JA_SIGNED.pdf

COORDINATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

ACQUISITION >$12.5M-$85.5M

CONTRACTING ACTIVITY: AFLCMC/WIKAB

PR NUMBER: FD2060-13-31131

PROGRAM NAME/PROGRAM ELEMENT: TH-1H DEPOT LEVEL MAINTENANCE

ESTIMATED COST OF THE CONTRACT: $39.5M

TYPE PROGRAM: PEO

AUTHORITY: 10 U.S.C. 2304 (C)(1) AS IMPLEMENTED BY FAR 6.302-1

TYPE J&A: INDIVIDUAL

Program Manager:

Lisa Jackson/TH-lH PM

AFLCMC/WIUBA

DSN: 468-2330

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Local Legal Reviewer:

Competition Advocate:

Approved:

William Grun/PCO

AFLCMC/WIKAB

DSN: 468-4430

Charles Epperson

78 ABW/JAQ

DSN: 472-0575

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Kim McDonald

AFSC/PZC

DSN: 472-1088

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval (J&A) to request authority for other than full and open competition supports requirements generated for AFLCMC/WIU (SOF Rotary and Fixed Wing Division). The contracting office responsible for this action is AFLCMC/WIKAB (F A8552).

The Contracting Officer is William Grun. The Purchase Request number is FD2060-13-31131.

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

Due to the circumstances described herein, the activity requests authority to acquire the services described 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 requirement establishes the standard Depot Level Maintenance (DLM) repair requirements for the TH-1 H model aircraft located at Cairns Army Airfield AL. In accordance with Technical Order (TO) 00-24-4, DLM is required for each TH-1H airframe every 96 months. Additionally, a DLM capability is necessary to support scheduled and unscheduled depot level repairs.

Contract Field Teams will be needed as required. This acquisition will be processed as a new sole source contract to the Original Equipment Manufacturer (OEM), Bell Helicopter Textron (BHT), cage code 97499, a large business located at 600 East Hurst Blvd, Hurst TX 76053-8030.

The resultant contract will be a basic and four 1-year options and include Firm Fixed Price (FFP), Cost Plus Fixed Fee (CPFF), Cost Reimbursable No Fee (CRNF) and Time and Material (T&M) Contract Line Item Numbers. Requirement Approval Document #14070 was approved 21 Jun 12 by AFMC/CC and will support this requirement. This has been an ongoing Mod since Dec 04. This requirement is a logical follow-on to work in progress.

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

AGENCY'S NEEDS

This contract will be for a basic 1-year period with four 1-year options as outlined below:

The Period of Performance estimates and total program value for this requirement is specified below. The services specified in this requirement are performance based.

Basic Year Jan 14- Dec 14

3400 (CAM) $5.4M

Yearly Cost $5.4M Cumulative Total $5.4M

1st Option Year Jan 15 -Dec 15

3400 (CAM) $8.5M

Yearly Cost $8.5M Cumulative Total $13.9M

2nd Option Year Jan 16- Dec 16

3400 (CAM) $10M

Yearly Cost $1OM Cumulative Total $23.9M

3rd Option Year Jan 17- Dec 17

3400 (CAM) $1OM

Yearly Cost $1OM Cumulative Total $33.9M

4th Option Year Jan 18- Dec 18

3400 (CAM) $5.6M

Yearly Cost $5.6M Cumulative Total $39.5M

Total Estimated Program Value $39.5M

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 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 OF THE CONTRACTOR'S UNIQUE QUALIFICATIONS OR

NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY

CITED ABOVE TO PROVIDE THE REQUIRED SUPPLY/SERVICE (APPLICABILITY

OF AUTHORITY)

Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized. The Air Force's minimum needs can only be satisfied by the above capabilities demonstrated as follows:

BHT is the only source that has a complete data package, all associated data rights, and the proven processes and necessary test equipment to successfully accomplish this effort.

