Redacted JUSTAPPR - FD2030-20-00010.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

United States Air Force

AFSC/PZABB

3001 Staff Drive Tinker AFB, OK 73145

Purchase Request # FD2030-20-00010

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 new, cost plus fixed fee, sole-source contract.

The contemplated contract will be with the Design Control Authority and Aircraft Integrator for the B-2 aircraft and all associated systems, Northrop Grumman Corporation, specifically the Northrop Grumman Systems Corporation, Commercial and Government Entity (CAGE) code 5FVX5. Northrop Grumman Systems Corporation will henceforth be referred to as “NGC”. The acquisition is for non-commercial engineering services to resolve currently known and possible unknown obsolescence issues related to the B-2 aircraft Fuel Vent Valve. The estimated total value of this award is $2,973,746.00 with a period of performance of two years, and an estimated award date of March 2020. This estimate is based on an evaluation of the scope of work, comparison to similar engineering services efforts, market research, and budgetary estimates.

This is a continuation of existing engineering services effort under the following contract:

Contract Number: FA8118-19-C-0013 Vendor: Northrop Grumman Systems Corp Period of Performance: 30 Sep 19 to 30 Sep 21 Basis of Award: Sole Source

This new engineering effort will work concurrently with the contract identified above.

The original effort FA8118-19-C-0013, includes a requirement for NGC to scrub the Bill of Materials (BOM) and identify all components of the Fuel Vent Valve that either are currently identified as obsolete, or are expected to become obsolete within the next two years. Under this original effort, the government will receive a report detailing the obsolete part list, and an action plan to resolve the obsolescent issues. These reports on obsolete parts and action plans, resulting from the original contract, will result in NGC development of prototypes on the specific items under this new follow-on effort.

The new contract will include development and delivery of three (3) prototypes of each identified obsolete piece part associated with the Fuel Vent Valve, National Stock Number (NSN) 4810-01-380-9046FW, to include but not limited to the six (6) piece parts identified in section III below and miscellaneous integrated circuits, cables, and connectors. This project will also require NGC to provide development and delivery of updates to Technical Order (T.O.) 6J15-3-172-3 along with validation/ verification of the technical document and a complete technical data package so that the government will have an option to have competitive repair contracts, or develop organic repair of the Fuel Vent Valve Assembly at a later time. While the government will have the capability to procure the identified piece parts for repair of the valve, the government will not be able to use the technical data to create a competitive spares buy for the Fuel Vent Valve assembly unless NGC grants those rights.

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

AGENCY’S NEEDS

This requirement is to acquire non-commercial engineering services to resolve known obsolescence issues related to the B-2 Fuel Vent Valve impacting end item spares replenishment new buy, and asset overhaul/repair. Phase I of this effort, contract FA8118-19-C-0013, is an 848 SCMG engineering services effort for NGC to evaluate available technical data and to identify all obsolescence issues related to the manufacture of the B-2 Fuel Vent Valve. This new follow-on Phase II contract will require NGC to resolve obsolescent issues on already identified components of this valve known to be impacting repair of current assets and any additionally identified obsolete parts. The Contractor shall develop and provide three (3) prototypes of each identified piece parts to include, but not limited to the items listed below. This list is not all inclusive due to the continuing efforts on the original contract, which may result in identification of additional obsolescence items associated with the B-2 Fuel Vent Valve that can be worked within the cost and time allotted for this effort.

• Stepper motor, P/N 2883307-102

• Pressure transducer, P/N 2883207-103

• Main chassis, P/N 2887019-2

• Actuator chassis, P/N 2883088-1 (NSN 2915-01-357-8768)

• Potentiometer, P/N RQ09XXAB33BC103

• Circuit card assembly, P/N 2887023-105 (5998-01-390-8521)

• All identified obsolete integrated circuits

• All identified obsolete cables and connectors

All parts shall be fully functional prototype units in support of prototype functional qualification and acceptance testing. The prototype shall be an F3 Interface replacement of the original item. This list of parts above, were identified during the attempts by Parker Hannifin, the approved overhaul/repair source for this part, to complete their current repair contract. Parker Hannifin will be subcontracting with Northrop Grumman to verify successful qualification of alternate parts through installation on assets after qualification testing is completed, for the obsolete parts.

The B-2 Fuel Vent Valve is both a Critical Safety Item (CSI) and a Hardness Critical Item (HCI) that controls both positive and negative pressure in the aircraft’s fuel tanks.

Contract Summary

Obsolescence Est Period of Performance Estimated Dollars 4810-01-380-9046FW Mar 2020 – Mar 2021 $2,973,746.00

CLIN 0001

Engineering services and prototype development/qualification of obsolete parts related to

NSN 4810-01-380-9046FW.

CLIN 0001 also contains the fixed fee portion of this effort.

