Final_J&A_Redacted.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: AFLCMC/WIUKB

Purchase Request / Local ID Number: FD2060-16-94422

Program / Project (and PE, if applicable): H-1 Engineering Support Services

Program Type (PEO or Other Contracting): PEO

Authority (include full title): 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1

Estimated Contract Cost (including options): $3,750,000.00 J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

29 Aug 2016

Project Lead / Program Mgr / Requiring Activity

Signature

Date

29 Aug 2016

Contracting Officer

Date

30 Aug 2016

Local Legal Reviewer

APPROVAL (AFFARS 5306.304(a) )

Date

01 Sep 2016

Competition Advocate

I. Contracting Activity.

This Justification and Approval (J&A) is to request authority for Other Than Full and Open Competition. This Justification is to support requirements generated for Air Force Life Cycle Management Center, Special Operations Force/Personnel Recovery and Rotary Division (AFLCMC/WIU). The contracting office for the proposed contracting action is AFLCMC/WIUKB. The purchase request supporting this contracting action is FD2060-16-94422.

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

Due to the circumstances described herein, this activity requests authority to acquire engineering services support for the TH-1H and UH-1N helicopters, collectively referred to as H-1. The proposed contract action will be awarded as new contract. The proposed contract action will be a Firm-Fixed Price Contract with a Cost Reimbursement-No Fee CLIN for Travel. The requirements generated under this proposed contract action are Air Force requirements in support of a major weapons system. The resultant contract will be an Indefinite Delivery and Indefinite Quantity (IDIQ) contract with a one-year basic and four (4) one-year options.

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

Bell Helicopter Textron, Inc. (BHT) 3255 Bell Helicopter Blvd Fort Worth, TX 76118-7630

CAGE: 97499

Large Business

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

This requirement is for engineering support services for the H-1 platform to maintain operational, safety, suitability, and effectiveness (OSS&E) for the 90 aircraft in the H-1 fleet.

Additionally, this requirement requires expert knowledge, drawings, technical data, specifications, proprietary data, analysis, and submission of reports pertaining to H-1 helicopters. The contractor is required to provide engineering assistance with repair questions and modifications of the H-1 for which the Government does not have the expertise necessary to take such actions independent of the Original Equipment Manufacturer (OEM).

The projected period of performance (PoP) of the resultant contract is 5 years. The basic contract period is from 1 January 2017 through 31 December 2017. Four (4) additional annual options will be available to potentially extend the POP through 31 December 2021. Operations and Maintenance (O&M) 3400 funding will be used to support this requirement. The total estimated value of this engineering support effort, including options is based on an Independent Government Estimate (IGE). See Attachment 1 for estimated scope of work and dollar amount for the basic and options.

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

10 U.S.C 2304 (c) (1) as implemented by Federal Acquisition Regulation (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 United States Air Force (USAF) currently has 90 H-1 helicopters which is a major weapons system. They are distributed throughout a number of US Air Force units within the United States and overseas bases. UH-1N helicopters are specially equipped to operate in search and rescue, missile support, training, VIP transport, and special operation force missions. The TH-1H helicopters are the sole rotary wing aircraft used by the USAF for undergraduate pilot production.

A portion of the UH-1N fleet is expected to remain in service until 2042. While the Government had a full data package delivered with the aircraft in the 1960's, the data has not been maintained over the years to a level that adequately captures all design changes since aircraft delivery. The Government has not been able to update the data due to BHT's refusal to sell the data. The current effort will require data updates and engineering expertise.

The engineering support services for the H-1 platforms are highly specialized. The engineering support will provide the USAF H-1 System Program Office (SPO) technical expertise including structural/component data, drawings, qualification data, and analysis techniques as required to adequately maintain OSS&E for the H-1 platform. The specific tasks require the expertise, analysis and proprietary data held only by the OEM. These services are needed to provide repair instructions without unacceptable delays which may require modification support, accident investigation support, re-qualification data, and technical order changes.

BHT is currently performing this service under a Cost plus Fixed Fee contract number FA8552-14-C-0002. It was awarded on 14 May 2014 as a sole source contract. As the OEM, BHT possesses highly specialized proprietary data including proprietary structural/component data, drawings, proprietary qualification data, and analysis techniques. The Government does not own the rights to the technical data required to manufacture most of the components, nor does the Government have access to the data required to perform a valid fatigue evaluation based upon the usage spectrum and current fatigue methodologies. BHT owns all H-1 proprietary data required to perform the fatigue analysis and component re-qualifications. Based upon the market research and institutional knowledge of the Robins AFB, H-1 System Program Office, BHT is the only company capable of fulfilling the Government's needs to ensure continued support of the H-1 fleet. The OEM data includes operational usage, and spectrum analysis data collected throughout the H-1's decades of service. BHT has maintained technical data and operational capabilities for the TH-1H aircraft. They've established a multi-disciplined engineering team with expert knowledge and reach back to corporate BHT resources.

