JA_FD20201600419_Redacted.pdf

FD2020-16-00419

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY:

Defense Logistics Agency DLA Aviation at Ogden 6051 Gum Lane, Bldg. 1225 Hill AFB, UT 84056-5825 Contracting Officer: Rocky Tello Phone: 801-777-6501 Email: Rocky.tello@us.af.mil PR Number: FD2020-16-00419

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 18 each F-16 Flow Control Valves, used by the Air Force. The contract will be award to:

Honeywell International Inc.

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

B. Contract Type & Structure: A supply contract to procure a total quantity of 18 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 15 April 2016, with a period of performance of 08 July 2016.

C. Type of J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED MEETING THE

AGENCY’S NEEDS:

A. The requirement is to procure 18 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 18

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 over

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 combined Request for information and Sources Sought Synopsis (RFI/SSS) was posted to FBO.gov on 3 December 2015. The RFI/SSS closed on 18 December 2015 and no response from industry was received by the contracting office.

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 February 2016 by the Power Systems Engineer. Market research included internet searches on Google, and IHS Haystack. 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.

C. 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).

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 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 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)).