FD20201500886Redacted.pdf

FD2020-15-00886

31 Mar 2015

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 B. Kendall

DSN: 777-6603, COM: (801)777-6603

PR Number: FD2020-15-00886

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

A. Upon approval to use other than full and open competitive procedures, DLA Aviation will issue a new contract to procure 14 each F-16 Flow Control Valves, used by the Air Force. The contract will be award to:

Honeywell International Inc.

DBA Honeywell Div.

AEROSPACE – TORRANCE

2525 West 190th St Torrance, CA 90504-6002 Cage 70210

B. Contract Type & Structure: A supply contract to procure a total quantity of 14 each F-16 Flow

Control Valves, NSN 4810011163360YP, PN: 581760-2-1 with an anticipated Firm-Fixed-Pricing (FFP) arrangement will be issued. The estimated award date is 10 Apr 2015, with a period of performance of 29 Dec 2015.

C. Type of J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED MEETING THE AGENCY’S NEEDS:

A. The requirement is to procure 14 each F-16 Flow Control Valves. This item is a fuel flow control valve set/package used on the F-16 Aircraft Emergency/Turbine Power Unit (EPU/TPU). The fuel control valve package provides control of blended fuel and water to the emergency power unit. The valve contains a fuel shutoff valve, a fuel control valve, and a relief valve. The valve initiates and terminates the flow of fuel mixture and the fuel control valve regulates fuel flow to the emergency power unit. The valve contains a fuel inlet orifice, a fuel inlet filter assembly, and a pressure relief valve.

CLIN NSN QTY ESTIMATED UNIT

PRICE

EXT PRICE

0001 4810-01-116-3360YP 14

TOTAL COST

B. Total estimated cost is based on the latest acquisition cost and inflation factors. This estimate to meet USAF mission requirements is based on the B21 product from the D200A requirements determination system and D043A. This action will use 4930 appropriated Material Support Division Working Capital Funds.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION:

A. 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 rights needed to procure the F-16 Flow Control Valve. Currently, Honeywell International Inc. (Cage 70210) is the only source with the technical data package necessary to build this item. The government estimates award to any other vendor would result in a substantial duplication of cost to the government that is not expected to be recovered through competition. Therefore, competition for this acquisition is restricted and an acquisition method code of 3R has been assigned.

B. Rights to the data needed to qualify additional sources of repair are not owned by the government.

Honeywell is the designer and original manufacturer. Any effort to reengineer this part would have technical risks associated with it. Additionally, the 419th SCMS/CL Engineer determined that reverse engineering cost to develop a qualification package and encourage competition are estimated at is over $1,036,860.00, with a net loss during the weapon system’s life cycle. This cost was computed using estimates for lab analysis, parts destroyed, drawing proofs, special testing, technical order revision and logistics. The 419th SCMS has determined it is uneconomical to reverse engineer at this time.

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 will not be issued for this requirement.

B. This requirement will be synopsized in FedBizOpps, as a notice of contract action IAW FAR 5.202. 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: None

D. Qualifying Country Sources: None

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE

GOVERNMENT WILL BE FAIR AND REASONABLE:

A. IAW FAR 6.303-2(b)(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 – Contracting Pricing; to include technical evaluations and audits, as appropriate. Additional steps to ensure price reasonableness will be under the guidance of the Contracting 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) and/or Price Competition Memorandum (PCM). This detailed documentation and justification of price reasonableness will be disclosed in the official PNM/PCM, 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.

B. Additional market research was conducted on 29 September 2014 by the Engineer (Lance Moss)

C. Market research included internet searches on Google, IHS Haystack, Part Target and ThomasNet.com. The only vendor who actually built this in the past is Honeywell International Inc., (Cage 70210). Other “vendor” listed (Lockheed Martin) may have served as repair sources and/or suppliers, but the owner of the technical data package is Honeywell, the designer and original manufacture. Other information was gathered from the team’s knowledge of the industry and past dealings, no potential alternate sources are known.

D. An effort to determine “commerciality” (according to FAR Part 2.101, and DoD Commercial Item

Handbook, the Fuel Control is currently underway, in support of future Performance-Based Logistics contract with the OEM (Honeywell), but final commerciality determination has not been made. That being said, no non-developmental items or current commercial items exist that could provide proper fit and functionality. No other qualified sources currently exist. Drawings accessible to government are source control drawings (not manufacturing level).

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 ACQUISITION 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 PERSONNELS 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)).