than Full and Open Competition supports requirements generated by the Department of the Air Force Life Cycle Management Center, Agile Combat Support Directorate, Support Equipment and Vehicle Division. The contracting activity responsible for this acquisition is AFLCMC/WNKAAA, Robins AFB, GA. The Purchase Request number supporting this contracting action is FD2060-19-34237.

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

Due to the circumstances described herein, the activity requests authority to procure the items 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 Firm Fixed Price (FFP) Requirements Indefinite Delivery Contract (IDC) consisting of a one (1) year Basic and eight (8) one (1) year options. The award of this IDC is anticipated to occur on 31 July 2020. The validity period of this IDC is projected to be 108 months through 30 July 2028. This requirements contract will be awarded as a Single Award Task Order/ Delivery Order Contract exceeding $112M based on FAR 16.504 (c )(1)(ii)(D)(1)(iii) in which this J&A provides supporting rationale.

This sole source requirement will be purchased from the following company:

Hydraulic International Inc. (HII) 9201 Independence Ave Chatsworth, CA 91311-5905 Cage Code 56529 Small Business

III. Description of supplies/services required to meet agency needs.

This requirement is for the procurement of the following items to equip the United States Air Force (USAF) fleet of aircraft weapon systems and Foreign Military Sales (FMS) customers with sufficient quantity: Hydraulic International, Inc. (HII) Universal Hydraulic Test Stand (UHTS) (diesel and electric) configuration, Universal Triple Hydraulic Test Stand (UTHTS) (diesel and electric) configuration both with an on board Hydraulic Fluid Purifier (HFP), HCT-12 Hydraulic Component Test Station (HCT-12 HCTS), HCT-14 Pump and Motor Test Console (HCT-14 P&MTC), HCT-40 Hydraulic Fluid Cooling System (HCT-40 HFCS), Instrument Verification Set (IVS), Instrument Contamination Verification Set (ICVS), and Instrument Contamination Sensor/Hose Flushing Manifold (ICS/HFM). This contract will replace legacy hydraulic test stands to fully implement hydraulic fluid purification and reduce the stands logistic footprint and equipment by more than 80 percent.

The UHTS, UTHTS, HCT-12 HCTS, HCT-14 P&MTC, HCT-40 HFCS, IVS, ICVS, and ICS/HFM will come with hardware and software configuration required to test current fielded Air Force aircraft hydraulic components and support equipment. Each piece of equipment's hardware configuration is fully compatible with existing facilities setup and electrical configuration.

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Equipment can be modified with the changing of the supply and return hydraulic hoses' quick disconnects and hose size based on aircraft specifications. This equipment will support any aircraft weapon system that utilizes the three major hydraulic fluids used in Air Force aircraft weapon systems (MIL-PRF-5606, MIL-PRF-83282 and MIL-PRF-87257) as specified in Technical Order Manual 42B2-1-3 (Fluids For Hydraulic Equipment).

The UHTS and UTHTS is a piece of support equipment used to provide hydraulic pressure to aircraft systems without running engines or auxiliary power units and to purify hydraulic fluid used in a variety of aircraft and support equipment hydraulic components. The UHTS and UTHTS eliminate fluid contamination and allow reuse of hydraulic fluid. The UTHTS will reduce negative environmental impacts related to disposal of hydraulic fluid and reduce consumption costs, disposal costs and man-hours. The UHTS and UTHTS comes with a proven and reliable on board hydraulic fluid purification system approved for use on Air Force equipment by the Air Force Research Laboratory (AFRL). The HFPS will perform fluid purification for the removal of particulate, water and volatile contaminants from the fluid without altering the physical or chemical properties of the hydraulic fluid.

The HCT-12 HCTS is a piece of support equipment/back shop test equipment used to test a variety of aircraft and support equipment hydraulic components. The test stand provides hydraulic pressure and flow as well as pressurized nitrogen and air for testing the components.

