Sole Source Narrative.pdf

Per Supplier Diversity Policy, DES-090-06: was this purchase included in the agency’s forecast needs report?

This purchase was not included in the forecast. The funding, which is specific to supporting Boeing’s 777X program, was allocated to fund student fees for training at the AMSC/WATR Center. In September 2024, a company wide strike resulted in the shutdown of training. This means that the funding allocation needs to be used for outfitting the fuselage lab to support additional training that Boeing has requested.

Describe what targeted industry outreach was completed to locate small and/or veteran-owned businesses to meet the agency’s needs?

The purpose of this procurement is to acquire specific parts for the Boeing 767 aircraft to maintain and/or restore training capability. The components in question are critical to maintaining compliance with regulatory safety standards and ensuring the continued use of the aircraft for training purposes. WATR has been asked to provide aircraft interiors training to Boeing incumbent employees, including the installation of insulation blankets.

The decision to purchase these parts from the Lamart Corp is based on the following key factors:

Unique Availability: The parts required are specific to the Boeing 767 aircraft, and due to the age of the model, new or OEM (Original Equipment Manufacturer) parts are no longer available through regular suppliers.

Compatibility and Specificity: The insulation blankets are highly specialized, and alternative sources would not guarantee compatibility with the aircraft's existing systems. Lamart previously supplied the insulation blankets for Boeing when the airplane was in production, because of this, they have the proprietary drawings and patterns needed to produce the exact blankets that we need. This allows training that teaches the correct installation of the correct parts. Any other insulation blanket manufacturer would have to obtain the proprietary documents from Boeing in order to be able to provide a quote as we do not have them. The Boeing 767 is no longer in production for commercial use, only cargo hauling, and obtaining these documents is highly unlikely as it would require Boeing to provide the proprietary documentation to additional companies for something that is no longer in production. Lamart already has the proprietary specifications and drawings required to create the insulation blankets for the 767. We did not want to waste the time of other vendors by asking for them to produce a part that we cannot provide specific information they would need to actually do the job, much less work up a quote.

Time Sensitivity: This vendor, Lamart, is the only supplier who could produce the blankets we need in the limited time we have. The funds we have will expire June 30, 2025.

Limited Market Supply: The availability of the specific parts required is extremely limited.

Given the age of the 767 and the decline in that line of aircraft operating at full capacity, few vendors specialize in offering parts for this model. This supplier retained the drawings and has the machines and patterns needed to quickly produce the blankets we need.

Provide a detailed and compelling description that includes quantification of the costs and risks mitigated by contracting with this contractor (i.e. Learning curve, follow-up nature)

WATR staff contacted various sources including but not limited to Boeing, original equipment manufacturers (OEM) of 767 aircraft parts, and salvage yards with 767’s on their site. While we found parts that did work for the lab, the insulation blankets were not salvageable due to the harsh weather conditions in Arizona and New Mexico. The blankets that we found had deteriorated to the point they were unusable after being removed from the decommissioned aircrafts. Due to the specialized and custom nature of these insulation blankets,and the need for quality training for aerospace employees, Lamart was the best option. Lamart has been an aerospace supplier for 69 years, working directly with Boeing on the original production of this product. WATR Staff have met directly with Lamart employees and explained the need and impact these insulation blankets have on the WATR Center’s Fuselage Innovation Lab and to quality industry training overall.

Describe the unique feature, qualifications, abilities or expertise of the contractor proposed for this sole source contract.

Boeing 767 aircraft are no longer manufactured for passenger use, only for cargo transportation.

Boeing and other OEM suppliers are unable to source interior components for our AMSC/WATR Fuselage Innovation Lab. Lamart has the correct proprietary documents due to their past agreement with Boeing. Lamart was vetted and approved by Boeing and they are allowed to manufacture them for us.

What kind of market research did the agency conduct to conclude that alternative sources were inappropriate or unavailable? Provide a narrative description of the agency’s due diligence process in determining the basis for the sole source contract, including methods used by the agency to conduct a review of available sources. Use DES Market Research Template if assistance is needed.

Identify Available Suppliers

List of Salvage Yards and Suppliers: We researched and contacted aircraft suppliers but found no one makes the parts needed for interiors. Then, we contacted salvage yards and aircraft dismantlers who specialize in Boeing 767 parts. This included known vendors that specialize in the sale of used, refurbished, or surplus aircraft components. Boeing staff provided us with several resources including Boeing’s surplus and two known salvage yards that have and sell 767 parts. Boeing surplus has stopped stocking 767 interior parts due to the passenger aircraft being discontinued. While we were able to get other parts that work, the insulation blankets were not salvageable.

Availability and Specificity of Parts

Part Number Cross-Reference: We have performed a cross-reference of the part numbers needed with various suppliers to determine whether the parts are available and compatible.

These are the original parts that were made by Lamart for this line.

Unique or Obsolete Parts: Some 767 parts are rare, obsolete, or no longer produced by OEMs, meaning the salvage yard is the only available source. We have conducted research to confirm the limited availability of these specific parts in the market, especially with regard to discontinued or hard-to-find components.

Delivery Times: The funds that will be used for purchasing these items will expire on June 30, 2025 so it is important that we receive them in a timely manner. Lamart can provide these items within the timeframe but they do need a 6-7 week lead time.

Inventory Availability: This is a special order with a 6-7 week lead time.

Supplier Reputation and Reliability

Supplier Track Record: Lamart is the OEM for these parts and was a trusted supplier for Boeing for the years that the 767 passenger plane was in production.

Economic Impact and Risk Assessment

Cost/Benefit Analysis: Risk Mitigation: There is limited risk because the parts will be used for training only. AMSC/WATR is a hands on manufacturing experience and having the correct parts will make it a more realistic and safer training situation.

What considerations were given to unbundling the goods and/or services in this contract, which would provide opportunities for Washington small, diver and/or veteran owned businesses. Provide a summary of your agency’s unbundling analysis for this contract.

Not applicable for these parts. They will be custom made and are a one time purchase.

As part of the market research requirements, include a list of statewide contracts review and/or business contacted, date of contact, method of contact (telephone, mail, email, other), and documentation demonstrating an explanation of why those businesses could not or would not, under any circumstance, perform the contract; or an explanation of why the agency has determined that no business other than the prospective contractor can perform the contract.

On January 22, 2025 I sent out requests for potential bids for the insulation blankets. The vendors who responded require information that I cannot provide because the drawings and details for production are proprietary. Since this airplane is no longer in production, unless a company has made these parts in the past, they do not have access to the paperwork or approvals needed to produce them.

What are the consequences of not having this sole source filling approved? Describe in detail the impact to the agency and to services it provides if this sole source filing is not approved.

The insulation blankets are an integral part of the interiors training curriculum Boeing is asking us to provide. The WATR Center receives a state allocation annually to conduct training to incumbent aerospace workers; this training would fall under that allocation, fulfilling the industry need for skilled workers.