JOFOC_w_addendum.pdf

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

NATIONAL NUCLEAR SECURITY ADMINISTRATION

Office of Nuclear Incident Response

89233118RNA0000003

September 27, 2018

I. AGENCY IDENTITY AND CONTRACTING OFFICE

The Office of Nuclear Incident Response (NA-84) of the U.S. Department of Energy (DOE), National Nuclear Security Administration (NNSA) prepared this justification to contract for fixed wing aircraft by means of other than full and open competition. The contracting activity is the NNSA Non M&O Contracting Operations Division.

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

This document sets forth the justification and approval of the use of one of the exceptions to full and open competition allowed under the Competition in Contracting Act (CICA) of 1984. This new contract action is a sole source acquisitionTextron Aviation located at One Cessna Boulevard, Wichita, Kansas 67215 USA to manufacture three (3) King Air 350 Extended Range aircraft (KA-350-ER or KA-350-CER) in support of DOE Emergency Nuclear Incident Response Operations Aerial Measurement Missions. NA-84 is replacing its aged fleet of three fixed wing aircraft which have surpassed their useful service life. This procurement action is consistent with the recommendation of an independent, comprehensive Analysis of Alternatives (AoA) completed in February 2017.

III. DESCRIPTION OF SUPPLIES AND/OR SERVICES

To support the project, the contractor, Textron Aviation, will be required to manufacture three (3) KA-350-ER (Extended Range) and/or KA-350-CER (Cargo Door + Extended Range) twin turboprop fixed-wing aircraft for (desired) delivery to the Government is within twelve (12) months from date of award. The manufacturer will be responsible for aircraft modifications for special missions, as well as providing a spares package. The Government requires all FAA certifications, data sheets, and the manufactures warranties fully intact with aircraft delivery. The anticipated contract value is $27,000,000 - $32,000,000.

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IV. AUTHORITY

The statutory authority permitting other than full and open competition is 41 USC 3304(a)(1), as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302- 1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”.

V. APPLICATION OF AUTHORITY

Textron Aviation Inc., exclusive manufacturer of the King Air Extended Range Turboprop aircraft, has a unique capability as the exclusive manufacturer of the King Air 350 Extended Range turboprop aircraft and holder of all licenses, copyrights, patents, intellectual property rights as the Type Certificate Data Sheet of the King Air Model 350 aircraft, which is only offered by way of factory-direct sales as new aircraft.

The Government has determined that the King Air (KA) 350 Extended Range (ER) Aircraft is the only aircraft model that meets the mission requirements identified in Request for Information (RFI) 89233118RNA0000003. The KA 350 ER is the only aircraft meeting the following mission requirements:

1. Usable payload of 1,500 pounds plus 5 hours and 30 minutes of usable fuel, including reserves per manufacture’s direction and a non-stop range of 1,500 nm; and

2. Maximum celling of 35,000 feet pressured.

VI. EFFORTS TO IDENTIFY ADDITIONAL SOURCES

RFI notice 89233118RNA000003 was published on November 6, 2017 with a response due date of December 6, 2017. NA-APM-84 received six expressions of interest to provide either aircraft or aircraft services by either sale or lease. More details are addressed in Section X “Interested Sources.” In addition NA-84 conducted extensive research to determine all twin turboprop aircraft and performed an in-depth analysis of the 18 aircraft they found currently in production. The determination remains that the KA-350-ER is the only aircraft/model that meets the Government’s needs.

VII. DETERMINATION OF REASONABLENESS OF COST OR PRICE

It is the determination of the Contracting Officer that the anticipated costs will be fair and reasonable using both commercial price lists along with pricing data obtained from other Federal Agencies for similar KA-350-ER procurements.

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VIII. MARKET RESEARCH

Market research was conducted in accordance with FAR 10.001(a)(b).

As described in Section VI, “Efforts to Identify Additional Sources” NA-84 posted a RFI announcement on FedBizzOpps for a period of 30 days.

NA-84 Aviation personnel attended the National Business Aviation Association

Expo in Las Vegas to conduct market research with twin turboprop manufactures in October 2017.

NA-84 conducted an extensive research to determine that 18 aircraft are currently in production and performed an in-depth analysis of all twin turboprop aircraft March – May 2018.

IX. OTHER FACTS

NNSA NA-84 requirements dictate aircraft mission profiles can be flown at low altitude-low airspeeds as well as high altitude and high airspeeds. Mission Endurance enhancements dictate that the current aircraft model, B-200 is not an option for this new procurement. Therefore only one model fits the government’s requirements developed by conducting an extensive Analysis of Alternatives.

X. INTERESTED SOURCES

The following companies have expressed, in writing, an interest in the acquisition:

Company Name OTHER SB HUBZone SDVOSB WOSB 8(a) Piaggio America X Textron Aviation X Dynamic Aviation X CSI Aviation X X Tenax Aerospace X Weather Modification International

X

There was interest from six (6) companies in response to the Request for Information (RFI) issued by NNSA on FedBizOpps. No small business aircraft manufacturers responded. Four (4) small businesses which responded offered to resell/lease/or provide flight crews for aircraft models that did not meet the Government specifications. Two (2) companies which responded were large business aircraft manufacturers.

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The Government must comply with the Non-Manufacturer Rule (NMR), Title 13 Part

121.406 CFT. The NMR states: for small business set-asides – other than contraction or service contracts – the prime contractor that’s supplying products to the government is required to cover at least 50 percent of the cost of manufacturing those products; or the item must be under the Simplified Acquisition Threshold (SAT); be a kit assembler;

or the end item manufacturer is a small business. The Small Business Administration (SBA) has not waived the Non-Manufacturer rule (NMR), Title 13 Part 121.406 CFR, for this requirement (PSC Code 1510, Aircraft Fixed Wing). Therefore, NNSA only considered manufacturers for this requirement.

Based on technical review of Request for Information responses by 89233118RNA000003, Textron Aviation Inc. (Textron) was the only contractor with technical capability to provide a twin turbo prop aircraft (KA 350 ER Turbopop aircraft) which met the specifications. Textron is the exclusive manufacturer of the KA 350 ER Turboprop aircraft and holds all licenses, copyrights, patents, and intellectual property rights. This aircraft is only offered by factory-direct sales. There are no authorized dealers available for this aircraft.

XI. STEPS TO FOSTER COMPETITION

This acquisition is a re-capitalization of aging assets all of which are over 30 years old.

Based on reliability data, the assets currently sought should maintain a useful life beyond the next 25 years. The mission of Aerial Measurement Missions, DOE Emergency Nuclear Incident Response Operations is ever evolving. During the next competition, the NA-84 is committed to follow the same process of conducting an Analysis of Alternatives, conducting market research, and considering all competition in the market place at that time.

09/27/2018

9-27-18

09/27/2018

Department of Energy National Nuclear Security Administration

P. O. Box 5400 Albuquerque, NM 87185

Addendum to

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

NATIONAL NUCLEAR SECURITY ADMINISTRATION

Office of Nuclear Incident Response

89233118RNA0000003

November 12, 2018

Subject: Notice of Intent Results

A Notice of Intent to Sole Source was posted on FedBizzOpps on October 26, 2018 and FedConnect with a response date of November 9, 2018. Zero responses were received.

. Kathy L. Cannon Contracting Officer