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JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

The organization responsible for this action is the Air Force Life Cycle Management Center (AFLCMC), Mobility Contracting Directorate, C-130J Branch (AFLCMC/WLNNC) 2275 D Street, Building 16, Room 153, WPAFB OH 45433.

This is a justification for other than full and open competition: Only one responsible source and no other supplies or services will satisfy agency requirements.

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

This requirement will be awarded on a firm fixed price (FFP) contract with Aerotest Ltd. This justification and approval (J&A) is an individual J&A to procure engine preservation bags required for initial spare engines to support the C- l 30J fleet.

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET AGENCY'S NEEDS

The C-130J program requires 40 engine preservation bags (PIN ATLl 175-001 G) to be used for shipping and storing initial spare engines procured for the fleet. The C- l 30J program also has a requirement to furnish engine bags as Government Furnished Property (GFP) to support preserving removed engines while the aircraft is being modified for upgrades. At the present time the program has been delivering spare engines in a shipping bag that can only be used for shipping the engine one time. It does not provide the preservation required for the engines. If bags are not procured soon, the C- l 30J program will incur Over and Above repair costs due to the spares not being preserved and stored in accordance with the procedures called out in the C- l 30J technical orders. There will also be a cost or schedule risk ifthe engine bags are not available to support the modification schedule and the engines removed as part of the modification program are not preserved correctly. Existing bags are currently being swapped to facilitate shipping engines to and from repair however the shortage of bags can cause delays in shipping engines which could impact the number of serviceable engines available to support the C- l 30J fleet. The engine bags procured will be provided to spares that were delivered without the correct bag as well as spare engines currently on contract.

IV. STATUTORY AUTHORITY PERMITTING OTHER THANT FULL AND OPEN COMPETITION

l 0 USC 2304(c)(I), as implement by FAR 6.302-1 (a)(2)(iii). Only one responsible source and no other supplies or services will satisfy agency requirements.

V. DEMONSTRATION THAT CONTRACTOR'S UNIQUE QUALIFICATIONS OR NATURE OF THE

ACQUISITION REQUIRES THE USE OF THE AUTHROITY CITED ABOVE (APPLICABILITY OF

AUTHORITY)

The engine bags provided by Aerotest (PIN A TL 1175-00 I G) are the only bags that have been tested and approved for use for storage and preservation of the C-130J engines. It was specifically designed to meet the engine manufacturer's requirements to maintain the humidity below 40%. If the humidity is not maintained, parts of the engine will absorb moisture, swell and cause the compressor blades and blade tip seals to seize the compression rotor. Costs to repair an engine when this occurs can be in excess of $500k. This bag has been tested and can be used with confidence in both arctic and desert conditions. Aerotest is the only manufacturer of an engine bag that meets the unique storage/preservation requirements the C-130J engines require. While there are various engine bags available they are not made for engine preservation. These bags are used as packaging material for the initial shipment to keep dirt, dust out of the engine. The program used a different bag prior to this one being developed and it proved to be unreliable. It tore easily and was difficult to repair. Users also had difficulty in maintaining the humidity requirement which resulted damage to the engine. Any damage that occurs as a result of improper preservation is considered as an over and above repair. The cost of repair can be anywhere from $75K to over

$SOOK. Any new source would require a new design, qualification and certification prior to going into production.

The design, qualification and certification of a new shipping bag would be a one to two year process. The bag would also be required to be designed for use of the existing Thermo-Hygrometer (specific port and seal requirement) that has been procured for all units, if not it may drive the need for new equipment which would be an additional cost and delay. In addition, the new item would require the approval of Lockheed and Rolls-Royce prior to introduction.

USG does not have a requirement for, nor have funding available to have a new contractor design and test a new shipping bag. At the present time it is cost prohibitive to have a new bag designed.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS

MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

As indicated above in section V, Aerotest is the only manufacturer of an engine bag that meets the unique storage/preservation requirements the C-130J engines require. There are additional engine bags available on the market; however, they do not meet the C- l 30J preservation requirements. If a new bag is developed, testing will have to be accomplished to qualify and approve it for use. A new bag may drive a change in equipment used to test the humidity levels which could increase costs. These issues will be address as new bags or sources become available.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE

GOVERNMENT WILL BE FAIR AND REASONABLE

Since the engine bags will be procured direct from the manufacturer there will be a cost savings versus procuring them through a third party. The manufacturer is offering quantity discounts which have not been offered in the past through the third party procuring these for the program. The ordering activity anticipates a cost savings of approximately $1 OOk for this effort and will determine fair and reasonable pricing.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS. OR

STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT CONDUCTED

Market research included queries of the General Services Administration (GSA), internet searches and surveys for alternate original equipment manufacturer (OEM) facilities. Market research showed Lockheed Martin (LM) as a source; however, LM only provides the items as a third party and utilizes Aerotest as a sub-vendor. Market surveys are continuously conducted to identify new sources of supply and services necessary to upgrade and maintain the system.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHERTHAN FULL AND OPEN COMPETITION

Regardless of the vendor's capability to manufacture a bag under this solicitation, any new source would require a new design, qualification and certification prior to going into production. The C- 130J technical manuals would have to be updated as well. New procedures would have to be developed and put into the technical manuals to allow the use of a different bag. This is an added program cost which has not been budgeted for. The dlesign, qualification and certification of a new shipping bag are estimated to be a one to two year process. The bag would also be required to be designed for use of the existing Thermo-Hygrometer (specific port and seal requirement) that has been procured for all units; if not, it may drive the need for new equipment which would be an additional cost and delay. In addition, the new item would require the approval of Lockheed and Rolls-Royce prior to introduction.

The program office does not have a requirement for, or the funding available to have a new contractor design and test a new shipping bag. A requirement would need to be established by the Crew Operations Review Team/Support Operations Review Team (CORT/SORT) process and funding programmed to perform the redesign and qualification efforts.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE ACOUISITION

XI. A STATEMENT OF THE ACTIONS. IF ANY. THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRJEERS TO COMPETIITON BEFORE MAKING SUBSEQUENT

ACOUISTIONS FOR THE SUPPLIES OR SERVICES REQUIRED

The program currently has a process in identifying new equipment based on Diminishing Manufacturer Support or product improvements. The Support Equipment Recommendation Data process will be followed to determine what product will support our engine preservation requirements.

XII. CONTRACTING OFFICER'S CERTIFICATION

The Contracting Officer's signature on the coordination and approval document evidences that they have determined this document to be both accurate and complete to the best of their knowledge and belief (FAR 6.303-2(a)(l2)).

XIII. TECHNICAL/REOUIREMENTS PERSONNEL'S CERTIFICATION

As evidenced by their signatures on the coordination and approval document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete (FAR 6.303-2(b)).