Ms. Loretta Wheeler, Product Development BHT, was contacted Jun 12 concerning the purchase of the drawings, engineering data, etc. , necessary to accomplish this effort. Ms. Wheeler stated the Army unsuccessfully attempted to procure the data for years. BHT has stated they would be willing to sell the data to the government under the following conditions: ( 1) the government would have to buy out BHT's helicopter division, (2) the data would be provided in an as-is format that is not compatible to government data format, and (3) BHT would not be liable for any data deficiencies. BHT was contacted again in Jan 13 and, to date, they have not responded to the government's request. Based on this, the government views the data as cost prohibitive and that BHT is not interested in selling the data.

The TH-1H represents the first state-of-the-art Air Force helicopter training platform due to its upgraded avionics suite and glass cockpit coupled with a robust commercial -703 engine. This contract must be issued on a sole-source basis in the interest of efficiency and continued on-time student pilot graduation to fill immediate critical pilot vacancies worldwide. There are synergies and efficiencies to be gained by awarding to BHT based on ongoing modification work, making them the only source poised and capable of providing an immediate and "just-in-time" DLM response to facilitate a very aggressive operations tempo and training requirement. Over the past 5 years, BHT has refined TH-1H maintenance processes allowing them to produce a quality product ahead of schedule. The time for a new contractor to establish a comparable support structure would severely impact not only daily, but also global, TH-1 H flight operations.

A formal program was initiated in Sep 04 for the modification of24 UH-1H aircraft to a TH-1H configuration. The scope of work consisted of a modification preparation in accordance with the Army Depot Maintenance Work Requirement, complete depot level overhaul, engineering, system integration, kit fabrication, trial installation, kit proofing, flight test support, training, production installation, technical data, provisioning, and an Interim Contractor Support capability. The requirement was increased to 28 aircraft in Jan 10. To date, 25 TH-1H aircraft have been delivered to Headquarters Air Education and Training Command (HQ AETC).

In Sep 12 the TH-lH became the single training platform and gateway for Air Force helicopter pilot production. Global pilot and helicopter demand is projecting student flow to increase to 91 by 2014 and continue to increase in the out years. The TH-1H Depot Source of Repair assignment was initiated in Oct 10. AFMC/A4DC made non-core designations for airframe and components and assigned candidate depot responsibility for the avionics to WR-ALC, multifunction displays to 00-ALC, and dynamic component and aircraft depot overhaul to Corpus Christi Army Depot (CCAD) in Dec 10. WR-ALC and 00-ALC declined the workload and concurred with the contractor repair recommendation in Mar 11 and in Apr 11, respectively.

CCAD declined the dynamic component and airframe workload inJun 11. CCAD's decision to non-concur left the System Program Office with no established DLM capability in place. Lack of coverage has the potential to adversely impact TH-1 H flight operations and ultimately Student Utility Pilot Training-Helicopter (SUPT-H). The rapid pace and critical demand for this aircraft requires that immediate action be taken to award this effort to an experienced team that is fully familiar with the TH-1 H modification process, structural platforms, and associated components.

As the TH-1 H modifier, BHT already has plant work stations in place to execute the requirement at time of award. Awarding this effort to any other source would severely hamper aircraft availability, severely impacting student pilot production--an unacceptable option for HQ AETC.

The government does not possess the source data or technical data required to perform a complete PDM on the TH-1 H. Therefore, at this time, only the OEM may be considered as a candidate depot facility. The contractor must have access to the most current OEM drawings, specifications, and GEM/government-approved parts. In addition to data, certain precision fixtures are required to accomplish the work including a tail boom alignment fixture and fuselage fixture specific to the TH-1 H airframe. The OEM is the only potential contractor with knowledge of modifications and statements of work made since the inception of the TH-1 H, some of which the AF does not have drawings or data to support. One example would be moisture buildup in the nose, an issue which threatens the avionics equipment critical to the safety and operation of the aircraft. BHT provided a solution during production and incorporated acceptance testing which included techniques and fixtures that are proprietary.

