Redacted_J&A.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:

< $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: AFMC AFSC/PZAAA

Purchase Request / Local ID Number: FD2060-15-01176

Program / Project (and PE, if applicable): HH-60G/Rescue Hoist & Hoist Control Box

Program Type (PEO or Other Contracting): Other Contracting

Authority (include full title): 10 U.S.C.2304(c)(1), implemented by FAR 6.302-1 Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements

Estimated Contract Cost (including options): $12,724,919.82 J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date Project Lead / Program Mgr / Requiring Activity

Rhonda L Hurst

411 SCMS/GULAB 472-5579

Signature

Date Contracting Officer Mellissa Smith

AFSC/PZAAA 468-0151

Signature

Date

15 Jun 2017

Local Legal Reviewer Bradley Adams

AFMC 78 ABW/PZC 472-0569

Signature

APPROVAL (AFFARS 5306.304(a) )

Date Competition Advocate

Sharon C. Broughton

AFSC/PZC A 472-1090

Signature

I. Contracting Activity.

This Justification and Approval is to request authority for Other Than Full and Open Competition supporting requirements generated for the Air Force Sustainment Center (AFSC), 638th Supply Chain Management Group (SCMG), 411th Supply Chain Management Squadron (SCMS)/GULAB. The contracting agency for this requirement is AFSC/PZAAA. The purchase request number supporting this contracting action is FD2060-15-01176.

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

Due to the circumstances described herein, the activity requests authority to acquire the repair services listed in the 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 requirements contract with a basic year plus four (4) one-year Option Periods. This sole source requirement will be purchased from the following company:

Breeze-Eastern Corporation 35 Melanie Lane Whippany, NJ 07981 CAGE Code: 08484-1638 Small Business

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

This requirement is for repair or overhaul work based on an initial inspection/bench check for National Stock Number (NSN): 1680-01-399-1284GC, Part Number (P/N): BL27100-185, Noun: External Rescue Hoist and NSN: 1680-01-411-0562GC, P/N: EC10000-70, Noun: Control Box. The requirement is for repair and return of assets to the Government in serviceable condition while meeting the delivery schedule for all requirements. These assets are required to support the HH-60G Pave Hawk Helicopter in sustainment of the United States Air Force (USAF) Special Operation Forces (SOF) program.

The total estimated amount of this acquisition based on maximum best estimated quantity (BEQ) is

. The estimated cost is from the Forecast Unit Price March 2016 in D200. The out-year ordering period(s) unit prices have a 4% escalation factor applied to account for inflation. This effort will be funded with 4930 Defense Working Capital Funds (DWCF). The Period of Performance (PoP) will be 5 years (Basic plus 4 option periods) with contract projected to award 23 March 2018. The PoP is projected to be March 2018 through March 2023. See J&A Attachment A for projected Best Estimated Quantity (BEQ) and prices.

The NSNs were evaluated and assigned Repair Method Code (RMC)/Repair Method Suffix Code (RMSC) R3/R. RMC (R3): is to repair for the second or subsequent time, directly from the actual manufacturer.

RMSC R: The Government does not own the data or the rights to the data needed for contract repair from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights.

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

10 U.S.C. 2304(c)(1), 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 cited above (applicability of authority).

The agency's minimum needs can only be satisfied by the unique supplies or services available from only the above cited source, which possesses unique capabilities demonstrated as follows:

The External Rescue Hoist, NSN 1680-01-399-1284GC, is a Critical Safety Item (CSI) assembly consisting of a hydraulic powered winch manufactured and overhaul or repaired per the Original Equipment Manufacturers (OEM) specifications. It is used to raise and lower Para-Rescue Jumpers or survivors. The Control Box, NSN 1680-01-411-0562GC, provides an electrical control interface between an operator and the External Rescue Hoist. These assemblies are highly specialized and have been uniquely designed by the OEM, Breeze-Eastern Corporation. These items are highly specialized because of their special characteristics, which if not conforming to the original design of the part, could cause failure of the hoist or cable to support or lift personnel. Failure of these items could result in the loss of life of a Para-Rescue Jumper or survivor(s) being rescued. The External Rescue Hoist and Control Box are currently being supported by contract FA8524-12-D-0009. This contract expires 20 September 2017.

The Government does not own the rights to the drawings and technical data required to overhaul or repair these assemblies. No source other than the OEM is qualified to manufacture, repair or overhaul these items as the technical data is proprietary to the OEM. We have not experienced any problems with past OEM repairs of these assets.

On 19 August 2016, the Government emailed Breeze-Eastern Corporation inquiring as to their willingness to sell data rights to the Government. The contractor responded with a declination stating that they are not presently open to sell the technical data rights.

The current design of these items have enabled successful operations on the aircraft since introduction of the assemblies. There are no known obsolescence or diminishing manufacturing sources of supply. In addition, there are no new technologies insertion opportunities associated with these assets. The market has been analyzed several times in past years.

