W52H0910D0095.pdf

CONTROL No. ACA090128

AH-64A Apache M230 30mm Gun and Spares

Est. Dollar Value: $45M

CMO Control # 09-568

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Agency: U.S. Army TACOM Contracting Center (RI) Rock Island, IL

61299-7630.

2. Description of Action: This action will result in a three (3) year Firm Fixed Price (FFP)

Indefinite Delivery Indefinite Quantity (IDIQ) contract with two (2) option provisions totaling five (5) years with Alliant Techsystems Inc. (ATK). Award is projected for the 1st quarter

FY2010 and Army Working Capital Funds (AWCF) will be used. An acquisition plan is not required because it does not meet the dollar threshold for an acquisition plan.

3. Description of Supplies/Services: M230 30mm Gun and Spares in support of the AH-64A

Apache Helicopter. The estimated value of this contract is based upon the Government’s best estimate of the required quantities of spare parts needed to support combat operations as determined by the Apache/Inventory Management Team using historical records of previous requirements and consumption from the field. The proposed 3-year IDIQ contract will include two (2) 100% options for years 4 and 5. This will result in a five (5) year contract at a total estimated dollar value of $45,000,000.

4. Authority Cited: 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements as implemented by FAR 6.302-1.

5. Reason for Authority Cited: As implemented by FAR 6.302-1, procurement by other than full and open competition is necessary because ATK is the only responsible source for the M230

30mm Automatic Gun and associated spares since the US Government does not possess technical documentation suitable for competitive procurement. ATK is the owner of the intellectual property of the M230 30mm Automatic Gun and retains full-rights-in-data for its technical data. The US Government possesses technical data for the M230 gun acquired as part of the overall Advanced Attack Helicopter (AAH) AH-64 Apache program. This technical data consists of drawings and related documents that support the operation, maintenance, supply, transportation, training and operations of the AH-64 Apache. The Government has limited-rights-in-data for this technical data. The US Government made a conscious decision not to acquire technical data that would support competitive procurement with full-rights-in-data for the

Apache. The US Government also made a conscious decision to adopt an acquisition strategy that was based on production and support of the Apache from the aircraft prime contractor and from the OEM design contractors of the major subsystems. This decision was a formal one made by the Program Manager, the Under Secretary of the Army at the AAH Milestone III Army

System Acquisition Review Council (ASARC) and by the Secretary of Defense at the Milestone

III Defense System Acquisition Review Council (DSARC), as prescribed by the DoD 5000 series

Est. Dollar Value: $45M

CMO Control # 09-568 documents; and promulgated by the FY82 Defense Appropriations and Authorization bills signed by President Reagan in Dec 1981, which release funding for the production of the first 11

Apaches.

ATK is the owner of the technical data for the M230 30mm gun and its subcomponents and is the world’s sole producer. ATK has not licensed or otherwise transferred its intellectual property.

ATK alone has the technical information, engineering expertise, manufacturing experience, quality assurance capability and system oversight to ensure the delivery of operational and safe

M230 guns, spare and repair parts to the government.

6. Efforts to Obtain Competition: Although this procurement will be restricted to the aforementioned contractor, every effort will be made to alert potential contractors and subcontractors. Pursuant to FAR 5.201(c), this procurement action has been synopsized in

FedBizOpps to alert interested contractors and subcontractors.

7. Actions to Increase Competition: Competition will not increase because the Apache program was structured from its very beginning to emphasize system capability, end item performance and program schedule, not competitive procurements of end items, spare or repair parts. As discussed above, one of the program elements approved at the Milestone III ASARC and

DSARC was the decision to acquire, for the entire system, technical data that documented a design that approached the final design of the Apache, that took into consideration the full military requirements of the aircraft with respect to performance, supported limited production by the prime and OEM contractors of aircraft in the final form and that was suitable for field testing, deployment and logistical support. Competitive technical data was considered and rejected. Instead, the government chose an acquisition strategy that depended on the management and technical expertise of the prime contractor and the prime’s OEM partners for production and support. The inclusion of the OEMs by the senior leadership of the Army and

DoD was the approach taken to increase the level of competition and reduce the costs in the

Apache program, while at the same time ensuring that people with the necessary knowledge of the end item and its subsystems and the requisite technical capability were intimately involved in the provision of logistical support to the aircraft.

After transition of the AH-64 armament subsystems to the Armaments, Munitions and Chemical

Command (AMCCOM – now under TACOM management), several letters were signed by different AMCCOM commanding generals to several Apache program managers raising the issue of acquiring competitive technical data for the procurement of the subsystems, including the M230 30mm gun. Each reply from the program managers reiterated the fact that the

Government acquisition strategy did not support the need or the desire for competitive technical data. The command decision at AMCCOM was not to pursue competitive technical data.

Previous to the end of the Apache production line in 1997, actions were taken to improve

Est. Dollar Value: $45M

CMO Control # 09-568 competition by acquiring M230 30mm gun parts from the prime contractor’s first-tier vendors.

The final Apache system acquisition strategy (1980), approved by the senior leadership of the

Army and the DoD and promulgated by law, pre-dated the Competition in Contracting Act (1

Apr 1985). The Advanced Attack Helicopter program was consciously structured to emphasize program elements over competitive procurement of components.

8. Market Research: Market research was performed by the TACOM Engineer, AMSTA-LC-

WSA-A in Jul 2009 by reviewing on-line manufacturer catalogs: Grainger, SDP/SI, World-Wide

Web sites: thomasnet.com, daltonhydraulic.com, adlee.com, micromo.com, sprocketspecialists.com, martinsprocket.com, agroengineers.com, tradekey.com, bostongear.com, rushgears.com, sdp-si.com, and wbparts.com. It was determined that these are not commercial items and there are no other sources that can manufacture/repair the items.

