3_-_Redacted.pdf

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 84056-5825 Contracting Officer: Judd Kendall Phone Number: 801-777-6603 PR Number: FD2020-15-00516

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

A. Upon approval to use other than full and open competitive procedures, the Government will issue a contract to procure 33 Gasoline Governor, NSN 2990-00-838-9922YP, P/N 372768-3 for the C-130, used by the FMS customer Taiwan. The Governor is manufactured by:

Honeywell International 2525 West 190TH Street Torrance, CA 90504-6002 Cage 70210

B. Contract Type & Structure: A spares contract to procure a total quantity of 33 units with an anticipated Firm-Fixed-Pricing arrangement will be issued. The estimated award date is 30 Oct 2014 with performance and delivery expected through 22 Apr 2018.

C. Type J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED MEETING THE

AGENCY’S NEEDS:

A. This item is a Gasoline Governor (NSN 2990-00-838-9922YP) used on the C-130 and Ground Cart Auxiliary Power Units (APU). This item is a governor trim control for an APU fuel control unit.

NSN Name Qty Price/Unit Ext. Price 2990-00-838-9922YP Governor, Gasoline 33 $39,994.31 $1,319,812.23

Total $1,319,812.23

B. Total estimated cost is: $1,319,812.23. This estimate is based on D043A, Unit Cost. This action will use 47SH 4F appropriated 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.

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 the government does not own the data or the rights to the data needed to procure this part from other than approved source, Honeywell.

Honeywell owns the proprietary technical data and has expressed an unwillingness to sell the data; therefore, the Government does not own sufficient data to competitively procure the items.

B. The vendor continues to be unwilling to sell their proprietary rights or data to the government.

C. The FMS countries acquiring these items are not interested in and will not fund reenginerring efforts by a new vendor. Any effort to reengineer this part would have technical risks associated with it. Additionally, The 419 SCMS/GUEA Engineer determined that reverse engineering cost to develop a qualification package and encourage competition are estimated at $160,320.00. This cost was computed using estimates for lab analysis, parts destroyed, drawing proofs, special testing, technical order revision and logistics

D. Accordingly, Honeywell 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. Therefore, competition for this axquisition is restricted and an acquisition method of 3R has been assigned.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE:

A. Sources Sought Synopsis: A sources sought synopsis was issued 13 Dec 2014, #15-R-00516, advising industry of the pending acquisition and soliciting inquiries from interested parties.

Two responses were received. One from the OEM, Honeywell. The second from, Aero Precision, who is a distributor and would need to purchase the item from Honeywell.

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:

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. IAW FAR Part 10, Market research was conducted by the Program Manager, Brian Berg, 25

Feb 2015. His efforts included:

1. On 3 September 2014, reviewed past contracts along with commercial catalogs and other literature for companies that manufacture various secondary power systems. No commercial item or non-developmental item (NDI) was found that will meet the Government requirement. The requirement also cannot be modified to permit use of existing commercial items or NDIs.

2. On 3 September 2014, conducted internet search (Google) for the Governor, Gasoline.

Did not find anything that met both of those requirements. Many sites were blocked by the Air Force.

3. On 15 October 2014, conducted an internet search of Haystack (http://www.ihs.com), Part Target (http://www.parttarget.com), Iso-Group (http://iso-group.com), and Thomas Net (http://www.thomasnet.com), for NSN 2990-00-838-9922/Part Number 372768/-3 only resulting in the OEM company.

Honeywell International Inc. is the only known source possessing the comprehensive capability to meet the Government requirements. As a result of the actions taken it has been determined that this item is not commercial and no additional sources have been identified.

B. No other commercial items or non-developed items that can be modified exist.

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

OPEN COMPETITION:

http://www.ihs.com/ http://www.parttarget.com/ http://www.thomasnet.com/

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:

None

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(b)).