J A_Redacted.pdf

I. CONTRACTING ACTIVITY:

Defense Logistics Agency DLA Aviation at Ogden 6051 Gum Lane, Bldg. 1225 Hill Air Force Base UT 84056-5825 Contracting Officer: Rocky Tello Commercial telephone: (801)777-6501 E-mail: Rocky.Tello@dla.mil PR Number: FD20201501201

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

A. Upon approval to use other than full and open competitive procedures, DLA Aviation at Ogden will issue a new contract to procure F-16 Nose Wheel Steering (NWS) actuator replacement spares. This requirement is for support of the F-16 Landing Gear Sustainment Program and will be used by the Air Force F-16 weapon system. The contract will be awarded to:

Aero Precision 201 Lindbergh Avenue Livermore, CA 94551 Cage Code: 50601

B. Contract Type & Structure: A spares commercial contract to procure a total quantity of 47 each with an anticipated Firm-Fixed-Price arrangement will be issued. The estimated award date is 30 May 2015 with performance expected through 31 Dec 2015.

C. Type J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED MEETING THE

AGENCY’S NEEDS:

A. The requirement is to procure 47 each F-16 NWS actuator replacement spares, NSN: 1650-01-564-8619 (Part Number: 5136L000-4) manufactured by CIRCOR Aerospace, Inc., from CIRCOR’s authorized distributor, Aero Precision, Inc., at an estimated unit cost of $10,500.00 each. CIRCOR is unwilling to sell the required parts directly to the Government at this time. Aero Precision is the only known source that can supply the parts within the time needed to satisfy the Government’s current unusual and compelling requirement. Aero Precision has the required parts in stock. Any other source, besides CIRCOR or Aero Precision, would have to reverse engineer the parts, and would have to submit a Source Approval Request (SAR) Package for the Air Force’s review and approval, in order to become a qualified and approved source, which would take longer than the Government can wait to satisfy its current unusual and compelling requirement for these parts.

FY NSN Name Est. Qty. Price/Unit Ext. Price

16 1650-01-564-8619 NWS Actuator 47

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 appropriated working capital funds. The estimated award date is 30 May 2015 with performance expected through 28 Dec 2015.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND

OPEN COMPETITION:

10 USC 2304 (c) (1) as implemented by FAR 6.302-2 –Unusual and compelling urgency. This requirement is being procured under the unusual and compelling urgency authority because there are currently 25 F-16 jets grounded for this part and there are no other sources available that can provide these parts within the time required to alleviate the Air Force’s current unusual and compelling urgency. The F-16 NWS actuator enables the pilot to perform steering maneuvers during ground operations by turning the nose wheel in the pilot-commanded direction. The 417 SCMS has no spares available and no contracts in place. The average grounded daily cost per jet is . With today’s MICAP total of 25, the USAF is expending daily. The Government will only procure the minimum number of parts necessary to satisfy its unusual and compelling urgency for these parts under this authority.

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 Government owns only limited data rights for these parts due to the fact that the item is proprietary to CIRCOR. Aero Precision is an authorized CIRCOR distributor for these parts.

The data rights required to make this item suitable for a competitive procurement would be Unlimited License Rights, Government Purpose Rights, Form, Fit, and Function Rights, and Operations, Maintenance, and Installation Data (OMID).

B. The 417 SCMS/I Integrated Product Team (IPT) contacted CIRCOR Aerospace Inc. by email on 19 MAY 2014 regarding limited data rights status to NSN: 1650-01-564-8619 (Part Number: 5136L000-4). The 417 SCMS/GUEA Engineer posed the following questions to CIRCOR Aerospace, Inc. in the aforementioned email, and received the following answers:

- Is CIRCOR Aerospace willing to sell data rights associated with the 5136L000-4 NWSA to the United States Air Force for competitive acquisition purposes? No.

