JA_Less_Than_Planeload_Requirements_29_Sept_2016_-_Redacted.pdf

CLASS JUSTIFICATION & APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

USTRANSCOM LESS-THAN-PLANELOAD REQUIREMENTS

1. AGENCY AND CONTRACTING ACTIVITY.

United States Transportation Command (USTRANSCOM), Contract Airlift Division, Commercial International Branch (TCAQ-CI), 508 Scott Drive, Scott AFB IL 62225-5357

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED.

This Justification & Approval (J&A) is a class J&A authorizing Other Than Full and Open Competition for the award of transportation service contracts awarded and administered by USTRANSCOM. USTRANSCOM may award contracts under this J&A to Department of Defense (DOD) Commercial Airlift Review Board (CARB) approved air carrier(s) participating in the Civil Reserve Air Fleet (CRAF), and not in a suspended non-use status, that submit acceptable proposals in response to solicitations for USTRANSCOM Less-Than-Planeload (LPL) cargo transportation requirements. The contracts to be awarded under this authority will typically be multiple award, Fixed-Price, Indefinite Delivery, Indefinite Quantity (IDIQ) contracts. This class J&A represents the third iteration and is a follow-on to the current J&A approved on 3 October 2013.

3. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS.

This class J&A is effective for USTRANSCOM LPL cargo airlift programs. This J&A will remain in effect for LPL cargo airlift programs as long as the fundamental principles stated in the following paragraphs do not change. The contracting officer will review this J&A prior to each new solicitation to ensure the rationale for this J&A remains current. In the event of significant changes IAW FAR Part 6.303-1(a), the contracting officer will bring such changes to the attention of the J&A approval authority and recommend appropriate action (no change to J&A, revise J&A, new J&A, etc.). The unifying characteristic of each of the following programs is that they are less-than-planeload cargo transportation requirements and rely on the carrier’s commercial practices and network to provide service. These programs are critical to the movement of cargo for all Federal Government activities.

The Category A (CAT A) program provides international commercial cargo CAT A service that includes less than full pallet loads (non 463L palletized) to users authorized by USTRANSCOM. CAT A service includes time-definite, door-to-door pick-up and delivery, transportation, Intransit Visibility (ITV), Government-Approved Third Party Payment System (GTPPS) participation, and expedited customs processing and clearance of less than full pallet loads. In addition to general cargo, the CAT A contract also supports the movement of hazardous, refrigerated/cold chain (perishable), life and death, and oversized or unusual shipments. Further, controlled narcotics may be moved by any DOD shipper upon approval by the Defense Logistics Agency (DLA). The current eight CAT A contract users are DLA Medical Prime Vendor, Army Aviation and Missile Command (AMCOM), DLA Defense Distribution Center (DDC) Depots, Navy Supply Systems Command (NAVSUP), United States Army Medical Material Center Europe (USAMMC-E) and Southwest Asia (USAMMC-SWA), DLA Troop Support, and Defense Commissary Agency (DeCA). In Fiscal Year (FY) 2015, the CAT A program transported approximately 15k shipments and 11M lbs. for an annual total spend of $28M.

The International Heavyweight Air Tender (IHAT) program provides door-to-door transportation services for cargo over 300 lbs. Service includes U.S. outbound, U.S. inbound, and offshore (lateral) shipments. DOD agencies are authorized to place orders under this program. Non-DOD agencies and cost-reimbursable contractors may use these services pursuant to their respective agency policies. In FY 2015, the IHAT program transported approximately 5.6k shipments and 9M lbs. for an annual total spend of $26M. In accordance with DOD Instruction 4500.57, Section 4.2, it is USTRANSCOM’s intent to obtain these services under a Federal Acquisition Regulation (FAR) based contract versus a tender. USTRANSCOM anticipates awarding an International Heavyweight Air Contract (IHAC) in the future to meet the international transportation requirement for cargo over 300 lbs.

The Next Generation Delivery Service (NGDS) acquisition will consolidate the requirements of the General Services Administration (GSA) Third Generation Domestic Delivery Services (DDS3) Blanket Purchase Agreement

(BPA), the USTRANSCOM Total Delivery Services (TDS) and Surface Small Package II (SSP II) contracts, and incorporate ground small package delivery service for all federal agencies. The NGDS program will provide non-expedited (routine) and express delivery service for domestic shipments up to 150 lbs. and international shipments up to 300 lbs. for all federal agencies. NGDS contractors will be required to provide time-definite, door-to-door pick-up and delivery, transportation, timely and accurate ITV, Government Third Party Payment System (TPPS) participation, and customs clearance processing (if applicable). NGDS is projected to be awarded in FY17 and have an estimated annual spend of approximately .

