AW_JA__16-00076_C-5_Jackscrews.pdf_-__-_02-16-2016_Redacted.pdf

Source Selection Information – See FAR 2.101 & 3.104

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated for the: Air Force Sustainment Center (AFSC), the 638th Supply Chain Management Group (SCMG), and the 409th Supply Chain Management Squadron (SCMS)/GUMAB. The contracting authority for this requirement is Defense Logistics Agency (DLA) Aviation at Warner Robins. The purchase request number supporting this contracting action is FD2060-16-00076.

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

Due to the circumstances described herein, the activity requests authority to acquire the spares listed in this document using Other Than Full and Open Competition as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

This action will result in the award of a new contract which will be a Firm-Fixed Price, IDIQ contract with a basic contract order plus four (4) one-year ordering periods. This limited competition requirement will be purchased from one of the following companies:

Linear Motion, LLC 628 North Hamilton Street Saginaw MI, 48602-4301 989-759-8372

CAGE CODE: 0A335

Large Business

MOOG, Inc.

20263 South Western Avenue Torrance

CA, 90501-1310

310-618-7200

CAGE CODE: 0ZWK8

Large Business

Thomas Instrument 3440 E.

First St, Brookshire TX 77423-0999

(281) 375-6300 X 119 CAGE,

5H860 Small Business

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

AGENCY’S NEEDS

The Air Force has a requirement for the acquisition of C-5 Electromagnetic Actuators (a.k.a C-5 Leading Edge Slat Actuator/Jackscrews). This requirement is for continued spares support for the C-5 aircraft. This contract will cover the current requirements generated in fiscal year (FY) 2016 and four (4) out years. The buy quantities and budgets are presented below and the items will be purchased with Consolidated Sustainment Activity Group – Supply Division (CSAG-SD) funds. Under the contemplated buy contract, qualified sources will provide the following spares which are required to support C-5 aircraft. The items listed below are C-5 Leading Edge Slat Actuator Shop Replaceable Units (SRU). The SRUs listed below are critical internal mechanisms of the C-5 Leading Edge Slat Actuators. They allow the Leading Edge Slat Actuators to convert electrical energy into controlled mechanical force in the form of linear (straight) movement to drive the C-5 Leading Edge Slat to either the extended or to retracted position.

NSN, Company Part Number and Noun chart:

The total estimated cost for this acquisition is as shown below and is based on historical data from D200 Buy Computation data with a 1.5 percent inflation factor added to each ordering period. The unit price is the forecast unit price from D200A, Secondary Items Requirement System, which is forecasted using the latest actual procurement unit price from each of the most recent procurement contracts for each item. The items will be purchased with Consolidated Sustainment Activity Group – Supply Division (CSAG-SD) funds. This purchase request is to establish the award of a firm-fixed price, IDIQ type contract with a period of performance for five years with five (5) one-year ordering periods. All of the part numbers and NSNs from the manufacturers identified above will satisfy the government’s requirement. The specific part numbers to be cited in the award is dependent upon which offeror submits the most acceptable price. Each manufacturer has a unique part number for the NSNs identified herein.

Upon award of the contract, the NSN will remain the same but the part number will vary according to the awarded manufacturer.

NSN: 1680-01-263-1554UC

Contract Year Forecast

NSN: 1680-01-263-8412UC

Contract Year Forecast Unit Price Min

Quantity Max

Quantity Total Cost Ordering Period 1

NSN: 1680-01-263-1555UC

Min

Quantity Max

NSN: 1680-01-263-1559UC

NSN: 1680-01-263-1553UC

Min

Quantity Max

Quantity Total Cost First Article Required

NSN: 1680-01-263-1558UC

Min

Quantity Max

NSN: 1680-01-263-1549UC

Min

Quantity Max

NSN: 1680-01-263-1560 Added

Min

Quantity Max

NSN: 1680-01-263-1551

Min

Quantity Max

NSN: 1680-01-263-1552

NSN: 1680-01-263-1556

Min

Quantity Max

NSN: 1680-01-263-8414

Min

Quantity Max

NSN: 1680-01-263-1557

Min

Quantity Max

Ordering Period 5

NSN: 1680-01-275-6308

Estimated Contract Total

The NSNs have been screened and assigned an AMC/AMSC of 2/P – Competitive from actual manufacturer/ Government does not own the rights to the data. Data review discloses that required data or data rights are not in Government possession and cannot be economically obtained nor are any of the qualified sources with data rights willing to sell their data.

