JA W58RGZ25R0042_signed_Redacted.pdf

Solicitation: W58RGZ-25-R-0042

Justification and Approval for Other than Full and Open Competition – FAR Part 6

1. Contracting Activity: Army Contracting Command – Redstone Arsenal (ACC-RSA), ATTN: CCAM-ALB, Redstone Arsenal, AL 35898-5000.

2. Description of Action: The Aviation and Missile Command (AMCOM) Logistics Center (ALC) requests approval to award a new, sole source procurement for overhaul/upgrade of the Common Hydro Mechanical Unit (CHMU) for the T700 engine on the UH60/AH64 aircraft. The resulting contract will be a single-award Firm-Fixed- Price (FFP), five-year Indefinite Delivery Indefinite Quantity (IDIQ) Maintenance and Overhaul (M&O) contract. The following contractor is identified as the only source approved by the U.S. Army Combat Capabilities Development Command, Aviation and Missile Center Systems Readiness Directorate (SRD) to perform overhaul/upgrade on this Critical Safety Item (CSI):

Woodward, Inc., CAGE Code ; UEI: ; 5001 N 2nd Street, Loves Park, IL 61111; Large Business

The minimum quantity is , with a maximum quantity of which includes a quantity of for Foreign Military Sales (FMS). United States (US) quantities will utilize Army Working Capital Funds. FMS quantities will utilize FMS funding, but this requirement is not source directed. The potential FMS customers include Egypt, Bahrain, Korea, Netherlands, Kuwait, and Greece. At this time, the applicable FMS Case numbers are unknown.

3. Description of Supplies/Services: ALC has a requirement to provide overhaul/upgrade of the CHMU to return the items to a serviceable condition. The contractor shall furnish all services, facilities, labor, parts, materials, equipment, tools, and data necessary to complete the inspection and overhaul/upgrade. The following information is provided for the CHMU:

PRID: T305-01

PRON: AX6M3520AX

System: UH60/AH64 Noun: Common Hydro Mechanical Unit (CHMU) Input NSNs: 2915-01-492-3907, 2915-01-515-3572, and 2915-01-587-7242 Output NSN: 2915-01-587-7242 Input P/Ns: 4046T52G37, 4046T52G41, and 4046T52G42 Output P/N: 4046T52G42 Critical Safety Item (CSI): Yes Estimated Quantity Range: Minimum / Maximum (includes FMS) Estimated Base Year Quantity Value:

Estimated Out-Years (two-five) Value:

indicates that a malfunction of the CHMU could lead to catastrophic or critical failures, potentially resulting in the loss or severe damage to the aircraft or weapon system, an unacceptable risk of personal injury or loss of life, or an inadvertent engine shutdown that endangers safety.

Pursuant to the provisions of Public Law No. 108-136, National Defense Authorization Act Fiscal Year 2004, Section 802, Quality Control in Procurement of Aviation Critical Safety Items and Related Services, as implemented by DFARS 209.270-3(A), contracts for modification, repair, or overhaul/upgrade of CSIs can only be awarded to a source approved by SRD, which is the Army’s aviation design control activity.

The only approved source to overhaul/upgrade the CHMU is Woodward, Inc. (

). If the CHMU in a UH60/AH64 is not overhauled/upgraded correctly, it could lead to critical issues such as hydraulic system failure, uncommanded engine shutdowns, and reduced engine performance. These failures may result in the loss of control, compromised redundancy, and uncontrolled flight, significantly increasing the risk of a catastrophic event, including a crash. The safety of the crew and passengers would be jeopardized, potentially leading to severe injury or loss of life. Proper overhaul/upgrade of the CHMU is crucial to maintaining the helicopter's safety and operational reliability.

6. Efforts to Obtain Competition: In accordance with DFARS 205.205- 71, DFARS 206.302-1(d), and DFARS Procedures, Guidance, and Information (PGI) 206.302-1 (d), a Sources Sought announcement was publicized on SAM.gov on 10 October 2024 and ended on 25 October 2024. As of 12 November 2024, no sources expressed interest in this acquisition. This acquisition will be synopsized in SAM.gov on or about 1 January 2025. All notices required by FAR 5.201 will be published and any proposals received will be considered.

