JA_FA8505-16-D-0001.pdf

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

I. ContractlngActlvlty.

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated for the Department of the Air Force. The contracting activity for this requirement is AFLCMC/WWQK. The organizational activity for this requirement is AFLCMC/WWQAC. This purchase request number supporting this contracting action is

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

Due to the circumstances described herein, the activity requests authority to acquire the services listed in this document using Other Than Full and Open Competition (OTF&OC) as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This action will result in the award of a new Firm Fixed Price (FFP), sole-source contract with a one year basic plus one six-month option. This sole source requirement will be purchased from the following company:

KOREAN AIR LINES CO., LTD., AEROSPACE DIVISION (Cage Code: 1699F)

103 DAEJEO 2-DONG, KANGSEO-GU

BUSAN, KOREA (618-142)

Large Business

Due to a high interest from new potential vendors, additional time will be required to determine any impacts to the special measures agreement between the U.S. and the Republic of Korea for a full and open competition of the long term follow-on requirement. A one year bridge contract is required to maintain continuous F-15 Programmed Depot Maintenance (PDM) support in the PACAF Theater while giving additional time to compete the long term follow-on contract. Korean Air (KA) is the only contractor capable of fulfilling the immediate needs of the requirement without a break in service.

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

Services to be performed by KA include PDM accomplished, per Air Force Directive, on a 72 month or 6 year cyclic interval for all F-15 aircraft. The PDM process requirement is inspection and correction of defects that require specialized skills, equipment and facilities not normally possessed by operating unit locations. This also includes overhaul functions, repair, modifications and maintenance, Time Compliance Technical Order (TCTO}, and Corrosion Control (CC). These programmed requirements involve those requirements that are scheduled on a calendar or time basis and have associated man-hours and dollars.

These requirements are performed at a depot facility and also include planned inspections such as Analytical Condition Inspection (ACI), and Individual Aircraft Tracking (IA T) Inspection. The requirement also allows for Drop-In Maintenance (DIM) ofF-15 C-D aircraft and the dispatch of field teams within the theater for repair ofF-15 C-D aircraft that require Unscheduled Depot Level Maintenance (UDLM). The required maintenance performed also includes those Organizational and Intermediate (O&I) level tasks required to prepare for depot maintenance, and, if negotiated between the depot and the operating command, scheduled field-level inspections, preventative maintenance or TCTOs which come due while the aircraft is at the depot facility for PDM.

The level of maintenance consisting of the on and off equipment tasks performed, requires the use of highly specialized skills, sophisticated shop equipment, or special facilities of a depot facility. This work will be performed in accordance with the Performance Work Statement and Appendix A, Work Specification

Justification and Approval (J&A) forOtherThan Full and Open Competition

(AFLCMC/WWQEC/F-15C/D/FY16-100).

~ntract, there is a minimum dollar value o~ and a maximum ceiling value of

- for the estimated quantity of nine (9) aircraft per year. KA has successfully performed depot level maintenance on PACAF F-15s since 1982 with PDM being added in 1988.

This effort will consist of a one year basic and one six-month option (14 Sep 2017 through 13 Mar 2018).

Deliveries may occur through a period of 12 months after expiration of the ordering period. The total estimated labor and material cost of this acquisition over the entire eighteen month period is

This cost estimate is based upon the current PACAF F-15 PDM schedule and current contract (FA8505-11-D-0006) costs. The effort will be budgeted through the Central Asset Management (CAM) Logistics Requirements Determination Process (LRDP) utilizing O&M funding (3400).

The total estimate value of the proposed contract action includes the estimated cost of the six-month option. The estimated value is based on FY 16 contract costs with an annual escalation factor of

- for labor per year. Approved Global Insight escalation factors were used for the materials. The breakdown is as follows:

FY 17 (Basic) FYI 8 (Option I)

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

(9 Acft) (4 Acft)

10 USC 2304(c)(l), as implemented by FAR 6.302-1, Only One or a Limited Number of Responsible Sources, and No Other Supplies or Services Will Satisfy Agency Requirements.