NSN: 4810-01-380-9046FW

Part Number: 2880001-105 Item Description and Function: The fuel vent control valve functions as a pressure control to limit both positive and negative pressure differentials within the fuel tanks encountered during ascent or descent.

Total Estimated Dollars: $2,973,746.00 Type of Appropriation: 97X49303400 (O&M)

CLIN 0002

Technical Data deliverables, including validation and verification of the Technical Order associated with the engineering services accomplished on CLIN 0001.

Total Estimated Dollars: Not separately priced Type of Appropriation: 3400 (O&M)

Engineering services man-hours cannot be specified for this program. This acquisition is for specific engineering tasks and deliverables, not a pre-defined number of man-hours.

Due to the circumstances described below in Sections V and IX, there are no immediate actions that could be taken to develop competition for this two year engineering services effort.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii).

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE

USE OF THE AUTHORITY CITED ABOVE (APPLICABILITY OF

AUTHORITY)

NGC, as the configuration control manager and Design Control Authority for the B-2 weapon system, is the only source capable of providing the required service. The Fuel Vent Valve is currently unsupportable for repair, overhaul/remanufacture, and new manufacture due to numerous obsolescence issues. Resolution to these obsolescence issues will result in changes to the product’s approved configuration baseline. In accordance with the B-2 Platform Systems Engineering Plan (January 2019 version), NGC is responsible for maintaining the configuration baseline of the B-2 weapon system.

Additionally, special consideration must be given to the unique nature of this equipment due to its designation as both a CSI and HCI. NGC is the only firm that can evaluate and approve changes to HCIs as the aircraft Design Control Authority and weapon system integrator.

This item currently has an active repair contract, FA8118-18-D-0040, for NSN 4810-01- 380-9046FW with the only approved repair source, Parker Hannifin Corporation, which cannot complete the repair due to the obsolescence issues mentioned above. Parker Hannifin is not a viable source for this engineering service because they do not have the authority nor capability to resolve and qualify the technical changes and updates needed to resolve the obsolescence issues facing this item. Parker Hannifin previously identified the list of obsolete piece parts to the government, through NGC, identified as being obsolete and impacting their ability to repair the assets on their current contract. This list of currently known obsolete parts became the purpose of this current effort, and should the current engineering services contract with NGC identify additional obsolescence issues with the fuel vent valve assembly, this contract may be used to resolve those obsolete issues also.

NGC is currently working Phase I of this effort to conduct an obsolescence study and propose resolutions for each component found. In this effort, Northrop Grumman will develop prototypes and qualify sources for components that have already been identified as being obsolete. Items that need prototype development and qualification under this effort are known to have nuclear hardness criticality requirements that can only be fulfilled by NGC. No other known source has access to the detailed design data that is needed for this requirement.

NGC possess highly specialized experience developing and sustaining state-of-the-art aircraft including requirements for electronics/software integration and nuclear missions.

The Fuel Vent Valve is a specialized piece of equipment critical to the safe operation of the B-2 aircraft and success of the weapon system’s mission. This requirement, to resolve obsolescence within the B-2Fuel Vent Valve, must be satisfied by a firm that fully understands the functional requirements of the aircraft fuel system, nuclear survivability, electronics/software integration, and flight safety critical item design.

Additionally, obtaining access to technical data is not sufficient to accomplish the specified requirement. The government is in possession of form, fit, and function data, procurement specifications, and an unverified technical order, however these data alone cannot be used to accomplish the engineering service. During execution of this requirement, the awardee will be required to identify replacement items not currently defined by the technical data package in the government’s possession. Identification of replacement/redesigned items can only be done by a firm with significant experience with this kind of equipment and its associated requirements. Further, resolution of the obsolescence issues will require some minimum level of qualification of the proposed solutions because of the CSI/HCI designation. This item is a highly integrated component within the fuel and electronics (the aircraft computer) systems. Qualification can only be accomplished by the aircraft Design Control Authority, NGC.

The 423 SCMS/GUEA believes that award to any other source would result in unacceptable delays in fulfilling the Air Force’s requirement. Presently the Air Force has one Mission Incapable – Awaiting Parts (MICAP) backorder and four routine backorders.

In addition to these MICAPs/backorders, the B-2 Programmed Depot Maintenance (PDM) production line is in need of two Fuel Vent Valves (informal MICAPs). These backorders are being worked by cannibalizing assets from incoming aircraft to meet production requirements; cannibalization is the act of removing items from incoming aircraft to meet requirements of an outgoing aircraft. Without new or repaired asset availability, we will continue to have aircraft that would not be able to support mission requirements due to the lack of assets.