The HCT-14 P&MTC will be linked to the HCT-12 HCTS. The HCT-14 P&MTC is a piece of hydraulic test equipment used to test a variety of hydraulic pumps and motors removed from Air Force equipment and aircraft. It will be purchased and be connected to the HCT-12 HCTS for Air Force bases/units with repair capability or charged with repairing hydraulic pumps and motors.

The IVS is a portable instrument verification and diagnostic measuring tool designed to verify flow, pressure and temperature of hydraulic systems and instruments. The ICVS is a portable instrument verification and diagnostic measuring tool designed to verify flow, pressure, temperature, particulate contamination and moisture PPM measurements. The IVS/ICVS allows the AGE mechanic to verify if an issue exists with flow and pressure and to make adjustments to realign the HTS without removal of the parts. The IVS/ICVS are mandatory required equipment for the operation of the UHTS and

UTHTS.

The ICS/HFM is a dual powered (battery/electric) self-contained, enclosed, portable system that provides inline particulate and moisture contamination measurements in hydraulic fluid, provides regulated pressure within a range of 0 - 5000 PSI, and also allows flushing of hydraulic hoses prior to connection to the aircraft. The ICS/HFM comes with an panel mounted Contamination Sensor (CS) which reads particulate contamination class of the fluid and Moisture Sensor (MS) which reads moisture contamination in parts per million (PPM). The hydraulic fluid contamination level is digitally displayed in National Aerospace Space (NAS) 1638 codes. The ICS/HFM was designed to work with all legacy HTSs and the UHTS. With the proper mod kit, the ICS/HFM can connect directly to the aircraft providing real-time contamination level of the aircraft hydraulic fluid.

This acquisition is to procure the following 10 National Stock Numbers (NSN) assigned for this equipment. Each NSN identified below consists of multiple configurations as part of an

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The nominal Contract Line Item Structure (CLINs) depicting the pricing arrangement and Nomenclature per each period is displayed below:

CLIN Nomenclature Type

X001 UHTS (D) FFP

X002 UHTS (E) FFP

X003 UTHTS (D) FFP

X004 UTHTS (E) FFP

X005 HCT-12 HCTS FFP

X006 HCT-14 P&MTC FFP - Not applicable to basic period, options 6 - 8

X007 HCT-40 HCCS FFP

X008 IVS FFP

X009 ICVS FFP

X010 ICS/HFM FFP

A requirements indefinite delivery contract is determined to be the most effective and efficient vehicle to procure the supplies necessary as the Government anticipates recurring requirements but cannot predetermine the precise quantities of supplies necessary during a definite period. The source identified is qualified and capable of performing this work at a reasonable price to the Government.

The estimated total price for this acquisition is . This estimate is based on a Rough Order of Magnitude (ROM) provided by Hydraulic International, Inc. The appropriations to be utilized in support of this contract is USAF aircraft procurement funds (3010), BP12 (Aircraft Common Support Equipment). The Defense Contract Management Agency (DCMA) Commercial Item Group (CIG) performed a preliminary price reasonableness assessment on Hydraulic International Inc parts in October 2019. DCMA CIG concluded that not enough data was available to determine a fair and reasonable price at that time and will re-engage this effort again once negotiations begin. Finally, an Independent Government Estimate (IGE) has been requested through the Cost and Economics Division, Air Force Sustainment Center, Robins Air Force Base. The results of the IGE will be used to ensure realistic contract price/cost are established once negotiations begin.

The anticipated award of this contract is 31 July 2020. The overall validity period of this IDC is from 31 July 2020 through 30 July 2028. The scope of this J&A encompasses all delivery orders through to completion as well as any increases beyond the stated BEQs. The equipment production delivery can start within 6 months after Receipt of Order (ARO). Once each option is exercised, quantities will be delivered within 12 months after receipt of the delivery order.

