2022.02.07 Class JA LPL Redacted.pdf

JUSTIFICATION AND APPROVAL (J&A)

USTRANSCOM JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION

AIRLIFT CLASS J&A

21-66

1. CONTRACTING ACTIVITY.

United States Transportation Command (USTRANSCOM), Contract Airlift Division (TCAQ-C), 508 Scott Drive, Scott AFB, IL 62225-5357.

2. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED.

This Justification & Approval (J&A) is a class J&A authorizing Other Than Full and Open Competition for the acquisition of air transportation services, awarded and administered by USTRANSCOM. USTRANSCOM may award contracts under this J&A to Department of Defense (DoD) Commercial Airlift Review Board (CARB) approved air carrier(s) participating in the Civil Reserve Air Fleet (CRAF), as authorized by Title 10, Chapter 961, the Civil Reserve Air Fleet and/or the Defense Production Act, 50 United States Code (USC) § 4511, and not in a suspended non-use status, that submit acceptable proposals in response to solicitations for USTRANSCOM air transportation requirements. The contracts to be awarded under this authority will typically be multiple-award, Fixed-Price, Indefinite Delivery, Indefinite Quantity (IDIQ) contracts. This class J&A represents the fifth iteration and is a follow-on to the current J&A approved on 10 August 2017.

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

AGENCY’S NEEDS.

This class J&A is effective for USTRANSCOM airlift transportation requirements. This J&A will remain in effect as long as the fundamental principles stated in the following paragraphs do not change. Contracting Officers will review this J&A prior to each new solicitation to ensure the rationale for this J&A remains current. In the event of significant changes IAW FAR Part 6.303-1(a), the contracting officer will bring such changes to the attention of the J&A approval authority and recommend appropriate action (e.g., no change to J&A, revise J&A, new J&A, etc.). The unifying characteristic of each of the following programs is that CRAF participation will be required to provide transportation requirements. These programs are critical to the movement of cargo and passengers for all Federal Government activities.

The Global Heavyweight Services (GHS) program provides heavyweight delivery services for international and domestic shipments. The GHS program provides door-to-door transportation services for international shipments over 300 pounds. Additionally, the GHS program provides domestic transportation services within the 48 contiguous states (CONUS), plus the District of Columbia (D.C.), for shipments over 150 pounds, and for domestic shipments over 300 pounds for Alaska and Hawaii. The DoD, other Federal Government agencies, and contractors who have a cost-reimbursable contract line item number under another Government contract which includes transportation of freight (i.e., Cost-Reimbursable Contractors (CRC)) are authorized to place orders under this program. The estimated annual value of the GHS program is

The Next Generation Delivery Service (NGDS) program provides express small package delivery services for international shipments and express and ground small package delivery services for domestic shipments. The international segment services shipments up to and including 300 pounds, and the domestic segment services shipments up to and including 150 pounds. NGDS is a mandatory use contract for all Executive Branch agencies; CRCs are also eligible to use NGDS. The estimated annual value of the NGDS program is

The Domestic Charter Airlift program provides air charter transportation services for domestic passenger, cargo, and combined movements at both military and commercial airfields within the Continental United States (CONUS) and other locations (i.e., Mexico, Canada, or Puerto Rico).

This program also provides signature service from origin to destination for the shipment of registered mail, Air Mobility Command (AMC) pouches, high value cargo, and life or death urgency shipments, as well as the transportation of hazardous materials by commercial aircraft operating under Department of Transportation (DoT) Special Permits 7573 and 9232 or Title 49 Code of Federal Regulations (CFR) (e.g., 49 CFR Part 105, 106, 171-180, etc.) and Air Force Manual (AFMAN) 24-206, Preparing Hazardous Materials for Military Air Shipments. The estimated annual value of the Domestic Charter Airlift program is

The Combination Passenger and Cargo (Combi) Charter Airlift Services program provides air transportation services utilizing Title 14 CFR Part 121 aircraft configured to simultaneously transport both passengers and cargo. Contractor responsibilities include full planeload port to port airlift transportation services, commercial equivalent economy passenger services, 463L pallet cargo services, and mission coordination. The estimated annual value of the Combi program is .

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION.

Authority for this acquisition is 10 USC § 2304(c)(3) and 10 USC § 2304(c)(5).

5. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF

THE AUTHORITY CITED.

The use of 10 USC § 2304(c)(3) and 10 USC § 2304(c)(5), exception to full and open competition, are essential to maintain adequate airlift services in case of a national emergency requiring activation of the CRAF. 10 USC § 9516 requires DoD to use CRAF eligible carriers for interstate or foreign air transportation unless the exception at 9516(d) applies. CRAF is a voluntary program through which the nation’s air carriers provide aircraft allocated or identified for allocation to the DoD under section 101 of the Defense Production Act or aircraft that are made available (agreed to be made available) for use by the DoD under contracts issued IAW

Title 10, Chapter 961, to augment DoD airlift capability by the use of civil aircraft. As an incentive to participate in the CRAF program, air carriers that participate in the CRAF are entitled to participate in the award of DoD’s peacetime airlift requirements. The continued success of the CRAF program is essential to national security and the ability to maintain airlift services in case of a national emergency. CRAF participants provide civilian airlift assets needed to support military operations and mobilization requirements. This fleet of civilian aircraft is available to the military to meet peacetime requirements, surge needs, and mobilization requirements for major crises.

