JA_for_PR_No__FD20201600213_15_July_2016_Signed._Redacted.pdf

FD2020-16-00213-01

10 USC 2304 (c) (1) as implemented by FAR 6.302-1 -- Only One Responsible Source or Limited Sources 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 the authority cited above (applicability of authority).

A) The above authority was selected because the requirement is for the manufacture of the T-38 Side Brace. As per the 417 SCMS/GUMA Equipment Specialist and the 417 SCMS/GUEA Engineer, the design of the T-38 Side Brace is specifically manufactured for the T-38 aircraft's size and energy requirements, with the drawings and data created at Northrup Grumman Systems Corporation's own expense. As a result, the Government does not own the data rights, and required drawings to the T-38 Side Brace. Since the drawings and data required to manufacture the T-38 Side Brace are proprietary to Northrup Grumman Systems Corporation, interested vendors would be required to invest their time, funding, and manpower required for reverse engineering and follow the government qualification requirements and processes needed to become a qualified source to manufacture the entire T-38 Side Brace. Consequently, the 417 SCMS/GUMA states that based on a recent basis of estimate (BOE) dated 26 Jan 2016 award to any other source would result in a cost to the Government to reverse engineer the part that is not expected to be recovered through competition.

B) Northrup Grumman Systems Corporation is the sole owner of the data rights and drawings with design control, authorization, and documentation to manufacture for procurement the T-38 Outer Cylinder. The Air Force possesses a minimal amount of intellectual property, which only allows repair and overhaul, not manufacture. This intellectual property is written into the USAF repair manuals. As of 3 February 2016 the USAF does not possess the OEM data licensing rights and drawings required to support a competitive acquisition buy for the T-38 Side Brace. An attempt to obtain top level preliminary drawings, unlimited license right, government purpose rights, form, fit and function rights, Operations and Maintenance and Installation data to allow full and open competition from Northrup Grumman Systems Corporation was initiated on 2 Feb 2016 by the 417 SCMS/GUMA Program Manager. Northrup Grumman Systems Corporation has responded that they will not sell the data rights as requested.

C) The 417 SCMS/GUEA Engineer has determined that reverse engineering costs are estimated to exceed as documented in the Basis of Estimate (BOE). Accordingly, Northrup Grumman Systems Corporation is the only firm capable of providing the supplies 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 in fulfilling its requirements.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

A) A combined Request for information and Sources Sought Synopsis (RFI/SSS) was posted to FBO.gov on 18 February 2016. The RFI/SSS closed on 4 March 2016 with no response from industry was received by the contracting office.

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

VIII. Description of the 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) The team has determined that Northrup Grumman, OEM, is the only company able to manufacture the T-38 Side Brace. This determination was a result of recently conducted market research, which consisted of reviewing past contracts, analyzing available data, reviewing source lists for similar items, and conducting internet searches of Government databases for companies that manufacture hydraulic landing gear. Northrup Grumman is the original and only known source possessing the capability to meet the tight configuration and procurement control requirements. As a result of the market research, it has been determined that there are no additional qualified sources in the marketplace.

C) Additionally, Market Research conducted included searching electronic databases;

ThomasNet, Google, DIMO CORP, Acq Net, Haystack, and JEDMICS. This internet search was conducted February 2016.

D) Based on the market research conducted, there is 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 other commercial or nondevelopmental 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.

SeesectionVIabove.

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 does not have sufficient data or rights to the data that can be provided to allow for competition of this requirement. In response to previously synopsized J&A, there have been no other sources expressing an interest in competing for this effort. If the buyer discovers information to the contrary, it will be listed in the contract file.

XII. Certification by the Contracting Officer.

Asevidencedbymysignatureabove, Ihavedetermined thisdocument tobebothaccurate and complete to thebestofmy knowledge and belief.

XIII. Certification by the technical/requirements personnel.

Asevidencedbymy(our)signature(s)above,I(we)certifythatanysupportingdatacontained herein,whichismy(our) responsibility, is both accurate and complete.