FD20201500553_JA.pdf

FD2020-15-00553

10 Dec 2014

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY:

Defense Logistics Agency DLA Aviation Ogden 6051 Gum Lane Bldg 1225 Hill Air Force Base UT 84056-5826 Contracting Officer: Judd Kendall Commercial: (801) 777-6603 PR Number: FD2020-15-00553

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

A. Upon approval to use other than full and open competitive procedures, the Air Force will issue a supply contract to procure C-130 Ball Screw Assembly. This requirement is for support of the C-130 Landing Gear Sustainment Program and will be used by the Air Force C-130 weapon system. The contract will be awarded to:

CEF Industries 320 S. Church St.

Addison, IL 60101

CAGE 00268

or

Aero Precision 201 Lindbergh Ave.

Livermore, CA 94551

CAGE 0ZTJ5

or

Beaver Aerospace & Defense Inc.

11850 Mayfield St.

Livonia, MI 48150

CAGE 088K1

B. Contract Type & Structure: A supply contract to procure a total quantity of 449 each with an anticipated Firm-Fixed-Pricing arrangement will be issued. The estimated award date is 1 March 2015.

C. Type J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED MEETING THE

AGENCY’S NEEDS:

A. The requirement is to procure 449 each, C-130 Ball Screw Assemblies, NSN 1620-01-263- 6733 CEF and Aero Precision /Part Number 8430M4, or Beaver Aerospace & Defense Inc.

Part Number BA22750, replacement spares at an estimated unit cost of each. The C-130 ball screw assembly cited herein is a component of a system used for retraction and extension of the main landing gear of a cargo aircraft. The ball screw assembly is of the recirculating ball type.

B. Total estimated cost is: . This estimate is based on USAF mission requirements as computed by the D200 Requirements Determination System. This action will use 4930 FC04 working capital funds.

Item: Ball Screw Assembly

NSN: 1620-01-263-6733

Qty: 449 each Unit Price: each Total Estimated Price:

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 requirement is for manufacture of a highly specialized component whose design is currently limited to CEF Industries, or Beaver Aerospace and Defense Inc. Aero Precision is CEF’s distributor. Per the 417 SCMS/GUEA Engineer, the C-130 Ball Screw Assemblies are considered highly specialized because the geometry, materials and processing requirements have been optimized as part of the of the landing gear system. If the wrong materials, processes, and geometry are used for the Ball Screw Assembly it could be either ineffective, unreliable or both. That is why it needs to be qualified with the rest of the system. These parameters are limited to the Original Equipment Manufacturer (OEM) with the designs, data, and drawings created at CEF’s own expense, or the equivilant designs, data and drawings developed by Beaver at their own expense. Since the data required to manufacture the C-130 Ball Screw is limited to CEF and Beaver, interested vendors would have to be willing to invest the time, funding, and manpower required to reverse engineer the entire C-130 Ball Screw package at their own expense. The

417 SCMS/GUMC Program Manager believes that award to any other source will result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Therefore, this acquisition is for continued production of highly specialized components.

B. The Air Force does not control the design or the data, which would include: unlimited licenses rights, Government Purpose rights, Form, Fit and Function rights, and Operations Maintenance, and Installation Data (OMID) required to manufacture the C-130 Ball Screw Assembly. CEF is the Ball Screw Original Equipment Manufacturer (OEM) with design control, authorization, and documentation to manufacture the C-130 Ball Screw Assembly, and Beaver has qualified and equivilant Ball Screw assembly which they developed through reverse engineering at their own expense. The last attempt to obtain data was on 19 Nov 2014. CEF replied on the same day and declined to provide or sell the government the above necessary data. Likewise, Beaver has declined to sell their proprietary data outright.

C. The 417 SCMS/GUEA Engineer has determined that reverse engineering costs are estimated to exceed for NSN 1620-01-263-6733/ CEF and Aero Precision Part Number 8430M4/ Beaver Aerospace & Defense Inc.Part Number BA22750. Based on this cost it would take over 12.58 years to break even.

D. Accordingly, CEF, via its distributor Aero Precision, or Beaver Aerospace and Defense Inc. are the only firms capable of providing the supplies 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 Synopsis: C-130 Source Sought Synopsis FD20201500553, dated 1 Dec 2014 notified interested contractors that the Government intends to procure 449 each of the C-130 Ball Screw Assemblies, NSN 1620-01-263-6733/ CEF and Aero Precision Part Number 8430M4/ Beaver Aerospace & Defense Inc.Part Number BA22750. No other vendors expressed an interest in the requirement. The sources sought synopsis closed on 15 Dec 2014 per the contracting officer, and all responses indicating interest originated from the approved manufacturers Aero Precision, and Beaver Aerospace & Defense Inc.

B. This requirement will be synopsized in FedBizOpps, as a notice of contract action IAW FAR

5.201. If other sources express interest as a result of this synopsis or other action, they will be listed in the official contract file.

C. Other actions: 417th SCMS engineers regularly pursue discourse with industry manufacturers who may be interested in reverse engineering, or redesigning the C-130 ball screw in an effort to expand the manufacturing base. Furthermore, the 417th SCMS IPTs regularly inquire approved manufacturers as to the possibility of sharing or selling data rights to proprietary technology, designs, or processes utilized in ball screw manufacturing.

D. 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. 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. There were no other interested sources.

B. In addition, the 417 SCMS/GUMC Integrated Product Team conducted market research that yielded the following results:

1. On 10 Dec 2014 a search conducted on the Thomas Net (http://www.thomasnet.com), an internet site from the Thomas Registry with NSN 1620-01-263-6733 CEF and Aero Precision /Part Number 8430M4/ Beaver Aerospace & Defense Inc. Part Number BA22750 resulted in zero results in the product, company name, brand name, Computer Aided Design (CAD) drawings and industrial web directories.

2. On 10 Dec 2014, a review of commercial catalogs and other product literature was completed. The review indicated no other alternate commercial item or non-developmental item (NDI) will meet the requirement, nor can the requirement be modified to permit use of existing commercial items or NDIs.

B. The 761 screening action for NSN 1620-01-263-6733CEF and Aero Precision Part Number 8430M4/Beaver Aerospace & Defense Inc.Part Number BA22750, was reviewed for consistency and reasoning. No discrepancies were found and only Beaver Aerospace & Defense Inc., CEF and its distributor Aero Precision were identified as approved sources.

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 Air Force regularly inquires the manufacturers in regards to sharing or selling the proprietary data rights for use in free and open solicitations. Furthermore, the Air Force regularly performs analasys to determine the feasibility and cost effectiveness of reverse engineering the proprietary technology.

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)).