The following customers are anticipated to utilize this contract vehicle: ACC, AFMC, PACAF, AFRC, ANG, AMC, USAFE, AETC, AFSOC, AFGSC, GPS, USAFCENT, AFSPC and FMS countries. It is anticipated that FMS countries such as Egyptian Procurement Office, Korea, Saudi Arabia, Jordan, Thailand, Taiwan, Dubai, Italy, Canada Government Services and possible other countries will utilize this vehicle via appropriate Letters of Authorization (LOAs) source directing the Government to the above referenced source. As such this J&A will be used in lieu of individual IACRs for execution at order level.

This equipment has been screened and an Acquisition Method Code (AMC) of “3Z” were assigned to

March 2018 FOR OFFICIAL USE ONLY Page 7 of 15 each NSN. AMC “3Z” is classified as a commercial/Non-developmental/Off-the-Shelf-item and procured from the actual manufacturer or vendor.

The NSNs coded AAC “V” with assets on hand will remain in use until no longer serviceable, supportable or replaced with the UHTS, UTHTS, HCT-12 HCTS or HCT-14 P&MTC whichever comes first. When equipment serviceability can no longer be maintained or is replaced, the equipment will be removed from the Air Force inventory and the NSN deleted from the I&S group.

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

10 U.S.C. 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 nature of the acquisition requires the use of the authority cited above (applicability of authority).

The agency's minimum needs can only be satisfied by the unique supplies available from the OEM, HII who possess the unique capabilities to replace the legacy HTS.

Hydraulic fluids are a critical, safety-of-flight material for all Air Force aircraft. Hydraulically actuated mechanisms are responsible for a large number of aircraft functions ranging from highly sophisticated flight controls to applications such as accessory door actuation. The aircraft cannot reliably function without clean hydraulic fluid. Legacy hydraulic systems are currently contaminated and are not supportable therefore the Government is requiring immediate replacement of the legacy HTS. Obsolescence parts and diminishing manufacturers have left the government in a vulnerable state resulting in aircraft downtime awaiting hydraulic sample test results. This effort will acquire new HTS and support equipment through the OEM, Hydraulic International Inc., to fully implement hydraulic fluid purification and reduce HTS logistical footprint and equipment. The legacy HTS will be replaced by the following systems, UHTS, UTHTS, HCT-12 HCTS, HCT-14 P&MTC in which HII is the sole manufacturer.

Due to the current contamination issues, the Air Force requires the cleanest hydraulic fluid on their aircraft. As directed by the Air Force Support Equipment Working Group (AFSEWG) the HII UHTS, UTHTS HCT-12 HCTS and HCT-14 P&MTC is the solution necessary to immediately reduce operating cost and improve reliability and mean-time-between-failure (MTBF). The UHTS and UTHTS will purify the hydraulic fluid and satisfy the Air Force requirements for implementing hydraulic fluid purification. The UHTS and UTHTS, with the on board hydraulic fluid purification system, will remove the water and chlorinated solvents. The multiple filtration systems will remove the particulates improving the hydraulic systems reliability. MTBF will allow the fluid to be reused preventing draining and flushing of the aircraft or equipment. The electric and diesel UHTS and UTHTS can be used in a back-shop environment, are towable and are worldwide deployable to field type condition. The UHTS, UTHTS, HCT-12 HCTS and HCT-14 P&MTC meets all Occupational Safety and Health Administration (OSHA), Air Force Occupational Safety and Health (AFOSH), American National Standard (ANSI) standard regulations and Department of Defense specifications, standards and handbooks, American Society of Mechanical Engineers (ASME), Society of American Engineers (SAE) and National Fire Protection Association (NFPA) documents and requirements.

March 2018 FOR OFFICIAL USE ONLY Page 9 of 15 be a complete replacement program. The UHTS will replace all legacy 1-system and 95% of legacy 2-system Hydraulic Test Stands (HTS) The UTHTS will replace all legacy 3-system Hydraulic Test Stands (HTS) in which 90% have surpassed their life expectancy of 20 years and reduce the current configurations of legacy 3-system HTSs to two useable configurations. There will be one configuration for diesel and one configuration for electric that will support all F-15 aircraft configurations. Training for the warfighters will be minimum because the UTHTS is configured the same as the new 2-system UHTS with the on board hydraulic fluid purification system currently in full rate production and being delivered to Air Force bases/units worldwide and can be accomplished in one day if necessary. HII is currently providing the 2-system UHTS with the same on board hydraulic fluid purification system as the UTHTS, in full rate production under contract FA8533-11-D-0001.