Effective Competition: As stated previously in paragraph five (5), Woodward, Inc. is the only SRD approved contractor for the overhaul/upgrade of this part; therefore, effective competition is not anticipated.

Subcontracting Competition: In accordance with FAR 19.702 and FAR 19.704, a Subcontracting Plan is required for large businesses on acquisitions that exceed $750K.

According to FAR 19.704, the contractor must include FAR 52.219-8, entitled “Utilization of Small Business Concerns”, in all subcontracts that offer further subcontracting opportunities and shall require all subcontractors, except small businesses, that receive subcontracts more than $750K to adopt a plan that complies with the requirements of the clause at FAR 52.219-9, “Small Business Subcontracting Plan”. Per FAR 44.204(c), the solicitation and resulting contract will include the FAR clause 52.244-5, entitled “Competition in Subcontracting” and DFARS clause 252.219-7003, entitled “Small Business Subcontracting Plan (DoD Contracts)” to ensure that all subcontracts are awarded on a competitive basis to the maximum extent possible.

7. Actions to Increase Competition: As stated previously in paragraph five (5), Woodward, Inc. is the only SRD approved contractor for the overhaul/upgrade of this part. The Government can take no other additional actions to increase the number of approved sources for this current procurement. If a new vendor is approved through the SRD process, the requirements for future orders will be reviewed.

8. Market research Report/Commerciality Determination Report (MRR/CD): In accordance with FAR 10.002(b) and DFARS 210.001, meaningful market research for AX6M3520AX was conducted by the Inventory Management Specialist, AMCOM Logistics Center, in the last 12 months (with specific dates for each step listed below).

Research methods included the following: (a) Reviewed the results of recent market research for similar or identical supplies/services during October 2024; (b) Publication of a formal request for information in the form of a sources sought notice issued to SAM.gov on 10 October 2024; (c) Review of Government and/or commercial databases for relevant information during August 2024: Army Aviation Sustainment Gateway (ARISE), Logistics Modernization Program (LMP), Federal Logistics Information System Web Search (WebFLIS), and Commercial and Government Entity (CAGE).

The source revealed from a search of those databases is Woodward, Inc. as the only approved source authorized to perform the required overhaul/upgrade. As previously noted, the sources notice was published on 10 October 2024 and closed on 25 October 2024. No sources expressed interest in response to the sources sought. Based upon this market research, it has been determined that the Government’s needs can be satisfied with commercial products or services, commercial products or services with customary or reasonable modification, or non-developmental products or services.

Based on the above, the basic clauses and provisions prescribed in FAR Part 12, Acquisition of Commercial Products and Commercial Services, are sufficient for use in this acquisition and will be utilized. As determined by the market research, the only source who is capable of the performing the required overhaul/upgrade is Woodward, Inc.

9. Interested Sources: The results of the Sources Sought announcement are addressed in paragraph six (6) of this document. There is a reasonable basis to conclude at this time, that the agency’s minimum needs can only be satisfied by Woodward, Inc. To date, no other sources have written to express an interest.

10. Other Facts:

a. Procurement history:

(1) The CHMU has been overhauled and upgraded by Woodward, Inc.

NIIN Date Contract No/PIID QTY Unit Price Total Value Company

015877242 8/16/2024 W58RGZ24F0405 WOODWARD, INC.

APPROVAL

Based on the foregoing justification, I hereby approve the procurement to overhaul/upgrade the Common Hydro Mechanical Unit (CHMU) on the UH60/AH64 at a total dollar value of on an other than full and open competition basis pursuant to the authority of 10 United States Code 3204(a)(5) as implemented by FAR 6.302-5(a)(2)(i), authorized or required by statue, subject to availability of funds, and provided that the procurement and property herein described have otherwise been authorized for acquisition.

DATE: Signature: