Redacted_J&A_FA8524-19-D-0002.pdf

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

FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLY13 Sep 2017

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.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Funding level for this acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: AFMC AFSC/PZAAA

Purchase Request / Local ID Number: FD2060-17-00934

Program / Project (and PE, if applicable): HH-60G / Internal Aircraft Fuel Tank System (IAFTS)

Program Type (PEO or Other Contracting): Other Contracting

Authority: 6.302-1 – 10 USC 2304(c)(1), 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 Project Lead / Program Mgr / Requiring Activity Chris Boarman

411 SCMS/GULAB, DSN 468-2730

Signature

Date Contracting Officer Curtis Stoner

AFSC/PZAAA, DSN 468-0153

Signature

Date

07 Feb 2018

Local Legal Reviewer Bradley Adams

78 ABW/JA, DSN 472-0569

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

13 Feb 2018

Competition Advocate Elizabeth F. Kennedy

AFSC/PZCA, DSN 472-1102

Signature

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I. Contracting Activity.

This Justification and Approval (J&A) 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 activity for this requirement is AFSC/PZAAA. The purchase request number supporting this contracting action is FD2060-17-00934.

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

Due to the circumstances described herein, this activity requests authority to contract HH-60G Pave Hawk Helicopter Internal Aircraft Fuel Tank System (IAFTS) overhaul capability 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 (FFP) Indefinite Delivery Requirements type contract, with a one-year basic plus four (4) annual out-year ordering periods. The period of performance (PoP) is anticipated to be 07 March 2019 through 06 March 2024.

This sole source requirement will be purchased from the following company:

Robertson Fuel Systems, LLC

CAGE: 1T765

800 W. Carver Rd STE 101 Tempe, AZ 85284-5264 Large Business

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

This requirement is to acquire contractor depot level overhaul services for the IAFTS, National Stock Number (NSN) 1560-01-391-8409GC in support of sustainment for the HH-60G Pave Hawk helicopter.

The overhaul will require the contractor to restore the unserviceable assets to serviceable condition using contractor developed overhaul acceptance test procedures. The extent of overhaul required to ensure a serviceable “like-new” condition end item is determined by the induction inspection, test, and any required disassembly. The serviceable asset must conform to the Original Equipment Manufacturer (OEM), Robertson Fuel Systems, data and specifications. The overhaul requirements for this effort for sustainment is specific to the United States Air Force (USAF) Special Operations Forces (SOF) program and are depicted below in Table 1.

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TABLE 1

Basic

NSN BEQ Unit Price Extended Price

1560-01-391-8409 TT&E/NFF/BER 10

1560-01-391-8409 Major Overhaul 2

1560-01-391-8409 Intermediate Overhaul 7

1560-01-391-8409 Minor Overhaul 1

TOTAL

1st Ordering Period

NSN BEQ Unit Price Extended Price

1560-01-391-8409 TT&E/NFF/BER 10

1560-01-391-8409 Major Overhaul 2

1560-01-391-8409 Intermediate Overhaul 7

1560-01-391-8409 Minor Overhaul 1

2nd Ordering Period

NSN BEQ Unit Price Extended Price

1560-01-391-8409 TT&E/NFF/BER 10

1560-01-391-8409 Major Overhaul 2

1560-01-391-8409 Intermediate Overhaul 7

3rd Ordering Period

NSN BEQ Unit Price Extended Price

1560-01-391-8409 TT&E/NFF/BER

1560-01-391-8409 Major Overhaul

1560-01-391-8409 Intermediate Overhaul

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4th Ordering Period

NSN BEQ Unit Price Extended Price

1560-01-391-8409 TT&E/NFF/BER 10

1560-01-391-8409 Major Overhaul 2

1560-01-391-8409 Intermediate Overhaul 7

1560-01-391-8409 Minor Overhaul 1

TOTAL

TOTAL ESTIMATED VALUE

The total estimated contract value for this effort is . Currently, a Request for Quote (RFQ) is issued for each overhaul requirement against the current sustainment contract, FA8509-14- D-0009 in which the estimated Unit Overhaul Cost (UOC) is based on an average of the past 15 IAFTS overhauls executed. The overhauls include Minor, Intermediate or Major level overhauls. This follow-on contract will include a one-year basic period and four (4) annual out-year ordering in which a 4% cost inflation factor was applied. The anticipated POP will be from 07 March 2019 through 06 March 2024. This requirement will be funded with Working Capital Funds (97X4030).