The 411th SCMS/GULAB Integrated Process Team (IPT) and System Program Office Engineers conducted cost analysis to determine savings and Return On Investment (ROI) from a competitive versus sole source effort. Our cost analysis determined it may be cost effective to reverse engineer these items. These items have been submitted as candidates for reverse engineering to the Strategic Alternate Sourcing Program Office. The reverse engineering projects are contingent on receipt of AFLCMC CSAG-S/GSD Sustaining Engineering Project funding. The team performed a reverse engineering cost analysis. The analysis was based on a requirement of three (3) senior level engineers performing the reverse engineering effort. These are highly specialized systems that were designed specifically for the HH-60G pavehawk Helicopter, therefore due to the complexity require knowledgeable experienced engineers for a reverse engineering effort.

The reverse engineering effort is estimated to cost of . This cost estimate is based on expert engineering knowledge of the rescue and control box. The contracting lead time and delivery of prototype (including flight test approval), and delivery of technical data package would take an estimated three (3) years. This estimate is based on technical subject matter expert and extensive engineering knowledge of the rescue hoist and control box. This three (3) year lapse in repair coverage would result in un-serviceable hoist and control boxes which could result the loss of life of a Para-Rescue Jumper or a survivor being rescued. This would cause an unacceptable delay in meeting mission needs.

The cost analysis showed a positive ROI. If the reverse engineering effort began in CY2017 and was completed by CY2021, the initial Non-Recurring Engineering (NRE) investment could be recovered by CY2021 if the Government achieved a savings from competition. The life cycle of the HH-60G is estimated to end in CY2025.

Accordingly, Breeze-Eastern Corporation is the only source capable of providing the services described in Section III above. Without these assets we could experience unacceptable delays that would affect the U.S.

Air Force in fulfilling the requirements and could result in loss of life.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as 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. Any source responding to the Government as a result of the synopsis will be identified to the prime contractor as a potential source for subcontracting possibilities.

A Request For Information (RFI) was posted under Solicitation Number: FD2060-15 --01176 on FedBizOpps on 4 April 2016 with responses due by 4 May 2016. The RFI requested responses from potential sources that possess the expertise, capabilities, and experience to meet qualification requirements to repair the HH-60G helicopter External Rescue Hoist and Hoist Control Box. No responses were received from the RFI.

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

The overall cost of this acquisition will be fair and reasonable to the Government. In accordance with FAR 15.403-4, the contractor will be required to provide certified cost or pricing data to be used in supporting the Government's evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types and quantities of material, other direct costs, and direct and indirect rates will be negotiated by the Government based on recommendations from the 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 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 separately for the External Rescue Hoist and Control Box pursuant to FAR 10.001 and 10.002. The market research was completed for both requirements on 13 June 2016. The following market research tools were utilized by the Government program management and engineering teams:

The team members searched companies declaring NAICS 336413, query was ran on Thomasnet.com

(http://www.thomasnet.com/) which shows no matches and Haystack Database (http:// haystack.ihserc.com/) which details the history of design for the item and that “Administration” was searched which produced no results. Query was run on the Dynamic Small Business Search (DSBS) (http:// dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm/) declaring NAICS 336413, which shows no matches. The Federal Logistics Information Services (FED LOG) (FLIS) search was conducted to determine if the service could possibly be provided by an alternate source of repair. The query produced a negative result.

A RFI was posted on FedBizOpps website on 4 April 2016 with responses due by 4 May 2016. Results from the RFI did not produce any responses.

The External Rescue Hoist and Control Box is designed, qualified, and manufactured for the HH-60G Helicopter. There are no commercial products that can fulfill our requirement.

These assets are non-developmental item as defined by FAR Part 2 because it was developed exclusively at the expense of the OEM. These NSNs are designed, qualified and manufactured for the Rescue Hoist and Control Box and its military utilization. The Screening Analysis Worksheet (SAW) Report that corresponds to this requirement indicates that the items are not commercial.

The market research concluded all drawings are proprietary to Breeze-Eastern Corporation. They are the only source that has the technical data, tools and expertise necessary to manufacture and repair the External Rescue Hoist and Control Box to meet the Government requirements.

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

None.

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.

The External Rescue Hoist and Control Box are installed on the HH-60G Pave Hawk Helicopter. Both assemblies were designed and manufactured by Breeze-Eastern Corporation. The technical data for these assemblies is proprietary to Breeze-Eastern Corporation. This includes intellectual property whose development was funded privately by the vendor. In August 2016, Breeze-Eastern Corporation declined offering the sale of the technical data or data rights to the Government.

In order to overcome barriers to competition, the 411th SCMS/GULAB IPT and System Program Office Engineers conducted cost analysis on pursuing a reverse engineering effort. The analysis concluded a potential ROI after the NRE is recovered. If the reverse engineering effort began in CY2017, the NRE could be recovered by CY2021 if the Government achieved a 10% savings from competition. The life cycle of the HH-60G Pave Hawk Helicopter program is projected through CY2025 therefore a reverse engineering effort may be feasible. The 411th Logistic Manager has submitted this effort as a candidate for reverse engineering to the Strategic Alternate Sourcing Program Office for approval for use of AFLCMC

CSAG-S/GSD Sustaining Engineering Project Funds. In the event funding is allocated, the Government will proceed with the reverse engineering effort.

In addition, the IPT will contact Breeze-Eastern Corporation prior to each ordering period to inquiry of their interest in selling the technical data or data rights to the Government.

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 (our) signatures above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.