JA_FD20201600423_Approved_Redacted.pdf

FD2020-16-00423

28 Jan 16

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. 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: FD2020-16-00423

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 5 each F16 Housing, Gearbox, Turbine Engines to support the F-16 aircraft used by the U.S. Air Force to UTC Aerospace Systems (UTAS) formerly Hamilton Sundstrand Corporation.

UTAS (formerly Hamilton Sundstrand Corporation) 4747 Harrison Avenue Rockford, IL 61108 Phone: (815)226-6000 Cage: 99167

B. Contract Type & Structure: A spares contract, to procure a total quantity of 5 units with anticipated Firm-Fixed-Pricing (FFP) arrangement, will be issued. The estimated award date is 15 September 2016 with delivery expected on 15 September 2017 based on the last procurement information i.e. lead times.

C. Type of J&A: Individual

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

A. The requirement is to procure 5 each F16 Housing, Gearbox, Turbine Engine. The gearbox itself acts as an interface between the Jet Fuel Starter (JFS) and the Power Take-off (PTO) shaft that drives the main aircraft engine gearbox. The Accessory Drive Gearbox (ADG) also supplies hydraulic and electrical power during operation. The ADG Housing is unique to the F16 aircraft with a total of 1 ADG per aircraft. The design and associated data is owned by Hamilton Sundstrand and was never purchased by the government. Currently the government has limited rights to this data, which means that Hamilton Sundstrand is the sole source for acquisition purposes. It has been deemed uneconomical for the government to purchase the data. The government has Technical Orders that initially detailed the overhaul and repair criteria for the ADG and its main housing, but over the years it has not been updated and cannot be used as the official document to control this activity.

CLIN NSN QTY ESTIMATED UNIT

PRICE

EXT PRICE

0001 2835-01-208-4430RP 5

B. Total estimated cost is . This estimate is based on the Automated Budget Compilation System – Buy Load List, from the D200A requirements determination system. This action will use 64 7312 appropriated Material Support Division Working Capital funds.

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 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 rights needed to procure the F-16 Housing, Gearbox, Turbine Engine. Currently UTAS, formerly Hamilton Sundstrand Corporation, is the only source with the technical data, specialized tooling, equipment, qualified personnel and unique facilities necessary to support the manufacture of the F16 Housing, Gearbox. 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. Production of this item is highly specialized and since the Government owns only limited data rights, UTAS formerly Hamilton Sundstrand Corporation, is the only vendor with the authorization and documentation to complete the work. The design and associated data is owned by UTAS, formerly Hamilton Sundstrand Corporation, and was never purchased by the Government. Currently the Government has unlimited rights to the source control drawings, but no rights to the manufacturing data. Any effort to reengineer this part would have technical risks associated with it. Additionally, the 419th SCMS/CL Engineer determined that reverse engineering costs to develop a qualification package and encourage competition is estimated at The 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 OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS MANY

POTENTIAL SOURCES AS DEEMED PROACTICABLE:

A. Sources Sought Synopsis: A combined Request for Information and Sources Sought Synopsis for the Accessory Drive Gearbox (ADG) was posted on FedBizOps and one response was received. Patriot Dynamics indicated that they intended to submit a proposal for the ADG. However, Patriot Dynamics is a surplus dealer and they do not own the data rights to manufacture this item. In addition, Patriot Dynamics would only be offering overhauled items which would not meet the needs of the program.

This is described further in the Vendor Survey section on the Market Research documentation.

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 RESONABLE:

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 12 Jan 2016 by the 419th SCMS Engineer.

C. An internet search for “manufacturing, repair, and overhaul of aircraft engine parts” was completed and found that several vendors possess the “know-how” to design, build and manufacture ADGs.

However, the manufacturing drawings are proprietary to Hamilton Sundstrand; therefore, the government is unable to provide the drawings to other vendors. The government has Technical Orders that use to detail the overhaul and repair criteria for the ADG and its main housing, but over the years it has not been updated and cannot be used as the official document to control this activity. The technical data necessary to manufacture this item is proprietary to UTAS, and it is not possible for the government to purchase the data. The Air Force program manager requested data rights from UTAS in March of 2016 and received a response that UTAS could not entertain discussions regarding data rights.

D. The F-16 ADG is not of a type customarily used by the general public or by nongovernmental entities.

It is also not considered to be evolved from a commercially available item. Modifications required to make the ADG comparable to any known commercial item are not know to be available in the commercial marketplace, and would not be considered minor. The ADG was not developed exclusively at private expense. This is a sole-source military-unique item, and is not closely related to items already in the marketplace, nor is it sufficiently like similar items that meet the Government’s requirement.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN COMPETITION:

The Key Performance Requirements (KPR) is unique to the system. However, if the data is accessible, the commercial market sector can accomplish the repair and overhaul of this item. The performance of the actual ADG and its physical characteristics are unique to the F-16, making it a military application.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE ACQUISITION:

See Section V1 above.

X1. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY

BARRIERS TO COMPETITION BEFORE MAKING SUBSEQUENT ACQUISTION FOR THE SUPPLES 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)).