Motional_Transducer_JA_Redacted.pdf

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

14 Nov 2017 Page 1 of 6

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Funding level for this acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

United States Air Force

Contracting Activity: AFSC/PZAAB 3001 Staff Drive Tinker AFB, OK 73145

Purchase Request / Local ID Number: USAF: FD2030-18-02568

Program / Project (and PE, if applicable): Remanufacture of F110 Motional Transducer

Program Type (PEO or Other Contracting): Other Contracting

Authority: 6.302-2 – 10 USC 2304(c)(2), Unusual and Compelling Urgency

Estimated Contract Cost (including options): $455,000.00 J&A Type: Class Individual

COORDINATION (AFFARS 5306 . 304 ( a) ) ** The text in the signature blocks below is editable, including the title.

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X

APPROVAL (AFFARS 5306 . 304 ( a) )

Date

27 Jun 2018

Contracting Officer Rebecca West

405-734-4620

Signature

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action 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 and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Date

27 Jun 2018

Project Lead / Program Mgr / Requiring Activity Manuel Hernandez

Signature

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I. Contracting Activity.

(See "Specific Guidance for Completing this Template" below.)

United States Air Force

AFSC/PZA

3001 Staff Drive Tinker AFB, OK 73145

Purchase Request (PR)#: FD2030-18-02568

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

This individual Justification and Approval (J&A) authorizes use of other than full and open competition procedures to obtain a follow-on, non-commercial, firm-fixed price requirements contract. The contemplated contract with Ametek Inc. (Ametek), Commercial and Government Entity (CAGE) code 99564 is for the remanufacture of the F110 Motional Transducer in support of the F16 aircraft. Ametek is the original equipment manufacturer (OEM) for the Motional Transducer. In accordance with FAR Part 16, a one-time purchase contract is considered appropriate for this acquisition. The estimated total value for this award is $455,000.00 with an estimated award date of 10 Aug 18.

Previous Contract Numbers: FA812216D0003 Date of Award: 11 Mar 16 Completion Date: 30 Mar 18 Basis of Award: Sole Source

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

Under the contemplated supply contract, Ametek will provide the remanufacture of the F110 Motional Transducer.

Contract Summary:

Year Qty Unit Price Estimated Dollars Period of Performance 2018 $455,000 Jul 18 - Oct 18

Type of appropriation: 97X4930 Total estimated dollars for PR line item 0001-0003: $455,000.00

PR line item 0001: Remanufacture of NSN: INPUT: 6695-01-237-0241PR &

6695-01-363-3031PR OUTPUT: 6695-01-363-3031PR

P/N: INPUT: 1369M58P01 & 1369M58P02 OUTPUT: 1369M58P02

Noun: F110-100/129 Motional Transducer Application: F110 Engine Item Description and Function: The Motional Transducer provides an electrical signal to the

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Digital Electronic Control informing the control system of the position of the Exhaust Nozzle.

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The Motional Transducer's dimensions are approximately 1.62 inches high X 1.62 inches wide X 22.00 inches in length, weighing 6.500 lbs., and composed of stainless steel alloys.

PR line item 0002: Data - Not separately priced

PR line item 0003: Item Unique Identification (IUID) - Not separately priced

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

The authority for this action is 10 U.S.C. 2304(c)(2), as implemented by FAR 6.302-2(a)(1).

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

A. The Motional Transducer informs the Digital Electronic Control of the Exhaust Nozzle position for the F110 engine on the F-16 aircraft. This remanufacture is considered highly specialized because these parts are highly complex aviation Critical Safety Items that involve critical remanufacturing processes which affect the integrity and durability of the motional transducer. Ametek has previously provided this highly specialized remanufacture of the F110 Motional Transducer [NSN 6695-01-363-3031PR] on sole-source contracts FA812211C0010, FA812215C0006 and currently on sole-source contract FA812216D0003 with the United States Air Force (USAF). Ametek, the OEM, is the only known contractor that has the data, parts and expertise to remanufacture these items to meet the Government's requirements. The remanufacture data and acceptance test criteria needed to accomplish remanufacture of the motional transducer competitively are not available to the Government, and it is not possible to draft adequate specifications for the remanufacture of this item or Ametek's unique and highly specialized capabilities without that data. Efforts by the Government to purchase the data from the OEM have not been successful in the past. However, the Government contacted Ametek on 18 Apr 18 by letter sent via email to request the data usage rights be provided/sold to the Government. AFSC/PZA received a ROM for the purchase of data/licensing rights to the F110 Motional Transducer NSN 6695-01-363-3031PR in the amount of . Due to the MICAP situation and lack of coverage on these assets, the purchase of data will be contemplated but will not hold up the continuation of services of this highly anticipated requirement's type contract. However, the purchase of data will continue to be pursued prior to extension of any option.

B. The 421 SCMS/GUMCA states that an urgent and compelling need exists and award to any other source would result in unacceptable delays in fulfilling the Air Force's requirements. Due to our current asset posture, we will be out of serviceable assets within one month. Resulting in the need for an urgent contract. Due to the lack of remanufacture data and qualification requirements, the Government does not expect that another source could become qualified in time to avoid unacceptable delays in meeting the Government's requirement. Due to the MICAP situation for these assets, a delay in a award would potentially ground F-16 aircraft and cause detriment to the USAF mission. To the Government's knowledge the OEM has not received any requests to qualify additional remanufacture sources for this item. It is

14 Nov 2017 Page 5 of 6 anticipated that the OEM's Source Approval Request (SAR) would require at a minimum an additional two years to process and validate, unnecessarily extending the lead time for this item and creating procurement delays.

