AeroBags_JA_Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Choose the funding level for this J&A Document:

< $650K > $650K and < $12.5M > $12.5M and < $85.5M > $85.5M

Contracting Activity: 726 EABS

Purchase Request / Local ID Number:

Program / Project (and PE, if applicable):

Program Type (PEO or Other Contracting):

Authority (include full title):

10 USC 2304(c)(1), as implement by FAR 6.302-1(a)(2)(iii). Only one responsible source and no other supplies or services will satisfy agency requirements.

Estimated Contract Cost (including options): J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

09 Jun 2015

Project Lead / Program Mgr / Requiring Activity

MX OIC / 824-5554

Signature

APPROVAL (AFFARS 5306.304(a) )

Date Contracting Officer

CONS / 824-5484

Signature

76175

Digitally signed by FRITZ.JESSE.JOHN.1099976175 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=FRITZ.JESSE.JOHN.1099976175 Date: 2015.06.09 16:20:13 +03'00'

Digitally signed by CHANG.DANIEL.A.1248529675 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=CHANG.DANIEL.A.1248529675 Date: 2015.06.12 09:39:40 +03'00'

I. Contracting Activity.

726 EABS/CONS

PSC 831 Box 67

FPO AE 09363

II. Nature and/or description of the action being processed.

This requirement will be awarded as a firm fixed price (FFP) contract with Aerotest Ltd. This justification and approval (J&A) is an individual J&A to procure propeller and engine preservation bags required for deployed C-130 aircraft.

III. Description of supplies/services required to meet agency needs.

The 81 ERQS requires two reusable environmentally protective transport and storage (EPTS) "Aero-Propeller Bags" and one reusable water vapor resistant (WVR) "Aero-Bag" with standard tail pipe. The unit's aircraft are stored outside in a harsh environment and the lack of protection damaged two propellers with an estimated repair cost of $1M. If bags are not procured soon, the C-130 program will incur additional Over and Above repair costs due to the propellers and engines not being preserved and stored in accordance with the procedures called out in the technical orders. Failure to preserve the propellers and engines will reduce their service life and decrease the unit's capabilities.

IV. Statutory authority permitting Other than Full and Open Competition.

10 USC 2304(c)(1), as implement by FAR 6.302-1(a)(2)(iii). Only one responsible source and no other supplies or services will satisfy agency requirements.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

The propeller and engine bags provided by Aerotest are the only bags that have been tested and approved for use for storage and preservation of the C-130 engines. They were specifically designed to meet the engine manufacturer's requirements to maintain the humidity below 40%. If the humidity is not maintained, parts of the engine will absorb moisture, swell and cause the compressor blades and blade tip seals to seize the compression rotor. Costs to repair an engine when this occurs can be in excess of . These bags have been tested and can be used with confidence in Desert conditions. Aerotest is the only manufacturer of the bags that meets the unique storage/preservation requirements the C-130 engines require. While there are various engine bags available they are not made for engine preservation.

These bags are used to keep dirt and dust out of the engine. The Air Force used a different bag prior to this one being developed and it proved to be unreliable. It tore easily and was difficult to repair. Users also had difficulty in maintaining the humidity requirement which resulted in damage to the engine. Any damage that occurs as a result of improper preservation is considered as an over and above repair. The cost of repair can be anywhere from to over . Any new source would require a new design, qualification and certification prior to going into production.

The design, qualification and certification of a new bag is estimated to be a one to two year process. The bag would also be required to be designed for use of the existing Thermo-Hygrometer (specific port and seal requirement) that has been procured for all units; if not, it may drive the need for new equipment which would be an additional cost and delay. In addition, the new item would require the approval of Lockheed and Rolls-Royce prior to introduction. The government does not have a requirement for, nor has funding available to have a new contractor design and test a new bag. At the present time it is cost prohibitive to have a new bag designed.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

As indicated above in section V, Aerotest is the only manufacturer of a bag that meets the unique storage/preservation requirements the C-130 engines require. There are additional engine bags available on the market; however, they do not meet the C-130 preservation requirements. If a new bag is developed, testing will have to be accomplished to qualify and approve it for use. A new bag may drive a change in equipment used to test the humidity levels which could increase costs. These issues will be addressed as new bags or sources become available.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The contracting officer anticipates that the prices offered by Aerotest will be fair and reasonable compared to prior purchases for the same or similar items.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

Market research included queries of the General Services Administration (GSA), internet searches and surveys for alternate original equipment manufacturer (OEM) facilities. Market research showed Lockheed Martin (LM) as a source; however, LM only provides the items as a third party and utilizes Aerotest as a sub-vendor. Market surveys are continuously conducted by the C-130 program office to identify new sources of supplies and services necessary to upgrade and maintain the system.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

Regardless of the vendor's capability to manufacture a bag for this requirement, any new source would require a new design, qualification and certification prior to going into production. The C-130 technical manuals would have to be updated as well. New procedures would have to be developed and put into the technical manuals to allow the use of a different bag. This is an added program cost which has not been budgeted for. The design, qualification and certification of a new shipping bag is estimated to be a one to two year process. The bag would also be required to be designed for use of the existing Thermo-Hygrometer (specific port and seal requirement) that has been procured for all units; if not, it may drive the need for new equipment which would be an additional cost and delay. In addition, the new item would require the approval of Lockheed and Rolls- Royce prior to introduction. The program office does not have a requirement for, or the funding available to have a new contractor design and test a new bag. A requirement would need to be established by the Crew Operations Review Team/Support Operations Review Team (CORT/SORT) process and funding programmed to perform the redesign and qualification efforts.

X. List of sources, if any, that expressed interest in the acquisition.

None.

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.

The program office has a process for identifying new equipment based on Diminishing Manufacturer Support or product improvements. The program office follows the Support Equipment Recommendation Data process to determine what product will support engine preservation requirements. This office will contact the program office on subsequent purchases to determine the existence of new approved sources.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my signature above, I certify that any supporting data contained herein, which is my responsibility, is both accurate and complete.