J&A_Redacted.pdf

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

FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLY14 Nov 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: AFSC/PZAAA

Purchase Request / Local ID Number: FD2060-17-01317

Program / Project (and PE, if applicable): Repair/Overhaul of Internal Rescue Hoist on UH-1N and Aircraft Mounted Winch on HH-60 Helicopters

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

16 Feb 2018

Project Lead / Program Mgr / Requiring Activity John Edwards

411 SCMS/GULA / DSN 468-7151

Signature

Date

20 Feb 2018

Contracting Officer Howard C. Carroll

AFMC/PZAAA / DSN 468-0152

Signature

Date

21 Feb 2018

Local Legal Reviewer Bradley Adams

78 ABW/JA / DSN 472-0569

Signature

Date

26 Feb 2018

Competition Advocate Kimberly McDonald

AFSC/PZC / DSN 472-1088

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

12 Mar 2018

Head of Procuring Activity (delegated) Anthony J. Baumann, SES (SCCO)

AFSC/PK / DSN 339-3900

Signature

FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLY14 Nov 2017

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 activity for this requirement is AFSC/PZAAA. The purchase request number supporting this contracting action is FD2060-17-01317.

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 one-year plus four (4) one-year Ordering Periods. The period of performance (PoP) is projected to be 1 May 2019 through 30 April 2024. This sole source requirement will be purchased from the following company:

Goodrich Corporation 2727 Imperial Hwy Brea, CA 92821-6713

CAGE: 3HRL4

Large Business

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

This requirement is for the repair/overhaul of Internal Rescue Hoists on UH-1N and Aircraft Mounted Winch on HH-60 Helicopters. The planned acquisition is a five year contract including a basic one year period and four one year ordering periods with an estimated value of

These items are used on the United States Air Force (USAF) HH-60G and UH-1N fleet. The end of service life for the HH-60G is 2028 while the end of service life for the UH-1N is 2030.

National Stock Number (NSN) 1680-01-609-3765, Part Number (PN) 44314-10-104 is the aircraft mounted winch. The aircraft mounted winch is externally mounted above the cabin on the right side of the HH-60G aircraft. NSN 1680-01-445-8278, PN 42305-17 is the drum winch installed on the HH-60G. NSN 1730-01-474-1646, PN 42305-3 is the internal rescue hoist for the UH-1N. The Screening Analysis Worksheets indicated Repair Method Code (RMC)/Repair Method Suffix Code (RMSC) 3/R for each NSN. The RMC 3 indicates repair for the second or subsequent time, directly from the actual manufacturer. The RMSC R indicates the Government does not have adequate data, lacks rights to data, or both needed to contract repair of these parts 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.

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

The estimated cost is based on the Forecast Unit Price March 2017 in D200. The out-year ordering period(s) unit prices have a 4% escalation factor applied to account for inflation.

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FOR OFFICIAL USE ONLY14 Nov 2017

The PoP will be 5 years (Basic plus 4 ordering periods) with projected contract award May 1, 2019.

The PoP is projected to be May 2019 through April 2024. Deliveries are expected to begin 120 days After Receipt of Order (ARO), or delivery of assets, whichever is less.

Basic

NSN Part Number Quantity Price Total Price

1680-01-609-3765 44314-10-104 Repair 35

1680-01-609-3765 44314-10-104 Overhaul 36

1680-01-445-8278 42305-17 Overhaul 5

1730-01-474-1646 42305-3 Repair 8

1730-01-474-1646 42305-3 Overhaul 9

Total

Ordering Period I

NSN Part Number Quantity Price Total Price

1680-01-609-3765 44314-10-104 Repair 35

1680-01-609-3765 44314-10-104 Overhaul 36

1680-01-445-8278 42305-17 Overhaul 5

1730-01-474-1646 42305-3 Repair 8

Ordering Period II

1680-01-609-3765 44314-10-104 Repair 35

1680-01-609-3765 44314-10-104 Overhaul 34

1680-01-445-8278 42305-17 Overhaul 5

1730-01-474-1646 42305-3 Repair 8

Ordering Period III

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FOR OFFICIAL USE ONLY14 Nov 2017

1680-01-609-3765 44314-10-104 Repair 34

1680-01-609-3765 44314-10-104 Overhaul 30

1680-01-445-8278 42305-17 Overhaul 5

1730-01-474-1646 42305-3 Repair 8

Ordering Period IV

1680-01-609-3765 44314-10-104 Repair 34

1680-01-609-3765 44314-10-104 Overhaul 35

1680-01-445-8278 42305-17 Overhaul 5

1730-01-474-1646 42305-3 Repair 8

1730-01-474-1646 42305-3 Overhaul 9

Grand Total

Depot Maintenance Interservice (DMI) document #04-060A was issued on 24 July 2009. The DMI decision designated the workload as contract repair, not considered part of core workload capability.