Finally, this effort was funded through the Consolidated Sustaining Activity Group (CSAG) Sustaining Engineering (SE) process. The program’s category code is “Mission Critical Degradation – Existing” (MCD-E) with a mission degradation date of 6 May 2017. This designation was supported through the current supply posture (described above), current production (or lack thereof), numerous no-bid responses to new procurement acquisitions, and out-year requirements for this item. The CSAG-SE program was submitted and approved by key stakeholders, including Global Strike Command and HQ AFMC/FM, acknowledging the technical scope of the program, the proposed solution (i.e. acquisition strategy), and justification for the program’s category designation (MCD-E).

Accordingly, NGC is the only firm capable of providing the required engineering services described in Section III above without the Air Force experiencing unacceptable delays.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

In October 2019, this requirement was synopsized through a Sources Sought Synopsis (SSS) posting on https://www.fbo.gov. The SSS was posted on 9 Oct 19 for 15 days under the title “B-2 Valve Assembly, Manifold; NSN 4810-01-380-9046FW; PN 2880001-105”. The post’s closing date was 24 Oct 2019. Four sources, United Dynamics, Inc. (CAGE OXWR4), Aging Aircraft Consulting, LLC (CAGE 5AYW7), Pacific Hydro Control General Engineering, LLC (CAGE 8EJV1), and Focused Engineering (CAGE 860E1) responded to the SSS as interested vendors. None of these vendors are a viable source for this acquisition because they are not capable of meeting the requirement because they have not demonstrated the capability to accomplish all tasks specified as part of this effort. Northrop Grumman remains as the only vendor that can resolve all hardness critical issues on these components and serves as the Aircraft System Integrator and Design Control Authority.

https://www.fbo.gov/

This requirement will be synopsized on https://www.fbo.gov as a notice of proposed contract action IAW FAR 5.201. The expected date of publication of this requirement is December 2019.

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. IAW FAR as supplemented, the contractor will be required to submit Certified Cost or Pricing Data and/or Other Than Certified Cost or Pricing Data. A detailed cost analysis and price analysis will be performed. The Contracting Officer will request a technical evaluation from the Defense Contract Management Agency (DCMA) to aid in the evaluation of the contractor’s proposal. The Contracting Officer will seek audit assistance from the Defense Contract Audit Agency (DCAA), if necessary.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH

WAS NOT CONDUCTED

In accordance with FAR 10, market research was conducted on this requirement by a multi-functional team consisting of the program manager and engineer for the Fuel Vent Valve. This research included requests for consideration through a Source Sought Synopsis on https://www.fbo.gov. Two interested vendors responded but only one was found capable of performing this service; see Section VI above for more information.

Additionally, research was conducted through internet searches to evaluate commercially available products and engineering service firms. This market research was conducted from 1 October 2019 to 24 October 2019. Given the unique, military specific application of this Fuel Vent Valve, and considering the critical nature of the valve as a CSI and HCI, no commercial products or engineering service firms were found that could satisfy this requirement. Further, this requirement cannot be modified nor be satisfied with a modified commercial item.

Based on this market research, NGC 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

There are no additional facts supporting the use of other than full and open competition.

Reverse engineering of this item is not acceptable given the item’s CSI and HCI designation.

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

ACQUISITION

United Dynamics, Inc.

41001 Wolverine Rd Shawnee, OK 748049026 USA POC: Steven Daniels Email:

steven.daniels@uniteddynamics.com Phone: 405-481-3880

CAGE: OXWR4

Aging Aircraft Consulting, LLC CAGE: 5AYW7 64 Green St

Warner Robins, GA 310932606 POC: James Hill Email: james.hill@agingaircraftconsulting.com Phone: 478-225-4044

Pacific Hydro Control General CAGE: 8EJV1 Engineering, LLC 4729 East Anaheim St., Long Beach, CA 90804 POC: Christopher Lane Email: clane@pacifichydrocontrol.com Phone: 408-656-1730

Focused Engineering CAGE: 8EJV1 2707 Hilyard St Eugene, OR 97405-3655 POC: Keith Kearsley Email: kkearsley@focusedengineeringllc.com Phone: 541-972-0279

See section VI for more detail.

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

The services being acquired will affect the technical baseline of the Fuel Vent Valve and must undergo qualification testing. NGC, as the aircraft Design Control Authority and mailto:Jason.johnson@ngc.com system integrator, is the only known firm who can qualify items on the B-2 weapon system. Due to the unique nature and mission of the B-2 weapon system, and the specialized processes required to sustain the weapon system, there are no known additional actions which can be taken to remove barriers to competition, and therefore specific actions and milestones cannot be established.

XII. CONTRACTING OFFICER’S CERTIFICATION

By signing the coordination and approval document, the Contracting Officer determines this document to be accurate and complete to the best of the contracting officer’s knowledge and belief.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidenced by their signatures on the coordination and approval document, the technical and/or requirements personnel certify that any included supporting data within their area of responsibility is both accurate and complete in accordance with FAR 6.303- 2(c).