NSN 1560-01-391-8409GC was screened and assigned Repair Method Code (RMC)/ Repair Method Suffix Code (RMSC) R3/Z. A RMC of “R3” means repair/overhaul for the second or subsequent time, directly from the actual manufacturer. A RMSC “Z” means the Government does not own the data or the rights to the data needed to contract repair/overhaul of this part from additional sources. This part is a commercial / non-developmental / off-the-shelf item. Commercial item descriptions, commercial vendor catalog or price lists or commercial manuals assigned a technical manual number apply.

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. This acquisition will follow procedures of FAR 13.5, “Simplified Procedures for Certain Commercial Items.”

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 overhaul of the IAFTS is considered highly specialized. The 185 gallon IAFTS is a Flight Safety Critical item. It is secured in the HH-60G Pave Hawk helicopter cabin and consists of a fiberglass and aluminum honeycomb outer container, an internal bladder, and an in-tank plumbing module. Each fuel IAFTS contains Flight Safety Critical parts, such as break-away shutoff valves, and fuel quantity sensor probes which are proprietary to the OEM, Robertson Fuel Systems LLC. The internal fuel bladder is a specialized container constructed of rubberized cloth that is .50 calibers, 14.5 mm, and

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20.0 mm ballistically self-sealing, and incorporates a crash resistant metal fitting. Engineering drawings, in-depth knowledge and expertise is paramount for performing a complete overhaul of this Flight Safety Critical fuel tank assembly. Failure of any one of these Flight Safety Critical parts, such as break-away shutoff valves and fuel quantity sensor probes could result in the loss of aircraft as well as the lives of crew members.

The HH-60G Pave Hawk fleet of 98 helicopters is estimated to begin retiring in CY2020 and continue draw down to zero AF inventory by CY2028. By CY2025, 48 of the Air Force's fleet of 98 HH-60G helicopters are scheduled to retire. This will result in a rapid and steady increase in asset availability with more IAFTS supporting fewer helicopters. Due to the age of the helicopters, heightened flying hours, and wear from continuous combat missions in Iraq, Afghanistan and other war contingency locations, failure rates are anticipated to rise during the HH-60G draw down.

Depot level overhaul for the IAFTS has been accomplished through contract overhaul by the OEM, Robertson Fuel Systems LLC (previously Robertson Aviation, LLC) since its inception (FY2000) to increase the fuel capacity and range of the HH-60 helicopter. The Government did not procure overhaul instructions for the IAFTS upon inception and currently do not possess a complete data package to overhaul. The current overhaul contract, FA8524-14-D-0009, was awarded sole source to Robertson Fuel Systems on 07 March 2014 and is set to expire on 06 March 2019.

As stated previously the Government does not have access to overhaul instructions and have therefore continued to engage with the OEM on the procurement of overhaul technical data. The Government contacted the OEM on 12 Oct 2012, 08 Oct 2015 and most recently on 16 May 2017 to inquire if they would be willing to sell the needed overhaul data; Robertson Fuel Systems LLC has continued to state they are not willing to release control of their intellectual property.

The Government has determined that award to any other source would result in substantial duplication of cost that is not expected to be recovered through competition. A reverse engineering effort is estimated to cost and take three years to complete a technical data package (TDP). The cost estimate is based on the following:

• Engineer Services = per man year individuals =

The estimated time of three years is based on the time required to complete the reverse engineering effort for the HH-60G Fuel Quantity Indicator (FQI), which took five years to complete. The FQI reverse engineering effort experienced technical difficulties which caused delays by two years. The Integrated Production Team (IPT) estimates a reverse engineering effort for the HH-60G Fuel Tank would take three years should the same or similar technical difficulties not arise.

If the Government were to pursue a reverse engineering effort, the first overhauled assets by a new source would likely not occur until CY2022-CY2025. The basis for this timeline projection is as follows:

1. Lead time to Reverse Engineer the system once a contract is awarded

a. Lead time to deliver Drawings / Technical Data =

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b. Lead time to deliver test specification and overhaul data =

c. Total estimated Reverse Engineering Lead Time =

2. Competitive contract to procure overhaul services

a. Lead time to award F&O contract =

b. Once awarded, lead time for First Article and Test Report =

c. Deliver assets =

d. Total estimated Lead Time =

3. Total time to receive overhauled asset (Reverse Engineer + delivery) =

The pursuit of a reverse engineering effort would incur unacceptable time delays due to test data development, first article testing, flight testing, training and qualifying personnel, and time required for newly developed IAFTS to meet full capabilities. The estimated end of life cycle for the IAFTS is CY2028. Assuming a competitive acquisition would result in a reduction in the estimated UOC, costs analysis indicates the total Return On Investment (ROI) from CY2021 to CY2028 would yield $507,728. Therefore, ROI would not expect to recover the initial Non-Recurring Engineering (NRE) investment by the time the system is expected to retire in CY2028.

