A02 EFOJ W15P7T-17-D-0124 W15P7T21F0027 FINAL redacted_Redacted.pdf

Control No: JA-22-B-350 Contractor: ACET

Program: PMA-299 MH-60

Justification for an Exception to Fair Opportunity under FAR 16.505(b)(2)

1. Contracting Activity: U.S. Army Contracting Command-Aberdeen Proving Ground

(ACC-APG) Division B, CCAP-CCB 6565 Surveillance Loop, Bldg. 6001

Aberdeen Proving Ground, MD 21005-1846

2. Description of Action: The proposed action is for a modification to Cost-Plus-Fixed- Fee (CPFF) Term, Cost-Plus-Fixed-Fee Completion, and Cost-No-Fee Task Order (TO) W15P7T-17-D-0124/W15P7T21F0027 with Adams Communication & Engineering Technology, Inc. (ACET), 10740 Parkridge Blvd, Reston VA 20191-4424. This request is to increase the CPFF Completion Labor, Cost-No-Fee Material, and Cost-No-Fee Travel ceilings for Option Periods 1 and 2. The estimated value of the increase is $3,486,805.21 and will subsequently increase the overall TO ceiling value from $33,865,895.61 to $37,352,700.82. The Government expects to modify the TO on or before 30 July 2022.

Fiscal Year (FY) 2022 and 2023 Procurement funds will be used to fund this increase.

An acquisition plan is not required for this action. The basic RS3 acquisition plan fulfills the requirement for all RS3 TOs.

3. Description of Supplies/Services: Existing Naval MH-60R and MH-60S aircraft are undergoing aircraft modifications to meet the warfighters’ needs in the ever-changing environment in which they fly to protect service men and women. Newly updated and technologically advanced systems that did not exist when the aircraft were fielded are being added through retrofit kit installations. The below chart outlines the proposed, necessary increases to Option Periods 1 and 2 because of new and emergent requirements. The subsequent paragraphs outline the specific changes required by aircraft, followed by a summary chart of the proposed quantity changes.

Period of Performance Current Value Increase New Value Transition-In Period

(17 Dec 2020-16 Jan 2021)

Base Period (17 Jan 2021 – 16 Dec 2021)

Option Period 1 (17 Dec 2021 – 16 Dec 2022)

Option Period 2 (17 Dec 2022 – 16 Dec 2023)

Total $33,865,895.61 $3,486,805.21 $37,352,700.82 adequate personnel to accommodate these additional requirements within the current aircraft availability schedule. They also have the ability to complete multiple aircraft installations/modifications simultaneously. Adding another contractor under a separate TO would cause enormous aircraft availability difficulties on an already restricted and sensitive timeline. The duplicative GFP costs (see below) identified and additional overhead costs of having two (2) contractors perform the same type of work simultaneously is not an economical or efficient way of doing business for the Government. Additionally, aircraft modification schedules would be significantly delayed due to the estimated lead-time required to obtain additional specialized tooling and equipment and issue as GFP, which can range anywhere from six (6) to twelve (12) months depending on the item.

Alternative(s): Compete and award a separate 18-month TO for proposed Naval aircraft modifications.

It would not be an economical or efficient use of Government personnel, resources, or funds to award a separate 18-month TO for these Naval aircraft modifications when an existing TO is already in place and satisfactorily providing the required services. Awarding a separate TO under RS3 would take approximately 60 calendar days to develop a complete and accurate Acquisition Requirements Package (ARP), and at least an additional 115 calendar days to compete and award the TO, based on pre-established RS3 procurement lead times. This would place the schedule for the required lead-time to build and install the kits on U.S. Navy aircraft at severe risk and further cause the Government to incur duplicative costs. Duplicative costs would include all the various tools required for kit builds, as well as the equipment used to build each kit that the Government already has purchased and provided as GFP to ACET, which totals in specialized tooling and equipment. The average ACC-APG pre-award cost for an RS3 TO is . It would cost Navy PMA-299 an additional to award a separate TO for a total cost to the Government of . Furthermore, the current TO will expire following the completion of Option Period 2 on 16 December 2023 and the re-compete for these services are already registered with the RS3 Program Office under RS3-22-0033. This added cost would be in addition to the cost spent working on the RS3-22-0033 competition. The same individuals working the RS3-22-0033 competition would be responsible for the ARP development and technical evaluation of the hypothetical 18 month TO, which could create an administrative bottleneck due to lack of personnel resources and cause further schedule delays to both awards.