- What types of licensing rights would CIRCOR Aerospace be willing to sell to the USAF for competitive acquisition purposes? None, CIRCOR is unwilling to sell the USAF any data rights.

- Would CIRCOR Aerospace be willing to provide itemized ROM or RIF selling data rights, Government purpose rights, form fit function data? No.

CIRCOR Aerospace Inc. responded on 06 JUNE 2014 indicating that they were “not willing to sell our Intellectual Property on the 5136L000-4.” CIRCOR Aerospace, Inc. owns technical data sufficient to manufacture the necessary parts and is unwilling to sell or give permission to the Government, to use such data for a competitive procurement. The Government does not possess the design, data, or license rights required to allow full and open competition for the manufacture and procurement of the F-16 NWS actuator. The F-16 NWS actuator utilizes hydraulic pressure from the aircraft to actuate a push pull rod in accordance with the feedback given from the internally housed rotary potentiometer. Therefore, this effort is for continued performance of highly specialized components. The steering actuator is a critical application item, unique to the F-16, and is necessary for proper function. Additionally, this item has been identified as "commercial" per FAR Part 2.101 and DoD Commercial Item Handbook. This determination simply means that the item is similar enough to other items available in the commercial marketplace such that the pricing data can be used as a baseline to determine fair pricing. It does not mean the commercial marketplace currently has a substitute for this item that could functionally replace it with little to no modifications.

C. The 417 SCMS/GUEA believes that award to any other source other than CIRCOR or its authorized distributor, Aero Precision, would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Air Force’s current unusual and compelling requirement. 417 SCMS/GUEA engineering has determined that reverse engineering costs to develop a qualification package and encourage competition are estimated to exceed $8,124,870.00.

Based on this cost it would take over 135 years to break even. Based on the preceding information, the AMC/AMCS code assigned to this NSN is “3/R.”

D. Since CIRCOR is not willing to sell the required parts directly to the Government at this time, and since their authorized distributor, Aero Precision, is the only known source for the required parts that has the parts currently in stock and can therefore satisfy the Government’s unusual and compelling urgency for the parts within the time required, Aero Precision is the only firm capable of providing the supplies and services described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays and significant operational and financial harm in fulfilling its current unusual and compelling requirement for the parts.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE:

A. This item is proprietary to CIRCOR and as such they are the only vendor qualified to make this part. The Government does not own the data required to manufacture this part and, therefore, cannot approved additional sources. CIRCOR is not willing to sell these parts directly to the Government at this time. The only known current source for these parts within the time needed by the Government is CIRCOR’s authorized distributor, Aero Precision, Inc.

B. This requirement will be synopsized in FedBizOpps.gov, 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: None.

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, 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

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

1. There have been no changes in outcomes of Market Research in the last two years. The Government does not own the data rights because CIRCOR maintains proprietary ownership of the data associated with this asset. CIRCOR has been approached to buy the data package, but has indicated that it is not willing to sell its proprietary data rights to the Government at this time.

2. No alternative sources of supply have been identified in discussions with the F-16 Landing Gear IPT. The IPT has contacted knowledgeable people within Government and industry, reviewed recent market research for similar items, queried Government and commercial databases, utilized source lists for similar items, and reviewed commercial catalogs and other product literature. The 761 screening action for NSN 1650-01-564-8619/Part Number 5136L000-4 was reviewed for consistency and reasoning. No discrepancies were found. There is only one approved manufacturing source, CIRCOR Aerospace, Inc., or its authorized distributor, Aero Precision, Inc. Only Aero Precision, Inc. has the parts in stock and is willing to sell them to the Government at this time within the time needed to satisfy the Governments’ current unusual and compelling need for the parts.

B. The 417 SCMS/GUMD Integrated Product Team market research results indicate with a high level of confidence, that there are no additional sources capable of satisfying the agency’s need for this proprietary item nor are there any commercial or non-developmental items which could be utilized to meet needs or which could be modified to meet the needs.

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:

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(b)(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)).