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

The nature of this acquisition requires the use of stated exceptions to the general requirement for full and open competition. However, due to a high interest from new potential vendors, additional time will be required for a full and open competition of a long term follow-on contract requirement. A one year bridge contract is required to maintain continuous F-15 PDM support in the PACAF Theater while giving additional time to compete the long term follow-on contract. This requirement is a logical follow-on, i.e., a continuation of work alread in service. PACAF F-15 aircraft have been inducted for de ot maintenance at th since ... PDM was added to the work effort at t

. KA has developed a very high level of skill and expertise of performing epot maintenance on PACAF F-15 aircraft. KA is the only contractor capable of fulfilling the immediate needs of the requirement without a break in service.

Page 3 of9 over the years. The estimated cost to relocate the cost to inventory, disassemble. oackage/crate, and ~he CONUS would be would be - and to Japan is -within the Korean Peninsula

In accordance with an Implementation Agreement between the United States Forces, Korea (USFK) and the Republic of Korea Ministry of National Defense (ROK MND), South Korea provides funds for work (labor) completed by Korean companies for the US military. Through this arrangement, funds have been made available to support the F-15 depot maintenance facility in The USFK Council of Colonels, comprised of senior logistics officials from each service, meet on an annual basis to determine allocation of funds to US military programs. The allocation priority is negotiated with the ROK MND. The Implementation Arrangement for Special Measures Agreement dated 02 February 2014, between the USFK and ROK MND details the orocedures for use of the Republic of Korea Logistics Cost Sharing (ROK LCS) funds. Approximate) in ROK LCS funds per F-15 aircraft has historically been set aside to fund ccomplished within the Korean Peninsula. On the current contract

(FA8505

D-0006) has been utilized to date. South Korea has indicated a willingness to continue the cost-sharing program into the future. However, in order to continue to receive the ROK LCS funds, this workload must be accomplished in South Korea. KA is the only source within South Korea that has both the technical expertise and experience, and a demonstrated performance for successful performance of F-15 PDM and has the capability of fulfilling the immediate needs of the requirement without a break in service.

HQ PACAF has a vested interest in having the F-15 PDM work performed in-theater because it enhances mission readiness by providing

- Furthermore, it reinforces our political-military presence on the Korean Peninsula, and contributes to a combined defense capability. Performing this work in South Korea keeps aircraft and aircrews more readily available and responsive to real world contingencies. Maintaining depot level capability on the Korean Peninsula enhances our warfighting capability by giving us rapid access to skilled depot-level repair technicians and depot-level facilities during contingency oii!li!rations. Battle damaged aircraft could be inducted for repair virtually immediately. The F-15 depot plays a vital role in the warfighting mission in support of the essential preservation o a1rcra maintenance capabilities during peacetime and for wartime contingencies.

In summary, due to the technical expertise developed over the past 30 plus years, allowing Korean Air, the current contractor, to maintain continuous F-15 PDM support for the PACAF Theater for an additional eighteen months would give ample time for the required full & open competition of the long term follow on contract requirement and preventing any break in service of the F-15 PDM requirements.

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

ows , t e current contractor 1s y capa e o

PDM ex erience with - aircraft, which is very

; all have PDM experience on the but no 1g ter aircra experience. However, they are potentially capable, but will have an extensive learning curve therefore they are not a viable source for this bridge contract.

This requirement will also be synopsized on the Federal Business Opportunities (FedBizOpps) web page citing conditions which preclude Full & Open Competition. Sources expressing an interest as a result of the synopsis will be investigated for their capabilities to perform this immediate requirement and/or future requirements. There will be a pre-award synopsis of proposed contract actions, as required by FAR 5.201(b) in advance of issuance of the solicitation.

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

The proposal will contain cost or pricing data; the resultant contract will consist of a Firm Fixed Price (FFP) contract CLIN structure. In accordance with FAR 15.403-4, the contractor will be required to provide a Truth In Negotiations Act (TINA) compliant proposal to be used in supporting the Government's evaluation of the proposed cost. The PCO will request a technical evaluation of the proposed skill mix of labor, labor hours, types and quantities of material, other direct costs, and direct and indirect rates.

Negotiations will be conducted by the Government based on recommendations from the Defense Contract Audit Agency (DCAA) or Defense Contract Management Agency (DCMA) and expert technical personnel supporting the program. The contract price will be negotiated in accordance with the procedures in FAR Part 15 ensuring the ultimate cost is fair and reasonable.

