Exception_to_Fair_Opportunity_PSLU_Ph_I_7Oct15_Redacted.pdf

FAIR OPPORTUNITY EXCEPTION (FOE) DETERMINATION AND APPROVAL

Contracting Activity: AFSC/PZABA Purchase Request/Local Identification Number: FD20301502376-00 Program Name (and Program Element, if applicable): B-2 Proximity Switch Logic Unit Form Fit Function Replacement Estimated Cost/Price of the Order (including options): $7,482,948 Type Program: Other Contracting Authority: FAR 16.505(b)(2)(i)(B) Type Determination: FOE Class

Task Order Initiator:

Contracting Officer:

Legal Office:

Chief of the Contracting Office:

Approval:

Competition Advocate:

Mary J. Wade/ Competition Advocate Date Signed

DSN: 884-5135 Commercial: (405) 734-5135

FAIR OPPORTUNITY EXCEPTION (FOE) JUSTIFICATION

I. Contracting Activity

AFSC/PZABA

3001 Staff Drive Tinker AFB, OK 73145-3020

DSN 339-3884

Comm (405) 739-3884

II. Nature and/or Description of the Action Being Processed

This activity will acquire the following new engineering task using “Other than Full and Open Competition” procedures. This is an individual FOE to support an “Other Contracting” requirement. The Government is intending to award a non-recurring engineering task during the remaining ordering period of the DESPIII contract vehicle, FA8222-12-D-0018. DESPIII is a seven year basic contract with no option periods and the ordering period of the contract ends 10 Jan 17. This engineering task is requirements-based with Cost-Plus-Fixed-Fee (CPFF) elements that are intended to support the B-2 Proximity Switch Logic Unit (PSLU) requirements. The estimated value of this engineering task is $7,482,948 and the anticipated award date is 24 Sep 15.

Previous Contract Number: None

III. Description of the Supplies/Services Required To Meet the Agency’s Needs

This acquisition is for sole source task order under DESP III to resolve safety of flight issue for PSLU (or Alarm Control P/N: 8-490-09, NSN: 6340015023518), reduce repair costs, increase reliability to original specification levels and solve the Diminishing Manufacturing Sources and Material Shortages (DMSMS) problems. The PSLU will be redesigned and tested as a form, fit, and function replacement. This task order will include Analysis/feasibility study, Engineering Support, Develop & Design up to and including Preliminary Design Changes.

The services under this task are performance based.

Period of performance is 36 months from 24 Sept 15 – 23 Sept 18.

PR Line Item Quantity Unit Price

0001 1 0002 1 0003 1

PR line item 0001 Cost Plus Fixed Fee Engineering Service Noun: Proximity Logic Unit Application: B-2 Item description and function: Electronics sensing and logic unit. It gives position information for landing gears and doors Type of appropriation: 97X4930

PR line item 0002 Data and Reports: Not separately priced Data IAW DD 1423 CDRL Type of appropriation: 97X4930

PR line item 0003 Cost Reimbursable Travel Total estimated dollars for PR line item 0003:

Type of appropriation: 97X4930

Total Estimated PR Dollars: $7,482,948

IV. Authority Permitting a Fair Opportunity Exception

FAR 16.505 requires the Contracting Officer to provide each awardee under a multiple award contract a fair opportunity to be considered for each order exceeding $3,000 unless a statutory exception applies. The specific exception that precludes the fair opportunity process for this acquisition is FAR 16.505(b)(2)(i)(B) - Only one such contractor is capable of providing the services or supplies at the level of quality required because the service or supplies ordered are unique or highly specialized.

V. Demonstration of the Contractor’s Unique Qualifications or Nature of the

Acquisition Requires the Use of the Authority Cited Above to Provide the Required Supply/Service (Applicability of Authority)

Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

The PSLU is an electronics sensing and logic unit. It gives position information for landing gears and doors, and controls functions for actuating mechanisms. It is designed to possess a tolerance to nuclear environments and specifically for the B-2 aircraft. The Original Equipment Manufacturer (OEM), Northrop Grumman, is the only known contractor that has the data, parts, expertise, tools and test equipment necessary to repair, evaluate, and procure spares to enable weapon system employment sufficiently to meet the Government's needs. The data (i.e. detailed parts drawings, detailed tool drawings, detailed manufacturing processes, and design loads) necessary to foster competition for this effort is not available to the Government presently, and it is not possible to draft http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/16.htm%23P399_69627 adequate specifications for this work without such data. Although the Government realizes that it has unlimited usage rights to form, fit and function data (including source qualification data) as well as data related to operation, maintenance, installation, and training, such rights are insufficient for purposes of meeting the Government’s needs.