Inquiry was sent to BHT Contracting in January 2016 via email on pursuing Government procurement of the technical data. BHT responded they are not willing to provide or sell any data relating to the TH-1H Bell helicopter. The Government owns the technical data for the UH-1N; however, it lacks updates to reflect current operational conditions.

There are over 800 critical safety components on the H-1 fleet for which the Government requires up-to-date technical data. In order to reverse engineering these parts and to produce the technical data to support repair, it is estimated to take 50 government engineers working full-time over a year to be able to duplicate the data BHT provides to the Government under this effort. Then, there are the more than 1,000 additional aircraft components for which technical and performance data is needed. It is not economically feasible to reverse engineer these components given the magnitude of risk and the unacceptable delay in producing the volumes of data and part history needed to adequately maintain the aircraft. Additionally, the Government would still not have access to component and repair history of H-1 aircraft that are not part of our fleet. This information is critical for preventative maintenance and OSS&E.

While BHT has not provided a firm cost to purchase the data, the information they have provided leads us to estimate the cost would be greater than . With a annual requirement for this effort, the yearly contract cost could be reduced to per year for technical reach-back to BHT. So, the Government would spend over to save approximately per year. To break-even, the Government would have to use the technical data for 40 years. At some point it will be necessary to retire the H-1 fleet as it is nearly 45 years old and the aircraft is approaching the end of their economic service life. Some previous studies indicate the economic service life of the TH-1H, which is a newer model, would not be economical to maintain past 2042. It is highly unlikely we could continue to fly the current configuration for more than 25 years given issues with payload capacity and flight limitations dictated by future mission requirements. As a result, the Government would not reach the expected break-even point before the end of the economic service life of the aircraft, and it is not in the best interest of the Government to purchase this data.

Accordingly, 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. They are 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 delay in fulfilling its requirement

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 Government point of entry, Federal Business Opportunities (FedBizOpps), as required by 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 the acquisition of this engineering support, any source who responds to the Government as a result of this synopsis will be identified to the prime Contractor for potential subcontracting possibilities.

The Government posted a Request for Information (RFI) for 30 days, and no other companies expressed interest in pursuing this requirement. RFI was posted April 22, 2016 as a sources sought synopsis under Solicitation number H-1_OEM_Engineering Services. The RFI was to identify potential sources that may be able to provide engineering support for the USAF H-1 Fleet. The RFI described the requirement as providing USAF H-1 System Program Office (SPO) technical expertise, access to OEM proprietary data including but not limited to structural/component data, drawings, qualification data, and analysis techniques as required to adequately maintain OSS&E for the H-1 platform.

The RFI Response date was 23 May 2016

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 support 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 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.

The market research was conducted in accordance with FAR “Part 10-Market Research”, paragraph “10.002 Procedures.” The market research was completed by AFLCMC/WIUED on 24 August 2016. The techniques used included an internet search using the Dynamic Small Businesses Search Engine using NAICS 336411 and keyword “Helicopter.” The search found 50 potential companies. These companies were evaluated for their capabilities.

They sell aircraft parts and services, such as overhaul or standard repairs. None of the companies had the depth of knowledge or access to the OEM's proprietary data relative to the H-1 Helicopter that is required for this effort therefore were determined not capable. As part of the market research conducted, the Government also posted a RFI “H-1_OEM_Engineering Services” on April 22, 2016, which did not produce any additional sources.

Commercial Opportunities: The TH-1H and UH-1N helicopters are military platforms. The engineering services required to support these platforms are not available commercially.

The market research concluded there are currently no vendors outside of the OEM with the expert knowledge, proprietary data, analysis techniques, and drawings capable of performing the field, modification, and accident investigation support. This contract vehicle is the only way the USAF can obtain the required analysis to maintain

OSS&E.

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.

As stated earlier, BHT is currently not willing to sell the updates to the technical data to the Government. In order to effectively maintain the TH-1H and UH-1N aircraft, Government engineers need the technical expertise of BHT. The unique engineering services provided by BHT allow the Government team to resolve unique issues as they arise to ensure TH-1H and UH-1N helicopter fleet availability to the warfighter.

It was determined not economically feasible to reverse engineer these components given the magnitude of risk and the unacceptable delay in producing the volumes of data needed to adequately maintain the aircraft. The majority of the UN-1N fleet is approaching the end of its economic service life. Only a portion will remain in service through 2042. Studies have indicated the economic service life of the TH-1H would not go past 2042. It is highly unlikely we could continue to fly the current configuration for more than 25 years given issues with payload capacity and flight limitations. Based on this, the Government would not recoup a reverse engineering investment before the end of the economic service life of the aircraft.

To overcome barriers to competition, the Government will ask BHT for a price to procure the technical data prior to exercise of option(s). If BHT responds negatively, subsequent requests will be elevated to a higher level within the company.

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.