17-31735_JA-Redacted_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/WIUK

Purchase Request / Local ID Number:

Program / Project (and PE, if applicable): H-60 Sustaining Engineering OEM

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, 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

14 Jul 2017

APPROVAL (AFFARS 5306.304(a) )

I. Contracting Activity.

This Justification and Approval is to request authority for Other Than Full and Open Competition to support requirements generated for the Air Force Life Cycle Management Center (AFLCMC), Pave Hawk Section (WIUBC). The contracting activity for this requirement is AFLCMC/WIUKB. The purchase request number supporting this contracting action is

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

Due to the circumstances described herein, the activity requests authority to acquire the sustaining engineering services listed in this document using Other Than Full and Open Competition as prescribed by Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This action will be a new C type contract utilizing Cost Plus Fixed Fee and Cost Reimbursable No Fee (for travel and material) Contract Line Item Number (CLINS).

The period of performance (PoP) for this effort will consist of a basic and option periods for a total of years.

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

Sikorsky Aircraft Corporation (SAC) 6900 Main Street Stratford CT 06614-1378

(CAGE: 78286)

Large Business

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

This requirement is to obtain sustaining engineering support for the HH-60G/W rotary -wing aircraft. This effort will accomplish sustaining engineering tasks in accordance with individual tasks required to support existing fielded H-60 fleet. These tasks include providing support as directed by AFLCMC/WIU/WIUEC technical personnel for resolving associated operational problems and providing technical data for the H-60 helicopter.

Tasks include:

- Field Support

- Engineering Change Proposal (ECP) Preparation

- Government Interfaces

- Sustaining Engineering Tasks

- Project Engineering Management

Additionally, it requires the delivery of an equivalent parts list, re-validate fatigue lives utilizing current methodologies and usage spectrums, provide System Program Office (SPO) engineering documentation outlining the original equipment manufacturer (OEM) recommendations to overhaul intervals, and qualify similar components from other H-60 variants to the HH-60G.

The total estimated value of the engineering support effort is based on an independent Government estimate. The PoP will be years, consisting of a with options. The anticipated PoP is first quarter of FY18, October through October if all options are exercised.

This acquisition supports Air Combat Command (ACC), Air National Guard (ANG), and Air Force Reserve Command (AFRC). This acquisition will be funded with 3400 (ACC), 3840 (ANG), and 3740 (AFRC) Operations and Maintenance appropriations.

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 or a Limited Number of Responsible Sources, 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).

Plans are in process for a new Combat Rescue Helicopter to replace the HH-60G helicopter.

Sustainment of the HH-60G helicopter program will continue until all helicopters are replaced.

In order to provide the engineering requirements identified in Section III above, access to H-60 technical data is required. As the OEM, SAC possesses proprietary data including but not limited to proprietary structural/component data, drawings, proprietary qualification data, and analysis techniques. The Government does not own the technical data that is required to manufacture most of the components, nor does the Government own the data required to perform a valid fatigue evaluation based upon the usage spectrum and current fatigue methodologies.

The OEM proprietary data includes operational usage and spectrum analysis data collected throughout the H-60 decades of service. SAC is the only source that has a complete data package, all associated data rights, and has processes and test equipment required to provide this sustaining engineering support. This is a follow-on to contract FA8552-14-C-0004. This follow-on contract will provide continuation of sustaining engineering support with SAC. This sustainment requires highly specialized services and the use of any other source would result in substantial duplication of cost and/or unacceptable delays.

A combination of United States Air Force (USAF) personnel and contractors have accomplished these tasks for several years but OEM support has remained constant for the highly specialized services. The highly specialized services provided by the OEM to date have been basic aircraft data and complex interactions between propulsion, airframe, power transmission, dynamic components, flight control and stabilization system, fuel, hydraulic and pneudraulics and avionics.

Examples of SAC engineering data required and specialized sustainment support is demonstrated below.

None of the costs below reflect the unknowns of material expended, test equipment, or facility costs incurred by SAC.

In , as an effort to reduce or stop the potential for SAC was determined to be the only contractor with knowledge of

In addition, SAC was the only source with a qualified HH-60G test pilot and expert knowledge of the aircraft and systems. The required SAC test personnel specifically due to their expert knowledge.

The Government has not ascertained the exact cost to correct issue without SAC support but the cost and delay of completion would have been significant.

In Special Operation Forces (SOFs) were integrating and testing a . When an aircraft is initially designed, the outside airflow is analyzed for loft. This “Loft Data” for the H-60 is required for the effort . SAC is the only source of this proprietary data. The Government estimates it would take years and approximately to reverse engineer the HH-60G. This estimate was derived from a study

It is not economical to pursue this type of reverse engineering effort and would cause unacceptable delays in meeting mission requirements.

In SAC examined and updated the USAF procedures for the entire fleet. Incorrect can cause a Without SAC's expertise the Government estimates it would take years and to recreate this data and complete testing. This estimate is based on data from a revision project.

Email inquiry was sent to SAC on and asking their interest in selling the HH-60G technical data package to the Government.

Accordingly, the H-60 SPO has determined this sustainment effort requires SAC proprietary data to adequately maintain operational, safety, suitability and effectiveness (OSS&E) for the USAF H-60 fleet.

The proprietary data necessary from SAC

. Based on this, SAC 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 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 Synopsis (SSS) was posted to Federal Business Opportunities (FedBizOpps) (www.fbo.gov) on 02 Feb 2017 with a response date of 02 Mar 2017. The SSS was conducted to identify potential sources that may possess the expertise, capabilities, and experience to meet the requirements for sustainment engineering support of the HH-60G aircraft for the USAF. SAC was the only respondent to the SSS and is the incumbent contractor.

This requirement will be synopsized on FedBizOpps web page 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 acquisition of this engineering support 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 for subcontracting possibilities.

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 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, in accordance with FAR “Part 10 --Market Research”, paragraph “10.002 Procedures”, was conducted and completed on 11 May 2017 by AFLCMC/WIUEC to determine potential alternate sources for this item.

Market research techniques used are as follows:

An internet search performed using the Dynamic Small Businesses Search (DSBS) engine on with North American Industry Classification System Code (NAICS) 336411 (Aircraft Manufacturing), ISO 9000 Quality Requirement and keyword "H-60'' found 29 companies. These included companies that sell aircraft parts and services, such as overhaul or standard repairs, as well as companies that provide a wide array of engineering services. In addition, internet searches on www.google.com, and www.helihub.com were conducted. Evaluation of potential companies identified in DSBS and internet searches determined none of the companies have the depth of knowledge or access to the OEM's proprietary data relative to the H-60 Helicopter required for this effort, therefore they were determined not capable.

A SSS was posted to FedBizOpps 02 Feb 2017 with a response date of 02 Mar 2017. The Government received one response and it was from SAC, the incumbent contractor.

The market research concluded SAC is the only qualified source with the technical data and expertise to fulfill this sustainment effort of the HH-60G.

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 Government estimates it would take years and approximately to recreate an aerodynamic helicopter model such as the HH-60G. It is not economical to pursue this type of reverse engineering effort and would cause unacceptable delays in meeting mission requirements. Plans are in process for a new Combat Rescue Helicopter to replace the HH-60G helicopter.

In order to overcome barriers to competition during the remaining sustainment years of the HH-60G helicopter, the Government will ask at increasing higher levels within the SAC organization for an estimate to procure the technical data prior to exercise of any of the options.

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.