JA_for_PR_No._FD2020-16-00679_Redacted.pdf

FD2020-16-00679

I. CONTRACTING ACTIVITY:

Defense Logistics Agency DLA Aviation at Ogden 6051 Gum Lane, Bldg. 1225 Hill Air Force Base UT 84056-5820 Contracting Officer: Rocky Tello Phone Number: (801) 777-6501 Email: Rocky.Tello@us.af.mil PR Number: FD2020-16-00679

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

A. Upon approval to use other than full and open competitive procedures, the Air Force will issue a supply contract to procure C-130 Nose Landing Gear Shock Strut Outer Cylinders, P/N 3305590-9. This requirement is for support of the C-130 Landing Gear Sustainment Program and will be used by the Air Force, Navy, Coast Guard, and FMS C-130 weapon systems. The contract will be awarded to:

Heroux-Devtek Inc, Longueuil Division 755 Thurber Ave.

Longueuil, Canada

J4H 3N2

CAGE 36164

or

Canadian Commercial Corp.

350 Rue Albert Street, Suite 700.

Ottawa, Canada K1A 0S6

CAGE 98247

or

Lockheed Martin Corp.

86 South Cobb Drive.

Marietta, GA 30063

CAGE 98897

B. Contract Type & Structure: A supply contract to procure a total quantity of 46 each with an anticipated Firm-Fixed-Pricing arrangement will be issued. The estimated award date is 1 May 2016.

C. Type J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED MEETING THE

AGENCY’S NEEDS:

A. The requirement is to procure 46 each, C-130 Nose Landing Gear Shock Strut Outer Cylinders, NSN 1620-01-314-7772 Heroux-Devtek Inc., Canadian Commercial Corp., and Lockheed Martin Corp. Part Number 3303590-9, replacement spares at an estimated unit cost of each. The C-130 Nose Landing Gear Shock Strut Outer Cylinder cited herein is a component of a system used to absorb and disperse the physical shock applied to the landing gear system during take-off, landing, and ground operations of the C-130 cargo aircraft.

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 working capital funds.

Item: Nose Landing Gear Shock Strut Outer Cylinder

NSN: 1620-01-314-7772

Qty: 46 each Unit Price: each Total Estimated Price:

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

10 USC 2304 (c) (1) as implemented by FAR 6.302-1 -- Only One (or a limited number of) 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 requirement is for manufacture of a highly specialized component whose design is currently limited to Heroux-Devtek Inc., Canadian Commercial Corp., and Lockheed Martin Corp. Per the 417 SCMS/GUEA Engineer, the C- 130 Nose Landing Gear Shock Strut Outer Cylinder is considered highly specialized because the geometry, materials and processing requirements have been optimized as part of the of the landing gear system. If the wrong materials, processes, and geometry are used for the Outer Cylinder, it could be either ineffective, unreliable or both. These parameters are limited to the Original Equipment Manufacturer (OEM) with the designs, data, and drawings created at Lockheed Martin's own expense, or the designs, data and drawings that Heroux- Devtek/Canadian Commercial Corp has secured rights to. Since the data required to manufacture the C-130 Nose Landing Gear Outer Cylinder is limited to Lockheed Martin and Heroux-Devtek/Canadian Commercial Corp., interested vendors would have to be willing to invest the time, funding, and manpower required to reverse engineer the entire C-130 Nose Landing Gear Outer Cylinder package at their own expense. The 417 SCMS/GUMC Program Manager believes that award to any other source will result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Therefore, this acquisition is for continued production of highly specialized components.

B. The Air Force does not control the design or the data, which would include: unlimited licenses rights, Government Purpose rights, Form, Fit and Function rights, and Operations Maintenance, and Installation Data (OMID) required to manufacture the C-130 Nose Landing Gear Outer Cylinder. Lockheed Martin is the Cylinder Original Equipment Manufacturer (OEM) with design control, authorization, and documentation to manufacture the C-130 Nose Landing Gear Outer Cylinder, and Heroux-Devtek/Canadian Commercial Corp. has secured rights to the data necessary for manufacture. The last attempt to obtain data from Lockheed Martin was on 1 March 2016, with no response.

C. The 417 SCMS/GUEA Engineer has determined that reverse engineering costs are estimated to exceed for NSN 1620-01-314-7772 Lockheed Martin/Heroux- Devtek/Canadian Commercial Corp. P/N: 3303590-9. Based on this cost it would take over

32.55 years to break even.

D. Accordingly, Lockheed Martin, Heroux-Devtek, and Canadian Commercial Corp. are the only firms capable of providing the supplies described in Section III above, without the government experiencing substantial duplication of cost that could not be expected to be recovered through competition.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE:

A. Sources Sought Synopsis: C-130 Source Sought Synopsis FD20201600679, dated 1 Mar 2016 notified interested contractors that the Government intends to procure 46 each of the C- 130 Nose landing Gear Outer Cylinder, NSN 1620-01-314-7772/ Lockheed Martin, Heroux- Devtek/Canadian Commercial Corp. Part Number 3303590-9. No other vendors expressed an interest in the requirement. The sources sought synopsis closed on 15 Mar 2016 per the contracting officer, and no additional indication of interest was evident.

B. This requirement will be synopsized in FedBizOpps, 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: 417th SCMS engineers regularly pursue discourse with industry manufacturers who may be interested in reverse engineering, or redesigning the C-130 Nose Landing Gear Outer Cylinder in an effort to expand the manufacturing base. Furthermore, the 417th SCMS IPTs regularly inquire approved manufacturers as to the possibility of sharing or selling data rights to proprietary technology, designs, or processes utilized in ball screw manufacturing.

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 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 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 a Sources Sought Synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. There were no interested sources.

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

1 On 22 Feb 2016 a search conducted on the Thomas Net (http://www.thomasnet.com), an internet site from the Thomas Registry with NSN 1620-01-314-7772 and Lockheed Martin/Heroux-Devtek/Canadian Commercial Corp. Part Number 3303590-9 resulted in zero results in the product, company name, brand name, Computer Aided Design (CAD) drawings and industrial web directories.

2 On 22 Feb 2016, a review of commercial catalogs and other product literature was completed. The review indicated no other alternate commercial item or non-developmental item (NDI) will meet the requirement, nor can the requirement be modified to permit use of existing commercial items or NDIs.

C. The 761 screening action for NSN 1620-01-314-7772 Lockheed Martin/Heroux- Devtek/Canadian Commercial Corp. Part Number 3303590-9, was reviewed for consistency and reasoning. No discrepancies were found and only Lockheed Martin/Heroux- Devtek/Canadian Commercial Corp. were identified as approved sources.

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

AQUISITION:

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 Air Force regularly inquires the manufacturers in regards to sharing or selling the proprietary data rights for use in free and open solicitations. Furthermore, the Air Force regularly performs analasys to determine the feasibility and cost effectiveness of reverse engineering the proprietary technology.

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)).