Redacted Signed JA-1_Redacted.doc

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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18 Jun 2019

NOTE: If a Justification was approved for the preceding acquisition, a copy of the approved Justification for the predecessor action must be included in the staff package for approval of the instant Justification. This applies to Justification staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor Justification will be used as a reference document by the approving official.

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

FOR OFFICIAL USE ONLY

Is this a new or amended J&A Document? New file_9.png file_10.wmf

Amended ( Prior to Award Only! ) Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? file_11.png file_12.wmf

Yes No Funding level for this acquisition: file_13.png file_14.wmf

>SAT and < $700K > $700K and < $13.5M Contracting Activity: 763d Specialized Contracting Squadron, Flight PKA, Section PKAA Purchase Request / Local ID Number:

Program / Project (and PE, if applicable): Civil Reserve Air Fleet (CRAF) Study Phase II Program Type (PEO or Other Contracting): Other Contracting Authority: AFFARS 5313.501 - 10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901) file_15.png file_16.wmf

AFFARS 5313.501 - 10 U.S.C. 2304a, Special Emergency Procurement Authority (41 U.S.C. 1903) Estimated Contract Cost (including options): $ Justification Type: file_17.png file_18.wmf

Class Individual

COORDINATION (AFFARS 5306.304(a))

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

FOR OFFICIAL USE ONLY

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

Contracting Activity.

The Department of the Air Force, Air Force Installation Contracting Center (AFICC), 763d Specialized Contracting Squadron, Acquisition Flight PKA, Section A, (763 SCONS/PKAA), located at 510 POW/MIA Dr., Bldg P40, Scott AFB, IL 62225-5022, is the contracting activity responsible for this proposed Sole Source Justification for CRAF Phase Study II services.

Nature and/or description of the action being processed.

Through this individual Justification and Approval (J&A), 763 SCONS/PKAA intends to issue a firm fixed price (FFP) modification to the current contract, FA4452-18-C-0006, to Council for Logistics Research (CLR), Inc for a six-month extension of services (EOS) in accordance with FAR 52.217-8 for the existing Civil Reserve Air Fleet (CRAF) Study Phase II. A J&A is required as the EOS was not evaluated at the time of award.

Description of supplies/services required to meet agency needs.

Under the contemplated contract extension, CLR will provide Air Mobility Command (AMC) and the AMC Commander (AMC/CC) with continued executive level assessment, analysis, and recommendations regarding forthcoming changes potentially impacting the CRAF. The contractor personnel shall engage, understand and assess the future operating environment and the potential impacts of new DoD requirements, passenger and cargo aviation industry requirements, and remove buffer wide body freighters from the new CRAF. Additionally, contractor personnel shall provide focused analysis of both the potential impact that replacing aging wide-body freighters within the CRAF with newer Boeing 777 aircraft will have on the CRAF and the limitations that doing so may place on the CRAF cargo capabilities. The contractor personnel shall assess the potential impact that DoD, FAA and other Aviation policy changes enacted may/will have on the United States (U.S.) cargo and passenger airlines while providing near and long-term solutions and implementation strategies for the aforementioned solutions.

Contractor personnel shall accomplish the aforementioned via the execution of three tasks: Task 1 - Industry Engagements The contractor shall leverage relationships with commercial industry, holding one or two meetings per month with Airline Industry Executives and Subject Matter Experts (SME). The contractor shall also substantiate and validate industry's reactions to, and the impacts of the risks identified in the Future of CRAF Cargo Capability Study of 2017 and the effects that industry's reactions will have on the operational requirements for the CRAF program. It is crucial that AMC, United States Transportation Command (USTRANSCOM), and the Department of Defense (DoD) gain an understanding of industry's reactions in order to pro-actively manage the CRAF Program. The contractor shall meet with industry partners to accomplish this task.

Task 2 - Study Team Engagements The contractor shall travel to Scott AFB, IL in order to meet with both AMC and USTRANSCOM partners at least once per month. At these meetings, contractor personnel must be prepared to discuss findings and SME perspectives, complete focused analysis, and develop mitigation courses of action for AMC.

Task 3 - Develop Focused Analysis, Courses of Action, and Implementation Strategies The contractor shall validate, and develop an understanding of the commercial airline industry's way ahead; including, strategies, policies, costs, and rationale for changing fleet sizes and capabilities. The contractor shall analyze how flux in the commercial airline industry's fleet size and capabilities will impact operational requirements and the CRAF program. Additionally, the contractor shall develop recommendations to support the DoD's goal of establishing and maintaining a spectrum of diverse aircraft in the CRAF fleet that are both fuel efficient and compatible with the DoD's 463L pallet and cargo system. The contractor shall support the DoD's goal, in part, by surveying current tools available and proposing either updates and improvements to these tools, or by recommending new technologies or approaches that will provide more comprehensive support solutions.

