A02 - Justification and Approval FDR Ceiling Increase_Redacted.pdf

Control No: JA-21-E-002 Contractor: L3 Communications

Program/Equipment: Flight Data Recorder and Interconnecting Box

Version – September 2018 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR PART 6 JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Program/Equipment: Flight Data Recorder (NSN:6610-01-580-9437) and Interconnecting Box (NSN: 5895-01-564-9012) for Chinook Helicopters.

Authority: 10 United States Code (U.S.C.) §2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) Part 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount: $630,993.00

Prepared by:

Avionics Student Intern Date:

Mechanical Engineer

Contracting Officer: DSN:

Contracting Officer Date:

Technical:

Mechanical Engineer Date:

Avionics Student Intern Date:

Mechanical Engineer

Requirements:

Item Manager Date:

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

FAR Part 6 Justification and Approval for Other than

Full and Open Competition

1. Contracting Activity: U.S. Army Contracting Command - Aberdeen Proving Ground (ACC-APG), 6565 Surveillance Loop, Building 6001, Aberdeen Proving Ground, Maryland 21005-1846.

2. Description of Action: The United States Army Contracting Command at Aberdeen Proving Ground on behalf of Communication Electronics Command (CECOM) Integrated Logistics Supports Center (ILSC) – Enterprise Solider Aviation (ESA) proposes to issue a modification to Firm-Fixed-Price (FFP) Indefinite Delivery Indefinite Quantity (IDIQ) Contract W56JSR-17-D-0012 with L3 Communications Corporation, L3 Communications Corporation Aviation Recorders Division (L3 Communications) Cage 06141. W56JSR- 17-D-0012 is a five (5) year IDIQ contract expiring on 30 August 2022.The proposed modification will increase the contract's ordering ceiling by from to new ceiling of to enable execution of Task Order (TOs) to support both the Flight Data Recorder (6610-01-580-9437) and Interconnecting Box (5895-01-564-9012). The contract is structured as a five (5) year IDIQ Contract. This effort will utilize Fiscal Year (FY) 21 and FY 22 Army Working Capital Funds (AWCF) when a task order is issued. The required award date for this effort is 26 April 2021.

An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

3. Description of Supplies/Services: The Flight Data Recorder (FDR), also known as the black box, provides audio recording and flight data storage of the voice and control units within the Chinook (CH-47) helicopters. In the event of a crash, the FDR is designed to withstand penetration, static crush and fire in order to provide data to accident investigators to assist in cause determination. The FDR (6610-01-580-9437) records several parameters of aircraft performance to help safety investigators determine the cause of an accident. The recorded data is also used in routine operations to identify maintenance issues or to improve efficiencies.

The Interconnecting Box (ICB) works as an adaptor to connect the FDR to the aircraft’s Common Aviation Architecture System (CAAS). The Interconnecting Box (5895-01-564- 9012) allows a unique interface between the aircraft and the FDR. The current FDR performs three functions: collects flight data, records that data, and protects data from loss during a crash. The FDR has a “built in” Underwater Acoustic Beacon that provides 90 days of signal when activated.

The required services are for logistics and sustainment support which includes Test and Inspect (T&I) and Repair services for the FDR system, National Stock Numbers (NSNs):

6610-01-580-9437 and 5895-01-564-9012.These services are essential to restore the Government’s FDR assets to a serviceable condition. The specialized components and proprietary software for these items are not owned by the Government. L3 will continue to provide qualified and experienced personnel, materials, parts, equipment, and facilities necessary to repair FDR assets and ensure that the FDRs are in operationally ready condition and are available to provide critical mission capabilities.

The Government requires potential contractors have a Technical Data Package (TDP), an Airworthiness Certification, or the willingness to acquire both.

This ceiling increase for repairs is needed as the Government has received an unanticipated increase in unserviceable returns. The Government is currently reviewing failure data provided by the contractor to ascertain reasoning for the increase. If the engineering analysis concludes that the main cause for failures are contractor derived, the customer will request an immediate mitigation plan from L3 and pursue any consideration deemed legally and contractually appropriate.

The following table breaks out the cost per year for both the FDR and the ICB:

ICB: Summary of Repair Costs for NSN Interconnecting Box (5895-015-64-9012)

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTALS

Costs in the above charts reflect the pricing already established under the current contract and the quantities are the projected quantities needed. Also for the FDR there was a deobligation for in year 2 which is reflected in the chart.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only one posting Sources Sought Announcements on System for Award Management (SAM) website from 08 September 2016 through 16 September 2016, 4 April 2018 till 6 April 2018, and Beta.Sam on 03 August 2020 to 13 August 2020. Details of the market research conducted are provided in Section 8 below. To date, no responses outside of the OEM have been received; however, any responses received will be considered.

Based on the information provided in Section 5, competition for this action is not feasible.

In an effort to promote competition, this base Indefinite Delivery Indefinite Quantity (IDIQ) contains FAR clause 52.219-9, Small Business Subcontracting Plan to ensure that L3 considers small business concerns for this effort.

7. Actions to Increase Competition: The Government will continue to conduct market research as required to ascertain if changes occur in the marketplace that would enable competition for future actions. Ongoing market research includes posting Sources Sought Announcements to Beta.Sam website and reviewing trade journals to keep current on the latest technology regarding FDR. At this time, a new material solution is not cost effective as addressed in Paragraph 5 above.

8. Market Research: Pursuant to Defense Federal Acquisition Regulation Supplement (DFARS) 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance and Information (PGI) 206.302-1(d), the technical experts within CECOM ILSC and ACC- APG conducted market research. A Market Survey was conducted to locate potential sources to repair both the Flight Data Recorder (6610-01-580-9437) and Interconnecting Box (5895-01-564-9012) the current repair program for these units that expired in August 2016 (W15P7T-11-D-A213)

In conjunction with ESA, ACC posted a Sources Sought Assignment (SSA) on Beta.Sam website from April 2020 to June 2020. The survey resulted in no responses from alternative sources as well as the OEM. The current repair and manufacturing facility for these systems is L3 Communications Corporation Aviation, Cage Code 06141.

In addition, the OEM was contacted in June 2020 to inquire about interest in the Market Survey with a follow up email sent in July 2020. Follow up communication from L3 Communications was received by the United States Government (USG) in August 2020 indicating the company continues to remain interested in providing spare parts and repair services to the USG.

Given the cost and time of such an effort, it is not in the best interest of the Government from a flight safety or best value perspective to use a new contractor that has never made the product before, unless directed by the Platform Program Office to procure.

Based upon the market research conducted, the Government technical experts have determined that L3 Communications is the only responsible source with the required knowledge, experience and technical data necessary to provide the required highly complex repair services.