Redacted JA.pdf

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

CUI

March 2023 CUI Page 2 of 10

APPROVAL ( AFFARS 5306.304(a) )

Date

02 Jan 2024

Director of Contracting Signature

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I. Agency and Contracting Activity.

The Requirement Office is 638th Supply Chain Management Group (SCMG), 411th Supply Chain Management Squadron (SCMS) / GULBA. The Contracting Office responsible for this proposed contracting action is AFSC/PZAAA. The purchase request number is FD2060-23-00071.

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

Due to the circumstances described herein, the activity requests authority to acquire the repair listed in this Class Justification and Approval (J&A) using Other Than Full and Open Competition as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This action will result in the award of a follow-on contract, which will be a 5-year firm fixed price (FFP), Requirements Indefinite Delivery Contract (IDC) with a basic one-year Ordering Period plus four (4) additional one-year Ordering Periods. Based on the projected contract award date, orders can be issued April 2024 through April 2029.

This sole source requirement will be purchased from the following company:

Goodrich Corporation 4115 Corporate Center Dr.

Monroe, NC 28110-1313

CAGE 3TAH8

Large Business

III. Description of supplies/services required to meet agency needs.

This acquisition is for Repair/Overhaul/Conversion work based on an initial inspection/bench check for Drum Winch, P/N 42315-17, National Stock Number (NSN) 1680-01-445-8278 (HH-60), Aircraft Mounted Winch, P/N 44314-10-104, NSN 1680-01-609-3765 (HH-60G), and Internal Rescue Hoist, P/N 42305-3, NSN 1730-01-474-1646 (UH-1N). Drum Winch, P/N 42315-17, will be converted to the Aircraft Mounted Winch, P/N 44314-10-104. Assets will be returned to the Government in serviceable condition while meeting the delivery schedule for all requirements. These assets are required to support the UH-1N and HH-60 Helicopter in sustainment of the United States Air Force (USAF) Special Operation Forces program.

This requirement is a follow-on 5-year FFP Requirements IDC with a one (1) year basic ordering period and four (4) additional one-year ordering periods. Based on the projected contract award date, orders can be issued April 2024 through April 2029.

The best estimated quantities (BEQs) and estimated costs are as follows:

Basic HH-60 Drum 1680-01-445-8278 CLIN Description BEQ U/I Unit Price Total Est Cost 0001 Conversion 1 EA

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0002 DATA 1 LO *NSP

HH-60 Hoist 1680-01-609-3765 CLIN Description BEQ U/I Unit Price Total Est Cost 0003 Overhaul Repair 25 EA 0004 Major Repair 10 EA 0005 Minor Repair 5 EA

0006 **NFF 1 EA

0007 ***BER 1 EA

0008 DATA 1 LO

UH-1N Hoist 1730-01-474-1646 CLIN Description BEQ U/I Unit Price Total Est Cost 0009 Overhaul Repair 7 EA 0010 Major Repair 5 EA 0011 Minor Repair 3 EA

0012 NFF 1 EA

0013 BER 1 EA

0014 DATA 1 LO

Ordering Period 1

CLIN Description BEQ U/I Unit Price Total Est Cost 1001 Conversion 1 EA

1002 DATA 1 LO

HH-60 Hoist 1680-01-609-3765 CLIN Description BEQ U/I Unit Price Total Est Cost 1003 Overhaul Repair 25 EA 1004 Major Repair 10 EA 1005 Minor Repair 5 EA

1006 NFF 1 EA

1007 BER 1 EA

1008 DATA 1 LO

UH-1N Hoist 1730-01-474-1646 CLIN Description BEQ U/I Unit Price Total Est Cost 1009 Overhaul Repair 7 EA 1010 Major Repair 5 EA 1011 Minor Repair 3 EA

1012 NFF 1 EA

1013 BER 1 EA

1014 DATA 1 LO

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Ordering Period 2

CLIN Description BEQ U/I Unit Price Total Est Cost 2001 Conversion 1 EA

2002 DATA 1 LO

HH-60 Hoist 1680-01-609-3765 CLIN Description BEQ U/I Unit Price Total Est Cost 2003 Overhaul Repair 10 EA 2004 Major Repair 10 EA 2005 Minor Repair 5 EA

2006 NFF 1 EA

2007 BER 1 EA

2008 DATA 1 LO

UH-1N Hoist 1730-01-474-1646 CLIN Description BEQ U/I Unit Price Total Est Cost 2009 Overhaul Repair 7 EA 2010 Major Repair 5 EA 2011 Minor Repair 3 EA