The contractor previously provided repair coverage on contract FA8524-14-D-0014 which will expire on 30 April 2019. This new requirement will be a follow-on contract.

This effort will be funded with Materiel Support Division dollars.

IV. Statutory authority permitting other than full and open competition.

10 U.S.C. 2304(c) (1), as implemented by FAR 6.302-1, required by FAR 6.303-2(b) (4).

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 Government's minimum needs can only be satisfied by the unique services and capabilities from Goodrich Corporation. These components and the repair/overhaul services required are considered highly specialized due to the performance specifications of each item. The winches and hoist are a military unique application to the HH-60G and UH-1N helicopter. The components are systems used on the specified platforms but are considered stand alone equipment for the platforms. Commercial applications do not have the same rigorous specifications to retrieve loads at a certain weight while retrieving the weight at a specific minimum speed. In addition, the winches and hoists are required to lift a specific amount of weight at a minimum speed within a wider specified angle. Commercial applications retrieve lower weights, at a slower speed and at a shallower angle. The components have

FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLY14 Nov 2017 military unique hardware and subassemblies which allow the winches and hoist to meet the performance requirements. There are no commercial applications for these specific part numbers.

Similar commercial winches and hoists are used on other aircraft by civilian operators. Although this is a unique military application, these components can be repaired or overhauled commercially.

Goodrich Corporation is the Original Equipment Manufacturer (OEM) and maintains proprietary data rights to the winches and hoist. Goodrich Corporation is the only source with the required test equipment and repair data capable of providing the services identified in section III that meets the necessary minimum requirement.

At this time, the Government does not own the necessary technical data package to meet the requirement. On 22 August 2017, the Government queried whether Goodrich Corporation would provide or sell the required repair and testing data for these items via e-mail. Goodrich Corporation responded via e-email on 8 September 2017, they are unwilling to sell or provide this information to the Government. The USAF is the only entity which operates the military configuration HH-60G and UH-1N helicopters. The HH-60G fleet is expected to remain in service until 2028 and the UH-1N fleet is expected to remain in service until 2030.

The fleet of 68 UH-1N Helicopters are retiring and will be replaced by a new weapon system through competition. Retirement of the UH-1N fleet is estimated to begin CY2018, and continue draw down to zero USAF inventory by CY2030. By CY2025, 36 of Air Force Global Strike Command's fleet of 41 UH-1N Helicopters are schedule to retire. The remaining 32 UH-1Ns are scheduled to retire by CY2030. The retirements will result in a rapid and steady increase in asset availability with more rescue hoists supporting fewer helicopters (minimizing or eliminating need for future production).

The fleet of 98 HH-60G Helicopters are retiring and will be replaced by the new HH-60W weapon system. The HH-60G fleet is estimated to begin retiring in CY2020, and continue to draw down to zero USAF 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 rescue hoists supporting fewer helicopters (minimizing or eliminating need for future production).

The current estimate to reverse engineer NSN 1680-01-609-3765, PN 44314-10-104;

NSN 1680-01-445-8278, PN 42305-17 and NSN 1730-01-474-1646, PN 42305-3 is five years and would cost an estimated . This equates to two engineers working a total of 5 years to develop repair procedures and technical data packages. The current estimate is based on a similar requirement to reverse engineer the winches and hoist. The effort was to reverse engineer the legacy hoist and winch which fielded for the HH-60 and UH-1N. This estimate does not include testers or stands to perform load bearing tests to ensure each Line Replaceable Unit (LRU) performs to the required specifications.

Based on a break even analysis performed by AFSC/FZ-C at the 411 SCMS's request, it would take 21 years to recoup the estimated costs for establishing other repair capability. AFSC/FZ-C provided a cost estimate for the reverse engineering effort. The service life for the HH-60G is 2028 while the service life for the UH-1N is 2030. Since the remaining service life for the HH-60G is 11 years from now, the cost analysis concludes the Government would only be approximately half way to recouping the investment to reverse engineer NSN 1680-01-609-3765, PN 44314-10-104 and NSN 1680-01-445-8278, PN 42305-17. The UH-1N service life is 2030, which is 13 years from now.

Again, the cost analysis concluded the Government would be approximately half way to recouping the

FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLY14 Nov 2017 investment to reverse engineer NSN 1730-01-474-1646, PN 42305-3. The Government would not recoup the investment to establish a repair capability via contractual competition until after both platforms have retired.

The Government last awarded a contract for repair services on 1 May 2014. Contract number FA8524-14-D-0014 was awarded to Goodrich Corporation (CAGE 3HRL4) for five years. The contract value was The RMC/RMSC was 3/R. All three of the components in this section were included on the FA8524-14-D-0014 sole source contract. Goodrich Corporation performed component repair and attesting to serviceability and that the LRUs met the performance requirements.

