SPRHA123R7003_2Redacted.pdf

UTC Aerospace Systems Wheels and Brakes PBL Effort

Source Selection Information – See FAR 2.101 & 3.104

UTC Aerospace Systems Landing Systems 101 Waco Street Troy, OH 45373

It is anticipated that the increments will be accomplished as follows:

- Increment 1: F-16 wheels, brakes and consumables and A-10/E-3 wheels and consumables

- Increment 2: C-5 and C-130 wheels, brakes and consumables

- Increment 3: F-15 wheels, brakes and consumables

The Government anticipates purchasing sole source PBL sustainment for supplies under this contract from, but not limited to, UTC Landing Systems CAGE code 97153. Sole source UTC parts from any other associated facility will be candidates for possible inclusion in the contract.

The implementation and length of the increments and term of the contract is considered optimal for the following reasons:

Implementation of Increments:

- The F-16 wheels, brakes and consumables along with the A-10 and E-3 wheels and consumables are the only weapon systems with UTC supplies currently in use.

- The C-5, C-130 and F-15 weapon systems are currently in the process of retrofitting

UTC Wheels, Brakes and consumable items, and will be on-ramped during future increments.

Length of Contract:

- It affords the contractor sufficient time to recoup initial investments associated with facilities, parts, obsolescence issues and reliability management.

- It affords the contractor opportunities to enter into long term commitments with subcontractors (including organic depots) in order to provide sustained efficiencies/economies of scale to the military service user.

- It enables the contractor to implement logistical and technical changes required to realize reliability improvements.

- It allows for the elimination of duplicative contract and program administration costs for like and similar items.

- It allows the contractor the opportunity to leverage investment in support processes across similar items, thereby saving additional costs.

This support strategy unifies DoD Directive 5000.01 and Better Buying Power 2.0 initiatives with PBL sustainment for wheels, brakes, consumables and all associated components across multiple weapons systems and Service boundaries via “developing and implementing performance-based product support strategies that optimize total system availability while minimizing cost and logistics footprint.”

The estimated contract award date is 30 March 2018 and the estimated total value is total value is based on three (3) individual ten (10) year increments.

The contact will primarily be funded by the Defense Working Capital Fund. Provisions will be incorporated to include service provided funding to enable the Services to leverage this contract to increase savings for depot maintenance, platform and system modifications and service life extension programs. Again, it is anticipated that this program will be implemented in phases with individual contracts as requirements fully develop. Although all increments/contracts will operate via “D” type ordering arrangements, application of PBL sustainment (i.e. pricing arrangements, metrics, disincentives) may vary for each increment/contract. Further discussion on the incremental approach for this contract is discussed in Section III below.

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

This Class Justification and Approval covers the acquisition of sole sourced supplies provided by UTC via a PBL sustainment strategy.

The total acquisition will be comprised of the following three (3) increments awarded through separate contracts:

- Increment 1: F-16 wheels, brakes and consumables and A-10/E-3 wheels and consumables o Total Estimated Spend:

- Increment 2: C-5 and C-130 wheels, brakes and consumables o Total Estimated Spend:

- Increment 3: F-15 wheels, brakes and consumables o Total Estimated Spend:

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND

OPEN COMPETITION

Use of Other than Full and Open Competition is authorized by 10 U.S.C. 2304(c)(1) and FAR 6.302-1, as there is only one responsible source and no other supplies or services will satisfy agency requirements. The acquisition is restricted to the prime aircraft manufacturer and only source of supply known to have the capability of furnishing the required logistics support –