2012 NFF 1 EA

2013 BER 1 EA

2014 DATA 1 LO

Ordering Period 3

CLIN Description Cost BEQ U/I Unit Price Total Est Cost 3001 Conversion FFP 1 EA

3002 DATA 1 LO

HH-60 Hoist 1680-01-609-3765 CLIN Description BEQ U/I Unit Price Total Est Cost 3003 Overhaul Repair 10 EA 3004 Major Repair 10 EA 3005 Minor Repair 5 EA

3006 NFF 1 EA

3007 BER 1 EA

3008 DATA 1 LO

UH-1N Hoist 1730-01-474-1646 CLIN Description BEQ U/I 3009 Overhaul Repair 7 EA

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3010 Major Repair 5 EA 3011 Minor Repair 3 EA

3012 NFF 1 EA

3013 BER 1 EA

3014 DATA 1 LO

Ordering Period 4

CLIN Description BEQ U/I Unit Price Total Est Cost 4001 Conversion 1 EA

4002 DATA 1 LO

HH-60 Hoist 1680-01-609-3765 CLIN Description BEQ U/I Unit Price Total Est Cost 4003 Overhaul Repair 10 EA 4004 Major Repair 10 EA 4005 Minor Repair 5 EA

4006 NFF 1 EA

4007 BER 1 EA

4008 DATA 1 LO

UH-1N Hoist 1730-01-474-1646 CLIN Description BEQ U/I Unit Price Total Est Cost 4009 Overhaul Repair 7 EA 4010 Major Repair 5 EA 4011 Minor Repair 3 EA

4012 NFF 1 EA

4013 BER 1 EA

4014 DATA 1 LO

*Not Separately Priced **No Fault Found ***Beyond Economical Repair

X002/X008/X014 are Data requirements for Depot Maintenance Production Report, IUID Marking Plan, IUID Activity Validation Verification Report, CAVAF, Counterfeit Prevention Plan, Government Property Inventory Report, Accident/Incident Report, and Quality Assessment. This requirement does not include the acquisition of Intellectual Property or technical data packages (TDPs) applicable to these NSNs.

The total estimated amount of this acquisition is . The estimated cost is from a Rough Order Magnitude (ROM) submitted to the Government by Goodrich.

This effort will be funded with 4930 Defense Working Capital Funds. The delivery schedule for repairs is anticipated to be 120 days after receipt of

March 2023 CUI Page 7 of 10 order.

The NSNs were evaluated and assigned Repair Method Code (RMC)/Repair Method Suffix Code (RMSC) R3/R:

RMC: R3; Repair, for the second or subsequent time, directly from the actual manufacturer.

RMSC: R; The Government does not own the data or the rights to the data needed to contract repair of this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights.

IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above.

The agency's minimum needs can only be satisfied by the unique supplies or services available from Goodrich Corp, the Original Equipment Manufacturers (OEM) as identified on the design requirements and source-controlled drawings. The Aircraft Mounted Winch, P/N 44314-10-104, NSN 1680-01-609-3765 (HH-60G), Drum Winch, P/N 42315-17, NSN 1680-01-445-8278 (HH-60), and Internal Rescue Hoist, P/N 42305-3, NSN 1730-01-474-1646 (UH-1N), are Critical Safety Item assemblies. The hydraulic powered winches are manufactured and overhauled or repaired per the OEM specifications. The rescue hoist is used to raise and lower Pararescue Jumpers or survivors. These assemblies are highly specialized because of their special characteristics, which if not conforming to the original design of the part, could cause failure of the hoist or cable to support or lift personnel. Failure of these items could result in the loss of life of a Pararescue Jumper or survivor(s) being rescued. A substitute item must be approved by the OEM for Operational Safety, Suitability, and Effectiveness activity.

Goodrich Corp has proprietary rights to the TDPs/IP. A complete TDP/IP is required in order to repair the Aircraft Mounted Winch, Drum Winch, and Internal Rescue Hoist. The Government did not previously obtain any TDP/IP rights or deliverables from Goodrich Corp. Contract clause(s) were not incorporated in previous contracts for delivery of TDP/IP. The Government did not pursue purchase of the TDP/IP as it was not economically feasible due to the lifespan of the weapons system and minimal time to recoup cost.

The lifespan of the HH-60 is through 2026 and UH-1N 2030. The Government does not possess any commercial product sheets, test data, qualification data, support manuals or related data that defines the performance and manufacturing characteristics of the items, therefore precludes organic and competitive repairs.

Goodrich Corp is the only qualified source capable of repairing these items due to their proprietary rights.

