Single Source Justification (Simplified Acquisition)

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November 2018 FOR OFFICIAL USE ONLY Page 1 of 2

Section A: General Contract Information

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Contracting Activity: FA8539/PZABA

Project/Program Name: APX-103 Stepping Motor Buy

Purchase Request / Local ID Number: FD2060-26-00491

Estimated Contract Cost (including Options): $28,500.00

Section B: Description of the Supplies/Services Required

The requirement is for the procurement of five (5) new manufactured APX-103 Stepping Motors, identified by NSN 6105-01-495-4060 CX and Part Number 667-60004. This action is necessary to rectify Northrop Grumman's error on Delivery Order FA8539-24-F-0002, where they substituted new manufactures for repairs of assets.

NSN: 6105-01-495-4060

PN: 667-60004

Qty: Buy of 5ea Period of Performance: 1 year In December 2023, the 407th Supply Chain Management Squadron (SCMS) awarded Delivery Order FA8539-24-F-0002 against Basic Contract FA8539-23-D-0007 to Northrop Grumman. The order was for the repair of five APX-103 Stepping Motors.

On March 18, 2025, during a product evaluation at the NGC facility in Logan (Cage Code:

8KM63), the Defense Contract Management Agency (DCMA) Quality Assurance team was informed by NGC that they had unilaterally decided to provide new manufactured units instead of repairing the government-owned assets. NGC stated that troubleshooting the failures was cumbersome and manufacturing new units was a more straightforward process. This decision was made without the concurrence of the U.S. Air Force (USAF), and no disposition was requested for the government property sent for repair.

The five newly manufactured assets were subsequently paid for using "repair" funds on April 22, 2024. All five of these assets have since been installed into the next higher assembly (NHA) to fill backorders, and one has been inducted for use by the Robins AFB Electronics Maintenance Group (EMXG).

This sequence of events has resulted in a violation of the Anti-Deficiency Act. The Act prohibits federal agencies from obligating or spending funds in a manner not authorized by appropriations.

In this case, "repair" dollars were used to fund the acquisition of new "buy" assets, which is an improper use of appropriated funds. To rectify this and ensure the U.S. Government is in compliance with federal law, the government must now fund the acquisition of these five assets with the correct "buy" dollars.

The Independent Government Estimate for this procurement is $28,500.00, or $5,700.00 per unit. This estimate is based on the amount that Northrop Grumman incorrectly charged in "repair" dollars for the new units under the original Delivery Order FA8539-24-F-0002.

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Section C: Justification for Soliciting from a Single Source or Brand Name

Market research indicates that this requirement must be awarded on a sole-source basis to Northrop Grumman Corporation (CAGE: 8KM63).

The justification for this sole-source determination is based on the following:

· Unique Circumstances: This procurement is not a standard acquisition but a corrective action. Its sole purpose is to rectify the specific error made by Northrop Grumman when they supplied new manufactured assets instead of performing the contracted repairs.

· Correction of Fiscal Irregularity: Awarding a contract to any other vendor would not resolve the underlying issue. The government has already received the five new units from NGC and they have been integrated into the supply chain. The critical issue is the need to pay NGC with the appropriate "buy" funds to correct the Anti-Deficiency Act violation.

Only a direct contract with NGC can achieve this.

Vendor Accountability and Cooperation: Northrop Grumman has acknowledged its error in providing new manufactures in lieu of repairs. The company has agreed not to repeat this action on future delivery orders and is cooperating with the government to resolve this issue. Awarding this contract to NGC is the final step in closing this issue administratively and fiscally.

Based on the findings of this market research, it is recommended that a sole-source contract be awarded to Northrop Grumman Corporation. This is the only viable course of action to procure the five APX-103 Stepping Motors, rectify the error made on Delivery Order FA8539-24-F-0002, and ensure the U.S. Government's full compliance with the Anti-Deficiency Act.

Section D: Efforts to Obtain Competition

Due to the unique circumstances of this effort to obtain ADA compliance, there is no possibility of competition, as only award to NGC will enable ADA compliance.

Section E: Steps to Preclude Future Single Source or Brand Name Awards

This is the only buy contract of its type, due to the ADA concern on repair Delivery Order FA853924F0002. We do not anticipate any future awards of this type.

Section F: Contracting Officer's Determination

I have determined, in accordance with FAR 13.106-1(b)(1), that the circumstances of this contract action deem only a single source is reasonably available.

Date

19-Mar-2026

Typed Name and Rank/Grade of Contracting Officer

Reid Sawyer, NH-03

Signature of Contracting Officer

November 2018 Page of Section A: General Contract Information Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan?

Section B: Description of the Supplies/Services Required Section C: Justification for Soliciting from a Single Source or Brand Name Section D: Efforts to Obtain Competition Section E: Steps to Preclude Future Single Source or Brand Name Awards Section F: Contracting Officer's Determination I have determined, in accordance with FAR 13.106-1(b)(1), that the circumstances of this contract action deem only a single source is reasonably available.

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