C-5 Engineering is requiring that 2 EA First Articles be submitted for one NSN in this acquisition for verification of form, fit and function. The First Articles offered must be manufactured at the facilities in which that item is to be produced under the contract, or if the First Article is a component not manufactured by the contractor, such component must be manufactured at the facilities in which the component is to be produced for the contract. A certification to this effect must accompany each First Article which is offered. IAW AFMC 260 the approved First Articles will be considered as part of the production units and forwarded to supply. The First Article tests will be Form, Fit, and Function. If the assemblies fit into the complete slat actuator and meet test requirements per the Air Force overhaul Technical Order, then the First Article is considered successful and Engineering will accept production of all NSNs. Anticipated delivery for this effort is 150 days for First Article requirements. Requested delivery for the remaining production units thereafter is 180 days after approval of First Articles.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 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 THE AUTHORITY

CITED ABOVE

The agency’s minimum needs can only be satisfied by the unique supplies or services available from the above cited sources. These limited numbers of suppliers are the only responsible sources with the necessary manufacturing data to produce the items of supply identified above.

The government does not have in its possession sufficient data to purchase these parts from sources other than current qualified sources. These items were screened in accordance with the Department of Defense Spare Parts Breakout Program and were assigned an Acquisition Method Coded (AMC) of “2”, Competitive (First Time). Each item was assigned an Acquisition Method Suffix Code (AMSC) of “P.” The Rights to use the data needed to purchase this part from additional sources are not owned by the government and cannot be purchased, developed, or otherwise obtained. This code is used in situations where the government has the data but does not own the rights to use the data for procurement purposes. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid. The Government Program Manager inquired from each company; Linear Motion, LLC, Moog, Inc. and Thomas Instrument on August 25, 2015 via email if they would be interested in selling or giving the data to each spare part to the government. All companies refused to either sell or give the data to the government.

Past acquisition strategies for these parts include the initial purchase from the OEM, Danaher Motion (Cage Code: 594K2) during aircraft production with subsequent sole source purchases from JDC Industries Inc. (Cage Code: 3CF92), a small business and sole distributor for Linear Motion, LLC (Cage Code: 0A355). Other documented purchases are from Dover Engineering Systems, Inc. (now known as Dover Motion), which is classified as a large business and is owned by Danaher Motion. Thomson Aerospace and Defense Ball Screw Company (Linear Motion LLC), was acquired by Danaher Motion in early 2000, completed by 2003. Danaher Motion is organized under five key brand names: Kollmorgen, Thomson, MEI, Dover Motion and Portescap. In 2011, Linear Motion, LLC was acquired from Danaher by Meggitt PLC, and operates under the business division name; Thomson Aerospace & Defense (Cage Code:

0A355).

JDC Industries, Inc, (Cage Code: 3CF92) is the most recent company to sell these actuators to the Government, however, they were a distributor for Linear Motion, LLC and not an actual manufacturer. JDC does not own any data rights to these actuators or have the capability to manufacture these items. JDC and Linear Motions distributor relationship was severed in 2009 and the two companies are no longer associated, therefore, JDC is no longer a source.

Both Moog, Inc. and Thomas Instrument have reverse engineered the slat actuators at their own expense to become qualified Government Sources. To date, neither of these two companies has been on contract to manufacture these jackscrews for spares procurement, however, Moog, Inc.

is the manufacturer of slat actuators assemblies for the C-5M program with Lockheed Martin.

Their reverse engineering effort for these parts was completed to increase the efficiency of their supply chain and to ensure they could meet their delivery schedule for the Slat Actuator Assemblies for the C-5M program. Thomas reverse engineered the two parts that make up the jackscrew assembly at the request of DLA, who manages the two individual parts. In doing so they were also able to manufacture the jackscrew assembly, which is managed by the Air Force.

Thomas produced articles for their Source Approval Request packages which were submitted through DLA for Engineering review and approval in 2011. These were approved with the stipulation that First Articles would be required for validation of Form, Fit, and Function and verification that the items meet test requirements per the Air Force overhaul Technical Order, if and when Thomas Instrument is awarded their first contract for these jackscrews. Thomas Instrument has also produced various parts for the slat actuator assemblies to the companies that have manufactured these items for the Government in the past as well as producing various parts for the repair of the assemblies.

A Government-funded reverse engineering effort would be costly and would delay satisfying the current need. There are no current performance or obsolescence issues associated with this item.

While the existence of three qualified sources does not constitute full and open competition, it should provide for adequate price competition. Funds invested in a Gov’t-sponsored reverse engineering effort would not likely be recovered by the influence of additional competitors for the future production requirements (see FAR 6.301(d) and 6.302-1(a)(2)(ii)(A)) .

