POST_AWARD_J A.pdf

BAUMANN.ANTHON

Y.JOHN.1229969303

Digitally signed by

BAUMANN.ANTHONY.JOHN.1229969303

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=BAUMANN.ANTHONY.JOHN.1229969303 Date: 2013.07.10 11:27:10 -04'00'

DEPARTMENT OF THE AIR FORCE

PR #: FD2060-11-34540

JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated for the Air Force Sustainment Center (AFSC), 638th Supply Chain Management Group (SCMG), 411th Supply Chain Management Squadron (SCMS)/GULA. The contracting authority for this requirement is AFSC/PZAAA (FA8524). The purchase request number supporting this contracting action is FD2060-11-34540.

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

The HH-60G and the UH-1N Helicopter Rescue Hoist lifts and lowers Para-rescue personnel, as well as survivors who are being rescued. It is mounted in the cargo bay of the helicopter by the cargo door and swings out the door to lift or lower those previously mentioned. Due to the circumstances described herein, the activity requests authority to acquire the repair and overhaul listed in this document using Other Than Full and Open Competition 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 contract, which will be a firm-fixed price contract with a basic year and four option periods. This sole source requirement will be purchased from:

Goodrich Corporation 2727 Imperial Hwy.

Brea, CA. 92821-6713

CAGE: 3HRL4

Large Business

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

Under the contemplated contract, Goodrich Corporation will provide the following services for the items and associated quantities illustrated on the next page. These are required to support the HH-60G and the UH-1N Helicopter in sustainment of the USAF Special Operation Forces (SOF)/Personnel Recovery program. Please see following page for referenced schedule with applicable National Stock Numbers (NSN):

E-asic

NSN Noun QTY Unit Price Total Price

Input: 1680-01-445-8278 Output:1680-0l-609-376S HH60G Drum Winch (TT&E) 20

Input: 1680-0l-44S-8278 Output:1680-01-609-376S HH60G Drum Winch (Repair) 20

Input: 1680-01-44S-8278 Output:1680-0l-609-376S HH60G Drum Winch (Overhaul) 40 ' 1680-0l-609-376S Drum Winch (TT&E) lS j 1680-01-609-376S Drum Winch (Repair) 15 1680-0l-609-376S Drum Winch (Overhaul) lS lnput:1680-01-0S8-3671 Output:1730-01-474-1646 UHlN Hoist (TT&E) 2 lnput:1680-01-0S8-3671 Output:1730-0l-474-1646 UHlN Hoist (Overhaul) 2

1730-01-474-1646 Hoist (TT&E) 7

1730-01-474-1646 Hoist (Repair} 7

1730-01-474-1646 Hoist (Overhaul} s Opi:ion I

Input: 1680-01-44S-8278 Output:1680-0l-609-376S HH60G Drum Winch (TT&E} 7

Input: 1680-01-44S-8278 Output:1680-01-609-376S HH60G Drum Winch (Repair} 7

Input: 1680-01-44S-8278 Output:1680-0l-609-376S HH60G Drum Winch (Overhaul) 7

1680-01-609-376S Drum Winch {TT&E} 30

1680-0l-609-376S Drum Winch (Repair} 30 1680-0l-609-376S Drum Winch (Overhaul} 30 lnput:1680-01-0S8-3671 Output:1730-0l-474-1646 UHlN Hoist {TT&E} 2 lnput:168{}-01-0S8-3671 Output:1730-01-474-1646 UHlN Hoist {Overhaul} 2

1730-01-474-1646 Hoist {TT&E} 7

1730-01-474-1646 Hoist (Repair} 7

1730-01-474-1646 Hoist (Overhaul} 2 Ctinn II

Input: 1680-0l-44S-8278 Output:1680-0l-609-376S HH60G Drum Winch (TT&E} 7

Input: 1680-01-44S-8278 Output:1680-01-609-376S HH60G Drum Winch (Repair} 7

Input: 1680-01-44S-8278 Output:1680-0l-609-376S HH60G Drum Winch (Overhaul} 7 1680-0l-609-376S Drum Winch (TT&E} 30