This contract was awarded on 7 January 2011 with over 850 units procured and over 750 delivered across the Air Force.

The HCT-12 HCTS and HCT-14 P&MTC is designed to perform all functional and operational tests on hydraulic components including, and not limited to, motors, pumps, actuators and control valves from both rotary and fixed wing aircrafts. The HCT-12 HCTS is the main driver and the HCT-14 P&MTC can be added at any time for testing pumps and motors. The HCT-12 HCTS will replace 95% of the legacy back shop Hydraulic Component Test Stands for base/field level units reducing the configuration to less than 5. The HCT-14 P&MTC will be a partial replacement program replacing approximately 75% of legacy back shop Test Consoles for pump/motors. The HCT-12 HCTS and HCT-14 P&MTC are uniquely qualified to meet the legacy back shop Hydraulic Component Test Stations replacement requirements and were proven through extensive testing by the Navy, Boeing and Air Force. Full FAT was accomplished by the Navy under contract N68335-12-D-0023. The HCT-12 HCTS and HCT-14 P&MTC will be used in the back shop and will require little to no facility modification for most units. Units will be able to operate and maintain the HCT-12 HCTS and HCT-14 P&MTC with hydraulic fluid that exceeds NAS 1638 and PPM level because the UHTS/ UTHTS both are delivered with external HFP capability allowing units to clean the hydraulic fluid before servicing the HCT-12 HCTS/HCT-14 P&MTC.

The HCT-40 HFCS is a Closed Loop Chiller system designed to supply chilled water to the HCT-12 HCTS for the HCT-14 P&MTC preventing degradation of the hydraulic fluid. This equipment will be used to provide chilled water supply to back-shop test stations installed in facility not equipped with a chilled water supply system.

HII equipment has met or surpassed military examination and testing and therefore require no new examination or testing. The UHTS is uniquely qualified to meet the legacy 1 and 2 system Hydraulic Test Stands requirements and has been since contract FA8533-11-D-0001 was awarded 7 January 2011. The UTHTS is uniquely qualified to meet the legacy 3-system Hydraulic Test Stand replacement requirements and was proven through extensive testing. A Bailment Agreement written by the Hydraulic Test Stand Program Office (HTSPO) between the USAF and HII signed 7 January 2013 authorized this office to test HII UTHTS (diesel and electric) on the F-15 aircraft assigned to Nellis Air Force Base, Nevada in June 2013. The testing of both UTHTS configurations (diesel and electric) were successful and met or exceeded all government testing requirements.

Award to any other source would result in unacceptable delays in fulfilling the Air Force's requirements to implement hydraulic fluid purification and add substantial duplication of cost to the

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Government that cannot be recovered through competition. The Government investigated the feasibility of conducting a Reverse Engineering effort. A breakeven analysis was performed on all ten pieces of equipment and signed by AFSC/FZC-R on 3 May 2019. The breakeven analysis used alternatives of Sole Source and Reverse Engineering. The analysis covered a 12 year period (FY19 - FY30) with the assumption that in FY30 all requirements would be met and no other equipment will require procurement. Reverse engineering would require a minimum of 8 years working concurrent on all systems. The estimated cost is projected to be to reverse engineer and produce the technical data for each system. After reverse engineering is completed, it would take an additional to to develop and perform the required examination and qualification testing which would add another 36 to 48 months minimum lead time before the equipment could be fielded for warfighter operation. This would be contingent however on successful qualification and testing. The Government anticipates unnecessary risk in regard to the ability to reverse engineer the software used to operate the HMI and built-in fault condition monitoring/warning system. Overall, the analysis indicated a sole source procurement is the least costly alternative as the return on investment of + would not be recouped for approximately 25.4 years which exceeds the life expectancy of 20 years for this equipment. Additionally an analysis on the cost estimate of the Technical Drawing Package (TDP) provided by HII was also performed by AFSC/FSC-R on 24 July 2019. The analysis concluded that the TDP cost of was more expensive than the estimated cost to reverse engineer the equipment. Therefore, an investment in procuring the data rights would not assist in a reduction of overall procurement cost.

