Tab 6 Justification and Approval (Redacted).pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

United States Air Force

AFSC/PZA

3001 Staff Drive Tinker Air Force Base, OK 73145

Purchase Request (PR) # FD2030-20-00710

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

This individual Justification and Approval (J&A) authorizes the use of other than full and open competition procedures to obtain a new, firm fixed price (FFP), sole source, non-commercial, Indefinite Delivery, Indefinite Quantity (IDIQ) type contract. The contemplated contract is for remanufacture/re-core of heat exchangers on the B-1B aircraft. The Original Equipment Manufacturer (OEM) is Triumph Thermal Systems, Incorporated. Commercial and Entity (CAGE) code 78943. A new, 5-year (IDIQ) contract with a one 5-year period of performance is considered to be appropriate for this acquisition. The acquisition is not a Bridge Action as defined in AF Bridge Action Reduction Plan. The estimated total value of this contract is $3,334,734.20 with an estimated award date of November 2021.

Previous Contract Number: FA8118-17-D-0004 Contractor Name: Triumph Thermal Systems, Incorporated., CAGE 78943 Date of Award: 18 November 2016 Completion Date: 17 November 2021 Basis of Award: Sole-Source

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

AGENCY’S NEEDS

Under the contemplated contract, Triumph Thermal Systems, Incorporated will remanufacture/re-core the heat exchangers used on the B-1B aircraft. The Contractor will provide the disassembly, cleaning, inspection, maintenance, re-assembly, testing and finishing actions required to return the end item to a like new condition. This effort is a supply. Dollar value reflect the anticipated contract value.

Contract Summary

Period of Performance Estimated Dollars November 2021 - November 2026

PR Line Item 0001

Remanufacture/re-core of NSN: 1660-01-180-5764RK

Part Number: UA537569-1 Noun: Heat Exchanger, Air Application: B-1B Aircraft Item Function: The inner cooler is a plate and fin type exchanger which transfers heat from the coolant to the jet fuel by convection.

Item Material: Aluminum and various materials

Type of Appropriation: 97X4930

Total Estimated Dollars for PR Line Item 0001:

Period of Performance MIN Qty

BEQ MAX

Qty

Unit Price Est. Dollars

November 2021 - November 2026 2 12 65

PR Line Item 0002 Remanufacture/re-core of NSN: 1660-01-194-7780RK

PN: UA537570-1

Noun: Heat Exchanger, Air

Application: B-1B Aircraft Item Function: The heat exchanger cools fuel by transferring heat from the jet fuel to the external air by convection.

Item Material: Steel, aluminum and various materials

Total Estimated Dollars for PR Line Item 0002:

Period of Performance MIN Qty

BEQ MAX

Qty

Unit Price Est. Dollars

November 2021 - November 2026 2 12 65

PR Line Item 0003

Description: Over and Above Effort

Total estimated dollars for PR Line Item 0003:

Period of Performance Qty Unit Price Est. Dollars

November 2021 - November 2026 1LT

PR Line Item 0004 Description: Data Not Separately Priced (NSP), IAW CAV AF SOR and CDRLs Type of Appropriations: 97X4930

Total estimated dollars for PR Line Item 0004: NSP

Period of Performance Qty Unit Price Est. Dollars November 2021 - November 2026 1LT NSP NSP

Due to the circumstances described below in Section V, IX and XI, there are no additional actions that could be taken to develop competition. Therefore, it is considered appropriate to seek approval for more than one fiscal year’s requirements. If other qualified or approved sources become known during the life of tis contract, full and open competition will be considered and utilized to the maximum extent practicable.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 U.S.C. 2304 (c)(1), as implemented by FAR 6.302-1(a)(2)(ii)

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE

USE OF THE AUTHORITY CITED ABOVE (APPLICABILITY OF

AUTHORITY)

This anticipated acquisition is for remanufacture/re-core of NSN 1660-01-180- 5764RK and 1660-01-194-7780RK. The intended action is a follow-on contract with the OEM, Triumph Thermal Systems, Incorporated. The B-1 heat exchangers are fin and plate type heat exchanges used to cool fuel by transferring heat from the jet fuel to the external air by convection. Remanufacture/re-core of the B-1 heat exchanger requires the complete replacement of the heat exchanger core resulting in a “like new” product. Remanufacture/re-core of the heat exchangers is a highly specialized supply due to the need for process control with respect to the quality of equipment and tooling, shop practices and quality assurance surveillance necessary to satisfy the Air Force’s minimum need. These items are critical application items, as defined in the Aviation Critical Safety Item Management Handbook. As such, they are highly specialized components on a major weapon systems unique to the United States Air Force. Triumph Thermal Systems, Incorporated is the OEM and is identified as the only source capable of providing necessary remanufacture/re-core procedures and the core design documentation necessary to perform the remanufacture/recore. Only those assets determined to be beyond economical repair by OC-ALC during organic repair will be sent for re-core. These are assets that normally would be condemned and replaced with new spares. Therefore, this acquisition will be a follow-on contract for the continued production of a major system.