In the current budget-constrained environment, both the warfighter and the taxpayer would be better served by investing the limited reverse engineering funds available in other opportunities that are more likely to produce a positive return on investment or overcome known technical issues related to obsolescence, reliability, or safety.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

Sources Sought Synopsis’s: FD2060-16-00076, FD2060-16-00067, and FD2060-16-00075, were posted on FedBizOps on 8 September 2015 and closed on 16 September 2015. The intent of the synopsis was for informational purposes as part of market research to try to identify potential sources that may possess the expertise, capabilities, and experience to meet the requirements for qualification and production of the C-5 Jackscrew Assemblies as sited in this report. The synopsis included the Government’s intent to purchase this item on a sole source basis and a description of the item. The only response was from Thomson Aerospace & Defense, which is also known as Linear Motion LLC, a division of Meggitt PLC, expressing their intent to submit a proposal to this solicitation.

This requirement will be synopsized on 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 actuators from any other source, any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as potential for subcontracting possibilities.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The overall cost of this acquisition will be fair and reasonable to the Government. The contract price will be negotiated in accordance with the procedures in FAR Part 15 ensuring the ultimate cost to the Government is fair and reasonable.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED

Market research was conducted by the 409 SCMS/ GUMA and AFLCMC/WLSEAB IPT as required by FAR 10.001 and 10.002. These items are military-unique and were designed specifically for the C-5 Heavy Cargo Aircraft. Commercial equivalents do not exist. The Government does not own the rights to the technical data required for competition of this spares buy. The high cost, lengthy schedule, and risk of failure associated with reverse engineering the subject NSNs is too great to justify this type of effort in order to generate a competitive acquisition strategy. Based on the results of the market research, there are no other sources available to manufacture subject NSNs. Linear Motion, LLC, Moog Inc., and Thomas Instrument are the only known sources with the manufacturing data, expertise, experience, facilities, and equipment necessary to manufacture these spares.

The IPT team was comprised of the Engineer, Program Manager, Equipment Specialist, Item Manager, and the Primary Contracting Officer.

Results of the Market Research are as follows:

(1) These items were designed specifically for the C-5 Aircraft when the C-5 was built in the 1960s. Items were designed and manufactured per Lockheed Martin envelope drawings and specifications. The vendor was qualified as the sole source manufacturer at that time. These items were designed, qualified and manufactured exclusively for a military application, the C-5 heavy cargo transport aircraft.

These parts are not interchangeable with any parts found on any other military or commercial aircraft.

(2) The entire slat system was designed, qualified and manufactured exclusively for a military application, the C-5 heavy cargo transport aircraft. The jack screws for this procurement are sized specifically for C-5 Slat Actuators and to the strength specifications needed to withstand the type of travel and loads imparted specifically by the C-5 Aircraft. These Slat Actuator Jackscrews differ from those of contemporary aircraft in both design and construction. The C-5 uses a system of torque tubes to turn all the slat actuators at the same time, using a single motor, while some aircraft use a motor at each slat location and some use pistons instead of ball screws or jack screws. Due to the size requirement, there are 14 different slat actuators; one for each slat location, 7 per wing. The nearest heavy transport aircraft, the Boeing 747, utilizes Krueger Flaps for its leading edge high-lift devices rather than slats, requiring a different actuator design. Other aircraft use a slat design, but the difference in size and assembly make the C-5 Slat Actuator Jackscrew unique. Therefore, the C-5 design cannot be considered "Commercial of a Type".

(3) There are no new technologies, applicable to these items that provide affordable best value alternatives to the current design.

(4) The current item designs have successfully operated on the aircraft since deployment, and there is no known obsolescence or diminishing manufacturing issues to be resolved.

(5) A vendor survey was performed utilizing the Small Business Administration database, http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm only one source was found to be possibly capable, however there is not any data to give them in order for them to attempt to produce and qualify to manufacture these items. A reverse engineering effort would be necessary in order for any company to attempt to qualify to manufacture these items.

(6) The Government Program Manager contacted the currently qualified sources on August 25, 2015 to inquire if they would be willing to sell or give the data rights to the Government. All three sources responded that they are not interested in selling or giving their data to the Government.

(7) Sources Sought Synopsis’s were posted on 8 September 2015. The only response was from Thomson Aerospace & Defense, also known as Linear Motion LLC, a division of Meggitt PLC, expressing their intent to submit a proposal to this solicitation. They are already a qualified source for these actuators.

(8) Linear Motion LLC, Moog, Inc. and Thomas Instrument are the only known sources that can provide items and/or services described herein.

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

OPEN COMPETITION

The current item designs have successfully operated on the aircraft since deployment, and there is no known obsolescence or diminishing manufacturing issues to be resolved. Additionally, there are no new technologies, applicable to these items that provide affordable best value alternatives to the current design. Based on non-availability of data, and engineering knowledge of the item and aerospace industry, the only viable source for manufacture of these parts are the three listed in the above document.

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

ACQUISITION

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

Linear Motion, Moog, and Thomas Instrument are the only known sources that can provide items and/or services described herein.

As there are currently three approved sources for these items, adequate price competition is reasonably expected, therefore no further actions will be taken.

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.

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.