In addition, to the above analysis, the Government would need to identify which agency would validate/verify the new source HFP system given the Air Force office of responsibility no longer exists and the Defense Logistics Agency effort to obtain responsibility never materialized. The government also no longer has the facility or equipment for testing a HFP. These issues substantially hinder the ability to conduct a reverse engineering effort as well as the design and approval of a new Hydraulic Test Stand. Additionally the required funds to accomplish a reverse engineering effort are not available, nor expected to be available in a reasonable amount of time. The time allocated for RE funds availability is estimated to be another 24 to 36 months lead time to the already excessive lead time to reverse engineer, design, and test new Hydraulic Test Stands.

The impact of a competitive procurement would incur prohibitive research and development (R&D) costs and unacceptable delays. The estimated time and costs derived are based on review of similar programs; in particular the 2-system UHTS procurement in FY11 under contract FA8533-11-D-0001.

The unacceptable delays would be an additional 30 to 36 months to the procurement lead time and would be associated with development and full testing including qualification, compatibility and users. The cost associated would be to . Additionally, any equipment manufactured by any source other than HII would have to undergo complete First Article Testing (FAT) which takes an average of 20 to 36 months to develop before qualification, compatibility and users testing can begin.

New Technical Order Manuals, Work Guides and training will also be required that would add another to to the final cost and another eight (8) to ten (10) months lead time. The additional delivery lead time is unacceptable to the warfighter and the program office. Based on the number of authorization for hydraulic servicing equipment in the Air Force inventory, it is not technically or economically feasible to contract with another source that does not possess the complete spectrum of unique design data, specialized equipment, AFPA/PTPT approval for HFP and expertise required for manufacture of this equipment at this time.

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For the above stated reasons, these requirements must be purchased from Hydraulic International Inc.

who is the only source that can economically provide this equipment to the government without substantial duplication of costs and excessive lead time not expected to be recovered through competition. All equipment has been tested and approved for use on Air Force aircraft and delivery can start within 180 days after award of the contract, thereby filling shortages and start the replacement of the legacy Hydraulic Servicing Equipment that have surpassed their life expectancy of 20 years by an average of 18+ years without any additional delays or cost.

The acquisition of the 2-system UHTS, 3-system UTHTS, HCT-12 HCTS and HCT-14 P&MTC will result in less cost for the Air Force to operate and maintain this equipment. The acquisition of this equipment will remove over 40 configurations of legacy Hydraulic Test Stands reducing the logistic footprint across the Air Force. The fielding of this equipment will greatly reduce Diminishing Manufacturing Sources and Material Shortages (DMSMS) the Air Force is currently experiencing in maintaining legacy HTSs as well as lowering the total ownership cost of HTSs. The loss of manufacturers or suppliers of critical items and raw materials due to discontinuance of production is a huge cost to the HTSs sustainment. Each piece of equipment is fully tested, approved and HII can proceed straight to production if awarded this contract avoiding 36 to 48 months in FAT lead time.

The benefits of procuring this equipment from HII are very significant to include reducing resupply times, manpower, and waste fluid costs, provide real-time fluid contamination level information, and prognostic maintenance action with the built-in diagnostic system.

Accordingly, HII is the only source capable of providing the equipment described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

A Request for Information (RFI) was posted to Federal Business Opportunities (FedBizOpps) on 28 March 2019 with a response date of 29 April 2019 under Solicitation Number UHTS_29APR19_RFI.The RFI requested responses from interested vendors that possess the expertise, capabilities, and experience to meet the requirements for qualification and production of the UHTS, UTHTS, and HCT-12 HCTS for use by the United States Air Force (USAF) aircraft maintenance personnel. The Contracting Office (AFLCMC/WNKAA) received one email response from HII stating they were interested in this opportunity. The issuance of the RFI did not produce any additional sources (approved or potential) Hydraulic Servicing Equipment manufacture with the capability to produce this equipment.