In summary, a failure to complete these aircraft modifications would result in lack of emergent, vital safety modifications and installations for the Naval fleet. It could lead to aircraft failure, vulnerability to adversary attack, and increase the risk of aircrew and aircraft loss.

6. Efforts to Obtain Competition: The Government will award this modification on a sole source basis. The Government will use this authority in the interest of economy and efficiency. The results and details are contained in Section 8 Market Research below.

Because this is a sole source action, effective competition is not applicable.

a. Effective Competition: In accordance with the exception found at FAR 5.202(a)(6), notice of this proposed action is not necessary as the proposed contract action is an order placed under subpart 16.5. In accordance with FAR 16.505(b)(2)(ii)(D), within 14 days after the modification is placed, the Contracting Officer will publish a notice in accordance with FAR 5.301 and make this justification publicly available.

b. Subcontracting Competition: ACET is a small business and a subcontracting plan is not required. However, subcontracting competition will be achieved by the contractor seeking to maximize subcontracting opportunities, if applicable, with a focus on subcontracting to small and small disadvantaged businesses.

7. Actions to Increase Competition: While this requested action is a sole source action to ACET, the Government’s plan is to obtain competition by issuing a competitive RFP under RS3-22-0033 against the RS3 MA IDIQ contract for future requirements past 16 December 2023 prior to the current TO expiration. The current TO and subsequent action is not a follow-on to an order previously issued for the same service based on a justification for an exception to fair opportunity citing the authority at FAR 16.505(b)(2)(i)(B) or (C).

Therefore, the procedures found in DFARS 216.505(b)(2) and PGI 216.505 do not apply to this ceiling increase.

8. Market Research: On 04 May 2022, the Government released a Request for Information (RFI) to all RS3 prime contractors requesting notice of interest and capability.

The Government specifically stated that it was interested in contracting for the increased system modification and upgrade requirements on existing Naval MH-60R and MH-60S aircraft as outlined above and that services are currently provided under RS3 TO RS3-20- 0011 W15P7T-17-D-0124 W15P7T21F0027. In this RFI, the Government also stated that the requirements had been identified as a potential ceiling increase to the current TO and therefore research of the RS3 market was necessary to determine if competition was viable for this effort and decide the best course of action. The RFI stated the estimated start date was 30 June 2022 and that interested RS3 prime contractors should provide a Rough Order of Magnitude (ROM) and a realistic schedule of performance by 11 May 2022.

The Government received two (2) responses from Amentum and Intuitive Research and Technology Corporation stating they did not have an interest in responding to the RFI. The Government received two (2) responses with the requested ROM and schedule from ACET and EPS Corporation (EPS). Government Technical Experts conducted a review of each RFI response received:

EPS, Woman Owned Small Business

Review of EPS’s response determined they are not a viable source for PMA-299’s requirement at this time. EPS provided a ROM and a schedule with no supporting technical detail to explain how they came to their cost estimate or proposed schedule, or how they would meet each of the fabrication/installation requirements. This left the Government to assume the risk of their expertise and knowledge. EPS provided a ROM that was over 50% higher than the Navy’s IGE. While this higher cost estimate does not always translate to a lack of understanding of the requirements, the increased cost does not appear justified or in the Government’s best interest when coupled with the lack of technical detail. The high cost of the ROM and the lack of technical detail is a high risk to the MH-60 aircraft modifications.

ACET, Small Business

Review of ACET’s response determined they are a viable source for the PMA-299 requirement at this time. ACET provided a ROM and a schedule with technical responses on each of the fabrication/installation requirements, justifying their expertise and knowledge of each requirement. ACET provided a ROM that was more in line with the Navy’s IGE, and while this does not always translate to an understand of the requirements, it does lower the risk to the Government when coupled with the supporting technical detail provided.

Based on the above market research analysis and the fact that ACET is successfully performing the requested services under the current TO, it is not economical or efficient to award this increase under a separate TO at this time. Awarding a modification to ACET that increases the ceiling of the current TO is in the best interest of the Government.

9. Other Facts:

a. Procurement History:

Current Contract: W15P7T-17-D-0124/W15P7T21F0027 Contractor: Adams Communication & Engineering Technology, Inc.

Award Date: 18 December 2020 Competitive Status: Fair Opportunity, Best Value Tradeoff Contract Vehicle: RS3 MA IDIQ

Previous Contract: W15P7T-10-D-D410 0021 Contractor: General Dynamics Information Technology, Inc. (formally CSRA, LLC) Award Date: 29 September 2017