The CRAF program was formalized through a series of presidential executive orders and memoranda of understanding, the first of which was signed December 15, 1951. The National Airlift Policy, issued in June 1987 by President Reagan, reinforced the need for, and use of, the CRAF program. The national defense airlift objective is to ensure that military and civil airlift resources will be able to meet defense mobilization and deployment requirements in support of U.S. defense and foreign policies. The policy states that military and commercial airlift resources are equally important and interdependent in the fulfillment of this national objective.

The National Airlift Policy provides that, where appropriate, U.S. policies shall be designed to enhance the mobilization base of the U.S. commercial air carrier industry. During peacetime, DoD requirements for passenger and cargo airlift augmentation shall be satisfied by the procurement of airlift from commercial air carriers participating in the CRAF program, to the extent DoD determines such airlift is suitable and responsive to military requirements.

In addition, DoD airlift policy concerning use of CRAF carriers is included in DoD Instruction (DoDI) 4500.57, Transportation and Traffic Management. Paragraph 4.5.a of DoDI 4500.57 recognizes the partnership between the DoD and U.S. civil commercial air carriers is critical to mobilization, deployment, and sustainment of military forces, and that the alliance is embodied in the CRAF program. The policy specifies that IAW 49 USC § 40118, 49 USC § 41106, 10 USC § 9516, and regulatory guidance in DoDI 4500.53, DoD Components will ensure that all DoD acquisitions of commercial air transportation services require CRAF participation as a prerequisite for award to the maximum extent possible unless there is a documented negative critical mission impact. Carriers not eligible for CRAF may be used only when CRAF-participating carriers cannot meet mission requirements.

The Defense Federal Acquisition Regulation Supplement (DFARS) also supports the policy of acquiring air transportation requirements through CRAF carriers. DFARS 247.206 provides that evaluation factors concerning the offeror’s commitment of transportation assets to the CRAF program be considered when acquiring transportation-related services. DFARS 247.301-71 provides similar guidance for supply contracts that include a significant requirement for transportation of items outside of CONUS.

The use of the exception to competition is also consistent with the statutory preference for use of CRAF carriers under the Fly CRAF Statute, 49 USC § 41106. The Fly CRAF statute provides that transportation of passengers or property by CRAF-eligible aircraft in interstate air transportation1 or between two places outside the U.S. obtained by DoD through a contract for

1 IAW 49 USC § 40102 (25) "interstate air transportation" means the transportation of passengers or property by aircraft as a common carrier for compensation, or the transportation of mail by aircraft-airlift services shall be provided by an air carrier that has aircraft in CRAF whenever such transportation is reasonably available. DoD commercial airlift needs include both planeload and less than planeload (LPL) requirements. For LPL requirements, DoD cargo may be placed within the CRAF air carrier’s commercial transportation systems, where DoD property may be comingled with the carrier’s commercial cargo. The carrier’s commercial practices may include transport by the prime CRAF carrier, as well as its subcontractors, that may or may not participate in the CRAF program. Use of the industrial mobilization exception to limit USTRANSCOM airlift contracts to CRAF carriers effectively carries forth the National Airlift Policy and DoD’s airlift policies, and it is consistent with the Fly CRAF statute for the transport of passengers and cargo where transport by U.S. air carriers may otherwise not be reasonably available.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICAL.

Participation in USTRANSCOM air transportation acquisitions is open to all CRAF carriers, provided they are in good standing and maintain their Federal Aviation Administration (FAA) and CARB approvals. All existing CRAF carriers are solicited; notices are published on the System for Award Management (SAM) website for each solicitation. Interested parties may access the SAM website at www.sam.gov. All U.S. Flag carriers have the opportunity to join the CRAF program at any time. Therefore, the decision whether to join the CRAF and become eligible to compete for these opportunities is an internal business decision made by the carrier.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE.

Competition will be maintained among the CRAF participants. Historically, each program has garnered between two and twelve offers at time of proposal submission. This level of response to solicitations is expected to continue. Several CRAF carriers maintain a commercial network to support and regularly provide commercial passenger and cargo service and have published commercial rates. As competition is maintained amongst CRAF participants, and published commercial rates are available for comparison, the anticipated cost to the Government is expected to be fair and reasonable for each of the USTRANSCOM airlift programs.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS OR A STATEMENT OF THE REASONS MARKET RESERACH WAS NOT

CONDUCTED.

Formal market research is conducted for each program independently. The objective of market research for airlift services is to determine if services offered by the commercial market are

(A) between a place in-

(i) a State, territory, or possession of the United States and a place in the District of Columbia or another State, territory, or possession of the United States;

(ii) Hawaii and another place in Hawaii through the airspace over a place outside Hawaii;

(iii) the District of Columbia and another place in the District of Columbia; or

(iv) a territory or possession of the United States and another place in the same territory or possession; and

(B) when any part of the transportation is by aircraft.