UTC.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE USE

OF THE AUTHORITY CITED ABOVE

The authority in paragraph IV above applies because UTC is the Original Equipment Manufacturer (OEM) with design control, authorization, and documentation to overhaul and manufacture the Wheel and Brake components. As per the 417 SCMS/GUEA Engineer Group, each of the weapon systems’ components are considered highly specialized because the geometry/materials and proprietary process requirements have been specifically designed by UTC to meet the Government’s requirements. Each of the weapon systems’ wheels, brakes and components are designed to allow heat to escape rapidly and in a specific manner to protect the integrity of surrounding parts (seals, o-rings etc.). If the wrong materials, data, overhaul processes, and geometry are used, the weapon system could become ineffective and/or unreliable. It should be noted that a fleet wide retrofit for each of the previously identified weapon systems’, to include the wheel, brake and components, was awarded to UTC through an Improved Item Replacement Programs (IIRP) or Wheels Brake System Improvement (WBSI) redesign effort. The redesign efforts were awarded through full and open competition to UTC. In order to have been selected as the redesign awardee or new OEM supplier, UTC had to pass a number of critical design reviews and performance specification/parameters --such as capability, reliability and safety improvements. All associated redesign engineering and data was independently developed by UTC through its own financial resources.

Therefore, all redesigned wheels, brakes and consumable items are owned by the OEM: UTC.

The parts provided by UTC include critical machining, bonding, and post treating processes which are proprietary and owned by the OEM. In order for the parts to perform properly, maintain required friction parameters, temperature limits, and to preserve wear life, these critical processes must be followed. The Government does not have the capability to perform these processes organically and it has been deemed economically unfeasible (through the IIRP & WBSI) to reverse engineer the wheels, brakes and components. Since the data required to properly support the wheels, brakes and components is owned by UTC, interested vendors would have to be willing to invest the time, funding, and manpower required to reverse engineer the entire A10, F-16, C-130, C-5 and E-3 weapon systems’ wheel and brake assembly at their own expense.

In order for another source to be qualified for this acquisition, the qualification process includes, but is not limited to, the following: 1) Lab analysis which requires a dynamometer capable of simulating max energy stop conditions, 2) Destructive testing to determine max capability, 3) Validation of proof drawings by the United States Air Force landing gear engineering office, through collaboration with manufacturers and 4) Qualification testing and on-aircraft testing which requires allocation of a dedicated test aircraft for the duration of the test. Ultimately, multiple iterations of each step could be required -- depending on each outcome. The Air Force cannot afford to wait for other offerors to qualify new weapon system components without the weapon system experiencing unacceptable delays, which include but are not limited to Global multi-service failures (affecting Special Forces, Air Force, Navy, Marines, Coast Guard, and Foreign Military allies).

As each weapon system plays a key role in the support of the Global War on Terrorism and the overall mission of the Department of Defense, asset availability is critical to interrupted logistical support. Therefore the Air Force is requesting that this requirement be awarded no later than

MAY 2018.

Accordingly, UTC is the only firm capable of providing the services and supplies described in Section III above without the government experiencing delays in fulfilling its requirements.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

This requirement will be synopsized in the Federal Business Opportunities (FedBizOpps) web page as required by FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Although the Government does not own data to support acquisition of these items from any other source, any source who responds to the Government as a result of the synopsis will be identified to the prime contractor as a potential for subcontracting possibilities. Future interest from additional sources is not anticipated at this time, but future increments will nevertheless be advertised via FedBizOpps as well to ensure that potential alternate sources are aware of the requirement and can identify interest in support for the applicable items.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this Class J&A will be fair and reasonable. UTC will be required to provide appropriate cost or pricing data in accordance with FAR 12/15.

For items deemed commercial: UTC will not be required to provide certified cost or pricing data for IAW FAR 12 procedures. To evaluate the proposed price of commercial items, price analysis will be performed in accordance with FAR Subpart 15.4. Should data other than certified cost or pricing data be utilized, the Government’s negotiation objective will be developed using local technical analysis, negotiated direct and indirect rates, and profit using the Weighted Guidelines Method. Additionally the Government will analyze sales data to non-governmental entities to ensure that the same or similar parts are sold in substantial quantities in the commercial market.

