JA_for_PR_No._FD20201600355_Redacted.pdf

FD2020-16-00355

I. ContractingActivity.

Defense Logistics Agency DLA Aviation at Ogden 6051 Gum Lane, Bldg. 1225 Hill Air Force Base UT 84056 Contracting Officer: Rocky Tello Phone Number: (801) 777-6501 Email: Rocky.tello@dla.mil PR Number: FD2020-16-00355

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-5 Brake Cylinder Assembly, replacement spares. This requirement is for support of the F-5 Landing Gear sustainment program and will be used by the Air Force F-5 weapon system. The contract will be awarded to:

Eaton Corporation 4690 Colorado Blvd.

Los Angeles, CA 90039 Cage: 99643

OR

Thomas Instrument Incorporation 3440 E First St.

Brookshire, TX 77423 Cage: 5H860

B. Contract Type & Structure: A spares contract to procure a total quantity of 10 each F- 5 Brake Cylinder Assembly, NSN 1630-00-112-2602, Part Number MC4357-2 with an anticipated Firm-Fixed-Price arrangement will be issued. The estimated award date is 5 September 2016 with performance expected up to 5 May 2019. Estimated Value

C. Type J&A: Individual

III. Description of supplies/services required to meet agency needs.

A. The requirement is to procure 10 each F-5 Brake Cylinder Assembly, replacement spares, 1630-00-112-2602, Part Number MC4357-2 at an estimated cost of each. The F-5 Brake Cylinder Assembly is a control device that converts mechanical pressure from a foot pedal into hydraulic pressure. The hydraulic pressure thus generated then pressurizes the slave cylinders in the wheel brake assemblies, providing braking force to stop the aircraft on the ground. Estimated delivery date is 5 May 2019.

FY NSN Name Est Qty Price/Unit Ext. Price 16 1630-00-112-2602 Brake Cylinder Assembly 10

B. Total estimated cost is: This estimate is based on USAF mission requirements as computed by the D200 Requirements Determination System for FY16.

This action will use 4930 FC04 working capital funds. There are no feasible actions that could develop future competition as referenced in section V, paragraph C below.

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 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 F-5 Brake Cylinder assembly whose design is currently owned by Eaton Corporation.

Thomas Instruments currently manufactures this on item on behalf of Eaton Corporation through a licensee agreement. As per the 417 SCMS/ GUMA Equipment Specialist and the 417 SCMS/GUEA Engineer, the design of the F-5 Brake Cylinder assembly is specifically manufactured for the F-5 aircraft's size and energy requirements, with the drawings and data created at Eaton Corporation's own expense. As a result, the Government does not own the data rights and required drawings to the F-5 Brake Cylinder assembly. Since the drawings and data required to manufacture the F-5 Brake Cylinder assembly are proprietary to Eaton 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 F-5 Brake Cylinder assembly. Consequently, the 417 SCMS/GUMA states that based on a recent basis of estimate (BOE) dated 26 January 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.

Therefore, this acquisition will be for continued performance of a highly specialized equipment.

B) Eaton Corporation is the sole owner of the data rights and drawings with design control, authorization and documentation to manufacture for procurement of the F-5 Brake Cylinder assembly. 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 1 February 2016, the AF does not possess the OEM data licensing rights and drawings required to support a competitive acquisition buy for the F-5 Brake Cylinder assembly. 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 Eaton Corporation was initiated on 2 February 2016 by the 417 SCMS/GUMA Program Manager. Eaton 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, Eaton Corporation, or Thomas Instrument Corporation are the only firms 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 27 Jan 2016. The RFI/SSS closed on 11 February 2016 and 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 Office will obtain 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 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 Eaton Corporation, the Original Equipment Manufacturer (OEM), or Thomas Instrument Inc., Eaton’s Licensee, are the only companies able to manufacture the F-5 Landing Gear Hydraulic Brake Cylinder Assembly. 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. Eaton Corporation, and Thomas Instrument Inc.

are the only known sources 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. All websites where search using part# MC4357-2 and the NSN 1630-00-112-2602. This internet search was conducted February 2016.

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 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.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.