1680-0l-609-376S Drum Winch (Repair) 30

1680-0l-609-376S Drum Winch (Overhaul} 30 lnput:1680-01-0S8-3671 Output:1730-0l-474-1646 UHlN Hai st (TT&E} 2 lnput:1680-01-0S8-3671 Output:1730-0l-474-1646 UHlN Hoist (Overhaul} 2 1730-01-474-1646 Hoist (TT&E} 7 1730-01-474-1646 Hoist (Repair) 7 1730-01-474-1646 Hoist (Overhaul) 2

Option Ill

Input: 1680-0l-44S-8278 Output:1680-0l-609-376S HH60G Drum Winch (TT&E) 4 Input: 1680-0l-44S-8278 Output:1680-0l-609-376S HH60G Drum Winch (Repair} 4

Input: 1680-01-44S-8278 Output:1680-0l-609-376S HH60G Drum Winch (Overhaul) 4 1680-0l-609-376S Drum Winch (TT&E} 40 1680-01-609-376S Drum Winch (Repair) 40 1680-01-609-376S Drum Winch (Overhaul} 40 lnput:l680-0l-OS8-3671 Output:l730-0l-474-1646 UHlN Hoist (TT&E} 2 lnput:l680-0l-OS8-3671 Output:1730-0l-474-1646 UHlN Hoist (Overhaul} 2 1730-01-474-1646 Hoist (TT&E} 10 1730-01-474-1646 Hoist (Repair) 10 1730-01-474-1646 Hoist (Overhaul} 2

Opti0r: IV

Input: 1680-01-44S-8278 Output:l680-01-609-376S HH60G Drum Winch {TT&E} 4

Input: 1680-0l-44S-8278 Output:1680-0l-609-376S HH60G Drum Winch (Repair) 4 Input: 1680-0l-44S-8278 Output:l680-0l-609-376S HH60G Drum Winch (Overhaul} 4 1680-0l-609-376S Drum Winch (TT&E} so I 1680-0l-609-376S Drum Winch (Repair} so I 1680-0l-609-376S Drum Winch (Overhaul) so lnput:1680-0l-OS8-3671 Output:1730-0l-474-1646 UHlN Hoist (TT&E} 2 I lnput:l680-0l-OS8-3671 Output:1730-0l-474-1646 UHlN Hoist (Overhaul} 2

-I 1730-01-474-1646 Hoist (TT&E} 10

1730-01-474-1646 Hoist (Repair) 10 1730-01-474-1646 Hoist (Overhaul} 2

$26.353.262.00

The estimated cost for repair is based on_the last option period of the previous contract (FA8509-07-D-0009) and inflated by

The estimated cost for overhaul is from the last procurement price and the Forecast Unit Price on the March 2013 D200A Summary computation, with a' inflation rate.

The Current RMSC/RMC Code: R3/R (per AFMC Form 762, Part IV, Block 28)

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND

OPEN COMPETITION

10 USC 2304(c)(l), as implemented by FAR 6.302-1, 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 CITIED ABOVE

The agency's minimum needs can only be satisfied by the unique services available from Goodrich, which are required to meet the AF need. This critical safety item assembly consists of a hydraulic powered winch manufactured and overhauled per the Original Equipment Manufacturer's (OEM) specifications to raise and lower Para-rescue Jumpers or survivors. The assembly has been uniquely designed by the OEM, Goodrich Corporation. This assembly has special characteristics. Non-compliance with the original design could cause failure of the hoist and/or cable, thus jeopardizing the mission and increasing risk to life for those being lowered or raised by this critical mechanism.

Goodrich Corporation is the only firm capable of providing repair and overhaul services in compliance with the original design.

The Government does not own the rights to the data required to repair and overhaul this assembly. No sources other than the OEM are qualified to repair and overhaul this particular item. On 13 Jun 11 and again on 8 May 13, the 411 SCMS contacted the OEM requesting an opportunity to purchase the applicable data rights; however, Goodrich responded on 14 Jun 11 and 8 May 13 respectively indicating that as a company, they have elected to not license or sell Intellectual Property on what they consider to be ( 1) key to the company's core competencies and (2) critical to its future business growth.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

This requirement will be synopsized on the Federal Business Opportunities (FedBizOpps) web page as required by FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE

In accordance with FAR 15.403-3, the contractor will be required to provide information other than certified cost or pricing data to support the government’s evaluation of the proposed cost.