The knowledge and skills required to deliver this capability at time of award and within the requirements established by HQ AETC only resides within the already established and seasoned OEM. BHT is the only team poised and ready to execute this requirement at time of award.

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.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The cost/price proposal for the resultant contract will utilize FFP, CPFF, and CRNF rates deemed fair and reasonable through use of certified cost and pricing data. The contractor will be required to prepare their proposal citing CPFF and FFP rates for labor, material, and other direct costs. Travel will be priced on a CRNF basis. Any over and above costs will be handled on a T &M basis.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED

Market research was accomplished in accordance with FAR Part 10.002 procedures to find an appropriate system. An examination of the available technical data was conducted--none available. An Information Handling Service search was performed to determine if the item was available from different vendors. A Google search was used searching phrases such as "H-1 Depot Maintenance Facilities" or "Huey Depot Maintenance." HeliWorks, Inc. , and Overseas Aircraft Support, Inc., (OAS) were found during this search. Finally, Fed Biz Ops was utilized to find the contractual agreement between OAS and the Department of State (DoS) to perform PDM. The DoS was contacted to confirm. According to the DoS, OAS has not completed any of the PDM aircraft, and cannot comment on quality. Lastly, a vendor survey was conducted to determine if a facility with PDM experience was capable of accomplishing the TH-1H DLM.

Research concluded that there were a variety of contractors and aircraft manufacturers that provide an array of skills and capabilities necessary to perform DLM; however, the requirements of this effort dictate the need for a thorough understanding of the TH-1 H construct. At this time, only BHT may be considered as a candidate depot facility . The contractor must have access to the most current BHT drawings, specifications, and BHT/government-approved parts. In addition to data, certain precision fixtures are required to accomplish the work, including a tail boom alignment fixture and fuselage fixture specific to the TH-IH airframe. BHT also is the only potential contractor with knowledge of modifications and statements of work made since the inception ofthe TH-lH, some ofwhich the AF does not have drawings or data to support. One example would be moisture buildup in the nose, an issue which threatens the avionics equipment critical to the safety and operation of the aircraft. BHT provided a solution during production and incorporated acceptance testing which included techniques and fixtures that are proprietary.

Additionally, the TH-lH has a glass cockpit more advanced than other commercial or military H-1 variants. The assembly of this glass cockpit is extremely sensitive to wiring techniques, proper installation, etc., for which BHT has become proficient during the manufacture of the previous 25 aircraft. It should also be noted that a HeliWorks' representative claimed experience dealing with a glass cockpit for Huey II-like aircraft, but did not have experience with the TH-lH.

Our market research team maintains knowledge of the industry by reading publications, attending conferences, attending contractor capability briefings, and through contacts maintained within the industry and possesses extensive knowledge in the capabilities of vendors currently supporting the TH-lH.

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

OPEN COMPETITION

Delivery of the DLM capability by other sources was given consideration before and during development of the requirements. However, for the reasons cited herein, breakout of any of the support elements for competition is not possible or in the best interest of the government at this time. As a result ofBHT's unique capabilities and the processes they currently have in place, they are the only source available at this time and for the period of this task to deliver this requirement.

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 ACQUISITION FOR THE SUPPLIES OR SERVICES REQUIRED

Twenty five aircraft have been delivered to date. At this time, it is not in the best interest of the SUPT -H Program to interrupt the logical follow-on effort to develop different contract source(s).

The government does not possess adequate data to either enable an organic capability or provide an opportunity for competition.

This is a projected 5-year effort. As soon as we have knowledge of any potential follow-on requirement(s), we will again make attempts (at a higher level within the company) to procure a competitive data package.

XII. CONTRACTING OFFICER'S CERTIFICATION

The contracting officer's signature on the signature page evidences that he has determined this document to be both accurate and complete to the best ofhis knowledge and belief {FAR 6.303- 2(b)(12)}.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL'S CERTIFICATION

As evidenced by their signatures on the signature page, 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(c)}.