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

In addition to the RFI mentioned in section VI above, additional Market research was conducted and completed 10June2015 by the Aerospace Engineer with a search of the Central Contractor Registration (CCR) using the North American Industrial Classification System (NAICS) Code 336411 for Aircraft Overhaul. Because of the limitations of ferrying a single aircraft over water, a condition was included to have the contractor facility located within a 833 NM radius of Kadena AB, Okinawa, Japan (PACAF F-15 Base), no other locations/countries were used in the search.

Market research was conducted by the Contracting Officer by means of participating in information gathering sessions and reviewing the past performance of Korean Air Aerospace Division. The Contracting Officer reviewed the findings of the Aerospace Engineer and coordinated these results with the Small Business Office and AFLCMC/ACE office.

Countries such as Taiwan, Singapore, and Australia were excluded from the market research query for a number of reasons. Taiwan is not a potential country for the Kadena AB workload because the mileage from Kadena AB to Taiwan is 1, 150 miles which is too far for a single-ship ferry. The distance from Kadena AB to Singapore is 2,336 miles which is also too far for a single-ship ferry. Also, Singapore has no record of PDM on high performance fighter aircraft. Australia is too far for single-ship ferry being 3,250 miles from Kadena AB. Currently there is a waiver to ferry a single fighter aircraft from Kadena AB Ja an t South Korea with articular re uirements and conditions.

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Justification and Approval (J&A) forOtherThan Full and Open Competition

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Additionally, a Request for Infonnatio FedBizOpps 01 December 2014 with

~ .!. ~ i •• ~~ • • I I . I I I

Korean Air (KA) is the only contractor capable of fulfilling the immediate needs of the requirement, to maintain continuous F-15 PDM support in the PACAF Theater while giving additional time for a full and open competition of the long term follow-on contract without a break in service.

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

Korean Air, through performance on prior follow-on contracts since I 982, has leveraged their advantages as a Korean company to dominate the market for F-15 PDM services within the PACAF Theater to the extent that there is very little significant competition. No other potential source possesses the direct range of expertise, manpower, in-theater facilities, knowledge and equipment to fulfill our immediate neeCls.

x. List of sources, lfany, that ecp essed Interest In the acq uisltl on.

See section VIII above.

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.

Full and Open Competition is the goal in the future.

Full and Open Competition is not a viable option presently for the following reasons:

A. Although, the Market Research Report has indicated there is a remarkably high interest from new potential vendors, additional time is required for a full and open competition of the long term follow-on requirement. This will be a one (I) year basic with a six (6) month option contract for the immediate requirement needed to maintain continuous F-15 PDM support in the PACAF Theater, without a break in service, while giving additional time to complete a full & open competition of the long term follow-on contract.

B. There will be a severe impact to aircraft availability and operational readiness in the Pacific Theater.

The- at Kadena AB are on a strict PDM induction schedule. Due to the re-distribution and relocation of GFE, potential facility construction, and a learning curve that will be expected with a new contractor, scheduled flow days will not be met. Ultimately, this will result in low aircraft availability at Kadena AB, which is not acceptable for the war fighter.

C. Korean Air (KA) already possesses the necessary technical expertise, required facilities, and quality control systems to meet the strict PDM schedule and provide a quality product for the war fighter.

At this point in time, KA is the only contractor capable of fulfilling the immediate needs of the requirement.

D. There has been research on accomplishing the F-15 PDM requirement organically at Kadena, AB, Okinawa, Japan. The F-15 PDM services cannot be completed at Kadena AB due to building

International Agreement Competitive Restrictions restrictions imposed by the Japanese Government, as it would require additional facilities to be built within the Kadena AB installation.

XII. Certification by the ContractlngOfflcer.

The contracting officer's signature on the Coordination and Approval Document evidences that he/she has detennined this document to be both accurate and complete to the best of his/her knowledge and belief CFAR 6.303-2(b)(12)).

XIII. Certification by the technical/requirements personnel.

As evidenced by their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete (FAR 6.303-21£)).

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FA8505-16-D-0001 Sole Source J&A