J A_Redacted.pdf

SOLE SOURCE JUSTIFICATION, FAR 13.501

1. Identification of the agency and the contracting activity.

Department of the Interior (DOI), Interior Business Center (IBC) Acquisition Services Directorate (AQD), Division IV, Boise Branch, Boise, ID

2. Nature and/or description of the action being approved.

AQD intends to award a sole source commercial item contract using the procedures of Federal Acquisition Regulation Subpart 13.5, Test Program for Certain Commercial Items, to CubCrafters, Inc. for Top Cub model tandem airplanes, aircraft parts, and aircraft equipment for the DOI's Office of Aviation Services (OAS) for use by the National Park Service (NPS), U.S.

Fish & Wildlife Service (FWS), and the Bureau of Land Management (BLM). Cubcrafters, Inc.

is the sole manufacturer of the Top Cub model aircraft, a commercial item. The contract type will be an Indefinite Delivery Indefinite Quantity (IDIQ) contract with a five year ordering period.

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value).

In 2011, the NPS, FWS, BLM and OAS collaborated to standardize the aircraft requirements for the replacement of OAS's aging tandem fleet, a DOI shared resource of 28 aircraft. This initiative was brought about by the long-term need to increase the safety of relatively high risk operational missions by eliminating the requirement for a pilot to be proficient in more than one make/model of tandem aircraft. The OAS tandem fleet included older aircraft of four different makes and models; however, there are key differences among them considered critical during emergency or other high stress situations. All four makes/models of aircraft have different immediate action emergency procedures that must be memorized by the pilot, a safety risk that is expected to be mitigated by fleet standardization. In addition, the bureaus wanted to reduce operating costs associated with the purchase/inventory of spare parts and the associated maintenance required to support four makes/models of aircraft.

In support of this decision, the preparation of a comprehensive Exhibit 300 (E-300, now called an Aviation Business Case) analysis of the DOI tandem aircraft mission requirements was contracted via an advisory and assistance contractor. In preparing the E-300, the contractor considered DOI's aircraft standardization and modernization requirements, aircraft maintenance, typical government pilot capabilities, risks, and costs. The E-300 was completed in October 2011 with a recommendation that in addition to mission safety benefits, standardization of fleet aircraft will result in a long term reduction in direct and indirect costs (i.e., reductions in expenses for training, maintenance, spare parts inventories, and other associated aircraft and employee costs). Upon review of the E-300 details, the DOI Aviation Board of Directors endorsed the recommendation to move to standardize the fleet of tandem aircraft.

As a result, in February 2012, AQD issued Solicitation D12PS00078 as a competed commercial item requirement. Upon evaluation of offers, Contract D12PC00405 (an IDIQ contract) was awarded to CubCrafters, Inc., a small business, for 15 of its Top Cub tandem aircraft. It was anticipated at the time that the purchase of 15 aircraft (over half of the fleet) would be spread over a 5 year period; however, the bureaus needed to accelerate the purchase schedule and all 15 were procured within two years.

There are 13 remaining aircraft that need to be replaced over the next several years to complete the required tandem fleet standardization. Two of them are an immediate need: NPS must replace an Aviat Husky (N67HY) and FWS must replace a Top Cub (N537CC), which was significantly damaged in an accident. Moreover, three additional tandem aircraft need to be replaced in FY2015, making the total need for FY2015 five tandem aircraft. OAS also requires the ability to purchase replacement aircraft parts and aircraft equipment for the Top Cub aircraft, as needed. In order support critical mission needs, as well as achieve the cost reduction objectives from the OAS tandem fleet standardization and transformation, the NPS and FWS have requested that a sole source commercial item contract be awarded to CubCrafters, Inc. with an estimated value of $4,650,000, as summarized below. In order to account for the possibility of needing to replace aircraft due to damage, a maximum quantity of 15 aircraft will be established under the IDIQ contract.

5 Top Cub tandem aircraft (FY2015) 10 Top Cub tandem aircraft (FY2016-19) Aircraft parts and equipment (FY2015-19) Estimated Contract Value $ 4,650,000.00

4. An identification of the statutory authority permitting sole source acquistion.

The statutory authority permitting sole source acquisition is 41 U.S.C. 1901 as implemented by Federal Acquisition Regulation (FAR) 13.501-(a)(1)(ii)).

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

The nature of this acquisition provides for the completion of standardization of the tandem aircraft fleet, which increases mission safety through consistency of aircraft and assures long term cost savings through reductions in expenses for training, maintenance, spare parts inventories, and other associated aircraft and employee costs. As the sole manufacturer of the Top Cub tandem aircraft, CubCrafters, Inc. is the only company with the ability to provide the aircraft required to complete this standardization. CubCrafters, Inc. is the holder of the Federal Aviation Administration (FAA) approved aircraft Type Certificate and Supplemental Type Certificates (STCs) for the Top Cub tandem aircraft.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies.

In February 2012, Solicitation D12PS00078 was competitively awarded for the purchase of 15 tandem aircraft, which consisted of over half of the existing fleet. Based on continued efforts to complete standardization of the DOI tandem fleet utilizing CubCrafters, Inc.'s Top Cub aircraft, no other source is available; however, prior to solicitation, a notice will be publicized with this justification per FAR 5.2.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

Contract D12PC00405 was competitively awarded and included an Economic Price Adjustment (EPA) clause that utilizes the Department of Labor's, Bureau of Labor Statistics methodology outlined within their publication titled, "Escalation Guide for Contracting Parties". The Contracting Officer will utilize the EPA methodology from the previous contract to determine that the awarded contract price will be fair and reasonable. Additionally, the Contracting Officer plans to include an EPA clause in the awarded contract.

8. A description of the market research conducted (see Part 10) and the results or a statement of the reason market research was not conducted.

Market research was not conducted because CubCrafters, Inc. is the sole manufacturer of the Top Cub aircraft. CubCrafters, Inc. is the holder of the Federal Aviation Administration (FAA) approved aircraft Type Certificate and Supplemental Type Certificates (STCs) for the Top Cub tandem aircraft.

9. Any other facts supporting the use of a sole source acquisition.

None.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

None. No other source is available to meet this requirement as Cubcrafters, Inc. is the sole manufacturer.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

It is not anticipated that tandem aircraft manufactured by a different vendor will be introduced into the existing standardized fleet in the near future for the reasons outlined herein.