KC135_Actuator_6305_JA_FD20201500868_signed_Redacted.pdf

FD2020-15-00868

27AUG2015

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY:

Defense Logistics Agency DLA Aviation Ogden 6051 Gum Lane, Bldg 1225 Hill AFB UT 84056-5820 Contracting Officer: Rocky Tello Phone Number: Commercial 801-777-6501 Email: Rocky.tello@us.af.mil PR Number: FD2020-15-00868

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED:

A. Upon approval to use other than full and open competitive procedures, DLA Aviation Ogden will issue a new firm fixed price contract to procure Actuators for the KC-135 Auxiliary Power Unit (APU) used by the US Air Force to:

Woodward HRT Inc.

25200 W Rye Canyon Rd Santa Clarita, CA 91355-1204 CAGE Code 81873

OR

Hamilton Sundstrand 4400 Ruffin Rd San Diego, CA 92123-1606 CAGE Code 55820

OR

AAR

1100 N Wood Dale Rd Wood Dale, IL 60191-1060 CAGE Code 1Y249

B. Contract Type & Structure: A spares contract, to procure a total quantity of 9 units with an anticipated Firm-Fixed-Pricing (FFP) arrangement, will be issued. The estimated award date is 15 SEP 2015 with delivery expected on 20 JAN 2017 based on the last procurement information.

C. Type J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED MEETING THE

AGENCY’S NEEDS:

A. The KC-135 Actuator is a critical part of the Auxiliary Power Unit (APU). The IGV Actuator is part of the main engine start & secondary power system on the KC-135 aircraft. Its main purpose is to control the angular position of a set of inlet guide vanes, through movement & position of an internal jet, to provide appropriate amounts of ambient air to the inlet of the KC- 135 Auxiliary Power Unit. It is a moderately complicated assembly with many high tolerance dimensions.

NOUN: KC-135 Actuator

NSN: 2920011526305YP

PN: 161367-1

PRICE EACH:

B. Total estimated cost is This estimate will meet USAF mission requirements is based on the Automated Budget Compilation System – Buy Load List, from the D200A requirements determination system. This action will use 647312 appropriated Material Support Division Working Capital funds.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

10 USC 2304 (c) (1) as implemented by FAR 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

There are three qualified suppliers on the Screening Analysis Worksheeet/761: AAR Parts Trading Inc. (a distributer), Hamilton Sundstrand Corporation (design control and OEM of the KC-135 APU which the Actuator goes on), and Woodward HRT Inc. (design control and vendor/manufacturer); only Woodward HRT Inc. responded with a quote.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF AUTHORITY CITED

ABOVE (APPLICABILITY OF AUTHORITY):

A. The above authority was selected because due to the highly specialized nature of the Actuator, the government estimates award to any other vendor would result in substantial duplication of cost to the government that is not expected to be recovered through competition.

Currently, Woodward HRT Inc is the one of only three sources with the technical data packages necessary to support the manufacture of the KC-135 Actuator having designed, developed, in conjunction with this data, specialized tooling, equipment, qualified personnel and unique facilities. The government does not have, at this time, the ability to manufacture these assets organically. The government estimates award to any other vendor (besides the three on the 761) would result in a substantial duplication of cost to the government that is not expected to be recovered through competition.

B. Production of these items is highly specialized as the government owns only limited data rights and Woodward HRT Inc. is the only vendor with the authorization and documentation to complete the work. The design and associated data is owned by Hamilton Sundstrand and Woodward HRT Inc., and was never purchased by the government. Currently the government has unlimited rights to the Hamilton Sundstrand source control drawing, and no known rights to the Woodward manufacturing data. It has been deemed uneconomical for the government to purchase the data. The government has Technical Orders that detail the overhaul and repair criteria, but the T.O. and the Source Control Drawing are not enough data for manufacture.

C. The 419 SCMS believes that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition in fulfilling the AF requirements. The 419 SCMS Engineer has determined that reverse engineering costs are estimated to be as documented in the Basis of Estimate (BOE). Accordingly, Woodward HRT is the only source capable of providing the items described in Section III.

D. Accordingly Woodward HRT Inc. is the only firm capable of providing the supplies and services described in Section III above without the government experiencing substantial duplication of cost that could not be expected to be recovered through competition.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE:

A. Sources Sought Synops is not needed for this item since it was originally a small dollar purchse request and the notice/solicitation was posted on FedBizOpps 28 April 2015.

B. Other Actions: None

C. Qualifying Country Sources: None

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE:

IAW FAR 6.303-2(a)(7) The following steps will be taken to ensure that the anticipated cost of this acquisition will be fair and reasonable. The Contracting Officer will comply with the procedures and criteria contained in Federal Acquisition Regulation (FAR) under Part 30 - Cost Accounting Standards, Part 31 - Contract Cost Principles and Procedures, Subparts 15.4 - Contract Pricing; to include technical evaluations and audits, as appropriate. Additional steps to ensure price reasonableness will be under the guidance of the Contract Pricing Reference Guides, jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology.

The Contracting Office will obtain certified cost and pricing data IAW FAR Subpart 15.403, when required. The final step is to include the Price Negotiation Memorandum (PNM). This detailed documentation and justification of price reasonableness will be disclosed in the official PNM, to be prepared upon completion of negotiations.

VIII. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS,

OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED:

A. As described in Section VI above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. The market survey was conducted between August 2014 and August 2015. The vendors that are listed in this market research report were found due to knowledge of the industry and past dealings with some of the companies, and based on internet searches for “manufacturing, repair, and overhaul of aircraft engine parts”.

B. Additionally, the current IPT in the 419th GUMA continue to seek any and all methods of procuring and finding valid Actuators to support KC-135 Secondary Power. Surplus actions continue to be investigated and searched.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION:

None

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED 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:

The government physically does not have in its possession sufficient, accurate, or legible data to contract manufacturing with other than the current source(s). Hill AFB will review requests from contractors interested in becoming a qualified source and provide available information to conduct self-funded reverse engineering.

XII. CONTRACTING OFFICER’S CERTIFICATION:

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 (FAR 6.303-2(a)(12)).

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION:

As evidenced by their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete (FAR 6.303-2(c)).