LPA - DPA Title III JA_Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

FOR OFFICIAL USE ONLY

March 2020 FOR OFFICIAL USE ONLY Page 1 of 7

Was a J&A approved for the preceding acquisition? Yes No

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined at AFFARS 5302.101? Yes No

Dollar Value of this Acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: Department of the Air Force Air Force Life Cycle Management Center AFLCMC/LPAK, 2145 Monahan Way Bldg 28 Wright-Patterson AFB OH 45433-7142

Purchase Request (if available): AFLCMC/LPA-20-J&A-01

Program / Project (and PE, if applicable): COVID-19 Industrial Base Support for Propulsion Industry

Program Type (PEO, Enterprise, of Operational): PEO

Authority: 6.302-2 – 10 USC 2304(c)(2), Unusual and Compelling Urgency

Estimated Contract Cost (including options): $ 20,000,000 J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

27 May 2020

Project Lead / Program Mgr / Requiring Activity

Signature

Date Contracting Officer

Date Local Legal Reviewer

Date

08 Jun 2020

Chief of the Contracting Office (COCO)

Date PEO / Commander (Requirements Cognizance)

Date

11 Jun 2020

Competition Advocate

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APPROVAL (AFFARS 5306.304(a) )

Date Senior Contracting Official (SCO) Thomas D. Robinson

AFLCMC/PK / 937-255-3741

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I. Agency and Contracting Activity.

Department of the Air Force Air Force Life Cycle Management Center (AFLCMC) Adaptive Engine Transition Program AFLCMC/LPAK, 2145 Monahan Way Bldg 28 Wright-Patterson AFB OH 45433-7142

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

This undefinitized contract action will be a modification to contract FA8626-16-C-2138 and is a CARES ACT Defense Production Act Title III requirement which ensures certain GE engineers can retain their expertise in a manner that would maintain the defense industrial base so that national security requirements can be met.

ue to the downturn in their commercial business due to the COVID-19 national emergency, GE will have to lay off these engineers, losing much needed engineering expertise at the detriment of the defense industrial base. The loss of this defense industry expertise represents a significant and imminent threat to the development of future defense capabilities. This effort will preserve this critical defense industrial competency. To accomplish this a UCA will be established on a new CPFF CLIN 0009 by modification P00053 to the aforementioned contract. An NTE and spend plan has been shared by GE and an MCD to issue the UCA was approved 5/20/2020. Issuance is planned as soon as funding is obtained.

III. Description of supplies/services required to meet agency needs (including the estimated value).

The work proposed is to purchase engineer employment to sustain the qualified workforce and have these engineers perform research on military activities to preserve at-risk military unique skills. This effort is set up to create, maintain, protect, expand, or restore domestic industrial base capabilities essential for the national defense, specifically, for the development of production capabilities and increased use of emerging technologies in security program applications and the rapid transition of emerging technologies: from Government-sponsored research and development to commercial applications, and from commercial research and development to national defense applications.

The technical objective of this effort is to refine component level design, advance key manufacturing technologies, and reduce risk through component rig testing

Each of these tasks will result in delivering a component design that meets milestone criteria appropriate for completion of the overall program.

The estimated dollar value of the acquisition covered under this Individual J&A is $20M and will be funded by Defense Production Act Title III funding.

The government estimates all activity will be completed in less than 12 months from contract award.

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IV. Statutory authority permitting other than full and open competition.

The statutory authority which permits other than full and open competition for this acquisition is 10 USC 2304(c)(2), as implemented by FAR 6.302-2 - Unusual and Compelling Urgency

V. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above (applicability of authority).

Only two US contractors possess the technical knowledge, design expertise, and manufacturing capability to design, build and test large combat jet engines. Having a healthy propulsion industry with sufficient competition to provide alternative sources is critical to national defense. Allowing the industrial base to atrophy risks the technological and combat capability advantages the US has against our near-peer adversaries. This unique industry capability is under extreme risk from the unique business conditions created by the COVID-19 pandemic and the subsequent collapse of the commercial aviation market that would otherwise sustain a significant portion of the industry.

In

GE's 1st Quarter 10-Q, GE states that COVID-19 has had a material adverse impact on their operations and financial performance with the most significant impact being in their GE Aviation business unit. GE's 10- Q COVID-19 discussion ends with a statement stating they cannot forecast the full duration and magnitude of COVID-19 impacts or the pace of recovery from the COVID-19 pandemic across all of their markets, operations, and supply chains.

A delay in contract award would cause GE to lay off approximately 100 design personnel.

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One further consideration is the contract vehicle chosen supports the rapid action required to prevent the loss of personnel.

inability to start work immediately would result in the very layoffs the Government is trying to prevent.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under

FAR 5.202 applies.

This proposed contract action is made under the conditions described in FAR 6.302-2 and exempt from synopsis requirements in accordance with FAR 5.202(a)(2).

Additional market research is contained in section VIII.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer (CO) has determined that the anticipated cost to the Government will be fair and reasonable based upon guidance from FAR 15.4, and analysis of detailed certified cost or pricing data.

Proposed hours and materials needed to perform specific tasks will be evaluated by AFRL and AFLCMC personnel and documented in the technical evaluation. Cognizant Defense Contract Management Administration (DCMA) and Defense Contract Audit Administration (DCAA) offices will be asked to provide analyses of price and materials, and audit reviews, as needed.

Certified cost or pricing data will be required in accordance with FAR 15.403-4. All technical cost analyses will be combined with the CO evaluations of contractor cost and pricing data to formulate the government's negotiating position. Through use of the aforementioned, and thorough negotiations with GE, the CO will be able to determine a fair and reasonable price.

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VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

VIII

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 does not anticipate any follow on contracts associated with the effort covered under this J&A.

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 signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

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