Accordingly, Robertson Fuel Systems, LLC is the only firm capable of providing the services described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

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

A Sources Sought (SS) / Request for Information (RFI) was posted on the Federal Business Opportunities (FedBizOpps) web site on 23 May 2017 under solicitation number FA852417R0028.

Responses were due by 07 June 2017. The RFI requested responses from interested vendors capable of overhauling the IAFTS. One vendor who was not the incumbent responded to the RFI on 24 May 2017 stating they “are a small business interested in this opportunity” however they did not submit a Contractor Capability Survey describing their company's capabilities pertaining to overhaul of the IAFTS. The vendor's capability was evaluated and they were determined not capable based on lack of proprietary data to perform the IAFTS overhauls.

This requirement will be synopsized on the FedBizOpps, as a notice of contract action in accordance with FAR 5.201. Although the Government does not own data to support the repair effort from any other source, any source that expresses interest as a result of this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

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 based upon FAR 12 negotiation procedures using limited price and cost analysis. This acquisition will follow procedures of FAR 13.5, “Simplified Procedures for Certain Commercial Items.” Pricing methodologies to be used may

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FOR OFFICIAL USE ONLY13 Sep 2017 include reviewing publicity offered catalogs, comparison to historical contractor sales, and/or analysis of limited cost and pricing information provided by the contractor. In the event that limited cost and pricing information is made available, the Government negotiation objective will be developed using local technical analysis and use of direct and indirect rate factors recommended by the Defense Contracting Management Agency (DCMA).

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 and completed on 06 November 2017 in accordance with FAR Part

10.001. The following Market research tools and techniques were utilized by the Government program management and engineering team:

A SS / RFI was posted on the Federal Business Opportunities (FedBizOpps) web site on 23 May 2017 under solicitation number FA852417R0028. Only one interested vendor who was not the incumbent responded. The vendor was determined not capable.

Team members searched the internet using Thomasnet.com (http://www.thomasnet.com/) for any potential vendors that may possess the capability to perform this effort. These internet web searches produced a total of three companies when using search criteria “Aircraft and Aerospace Fuel Tanks”.

However none of these companies possess the proprietary data necessary to overhaul this asset.

Market research included checking for any available data for this asset from the Joint Engineering Data Management Information Control System (JEDMICS) repository at https://jedmics.af.mil/ webjedmics/index.jsp . Results showed the Government does not own any data to allow competing this effort or to establish an Organic Depot Level Overhaul capability.

A search for Small Businesses that may possess capabilities to overhaul this asset was conducted using the Dynamic Small Business Search (DSBS) web site at http://dsbs.sba.gov/dsbs/search/ dsp_dsbs.cfm. Search criteria used was the NAICS Code 336413 and Key Word “HH-60 Fuel Tank”.

The search produced no results.

The market research concluded the Government has no alternate vendor who is capable, equipped, or qualified to successfully accomplish the objectives of this requirement. Based on available data and engineering knowledge of the item, Robertson Fuel Systems LLC is the only capable source.

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

None

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

See Section VI above.

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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.

A reverse engineering effort is estimated to cost for development of a new TDP. This development is estimated to take three (3) years to complete. In addition to the TDP, a new vendor would need an in-depth knowledge and expertise of the IAFTS since it is a Flight Safety Critical Fuel Tank Assembly. Failure of any one of these Flight Safety Critical parts could result in the loss of aircraft as well as the lives of crew members. Delivery of the first overhauled assets by a new vendor would likely not occur until CY2022-CY2025. Based on a 15% savings from competition, a ROI is not expected until after the retirement of the IAFTS in CY2028. The low demand for overhaul of the IAFTS along with no obsolescence issues makes it an unlikely candidate for reverse engineering.

The Government engaged the OEM on 12 Oct 2012, 08 Oct 2015, and 16 May 2017 to inquire if they would be willing to sell the technical data; however, they were not willing to release control of their intellectual property.

As indicated in the prior J&A, the program team has continued to engage with the OEM about the procurement of technical data as a means of overcoming barriers to competition. While the current market continues to indicate a sole source environment for overhaul of the IAFTS, the program office will continue to assess the contractor's willingness to sell the technical data to the Government. An inquiry will be sent to the contractor on an annual basis prior to each ordering period. If the contractor indicates interest in selling the technical data and provides a quote, the program office will take action to obtain funding for the acquisition of the technical data if it is determined to be an economical decision and in the best interest of 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.