For items deemed non-commercial: A review of the proposed prices will be conducted whereas the Government will review UTC’s cost data including proposed labor hours, types and quantities of material, historical material prices and other direct costs. A Forward Pricing Rate Agreement (FPRA) or Forward Pricing Rate Recommendation (FPRR) for direct and indirect rates will be provided by Defense Contract Management Agency. For UTC facilities that do not have a FRPA or FRPP, direct and indirect rates will be negotiated and established in a rate agreement. Profit will be negotiated using the Weighted Guidelines Method.

The ten year term of each increment (5 year base plus one 5 year option), and inherent incentives associated with PBL contract arrangements, will motivate UTC to continually seek out opportunities for reliability improvements, obsolescence management, process improvements and more efficient operations over the contract period. This contract will be negotiated assuming decreased costs associated with improved reliability and availability through the potential ten year performance period of each increment. On the basis of the foregoing, the Contracting Officer hereby determines that the anticipated cost to the Government will be fair and reasonable.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR STATEMENT OF THE REASONS MARKET RESEARCH WAS

NOT CONDUCTED

A. A Sources Sought notice posted to FedBizOpps on 28 September 2015 and closed on 6 November 2015. Two responses were received; one from UTC and the other from Meggitt Aircraft Braking Systems (MABS). MABS expressed interest in the concept of the PBL for their sole-source parts, but could not respond specifically to the platforms involved in this acquisition as they are sole-source to UTC.

B. A review of the class population confirmed that the initial items to be solicited are sole source to UTC. Technical certifications will be required for every NSN involved in this program. A synopsis will be posted to FedBizOpps to advise industry of the procurement and solicit further inquiries from interested parties prior to issuance of the Request for Proposal. It is anticipated that no other source other than UTC, the only known source capable of providing these parts, will be interested in this procurement.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL

AND OPEN COMPETITION

As detailed above, UTC is the OEM for the weapon systems described herein. UTC’s unique engineering expertise and world wide support infrastructure make it the only company capable of providing support of the magnitude and complexity needed to support this PBL effort, further supporting why this requirement for a package of aircraft logistics support to improve the level of availability is not suitable for Full and Open Competition. Additionally, the Government owns only limited data that could be made available to any other source to perform all of the requirements anticipated by this comprehensive level of support.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN

THE ACQUISITION

As indicated in Section VI above, this requirement will be synopsized on the FedBizOpps website as required by FAR 5.201. No sources have expressed an interest in the acquisition to date. However, if sources other than UTC express interest, they will be directed to a copy of the solicitation.

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

Due to the complex nature of this work, there is no opportunity at this time to remove barriers to competition at the prime contractor level. However, the Government intends to include FAR 52.219-16, Liquidated Damages- Small Business Subcontracting Plan and FAR 52.219-10, Incentive Subcontracting Program in the contract and work in close coordination with both the DLA Small Business Office and UTC to select subcontractors on a competitive basis to the maximum practical extent consistent with the objectives and requirements of the contract and sound business case analyses. DLAD Clause 52.217-9002, Condition for Evaluation/Acceptance of Part Numbered Items, will be included in the solicitation which provides guidance for potential suppliers. Additionally, UTC may be required to obtain common consumables required for this effort from the Defense Logistics Agency and all applicable competitive processes will continue to be utilized for acquisition of common consumables. The Contracting Officer will continue to synopsize items that may be added to this contract in order to investigate the possibility of competition. The Competition Advocate will review the requirements to verify that all requirements are sole source. As stated above, UTC is the only known source with the capability of furnishing the required logistics support.

Future increments will nevertheless be advertised in the FedBizOpps website (www.fedbizopps.gov), prior to execution, in order to ensure that potential alternate sources are aware of the requirement and can identify interest in support for these items.

XII. CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on the Coordination and Approval Document evidences that he has determined this document to be both accurate and complete to the best of his knowledge and belief.