Triumph Thermal Systems, Incorporated is the only known source that has necessary detailed remanufacture/re-core and process data needed to remanufacture the B-1 heat exchangers. The Government has limited form, fit and function (FFF) data, but this data is not sufficient to remanufacture/re-core the items described in Section III. The Government cannot provide any data defining the remanufacture/recore process for this effort. The manufacturing drawings, technical data, test equipment, and tooling required to perform the remanufacture/re-core of the heat exchangers from alternative sources is not physically available to provide to prospective vendors. Efforts by the Government to purchase technical data from Triumph Thermal Systems, Incorporated have been unsuccessful. A request for information was made to Triumph Thermal Systems, Incorporated on 11 September 2015 and 21 February 2020 regarding the potential release and/or sale of the associated remanufacture/re-core data. Triumph Thermal Systems, Incorporated responded on 11 September 2015 and stated the data for performing re-core of the subject heat exchangers is Triumph Thermal systems proprietary information. Triumph Thermal Systems, Incorporated declined to release this proprietary data at this time. The latest request for data, received no response.

The Government has established Qualification Requirements (QR) for the heat exchanges. Potential sources will be required to independently demonstrate capability via the SAR process. Prospective sources must meet these requirements prior to being identified as an approved source. These items require engineering source approval in order to maintain the associated quality and technical baselines. The 423rd Supply Chain Management Squadron has determined as of that Triumph Thermal Systems, Incorporated is currently the only source that has met the defined QR at this time and thus has been listed as the only approved source.

The 423rd SCMS believes that award to any other source would result in unacceptable delays in fulfilling the Air Force’s requirement. Development of additional sources to remanufacture/re-core of these items is not feasible within allowable timeframes. Any interested sources would be required to submit a Source Approval Request (SAR) for review by the cognizant engineering authority. The Government does not have technical data to provide to interested contractors. Interested vendors would need to submit a SAR package demonstrating the ability to access the necessary data, independently develop remanufacture procedures, or provide other proof of capability to satisfy this requirement.

As of 03 June 2020 there have been no SAR packages submitted. Once a potential source has been identified and has submitted a SAR package, it can take in excess of one year to qualify the potential source. During this time, the Government must review and approve the SAR package, complete any potential site visits, and validate/verify any developed technical requirements. Delays in procurement will disrupt the availability of parts to the B-1 aircraft thereby leaving the Air Force unable to meet critical mission requirements and hampering the Air Force.

Accordingly, Triumph Thermal Systems, Incorporated is the only firm capable of providing the supply described in Section III without U.S. Air Force experiencing unacceptable delays in fulfilling its requirement.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

IAW DFARS PGI 206.302-1(d) a Sources Sought Synopsis was posted to https://beta.SAM.gov website on 14 January 2020. This requirement was synopsized through Sources Sought Synopsis (SSS) and posted on the https://beta.SAM.gov website with a response date of 14 February 2020, under FD2030-20-00710. SSS included the noun, NSN, P/N and a brief description of supply. As of 03 June 2020, no vendor has expressed interest and no SAR packages were submitted in response to the SSS. Government defined pre-award qualification requirements of potential sources have been identified and documented on the QR. All SAR package submissions submitted prior to contract award will be evaluated in a timely manner to ensure the highest level of competition possible. The QR’s were synopsized on https://beta.SAM.gov 14 January 2020 and can be found by searching for the keyword “RQR-848”.

This requirement will be synopsized in https://beta.SAM.gov as a notice of proposed contract action IAW FAR 5.201. The estimated date of publication is August 2020.

Consideration shall be given to potential sources, prior to award.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE

The Contracting Officer will ensure that the items described herein are negotiated at a fair and reasonable price to the Government. IAW FAR as supplemented, the contractor will be required to submit Certified Cost or Pricing Data and/or Other Than Certified Cost or Pricing Data. A detailed cost analysis and price analysis will be performed. The Contracting Office will request a technical evaluation from the Defense Contract Management Agency (DCMA) to aid in the evaluation of the contractor’s proposal. The Contracting Officer will seek audit assistance from the Defense Contract Audit Agency (DCAA) if necessary.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH

WAS NOT CONDUCTED

IAW FAR 10.002(b)(2), Market Research was conducted on the B-1B heat exchanger, by a multi-functional team consisting of the Item Manager, Equipment Specialist, Logistics Officer, and Engineer. This research was conducted using a standard contract repair screening process. A SSS was posted to https://beta.SAM.gov website. This posting was created 14 January 2020 and closed on 14 February 2020. Additionally, market research techniques, including Internet websites and databases (including Google secure components, the Thomas Register, Haystack, and similar item manufacturer’s websites) were queried on 14 January 2020.

Searches included part number, nomenclature, and like items. Other sources manufacture similar items but none have sought qualification against the requirements described in Section IV. Further, these requirements can neither be modified nor be satisfied with commercial or modified commercial items.

Based on this Market Research, Triumph Thermal Systems, Incorporated was found to be the only source able to fulfill the requirement described in Section III.

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

Triumph Thermal Systems, Inc. CAGE: 78943 200 Railroad St.

Forest, OH 45843-9193

Email: Triumphgroup.com Phone: 419-273-2511

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

As a result of continued refusal by the Sole Source contractor to provide or license data as well as the unacceptable delay of developing additional sources per Sections V and IX, there are no known additional actions which can be taken to remove barriers to competition and therefore, specified actions and milestones cannot be established.

Per PGI 206.304(a)(S-70) - As indicated by signature on the Coordination and Approval Document, the previous J&A has been reviewed and the Approval Authority determines that all stated actions to remove barriers to competition have been accomplished.

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

By their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified as accurate and complete all supporting data, which is their responsibility, contained herein IAW FAR 6.303-2(c).