FD20201901032 REDACTED.pdf

FD2020-19-01032

A. The Hydraulic Servo Valves attach to the Nose Wheel Steering Manifold and provides metered fluid flow to the aircraft system so the hydraulic steering system functions correctly and the aircraft can be steered as required to meet all ground positioning requirements.

SUPPLY NOUN: Hydraulic Servo Valve

NSN: 1650-01-308-5493

PART NUMBER: 74027

TOTAL QUANTITY: 18

FORECASTED UNIT PRICE: $

B. Total Estimated Cost: $ . This estimate is based on D200 generated requirements. This action will use 4930 FC04 working capital funds.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

10 U.S.C. 2304 (c) (1) as implemented by FAR 6.302-1, Only One 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 the manufacture of the B-2 Hydraulic Servo Valve whose design is currently owned by Eaton Corporation, (CAGE 99643). As per the 417 SCMS/GUMB Equipment Specialist and the 417 SCMS/GUEA Engineer, the design of the B-2 Hydraulic Servo Valve is specifically manufactured for the B-2 aircraft’s size and energy requirements. The original drawings and data were created by the company Sterer Corporation, but later acquired by Eaton.

Eaton has now licensed the rights to build this item to Thomas Instrument. As a result, the Government does not own the data rights and required drawings to the B-2 Hydraulic Servo Valve. Since the drawings and data required to manufacture the B-2 Hydraulic Servo Valve are proprietary to Eaton Corporation, interested vendors would be required to invest their time, funding, and manpower required for reverse engineering and follow the government qualification requirements and processes needed to become a qualified source to manufacture the B-2 Hydraulic Servo Valve.

B. Eaton Corporation is the sole owner of the data rights and drawings with design control, authorization, and documentation to manufacture the B-2 Hydraulic Servo Valve, The small quantities of government contracts has made it uneconomical for Eaton to build these items, so they have chosen to license their data rights to Thomas Industries, who are willing to produce this assembly for the Air Force. Originally the Sterer Engineering Company CAGE Code 99643 was the original designer of the higher assembly (Nose Wheel Steering Manifold) for the B-2 A/C and as such, has been listed on past solicitations as a source for spare parts, however, they are not in business any longer and they do not possess any data rights so they cannot provide this part. The USAF possesses a minimal amount of intellectual property, which only allows repair and minor overhaul, not manufacture. This intellectual property is written into the USAF repair manuals. As of 18 Mar. 2019, the USAF does not possess the OEM data licensing rights and drawings required to support a competitive acquisition buy for the B-2 Hydraulic Servo Valve. An attempt to obtain top level preliminary drawings, unlimited license right, government purpose rights, form, fit and function rights, Operations and Maintenance and Installation data to allow full and open competition from Eaton Corporation was initiated on 18 March 19 by the 417 SCMS/GUMB Program Manager. Valerie Rigoni, Military Account Manager at Eaton Corporation responded on 18 March that they will not sell the data rights as requested. A request for data rights was not initiated to Thomas Instrument because they do not own the data and only have access to the data through a license agreement with Eaton.

C. The 417 SCMS believes that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition in fulfilling the AF requirements. The 417 SCMS/GUEA Engineer has determined that reverse engineering costs are estimated to exceed $ as documented in the Basis of Estimate (BOE). Accordingly, Eaton/Thomas Industries are the only sources capable of providing the items described in Section III.

D. Therefore, an Acquisition Method code (AMC)/Acquisition Method Suffix Code (AMSC) of 2/R (rights to use data for contracting of this item from other sources are legally unavailable and cannot be purchased) has been assigned and approved by the OO- ALC Breakout Program. The expiration date for this AMC/AMSC is March 2024.

VI. DESCRIPTION OR EFFORTS MADE TO INSURE 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 on FBO.gov on 19 March 2019 to provide industry an opportunity to inform the government of any interest in, or the capability to manufacture subject item. The RFI/SSS closed on 3 April 2019 and no response from industry was received by the contracting office.

B. This requirement was also synopsized in FedBizOpps, (FBO.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 GOVERNMENT 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 Officer will obtain certified cost and pricing data IAW FAR Subpart 15.403, when required. The final step is to include the method for determining that the price is fair and reasonable in a Price Negotiation Memorandum (PNM). This detailed documentation and justification of price reasonableness will be documented in the official PNM, to be prepared upon completion of negotiations, which will be placed in the official Procurement/Contract File.

VIII. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE RESULTS,

OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED:

A. The Market Research was accomplished in accordance with FAR Part 10 by the B-2 IPT team in March 2019 and consisted of reviewing electronic databases and manufacturers’ websites, reviewing Eaton Corporation’s proprietary data rights for this item and researching the procurement history of the B-2 Hydraulic Servo Valve.

B. The IPT contacted knowledgeable people within government. The IPT Team consisted of Mr. Jeff Watterson (Program Manager), Ms. Crystal Chase (Landing Gear Bomber Chief), Mr.

Robert Young (Engineer), Matt Zaversnik (Equipment Specialist) and Mr. Rex Stratton (Item Management Specialist). A review of commercial catalogs, company literature, proprietary data rights and individual experience was initiated by IPT members. Through years of professional experience of working on the B-2 program, it is determined with a high level of confidence that no additional sources of supply are available to meet the needs of the government.

C. March 2019, a search and review of the below internet sites was accomplished in which no viable, authorized manufacturing source, was identified.

ThomasNet (http://www.thomasnet.com) Google (http://www.google.com) ILSmart (http://www.ilsmart.com) WorldWide Warehouse Redistribution Services (WWRS) (https://afsac4.wpafb.af.mil/WWRS)

D. March 2019, a review of the procurement histories (AFMC Form 318) for the item NSNs identified Eaton, Cage Code 99643, as being the only manufacturer utilized for procurement of this item within the last 20 years.

E. March 2019, 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 Aerospace, Cage Code 99643. Additionally, the 761 AMC/AMSC Screening Analysis Worksheet indicated Eaton and Thomas Instrument as sources. It should be noted that

Thomas Instrument does not own the data, but is licensed by Eaton to use the data to build the components.

F. 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 or modified to meet the needs of the government.

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

ACQUISITION:

See section VI above.

XI. A STATEMENT OF THE ACTION, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING

SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES REQUESTED:

This action will be synopsized in FedBizOpps as a notice of contract action in accordance with 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 and will be given an opportunity to prove they have access to the necessary data and the ability to manufacture this part. The System Engineer will review requests from contractors interested in becoming a qualified source and provide any available information to conduct self-funded reverse engineering. New potential sources must be approved by the System Engineer prior to contract award.

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(a)(12)).

XIII. TECHNICAL REQUIREMENTS PERSONNEL 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)).