An amended RFI was posted to FedBizOpps on 12 June 2019 under Solicitation number UHTS_29APR19_RFI with the inclusion of the HCTS, HCT-14 P&MTC, HFCS, IVS, ICVS and ICS/ HFM per direction of the Program Executive Officer (PEO). The deadline for responses to the RFI was 24 June 2019. The reposting of the amended RFI resulted in a response from HII and garnered no new sources

The requirement will be synopsized in SAM.gov in accordance with FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Any source who

March 2018 FOR OFFICIAL USE ONLY Page 12 of 15 responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

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 15.403-3, the Contracting Officer will require the submission of other than certified cost or pricing data. Price analysis or cost analysis based on “information other than certified cost or pricing data” will be used to examine and evaluate the proposed prices to determine fair and reasonable pricing. Price analysis techniques include comparison of proposed prices to historical prices paid for a same or similar item; comparison with published price lists, offered catalog prices and prices obtained through market research for a same or similar item; comparison of proposed prices with independent Government estimate; or analysis of data other than certified cost or pricing information.

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

Market research was completed on 2 October 2019 in accordance with FAR 10.001 and 10.002. The following market research techniques were performed by AFLCMC/WNZEA in which the vendor survey results are provided:

• As described in Section VI above, a RFI was posted to FedBizOpps on 28 March 2019 and then amended on 12 June 2019 under solicitation number UHTS_29APR19_RFI utilizing NAICS Code 336413. HII was the only vendor to respond to the RFI, stating they were interested in this opportunity. The issuance of the RFI did not produce any additional sources with the capability to produce this equipment.

• A SBA Dynamic Small Business Search (DSBS) (http://dsbs.sba.gov/dsbs/search/ dsp_dsbs.cfm) query was conducted utilizing NAICS 541330, 541618, 541990, 336413 with keywords “Hydraulic Purifier”, “Hydraulic Purification Station”, “Universal Hydraulic Purifier”, “Purification Stand” and “Hydraulic Test Stand” ). This query produced 10 potential vendors. All 10 vendors were determined to be non-capable of manufacturing an integrated Hydraulic Test Stand. Research revealed that each potential source had never produced an integrated Hydraulic Test Stand that supported multiple aircraft weapon systems.

• Companies listed as “Small Size Business” within the User's Guide for the Design and Engineering Support Program III (DESP III). Ref the following webpage: http://www.hill.af.mil/ shared/media/document/AFD-121115-058.pdf. Of the 5 potential sources evaluated, none possessed the ability or experience to build a HTS with an on-board HFP and were therefore determined non-capable of fulfilling this immediate requirement.

IPT known contractors who have bid similar products in past contract efforts were researched. No other contracts or related efforts exist in regards to this type of product from any other manufacturer except HII. Past similar efforts relate to Solicitation Number FA853310R20138 which resulted in the

March 2018 FOR OFFICIAL USE ONLY Page 13 of 15 award of contract FA8533-11-D-0001 to HII for the UHTS. None of the potential suppliers, other than HII, from previous solicitations have built an integrated HTS with an on-board HFP system that can support multiple Aircraft weapon systems and multiple hydraulic fluids. The searches revealed no new potential suppliers for HFP or any supplier with experience to build a HTS with an on-board HFP other than HII.

• Google, Thomas Register, Business.com, GovCon, Test Mart were used to look for potential sources. Commercial Airlines were contacted to see what equipment they use to maintain their aircrafts. Over 25 potential new sources were evaluated for their ability to produce an HTS with on-board capability. Each were determined non-capable as they lacked expertise as a manufacturer of an integrated purification system in a HTS or lacked the necessary certification and past experience in manufacturing this type of equipment in order to be considered capable.

