FD20201700897_REDACTED.pdf

FD2020-17-00897

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 Woodward HRT Inc. As per the 417 SCMS/GUEA Engineer, the T-38 Master Brake Cylinder is unique to the T-38. It is designed and certified to Air Force Drawing 6U6033. Per this drawing/ specification, the Master Brake Cylinder was tested and certified to perform per the T-38 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 by any other contract other than by Woodward HRT Inc. The proprietary data owned by Woodward HRT Inc., 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 last attempt to obtain the manufacturing data from Woodward HRT, Inc. was made by Judd Kendall on 27 March 2018 via telephone asking if Woodward HRT, Inc. would be willing to sell or license the data to the government for the purpose of competitive procurement. Shawn Gorham, Military Aftermarket Customer Account Manager at Woodward responded stating that Wooward would not be willing to sell or license 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 combines Request for Information and Sources Sought Synopsis was posted on 9 August 2018, notifying interested contractors that the Government intends to procure 189 each of the T- 38 Master Brake Cylinder. The RFI/SSS closed on 23 August 2018 and no responses were received by the contracting office.

A. 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.

B. Other actions: 417th SCMS engineers regularly pursue discourse with industry manufacturers who may be interested in reverse engineering, or redesigning the T-38 Master Brake Cylinder in an effort to expand the manufacturing base.

C. 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 02 August 2018, a review of the procurement history for this item identified Woodward HRT, Inc. Cage 60029, as being the only manufacturer utilized in the procurement of this item.

2. On 02 August 2018, the Government’s Purchase Request Process System (PRPS) was searched using the item NSN, in which the results showed the only approved source as Woodward HRT, Inc. Cage 60029. Additionally, the 761 Screening Analysis Worksheet lists Woodward HRT, Inc. as the only approved source.

3. On 02 August 2018, a search and review of the below internet sites was accomplished in which no additional viable or authorized sources were identified.

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

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

c. ILSmart (http://www.ilsmart.com)

C. Commercial items cannot suffice for this application. The Master Brake Cylinder is specific to the T-38.

D. Contacted knowledgeable individuals in Government regarding market capabilities to meet requirements. The USAF IPT consisting of the T-38 Program Manager, Item Manager, and system Engineer, through market research and years of combined professional knowledge of the T-38 weapon system, have concluded with a high level of confidence that there are no additional sources capable of meeting the government’s needs.

E. 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 $6.1M. 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 63 years to break even based on current costs associated with reverse engineering.

No further action will be taken at this time to obtain competitive procurement. A 5 year expiration date has been assigned and approved by the spares breakout Program Manager.

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 manufacturer 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)).