The Theater Express (THX) program provides international commercial scheduled air cargo transportation services within the Central Command (CENTCOM) Area of Responsibility (AOR) as required by the Air Mobility Division (AMD) Airlift Control Team (ALCT). Transportation services include time-definite, aerial port-to-port pick-up and delivery, ITV, and customs processing and clearance of 463L palletized and roll-on/roll-off cargo to CENTCOM Forward Operating Bases/Forward Operating Locations (FOB/FOL). This program provides international commercial scheduled air cargo transportation services within the CENTCOM AOR as required by the AMD/ALCT. In FY 2015, the THX program transported approximately 311 shipments and 8M lbs. for an annual total spend of $12M.

Description Current

Contract/Solicitation Number

Current Contract Type Expiration Date

CAT A II HTC711-13-D-[C001-

C010]

Indefinite Delivery, Indefinite Quantity (IDIQ)

– Multiple Award

31 January 2018

IHAT Not applicable Multiple Award Tender 30 September 2016

NGDS HTC711-17-R-CC01 Indefinite Delivery, Indefinite Quantity (IDIQ)

– Multiple Award

30 September 2022

Theater Express HTC711-12-D-[C004- C006]

Indefinite Delivery, Indefinite Quantity (IDIQ)

– Multiple Award

31 July 2016

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION.

Authority for this acquisition is 10 USC 2304(c)(3), Industrial Mobilization.

5. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATION OR NATURE OF

THE ACQUISITION REQUIRES THE USE OF INDUSTRIAL MOBILIZATION AUTHORITY.

The use of the 10 USC 2304(c)(3), Industrial Mobilization, exception to full and open competition is essential to maintain adequate airlift services in case of a national emergency requiring activation of the Civil Reserve Air Fleet (CRAF). CRAF is a voluntary program through which the nation’s airlines provide stand-by commitments to support mobilization as a supplement to organic airlift capacity. As an incentive to participate in the CRAF program, air carriers that participate in the CRAF are entitled to participate in the award of DOD’s peacetime airlift requirements. The continued success of the CRAF program is essential to national security. CRAF participants provide civilian airlift assets needed to support military operations and mobilization requirements. This fleet of civilian aircraft is available to the military to meet peacetime requirements, surge needs, and mobilization requirements for major crises. The CRAF program greatly reduces the need to buy and maintain DOD aircraft for airlift.

The CRAF program was formalized through a series of presidential executive orders and memoranda of understanding, the first of which was signed December 15, 1951. The National Airlift Policy, issued in June 1987 by President Reagan, reinforced the need for and use of the CRAF program. The national defense airlift objective is to ensure that military and civil airlift resources will be able to meet defense mobilization and deployment requirements in support of U.S. defense and foreign policies. The policy states that military and commercial airlift resources are equally important and interdependent in the fulfillment of this national objective. The National Airlift Policy provides that where appropriate, U.S. policies shall be designed to enhance the mobilization base of the U.S.

commercial air carrier industry. During peacetime, DOD requirements for passenger and cargo airlift augmentation shall be satisfied by the procurement of airlift from commercial air carriers participating in the CRAF program, to the extent DOD determines such airlift is suitable and responsive to military requirements.

In addition, DOD airlift policy concerning use of CRAF carriers is included in DOD Instruction 4500.57, Transportation and Traffic Management. Paragraph E3.2.1 of DODI 4500.57 recognizes the partnership between the DOD and U.S. civil commercial air carriers is critical to mobilization, deployment, and sustainment of military forces, and that the alliance is embodied in the CRAF program. The policy specifies that DOD Components shall, in accordance with applicable law and regulatory guidance, ensure that all DOD acquisitions of commercial air transportation services require CRAF participation as a prerequisite for award to the maximum extent possible unless there is a documented negative critical mission impact. Carriers not eligible for CRAF may be used only when CRAF-participating carriers cannot meet mission requirements.

The Defense Federal Acquisition Regulation Supplement (DFARS) also supports the policy of acquiring transportation requirements through our CRAF carriers. DFARS 247.206 provides that evaluation factors concerning the offeror’s commitment of transportation assets to the CRAF program be considered when acquiring transportation-related services. DFARS 247.301-71 provides similar guidance for supply contracts that include a significant requirement for transportation of items outside of CONUS.

The use of the industrial mobilization exception to competition is also consistent with the statutory preference for use of CRAF carriers under the Fly CRAF statute, 49 USC 41106. The Fly CRAF statute provides that transportation of passengers or property by transport category aircraft between two places outside the U.S. obtained by DOD through a contract for airlift services shall be provided by an air carrier that has aircraft in CRAF whenever such transportation is reasonably available. DOD commercial airlift needs include both planeload and LPL requirements. For LPL requirements, DOD cargo may be placed within the CRAF air carrier’s commercial transportation systems, where DOD property may be comingled with the carrier’s commercial cargo. The carrier’s commercial practices may include transport by the prime CRAF carrier, as well as its subcontractors, that may or may not participate in the CRAF program. Use of the industrial mobilization exception to limit LPL contracts to CRAF carriers effectively carries forth the National Airlift Policy, the DOD policy to require CRAF participation as a prerequisite for award to the maximum extent possible, and is consistent with the Fly CRAF statute for the transport of LPL cargo where transport by U.S. air carriers may otherwise not be reasonably available.