Market research revealed no other equipment is available that can support this effort. Any new equipment introduced would require major testing, analysis and verification for qualification.

Additionally, Research and Development would be necessary to modify for any "of a type" equipment in order to meet the current Air Force needs.

Keywords such as “Hydraulic Purifier”, “Hydraulic Purification Station”, “Universal Hydraulic Purifier”, “Purification Stand” and “Hydraulic Test Stand” were utilized; no other criteria was selected due to the uniqueness of this equipment. These keywords were selected as representing the minimal attributes to potentially satisfy the requirements of this effort. The search revealed 19 new potential sources, however none possessed the necessary experience to build a HTS with an on-board system.

Due to the on board HFP certification requirements, only 3 sources are approved to manufacture a HFP for the Air Force in according with Technical Order Manual 42B2-1-3 (Fluids for Hydraulic Equipment). Of those 3 sources, HII is the only source that has produced a Hydraulic Test Stand with an on board HFP. HII has produced over a thousand Hydraulic Test Stands between the 2-system and 3-system (electric and diesel) with the on board HFP system that support multiple aircraft weapon systems and multiple hydraulic fluids for the government as well as Boeing, Saudi Arabia, and other FMS customers. The function and performance of HII has been thoroughly studied and a high level of confidence was determined that no other qualified sources exist that can satisfy the government requirements.

This equipment is considered that of a commercial item as defined in FAR 2.101. Market research also determined no other commercial or mil-std support equipment is readily available that can meet the government requirement. Additionally, market research revealed no other entity that builds a HTS with an on board HFP system similar to the UHTS and UTHTS and no other competing entity could be found to have the expertise to build a compatible UHTS, UTHTS and HCT-12 HCTS, HCT-14 P&MTC given its protected proprietary nature, compatible pressure and flow requirements to support multiple aircraft weapon systems and multiple aircraft hydraulic fluids to enable aircraft hydraulic fluid purification.

The market research concluded that HII is the only source capable of providing a UHTS and UTHTS with an on board HFP and other required Hydraulic Servicing Equipment that will meet Air Force requirements without unacceptable delays and sustainable cost.

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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.

Market research will be conducted during the life cycle of this equipment. Additional focus will be made to determine if other commercial sources, non-developmental items, or alternate equipment can fill this requirement in the future.

HII is currently the only company that produces an integrated HTS with an on board HFP system with the capability to support multiple aircraft weapon systems and multiple aircraft hydraulic fluids that are required for this effort. There is no other company that can compete for this work without substantial cost to the government with excessive and unacceptable wait time.

As stated above, the Government does not own the rights to the technical data for this equipment. The government does not have the equipment or facility required for specialized testing of HFP equipment.

The government does not have a contract or CRADA in place for any agency to accomplish HFP equipment testing. To support requirements for these Hydraulic Test Stands, the program office has determined that it is uneconomical to procure the technical data for the required NSNs and conduct a effort to qualify additional sources. The HTSPO contacted the manufacture on selling the technical data packages. HII provided a revised ROM with a total cost of on 12 July 2019 to procure the data packages. This estimate was determined cost prohibitive to purchase a re-procurement data package for all this equipment. There was a discussion of reverse engineering and it was determined this approach was not feasible given the excessive long lead time to accomplish and lack of return on investment. The breakeven analysis indicates the Government would not recoup the cost to purchase the technical data within the equipment life cycle but will continue to explore the option of other alternatives (commercial, non-developmental items) throughout the life of the program.

The current competitive barriers are due to the lack of qualified and approved sources beyond HII and the immediate requirements for this equipment with an on board HFP. Future requirements may be made using other than full and open competition if the government can obtain the full TDP in the future at a reasonable price and return on investment. In order to overcome the barriers to competition, the program team will also continue to conduct market research during the life cycle of this equipment. Additional focus will be made to determine if other commercial sources, non-developmental items, or alternate equipment can fill this requirement in the future.

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XII. Certification by the Contracting Officer.

As evidenced by my signature above, 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) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.