C. Accordingly, Ametek is the only source capable of providing the supplies and services described in section III above without the U.S. Air Force experiencing 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 practicable.

A. Sources Sought Synopsis. A sources sought synopsis, issue number 6695-01-363-3031PR, was posted 22 Dec 17 on the Federal Business Opportunities (FBO) website with responses due back 22 Jan 18. To date, no responses have been received.

B. Pre-solicitation Notice. In accordance with FAR 5.201, this requirement shall be synopsized and the Request for Proposal shall be posted to the FBO website. The Government does not have qualification requirements as the OEM, Ametek, approves additional sources.

C. Other Actions. A previous J&A from 10 Mar 15 stated the Government would qualify any interested sources if the remanufacture data became available. The Government contacted Ametek on 18 Apr 18 to request the data usage rights be provided/sold to the Government.

AFSC/PZA received a ROM for the purchase of data/licensing rights to the F110 Motional Transducer NSN 6695-01-363-3031PR in the amount of . Due to the MICAP situation and lack of coverage on these assets, the purchase of data will be contemplated but will not hold up the continuation of services of this highly anticipated requirement's type contract.

However, the purchase of data will continue to be pursued prior to the next follow-on award.

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 both the contractor and the Government. In accordance with FAR part 15, a comparison of proposed prices to historical prices paid will be used for price analysis. The Contracting Officer may request a technical evaluation from the Defense Contract Management Agency to aid in the evaluation of the contractor's proposal. The Contracting Officer will seek audit assistance from the Defense Contract Audit Agency if necessary.

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

A multi-functional team consisting of the Engineer, Contracting Officer, and Production Management Specialist conducted Market Research by email, websites, and telephone calls which

14 Nov 2017 Page 6 of 6 were completed on 07 Sep 17. The program office along with contracting team posted a Sources Sought Synopsis (SSS), responses were due by Jan 22, 2018, and resulted in no additional interested vendors. The SSS which was posted on FBO had a RFI along with the draft SOW attached. The Government Form 2579 has been routed through the SBO to determine if any other SB exist. SAM, FAPIIS, and PPIRS were consulted with no exclusions listed for the KTR, and no PPIRS report cards could be found. Internet search on Google for the Motional Transducer remanufacture resulted in the following: a link to the previous SOW for PR 15-02544; a site which specializes in helping KTRs bid on Government Contracts; the link to the previous basic contract FA812215D0003; a link to Ametek, the current sole source KTR; a link to motion transducer (made-in-china.com); and a link to other transducer manufacturers. None of the manufacturers listed dealt with F110 motional transducers manufacturing or repair. The Market Research revealed that there is not a commercial process available to meet this requirement. The Motional Transducer in this system is used in military applications and no commercial or non-developmental substitutes are available. There are no applicable industry standards, regulations, trade journals, or process guides that apply to the remanufacture of the Motional Transducer. Market Research also allowed the Government team to identify the same sole-source market condition that has existed since these parts originally were manufactured by the OEM. Ametek was found to be the only source available to fulfill the requirement.

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

The cost to reverse engineer this item is estimated to be and the effort would take approximately five years. This estimate was based on evaluation of items of similar complexity that have been reverse engineered by the Air Force in recent history. This part is a Critical Safety Item and would therefore require accelerated mission and flight testing in order to qualify a reverse engineered part. With an annual remanufacture budget of for FY18, and less for FY19, it would be cost prohibitive to expend in the pursuit of additional sources as this cost could not be recovered thorough competition. As this system will not become obsolete and is forecasted for repair through FY22, the reverse engineering cost is not expected to be recovered through competition over the life of the weapon system. It is not possible to draft adequate specifications without substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Air Force's requirements.

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

Ametek Inc.

CAGE: 99564

1644 Whittier Avenue Costa Mesa, CA 92627-4415 Phone: (978) 988-4966

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.

A. After request was made, AFSC/PZA received a ROM for the purchase of data/licensing

14 Nov 2017 Page 7 of 6 rights to the F110 Motional Transducer NSN 6695-01-363-3031PR in the amount of .

Due to the MICAP situation and lack of coverage on these assets, the purchase of data will be contemplated but will not hold up award of the next contract. However, the purchase of data will continue to be pursued prior to the award of the next contract. Actions to increase competition on this acquisition will be performed by the program office along with the contracting team and will ensure the following tasks are accomplished per the milestones established. Each action will be performed, and will be evidenced through documentation in the contract file e.g. SSS. RFI, e-mails to contractor, Memo for Record, etc.

Milestones:

01 Aug 18- The contracting team and program office will hold discussions to determine if the purchase of data/licensing rights is economically in the best interest of the Government.

30 Sep 18- If it is found to be in the best interest of the Government to purchase the data licensing rights, a funded purchase request will be issued and the next option period will not be extended.

B. Per PGI 206.304(a)(S-70)- As indicated by signature on the Coordination and Approval Document, the previous J&A has been reviewed and the Approval Authority determines that all stated actions to remove barriers to competition have been accomplished.

XII. Certification by the Contracting Officer.

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.

XIII. Certification by the technical/requirements personnel.

By their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified as accurate and complete all supporting data, which is their responsibility, contained herein IAW FAR 6.303-2(c).

Remove the Guidance pages below. Remove the IACR pages below.