JA_for_PR_No._FD2020-16-01439_Approved_Redacted.pdf

FD2020-16-01439

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: FD2020-16-01439

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

A. Upon approval to use other than full and open competition procedures, DLA Aviation at Ogden will issue a new Firm Fixed Price type contract to procure LC-130 Nose Ski Support Shaft Assemblies. This requirement is for support of the LC-130 Landing Gear Sustainment Program and will be used by the Air Force LC-130 weapon system. The contract will be awarded to:

Air New Zealand Engineering Services 125 Orchard Road

Christchurch New Zealand

CAGE CODE E2098

Or

Lockheed Martin Corporation 86 South Cobb Drive

Marietta Georgia 30063-0001

CAGE CODE 98897

Or

Ogden Air Logistics Center Building 1209 Hill AFB Utah

84056-5320

CAGE CODE 98747

B. Contract Type & Structure: A Firm Fixed Price contract to procure a total quantity of 8 each Support Shaft Assemblies will be issued. The estimated award date for the new supply contract is 1 January 2017 with delivery expected starting on 29 September 2017.

C. Type J&A: Individual

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED MEETING THE

AGENCY’S NEEDS:

A. This requirement is for 8 Nose Ski Support Shaft Assemblies NSN 1630-01-607-1978/Part Number 9235578-10. The Support Shaft Assembly is part of the LC-130 Landing Gear system which provides configurable landing capability adaptable to both conventional paved surfaces, as well as snow and ice surfaces.

B. Total estimated cost is $ This estimate is based on the Automated Budget Compilation System-Buy Load List from the D200A Requirements Determination System with an estimated unit cost of This action will use 4930 FC04 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 (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 Air New Zealand, Lockheed Martin, and the Ogden Air Logistics Center. As per the 417 SCMS/GUEC Engineer the LC- 130 Nose Ski Support Shaft Assembly is unique to the LC-130. It is designed and certified to Air Force Drawing 9235578-10. Per this drawing/ specification, the support assembly was tested and certified to perform per the LC-130 design requirements, which includes failure, fatigue, stress, and corrosion analysis.

B. The Air Force does not control the design, nor does the government possess the data or the rights to the data required to manufacture the Support Shaft Assembly by any other contract other than by Air New Zealand, Lockheed Martin or Ogden Air Logistics Center. The proprietary data owned by Air New Zealand and Lockheed Martin, available to the Air Force is a top-level drawing only, which cannot be used for the design or manufacture of the Support Shaft Assembly.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE:

A. A combined Request for Information and Sources Sought Synopsis (RFI/SSS) was posted to FedBizOpps.gov on 16 June 2016. The RFI/SSS closed on 1 July 2016 and no response from industry was received by the contracting office.

B. This requirement will be synopsized in FedBizOpps.gov, 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: None

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/GUMA Integrated Product Team conducted market research that yielded the following results:

1 On 8 February 2016, a review of the procurement history for this item. The NSN identified Air New Zealand and Lockheed Martin Cage Codes E2098 and 98897, as being the only manufacturers utilized in the procurement of this item. The Ogden Air Logistics Center is listed on the 761 as a potential source of manufacture, but the organization has consistently stated that it does not possess the technical experience or test fixtures to support a new contract.

2 On 8 February 2016, the Governments Purchase Request Process System (PRPS) was also searched using the item NSN, in which the results showed only approved source as Air New Zealand, Lockheed Martin, and the Ogden Air Logistics Center Cage Codes E2098, 98897, and 98747. Additionally, the 761 AMN/AMSC Screening Analysis Worksheet only indicated these three entities as a source. The search did not yield any additional approved sources.

3 On 8 February 2016, a search and review of the below internet sites was accomplished in which no viable, authorized source, was identified.

o Google (http://www.google.com) o ThomasNet (http://www.thomasnet.com) o ILSmart (http://www.ilsmart.com)

C. Commercial items cannot suffice for this application. The Support Shaft Assembly is specific to the LC-130 aircraft.

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:

The 417 SCMS/GUMC Engineer has determined that reverse engineering costs are estimated to exceed . These costs map out exactly what it would cost the Air Force to duplicate the workload/product already being provided by the sole source contractor. It would take approximately 849 years to break even based on current costs associated with reverse engineering.

On 4 February 2016 a data rights request was sent to Lockheed Martin and Air New Zealand, to provide a no-cost Rough Order of Magnitude (ROM) for the data required to produce the Support Shaft Assembly, which included unlimited license rights, government purpose rights, form, fit and function rights, and operations, maintenance, and installation data (OMID).

Lockheed provided no response, and Air New Zealand indicated via conversation that they are restricted by Lockheed Martin to whom they can release data to. Air New Zealand and Lockheed Martin are the only firms capable of providing the requirement for the supplies described in Section III above, without the government experiencing substantial duplication of costs that could not be expected to be recovered through competition.

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:

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(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)).