The industrial mobilization exception to full and open competition for DOD’s LPL requirements provides an essential incentive for carriers to participate in the CRAF program. Restricting competition to CRAF carriers in programs such as CAT A, IHAT, NGDS, and THX provides a significant financial incentive for U.S. carriers to voluntarily place aircraft in the CRAF program, and it is essential to maintain adequate airlift services in case of a national emergency. The use of the industrial mobilization exception to limit competition for DOD’s LPL requirements to CRAF carriers effectively supports the implementation of the National Airlift Policy by incentivizing carriers to keep vital commercial airlift resources available as a mobilization base in the event of a national or military emergency. The CRAF participation eligibility requirement included in USTRANSCOM solicitations supports the development and maintenance of a robust CRAF program thereby ensuring adequate augmentation capability to the DOD in times of national emergencies.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERORS ARE SOLICITED FROM AS

MANY POTENTIAL SOURCES AS IS PRACTICABLE.

Participation is open to all CRAF carriers, provided they are in good standing. All existing CRAF carriers will be solicited; notices will be published on the Federal Business Opportunities (FedBizOpps) website for each solicitation. Interested parties may access the FedBizOpps website at www.fbo.gov. Other sources responding to a FedBizOpps notice will not be eligible. All U.S. Flag carriers have the opportunity to join the CRAF program at any time. Therefore, the decision whether to join the CRAF and become eligible to compete for these opportunities is an internal business decision made by the carrier.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE

GOVERNMENT WILL BE FAIR AND REASONABLE.

Competition will be maintained among the CRAF participants. Currently there are 23 CRAF participants.

Historically, each program has garnered between two and twelve offers at time of proposal submission. This level of response to solicitations is expected to continue. Several CRAF carriers maintain a commercial network to support and regularly provide commercial LPL cargo service and have published commercial rates. As competition is maintained amongst CRAF participants and published commercial rates are available, the anticipated cost to the Government is expected to be fair and reasonable for each of the USTRANSCOM LPL programs.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS OR A

STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT CONDUCTED.

Formal market research will be conducted for each program independently. The objective of market research for airlift services is to determine if services offered by the commercial market are commensurate with solicitation requirements and whether or not commercial practices are acceptable. Findings will be documented and included in the solicitation file. The market research analysis will focus on the airline industry and supply chain logistics providers, including CRAF air carriers who provide scheduled air transportation services as a core competency.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION. None

10. A LISTING OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE

ACQUISITION.

Several CRAF participants have expressed interest in each program. Any freight forwarders interested in LPL requirements have the opportunity to team with a CRAF carrier and provide service as a subcontractor for these programs. As non-CRAF carriers express interest in these programs, they will be informed of the CRAF requirements for eligibility.

11. A STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME

ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION FOR THE

SUPPLIES OR SERVICES REQUIRED.

Although USTRANSCOM plans to continue awarding contracts under the Industrial Mobilization Authority 10 USC 2304(c)(3), maximum competition will still be solicited. The DOD relies on the United States air transportation industry to provide airlift support for DOD in time of emergency or war. A mobilization base for this airlift support, committed to USTRANSCOM by contracts, is essential to assure the prompt and effective response of this industry when needed.

12. CONTRACTING OFFICER'S CERTIFICATION.

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

NICOLE D. SWOBODA

Contracting Officer

C Y .BE MANN

Chief, Commercial international Branch b <2»UJ 2-0 I kl_ Date Y

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13. TECHNICAUREOUIREMENTS PERSONNEL CERTIFICATION. I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

SHANNON FAST

HQ AMC/A4TC Program Manager

BRIAN T. CAMPBELL

USTRANSCOM J4 Program Mangaer i °'-oM' Q&\Lo Date

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14. ENTERPRISE READINESS CENTER DIRECTORATE CERTIFICATION.

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Kristian A. Rogers Date 'I

Chief, Enterprise Readiness Center

CLASS J USTIFICATION & AP PROV AL

PROGRAM: USTRANSCOM LESS-THAN-PLANELOAD CARGO REQUIREMENTS

AUTHORITY: 10 USC 2304(c)(3), Industrial Mobilization

REVIEWED BY:

SANDRA M. HALAMA

Chief, Contract Airlift Division

PETER B. RI.ES

Acquisition Attorney, Office of the Staff Judge Advocate

CHELLE M. MENDEZ

Competition Advocate

NOT

USTRANSCOM Head of Contracting Activity Deputy, Acquisition Business Operations

APPROVAL:

Senior Procurement Executive Director, Acquisition

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