Goodrich Corp has previously provided repair services for these items in the form of testing, repair, functional check, and certification of items. Repair services are required for sustainment of these items to ensure availability of the assets necessary to support mission requirements of the HH-60 and UH-1N helicopters. This repair effort will support backorders, Mission Impaired Capability Awaiting Parts, and surge requirements in support of HH-60 and UH-1N helicopters critical aircraft missions. This follow-on acquisition is necessary for continued repair support of this highly specialized item/system.

The current sustainment contract for these three (3) NSNs is sole source contract FA8524-19-D-0001 to Goodrich Corp. This contract was awarded on 01 May 2019 and expires 30 Apr 2024.

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In January 2023, a Reverse Engineering assessment was conducted by AFSC/FZC-R of these NSNs to allow for a competitive repair source. Reverse engineering effort requires three (3) years and would cost over $1.5M.

The 411th SCMS Program office has determined the award of a Full and Open competition contract to any other source would result in unacceptable delays in fulfilling the agency's requirements.

A strategy to reverse engineer in order to allow Full and Open competition would take an estimated 3-years before a technical data package would be delivered. The first overhauled assets from a Full and Open competed overhaul source would not likely produce until CY2026 and potentially CY2027. The estimated end of life cycle for the HH-60 is 2026 and UH-1N is 2030.

Accordingly, Goodrich Corporation is the only vendor capable of providing the requirements described in Section III above without the USAF experiencing unacceptable delays in fulfilling its requirements.

V. 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.

A Source Sought (SS) / Request for Information (RFI) synopsis, Notice ID FA8524-23-D-00071 was posted on SAM.gov on 27 September 2022 with response due by 27 October 2022. No interested vendors responded to the SS/RFI.

The requirement will be synopsized in SAM.gov in accordance with FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

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

The overall cost of this acquisition will be fair and reasonable to the Government. The Government will use historical pricing data to evaluate the contractor's proposal. The historical data includes previous proposals and years of repair price data maintained in Government records. The information will be useful in evaluating the contractor's proposal based on the proposed skill mix of labor, labor hours, types and quantities of material, and other direct costs; direct and indirect rates will be negotiated by the Government.

The contract price will be negotiated in accordance with the procedures in FAR Part 12 ensuring the ultimate cost to the Government is fair and reasonable.

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

Market research was conducted on 07 April 2023 to 07 June 2023, in accordance with FAR Part 10.001 and

10.002. The Market Research Report was completed on 28 July 2023. The market research techniques used

March 2023 CUI Page 9 of 10 are as follows:

As described in Section V above, a SS/RFI was posted to SAM.gov advising industry of the pending acquisition and soliciting inquiries from interested vendors. A SS/RFI was posted on 27 September 2022 under Notice ID FA8524-23-D-00071. No responses were received to the SS/RFI posting.

Queries were conducted within Government databases and various internet searches (ILSmart, Information Handling Services Haystack, General Services Administration Advantage, Thomasnet, and Google, https:// www.gsaadvantage.gov/advantage). Queries were conducted with the part numbers, NSNs, past and present manufacturers (Collins and Goodrich), and part names.

A Small Business Administration Dynamic Small Business Search query was conducted using North American Industry Classification System code “811310” and key words “44314-10-104" "42305-1" and "42305-3." This query produced no potential small business vendors.

The market research indicates a sole source acquisition using FAR Part 12 Commercial procedures. There are no known contractual vehicles in place to satisfy the Government's requirement. Goodrich Corporation indicated the company still performs the required services. Goodrich Corporation is the only known vendor who can meet this agency's need.

The market research concluded Goodrich Corp is the only vendor capable of fulfilling the Government's requirement.

VIII. Any other facts supporting the use of Other Than Full and Open Competition.

None.

IX. List of any sources that expressed, in writing, an interest in the acquisition.

See Section V above.

X. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

The plan to remove or overcome barriers to competition is to inquire with Goodrich Corp their interest in selling the technical data package to the Government. Goodrich Corp will be contacted annually, as each Delivery Order Request (DOR) is awarded.

The plan to break barriers to competition in the prior J&A was to, “…continue market research searching for other vendors. As part of market research, the Government will post RFIs annually when executing an ordering period and will perform market research for any follow-on contract action.” Due to personnel changes, the program team does not have documentation to determine whether RFIs were conducted annually, but a SS/RFI was posted in support of this follow-on effort. The Government does not own the TDPs/IP associated with these NSNs; therefore, the results of annual RFI postings would not have changed the acquisition strategy to sole source to Goodrich Corp.

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XI. Certification by the Contracting Officer.

As evidenced by their signature, the contracting officer certifies that this justification is accurate and complete to the best of their knowledge and belief.

XII. Certification by the technical/requirements personnel.

As evidenced by their signatures, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.