Accordingly, Goodrich Corporation is the only firm capable of providing the supplies and 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.

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

The requirement will be synopsized in Federal Business Opportunities (FedBizOpps) in accordance with FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Although the Government does not own data to support acquisition of this repair effort from any other source, any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

A Request for Information (RFI) was posted to FedBizOpps on 26 September 2017 with a response date of 26 October 2017 under Solicitation Number FA8524-17-R-1317. The RFI requested responses from potential sources that possess the expertise, capabilities, and experience to meet qualification requirements to repair the UH-1N and HH-60G helicopters Rescue Hoist. Two vendors responded to RFI FA8524-17-R-1317. Goodrich Corporation responded using the RFI format as posted. Goodrich answered all questions satisfactorily and completely. Goodrich also confirmed historical and current day repair capability for the listed NSNs. Regent World Incorporated expressed interest in the RFI posting. The Regent World Inc. response consisted of promotional materials and a cover letter.

Regent World Inc. did not use the RFI in their response. The Regent World Inc. response did not address the questions contained in the RFI. Regent World Inc. stated no experience or abilities relevant to the requirement.

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. The Government will use historical pricing data to evaluate the contractor's proposal. The historical data includes previous proposals and years of repair price data maintained in Government records. The information will be useful in evaluating the contractor's proposal based on 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. 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.

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

The Integrated Product Team (IPT) performed market research in accordance with FAR Part 10 on 22 May 2017. System for Award Management (SAM at Website: https://www.sam.gov) was used to find the North American Industry Classification System (NAICS) code for the Original Equipment Manufacturer (OEM). The current NAICS is 488190 and confirmed by using http://www.census.gov/ eos/www/naics/. In addition, the IPT searched Google and ThomasNet https://www.thomas.net.com using `rescue hoist.' JEDMICS and PDM Gateway were searched using NSN and PNs to determine what drawings and data are available. The IPT searched SBA Dynamic Small Business (SDSB Website: http://dsbs.sba.gov) using `hoist.'

As stated in section VI above, a RFI was posted on 26 September 2017 and closed on 26 October 2017.

Market research revealed that the hoist and winches can be commercially repaired and overhauled.

Vendor survey revealed that out of 35 possible vendors surveyed, only Goodrich Corporation owns the required proprietary data for component repair, overhaul and test. The remaining 34 vendors did not possess the data or have access to the proprietary data. The OEM is the only vendor known to own all required data to repair, overhaul or test the LRUs.

On 6 and 7 November 2017, the IPT contacted the businesses identified in the SBA search to determine if the company could perform the required service without the repair and testing data for each NSN. All companies responded negatively to the request stating they do not own the required repair and testing data to perform the desired service.

The market research indicates a sole source acquisition using FAR Part 12 Commercial procedures.

There are no known contractual vehicles in place to satisfy the Government's requirement. Goodrich Corporation indicated the company still performs the required services. Goodrich Corporation is the only known vendor who can meet this agency's need.

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.

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.

Despite fleet retirements in 2028 and 2030, the Government will continue market research searching for other vendors. As part of market research, the Government will conduct RFIs annually when executing an ordering period and will perform market research for any follow on contract action. In

FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLY14 Nov 2017 addition, the Government will request all necessary data from the OEM.

The barrier to competition during the acquisition effort of contract FA8524-14-D-0014 still exists.

The barrier is lack of data and the contractor's refusal to sell or provide all required data.

The current estimate to reverse engineer NSN 1680-01-609-3765, PN 44314-10-104;

NSN 1680-01-445-8278, PN 42305-17 and NSN 1730-01-474-1646, PN 42305-3 is five years and would cost an estimated This equates to two engineers working a total 5 years to develop repair procedures and technical data packages. The current estimate is based on a similar requirement to reverse engineer the winches and hoist. This estimate does not include testers or stands to perform load bearing tests to ensure each LRU performs to the required specifications.

Based on a break even analysis performed by AFSC/FZ-C on 17 October 2017 at the 411 SCMS's request, it would take 21 years to recoup the estimated costs for establishing other repair capability.

AFSC/FZ-C provided a cost estimate for the reverse engineering effort. The service life for the HH-60G is 2028 while the service life for the UH-1N is 2030. Since the remaining service life for the HH-60G is 11 years from now, the cost analysis concludes the Government would only be approximately half way to recouping the investment to reverse engineer NSN 1680-01-609-3765, PN 44314-10-104 and NSN 1680-01-445-8278, PN 42305-17. The UH-1N service life is 2030, which is 13 years from now. Again, the cost analysis concluded the Government would be approximately half to recouping the investment to reverse engineer NSN 1730-01-474-1646, PN 42305-3. Therefore, the Government would not recoup the investment to establish a repair capability via contractual competition until after both platforms have retired.

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