FD20201800020_Redacted.pdf

FD2020-18-00020

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.

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 Corporation. Per the 417 SCMS/GUEA Engineer, the B-1 Nose Landing Gear Manifold Assemblies are considered highly specialized because of the geometry, materials and processing requirements have been optimized as part of the landing gear system. If the wrong materials, processes or geometry are used for the Nose Landing Gear Manifold, it could be ineffective, unreliable, or both.

Therefore, this acquisition will be for the procurement of highly specialized assets.

B. The Air Force does not control the design or the data required to manufacture the B-1 Nose Landing Gear Manifold Assembly. The 417 SCMS/GUMB team contacted Valerie Rigoni and Elizabeth Lam at Eaton Corporation on 18 October 2017 regarding Eaton’s willingness to sell 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. The government does not possess the design, data, or license rights required to allow full and open competition for the manufacture and procurement of the B-1 Manifold Assembly.

C. The 417 SCMS/GUEA Engineer has determined that reverse engineering/duplicate costs to develop a qualification package and encourage competition are estimated to exceed

. Based on this cost it would take over 246 years to break even. The parameters for this component are limited to the Original Equipment Manufacturer (OEM) with the designs, data and drawings created at Eaton Corporation’s own expense. Since the data required to manufacture the B-1 Nose Landing Gear Manifold Assembly is limited to Eaton Corporation, interested vendors would have to be willing to invest the time, funding and manpower required to reverse engineer the entire B-1 Nose Landing Gear Manifold Assembly at their own expense.

D. Accordingly, Eaton Corporation is the only firm 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 and would cause unacceptable delays in fulfilling the requirement. Based on the preceding information, the AMC/AMCS code assigned to this NSN is 3/R.

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) SPRHA1-18- R-0020 was posted to FedBizOpps.gov on 16 October 2017. The RFI/SSS closed on 30 October 2017. The contracting office was not notified of any interest from industry.

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 B-1 Nose Landing Gear Manifold Assembly in an effort to expand the manufacturing base.

Furthermore, the 417th SCMS IPTs inquire approved manufacturers as to the possibility of sharing or selling data rights to proprietary technology, designs, or processes utilized in military aircraft landing gear 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/GUMB Integrated Product Team conducted market research that yielded the following results:

The below avenues of Market Research have been accomplished IAW with FAR Part 10.

1. On 13 October 2017, a review of commercial catalogs, company literature, proprietary data rights and individual experience was initiated by IPT members. 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.

2. On 13 October 2017, a review of the procurement history for this item identified Eaton Corporation (99643) as being the only manufacturer utilized for procurement of this item.

3. Contacted knowledgeable individuals in Government regarding market capabilities to meet requirements. The USAF IPT consisting of the B-1 Program Manager, Item Manager, and system Engineer, through market research and years of combined professional knowledge of the B-1 weapon system, have concluded with a high level of confidence that there are no additional sources capable of meeting the government’s needs.

4. On 10 October 2017, the Governments Purchase Request Process System (PRPS) was also searched using the items NSN, in which the results showed the only approved source as Eaton Corporation (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.

5. On 10 October 2017, a search and review of the below internet sites was accomplished in which no viable, authorized manufacturing sources were identified.

- Google (http://www.google.com)

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

- IHS Haystacks (http://login.ihserc.com/cgi-bin/ihslogin)

C. The 761 screening action for NSN 4730-01-148-8010LE, P/N 50440-2, was reviewed for consistency. No discrepancies were found and only Eaton Corporation was identified as an approved source.

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/GUMB team contacted Valerie Rigoni and Elizabeth Lam at Eaton Corporation on 18 October 2017 regarding their willingness to sell the data for NSN 4730-01-148-8010LE, P/N 50440-2. Eaton Corporation did not respond and as such, their failure to respond is interpreted as indicating Eaton’s unwillingness to sell the data. Only Eaton Corporation owns the technical data sufficient to manufacture the parts.

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 analysis 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)).