KAI_JUSTIFICATION_AND_APPROVAL_$150K_-_signed.pdf

JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION

FOR EXPERT LITIGATION SUPPORT OF THE KING AEROSPACE, INC (KAI)

APPEAL

1. Contracting Activity: Department of the Army Contracting Command – Redstone (ACC-RSA), CCAM-ARB, Redstone Arsenal, AL 35898-5000 proposes to enter into a contract on the basis of other than full and open competition for Fixed Wing Project Office.

2. Description of Action: The proposed action is a services contract for the procurement of a consulting and testifying damages expert to analyze and respond to damages claim necessary to defend KAI’s appeal ASBCA Nos. 57057, 60933. The United States Army Legal Services Agency (USALSA) Contract and Fiscal Law Division (KFLD) represents the Army in a dispute litigation under KAI Contract No. W58RGZ-05- C-0302. KAI is scheduled to submit its statement of costs on 16 January 2017. The Army will respond to KAI’s statement of costs by 16 February 2017. A hearing on the amount of damages owed to KAI is scheduled to begin on 27 March 2017. The approximate cost for the Damages Expert to analyze KAI’s statement of costs and supporting data, produce a written expert report, assist with the deposition of KAI’s expert, provide deposition testimony, provide litigation support in preparation for the hearing, testify at the hearing in this appeal, and assist with the Army’s post-hearing brief will cost approximately $200,000.00. The hearing will last not more than five days.

3. Description of Services: KFLD is representing Army Contracting Command – Redstone (ACC-Redstone) in an appeal before the Armed Services Board of Contract Appeals (ASBCA) filed by KAI pursuant to Contract No. W58RGZ-05-C-0302. Appeal No. 57057 involves a ten-year, multi-million dollar contract with ACC-Redstone for the maintenance of a fleet of eight modified DeHavilland DH07 fixed wing aircraft based at Fort Bliss, Texas, and Camp Humphreys, Republic of Korea for the Airborne Reconnaissance Low program. The contract was awarded 30 June 2005 and was completed in 2015. KAI claims that it is entitled to breach of contract damages and an equitable adjustment plus interest on its claim. In a decision dated 26 July 2016, the ASBCA sustained KAI’s appeal, in part, finding that the Army left KAI “holding a bag of maintenance and repair issues that were inconsistent with the aircraft condition represented in the contract” and determining that KAI is entitled to compensation for having to deal with those issues. The ASBCA also determined that KAI is entitled to an equitable adjustment under section I-89 of its contract for late or unsuitable government-furnished property. The parties were unable to agree on the amount owed to KAI, and KAI requested that the ASBCA determine the amount of damages and interest that the Army owes to KAI. The ASBCA has set the matter for a hearing of no more than five days beginning 27 March 2017. KFLD anticipates that KAI will submit a statement of costs based on a “measured mile” estimating methodology and extensive support data by 16 January 2017. Highly specialized expert consultant analysis and expert testimony will be required to effectively respond to KAI’s damages calculation. Without appropriate qualified expert analysis and opinion testimony to rebut KAI’s damages calculation, the Army risks being ordered to pay whatever amount KAI submits as its calculated damages amount. KAI’s most recent demand sought more than $13,000,000.00 in damages and interest. The total estimated value of this procurement is $150,000.

4. Authority Cited: This action is authorized under the provisions of 10 USC 2304(c)(3) as implemented by Federal Acquisition Regulation (FAR) 6.302-3(a)(2)(iii) “Industrial Mobilization, Engineering, Developmental, or Research Capability; or Expert Services.”

5. Reason for Authority Cited: The proposed services are planned to be procured from the Kenrich Group, LLC, 1919 M. St. NW, Suite 620, Washington, DC 20036 (CAGE Code: 6TOT1) The Kenrich Group has over 30 years of experience in the field of business consulting, primarily for Government and Construction Contractors. The Kenrich Group clients have included aerospace & defense contractors, construction contractors, technology companies, professional service firms, health care providers and related insurance companies, wholesalers, retailers, and financial institutions. The Group has assisted clients in presenting findings in settlement negotiations, alternate dispute resolution proceedings, depositions, bench trials and jury trials. The Kenrich Group is available for the dates required for this action.

6. Efforts to Obtain Competition: In Accordance with FAR Part 6.302-3 (2)(iii) Full and open competition need not be provided for when it is necessary to award the contract to a particular source or sources in order to acquires the services of an expert or neutral person for any current or anticipated litigation or dispute.

7. Actions to Increase Competition: N/A

8. Market Research: A review of source lists for identical or similar services from professional and industry sources was conducted by KFLD. Only one source, The Kenrich Group, Inc., was identified as having the qualifications and the availability to provide the support required to analyze and respond to KAI’s damages claim.

9. Interested Sources: To date No other source was available that could meet this requirement in a timely manner.

10. Other Factors: N/A