The proposed commercial cost information will be negotiated by the government based on evaluation and recommendations from local pricing personnel supporting the program. The contract price will be negotiated in accordance with the procedures in FAR Part 12 ensuring the ultimate cost to the government 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

Market research was conducted pursuant to FAR 10.001 and 10.002. Market research tools were utilized by the government program management/engineering team. The team members searched trade journals, Central Contractor Registration, the Information Handling Service (IHS), and the Haystack Database, which details the history of design for the item. Also, an examination of available technical data was conducted. A Federal Logistic Information search was performed to determine if the item was available from a different vendor. Internet research was also conducted to reveal any other potential overhaul sources.

The following vendors were identified in the procurement history listed in IHS for the NSN’s listed in the Product/Service Description:

Company Cage Goodrich Corporation 3HRL4 Breeze-Eastern 08484 Triumph Gear Systems Inc 82402

Breeze-Eastern is a manufacturer for several hoists; however, the hoists that are being overhauled in this effort were manufactured by Goodrich. Although Breeze-Eastern’ s hoist interfaces with the weapon system via similar mounting, Breeze-Eastern does not have access to technical data for Goodrich hoists, nor will the company overhaul hoists that they did not manufacture.

Triumph Gear Systems is listed as a potential source in IHS; however, they do not have access to the required intellectual property of the rescue hoist, which is closely maintained by each respective OEM (Goodrich and Breeze-Eastern). Therefore, Triumph cannot be used as a source for this requirement.

Based on available information and engineering knowledge of the item and the aerospace industry, the only viable source for the overhaul of this part is Goodrich Corporation. No small business and no small disadvantage business opportunities can be utilized for this acquisition.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL

AND OPEN COMPETITION

There are no known applicable industry standards, regulations, trade journals, or process guides that are germane to the product or service to be acquired. The current design of these items has been successfully operational on the aircraft since the assembly was introduced to the weapon system. There is no known obsolescence or diminishing manufacturing sources of supply issues to be resolved. Additionally, there are no new technologies that provide alternates to the current design.

There are no known small business opportunities, unless the OEM employs or subcontracts work to small businesses. The acquisition strategy of the government is limited due to the proprietary design cannot be released outside the Government.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE

ACQUISITION

See Section VI 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

Per SORA 04-060A (HH-60G) and SORA 05-061 (UH-1N), HQ AFMC/A4DC has issued a final recommendation that the Goodrich Rescue Hoist remains as a contract source of overhaul. The OEM has not authorized any of the services that use their hoist to perform depot level repairs. Furthermore, the candidate organic depots do not have the technical data, training, or test equipment necessary for repair. The OEM does not wish to sell the intellectual property associated with this requirement to the AF at this time.

When conducting research to support the SORA determination, the cost to procure the required technical data was estimated at a rough order magnitude of $2.0M, and $1.8M to reverse-engineer/develop the test stand. This estimate does not include additional costs needed to convert tech data to an AF format and setup an organic repair line.

The Government will continue to seek opportunities to purchase data rights in order to potentially compete future product support services for this item; prior to exercise of Option II, we will ask again, elevating within the company.

Also, the 411 SCMS will work with AF cost experts between FY14 and FY16 to develop a Business Case Analysis (BCA) that evaluates and compares life cycle costs and the capability benefits of investing (or NOT investing) funds to acquire tech data through reverse-engineering. The AS-IS analysis will illustrates the pros, cons, and objective cost data of (1) NOT changing the current support strategy and (2) NOT investing to acquire tech data. The TO-BE analysis will illustrate the pros, cons, and objective cost data of taking deliberate actions to change the current support strategy by investing funds to obtain technical data via reverse-engineering. Comparing the END-STATE of each analysis will aid the AF in determining what strategy to execute in the best interest of the Warfighter and the life cycle of this asset’s support plan.

XII. CONTRACTING OFFICER’S CERTIFICATION

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

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

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 6.303-2(b)).