Government efforts to purchase the data use rights have been unsuccessful. Because the design data is owned by Northrop Grumman, all potential changes to aircraft configuration must be reviewed by Northrop Grumman Engineering. This condition precludes the use of engineers from other businesses being able to approve material substitutions to solve obsolescence issues. This knowledge and data is not available to anyone else except Northrop Grumman. On 13 Nov 2013, Engineering sent the OEM an email requesting the current status of the sale/licensing of proprietary data to the Government. Northrop Grumman responded on 20 Nov 2013 that they were unwilling to sell technical data license rights to the Government. Contractor was contacted again on 24 Jul 2015. The response from Northrop Grumman was that this data is proprietary, and that Northrop does not have an agreement with the OEMs to provide it to the Government.

The 848 SCMG believes that award to any other source would result in unacceptable delays in fulfilling the Air Force's requirements. Additional information can be found in Section IX.

VI. Description of Efforts Made To Ensure Competition Between All Awardees

In accordance with FAR 16.505, orders under indefinite delivery contracts do not have to be synopsized.

A Sources Sought Synopsis (SSS) was issued on FedBizOpps (www.fbo.gov) on 17 Dec 12 with a response date of 31 Jan 13. The Government received no responses prior to the closing date. Another SSS, FA8117-15-SS-0067, was also issued on FedBizOpps on 25 Aug 2015 with a close date of 4 Sept 15. The Government has not yet received any responses.

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, and a detailed cost analysis and a price analysis will be performed.

The contracting officer may request assistance from DCMA and DCAA in determining the price fair and reasonable.

VIII. Description of Market Research Conducted Among All Awardees and the Results Or A Statement of the Reason Market Research Was Not Conducted

Pursuant to FAR Part 10, market research was accomplished for this effort. An extensive survey of the market (via the internet along with phone calls) started in late 2012 and concluded in Dec 2013. Visits to Engineering websites such as Marine Systems Corporation, Oneida Total Integrated Enterprises, E.M. Norton Enterprises, Aging Aircraft Consulting, Bara Infoware Inc., and Summit Technologies & Solutions were made. These sites were searched for potential engineering support abilities. In addition, emails were sent to SDS International, Inc. and Seait LLC, Waltonen Engineering, Inc., Infinity Systems Engineering, Aero Thermo Technology, Inc., Evaluate Systems, Triton Services, Inc., and Trintek, Inc. seeking information as to whether the companies employ engineering personnel and whether they have the ability to generate engineering solutions. The consensus was that Northrop Grumman is the only source that has the electrical requirements data, data transmission information, etc. for these 848 SCMG-managed items.

IX. Other Facts Supporting the Justification

Due to the lack of 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. This is a re-engineering effort that is necessary to resolve the obsolescence issue and to make a producible design to resolve the safety of flight issues for PSLU (or Alarm Control P/N: 8-490-09, NSN: 6340015023518), reduce repair costs, increase reliability to original specification levels and solve the Diminishing Manufacturing Sources and Material Shortages (DMSMS) problems. These issues must be resolved to avoid future Mission Incapable Awaiting Parts backorders of the affected airframe and thereby degrading the Air Force’s combat capability.

The Government does not have the capability to qualify a source for this repair due to lack of source qualification data. To the Government’s knowledge, the OEM has not received any requests to qualify additional repair sources for this item.

X. List of Any Awardee That Expressed Interest in the Acquisition

Northrop Grumman Corporation 4601 S. Air Depot Blvd Oklahoma City, OK 73135 CAGE: OJRCl

XI. Actions the Agency May Take to Remove or Overcome Any Barriers To Increasing Fair Opportunity Before Any Subsequent Acquisition For the Supplies or Services

On 28 Jun 13, Northrop Grumman provided a response to the Government's request for a rough order of magnitude (ROM) estimate to obtain proprietary data and information related to the engineering services for 848 SCMG managed items. In the response, Northrop Grumman stated that due to lack of response or bids from OEM partners, with whom Northrop Grumman has an intellectual property agreement with, Northrop Grumman was unable to develop the ROM, and declined to offer additional access, sell, or transfer ownership of Northrop Grumman proprietary data. The data on safety of flight resolution, substitutions for obsolete parts analysis, and Preliminary Design changes of the B-2 PSLU will be delivered on this contract. Analyses, reports, etc.

developed as a result of this data will be deliverables on the contract and will become Government property and be added to the applicable Government technical orders/data repository. The data provided under this contract will be used to rescreen the item in an effort to remove barriers to competition.

XII. Contracting Officer’s Certification

The contracting officer’s signature on the signature page evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

XIII. Technical/Requirements Personnel’s Certification

As evidenced by their signatures on the signature page, the technical and/or requirements personnel have certified that any supporting data contained herein which is their responsibility are both accurate and complete.