REDACTED_J&A_1800224.pdf

FD2020-18-00244

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 Eaton Aerospace. As per the 417 SCMS/GUEA Engineer the F-5 Master Brake Cylinder Assembly is unique to the F-5. It is designed and certified to Air Force Drawing MC4357. Per this drawing/ specification, the Master Brake Cylinder was tested and certified to perform per the F-5 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 Master Brake Cylinder Assembly by any other contract other than by Eaton Corporation. The proprietary data owned by Eaton Corporation, available to the Air Force is a top-level drawing only, which cannot be used for the design or manufacture of the Master Brake Cylinder.

C. The 417 SCMS/GUMB team contacted Valerie Rigoni at Eaton Corporation on 13 March 2018 regarding Eaton’s willingness to sell/license the data to the government to use for a competitive procurement. Eaton Corporation did not respond to the request and their failure to respond is therefore interpreted as indicating Eaton is unwilling to sell the data to the government.

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 31 January 2018. The RFI/SSS closed on 14 February 2018 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 10 April 2018, a review of the procurement history for this item. The NSN identified Eaton Corporation, Cage Code 99643 , as being the only manufacturer utilized in the procurement of this item.

2 On 10 April 2018, the Government’s Purchase Request Process System (PRPS) was also searched using the item NSN, in which the results showed only approved source as Eaton Corporation, Cage Code 99643. Additionally, the 761 AMC/AMSC Screening Analysis Worksheet only indicated Eaton Corporation as a source. The search did not yield any additional approved sources.

3 On 10 April 2018, a search and review of the below internet sites was accomplished in which no viable, authorized source, was identified.

• Google (http://www.google.com)

• ThomasNet (http://www.thomasnet.com)

• ILSmart (http://www.ilsmart.com)

C. Commercial items cannot suffice for this application. The Master Brake Cylinder Assembly is specific to the F-5.

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/GUEA Engineer has determined that reverse engineering costs are estimated to exceed $6M. 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 237 years to break even based on current costs associated with reverse engineering.

The 417 SCMS/GUMB team contacted Valerie Rigoni at Eaton Corporation on 9 March 2018 regarding Eaton’s willingness to sell/license the data to the government to use for a competitive procurement. Eaton Corporation did not respond to the request and their failure to respond is therefore interpreted as indicatating Eaton is unwilling to sell the data to the government.

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)).