There are other attack helicopters in the world besides the Apache (the Bell “Whiskey”

Cobra(US), the joint French/German PAH-2 Tiger, the Italian A129 Mangusta, the South African

CSH-2 Rooivalk, the Russian KA-50 Werewolf, KA-52 Alligator, and Mi-28 Havoc are notable examples). Each of these helicopters have similar design concepts and systems, i.e., airframe, engine(s), main(and sometimes tail) rotors, missiles, avionics, fire control, ammunition and rockets, ammunition handling and a gun. And while they all have these similar components, they and their components are the result of a unique design and development process. Indeed, this uniqueness is one of the major selling points during marketing. The unique design attempts to guarantee that the buyer will have capabilities and combat power that others, especially potential adversaries, won’t have. It also reduces the likelihood that, unlike true commercial items, there will be an after-market source of logistical support for these systems. If you buy the Russian Ka-

52, for example, you have to go back to its manufacturer, the Kamov Company (Formerly the

Kamov Design Bureau). And, the components of these attack helicopters do not interchange.

The 30mm gun from the Mil Design Bureau’s Mi-28 Havoc, for example, will not work on the

AH-64 Apache.

For each of these aircraft, their guns, like their other components and subsystems, are designed to work with that system alone, and the gun designs are unique. While you can find analogous components from gun to gun – such as a bolt or firing pin, they do not interchange.

All of the members of the Apache IPT are involved in daily activities that make them aware of the current state of the attack helicopter and aircraft gun markets. We are called upon to analyze field problems of Apache units; we analyze the technical aspects of munitions cases and their relationship to other weapon systems; we evaluate proposed production waivers and deviations, Engineering Change Proposals and Operational and Support Cost Reduction (OSCR) projects;

we provide technical input to a variety of customers including the Project Manager, our sister

AMC major subordinate commands, field units, current and potential FMS customers and

Est. Dollar Value: $45M

CMO Control # 09-568 various contractors. We participate in scheduled symposia, seminars and meetings, such as the

World-Wide Aviation Logistics Conference, the Apache Maintenance Officers Conference, the

Aviation Live Support Equipment Conference, the Apache Program Progress Review, and the logistical support issues to scheduled FMS customer reviews. We scour the Internet and printed material in researching our analysis, decisions and briefings. We answer questions and technical issues raised by other services regarding our systems compared to theirs. The members of the

IPT have extensive technical knowledge and program experience.

9. Interested Sources: The notices required by FAR 5.201 have been published and any proposals received shall be considered. To date, no other sources have expressed an interest in writing.

10. Other Factors:

Contract: W52H09-04-D-0082

Contractor: Alliant Techsystems Inc.

Award Date: 29 Apr 2004

Competitive Status: Only One Responsible Source and No Other Supplies or Services

Will Satisfy Agency Requirements.

Authority: FAR 6.302-1

Control Nos.: ACA040025; ACA070188 and ACA080052

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

Name: XXXX Date: 1 Sep 2009

Title: Chief, Med Cal Branch Signature: //signed//

12. Requirement Certification: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

Name: XXX Date: 31 August 2009

//signed//

Title: Group Leader Aircraft Armament Signature: XXXX

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. The following techniques will be used to determine a fair and reasonable price: cost analysis, price analysis and audit. As part of this basis certified cost or pricing data will be required in accordance with IAW FAR 15.403.

Est. Dollar Value: $45M

CMO Control # 09-568

Name: Tim Donohoe Date: 28 Aug 2009

Title: Contracting Officer Signature: //Signed//

14. Contracting Officer Certification: I certify that this J&A is accurate and complete to the best of my knowledge and belief.

Name: Tim Donohoe Date: 28 Aug 2009

Title: Contracting Officer Signature: //Signed//

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of the M230 30mm Gun and Spares in support of the AH-64A Apache Helicopter, at a total estimated value of

$45,000,000, on an other than full and open competition basis pursuant to the authority of 10

USC 2304(c)(1), subject to the availability of funds, and provided that the services and property described herein have otherwise been authorized for acquisition.

DATE: __29 Sep 09__ SIGNATURE: _____ ____

HARRY P. HALLOCK

Principal Assistant Responsible for Contracting

Est. Dollar Value: $45M

CMO Control # 09-568

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

CONCURRENCE SHEET

CONTROL No.: ACA09128

Program/Equipment: AH-64A Apache M230 30mm Gun and Spares

Authority: 10 USC 2304(c) (1), FAR 6.302-1 Amount: $45,000,000.00

Prepared by: Typed Name: Ron Bjurstrom DSN: 793-5726

Title: Contract Specialist Date: 28 Aug 2009

PCO: Typed Name: Timothy Donohoe DSN: 793-5875

Title: Contracting Officer Date: 28 Aug 2009

Technical: Typed Name: Robert Ellingsworth DSN: 793-6366

Title: Chief, Med Cal Branch Date: 01 Sep 2009

Requirements: Typed Name: John Naughton DSN: 793-5547

Title: Grp Ldr Aircraft Armament Date: 31 Aug 2009

COORDINATION:

AMSTA-LR Concur Caridad Ramos//s// 09SEP09

(concur/) (signature) (date)

AMSTA-LC-WSK Concur Sally Husson Turke//sgd// 20090918

(concur/) (signature) (date)

AMSTA-AQ-AR Concur //signed// Lynn E. DeRoche 22 Sep 2009

(concur/nonconcur) (signature) (date)