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Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

Furthermore, the contractor shall assess and analyze the risks posed to the CRAF, in relation to the CRAF and the DoD's wartime mission, as a result of changes made by the U.S. in the arena of Foreign Trade and Aviation Policies. The contractor shall review current risk mitigation strategies and devise a coherent implementation plan to ensure United States Government (USG)-provided incentives to U.S. flag air carriers are timely, executable, and adequate to encourage continued participation in the CRAF program. Through carrier interviews, the contractor shall provide insight as to whether or not the aforementioned mitigation strategies are adequate. The contractor shall provide recommendations to USTRANSCOM, AMC and DoD on a way ahead as the emerging changes are realized and provide flexible and timely adjustments to the implementation plan that mitigates risk and impacts to both DoD and CRAF partners. Support will be the same as provided under the contract which is scheduled to expire 02 April 2020.

CLIN Description Unit of Measure Quantity Period of Performance Unit Price Total Labor All Tasks Months 03 April 2020-03 October 2020

Travel Industry Each 03 April 2020-03 October 2020

Travel Study Team Each 03 April 2020-03 October 2020

The Independent Government Estimate for the extension based on the last option period pricing of $

Statutory authority permitting other than full and open competition.

41 USC 1901, FAR 13.501(a)(1)(ii) and required by 13.501(a)(1).

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

The proposed six-month extension of contract FA4452-18-C-0006 is for the continuation of highly specialized technical services. The contract is scheduled to expire 02 April 2020; however, a six month extension in accordance with FAR 52.217-8 is required for continued support of the CRAF program. The follow-on requirement has now increased in complexity and not only includes the CRAF Study Phase II requirement, but also requires an understanding of the Joint Operating Environment in Peacetime and Wartime out to the year 2030 and the impact to the commercial aviation supporting DoD. Due to the additional scope for the follow-on contract, additional time was needed to conduct Market Research to determine who is capable of providing this service. Exercising the six-month extension of services will allow required support of the CRAF Study Phase II requirement to ensure that the AMC/CC is apprised of current events and their potential impact to the CRAF and Commercial Airlift ecosystem. The expected date for award of the follow-on contract is 01 October 2020 with an expected start date of 04 October 2020. CLR, Inc. has been providing uninterrupted service since 03 April 2018. Due to the highly specialized nature of this requirement, CLR, Inc. is the only contractor who can perform the duties required by the Performance Work Statement for the continued support of the CRAF program.

The Civil Reserve Air Fleet is a cooperative, voluntary program involving the Department of Transportation (DoT), and the U.S. civil air carrier industry in partnership to augment DoD aircraft capability during a national defense related crisis. Air carriers volunteer their aircraft to the CRAF program through contractual agreements with Headquarters (HQ) AMC. In return, participating carriers are given preference in carrying commercial peacetime cargo and passenger traffic for the DoD. The services are vital to the National Security and the operational wartime mission of the CRAF in its support to DoD. Without the CRAF, DoD would not be able to move the force during wartime. The 25 CRAF carriers offer more than 400 diverse aircraft to the program.

Changes in the aviation, cargo, passenger market and fleet requires constant understanding and analysis. In order for a contractor to have the ability to perform the tasks listed in Section III, the contractor must have expert knowledge of the reports listed below and the CRAF program.

These reports include:

With six years of experience supporting HQ AMC's CRAF mission, CLR Inc. is uniquely qualified to provide the needed support and expertise required to perform the tasks associated with the CRAF Study Phase II described in Section III above. Therefore, the six-month extension is for continued performance of a highly specialized service.

The Government has determined that award to any other source would result in unacceptable delays in fulfilling the Air Force's requirements. Awarding to another contractor would cause approximately an eight month delay. Approximately six months would be required for a new contractor to become familiar with the CRAF program, develop relationships with the CRAF program participants, and gain perspective of both the U.S. Airline Industry and the DoD as it relates to the CRAF program. An additional two months would be required to conduct a thorough analysis of the previous studies developed by CLR and becoming familiar with the challenges which threaten the survival of the CRAF program and past strategies implemented to combat these challenges. It would be impossible for a new contractor to provide the services required in an uninterrupted manner for the short performance period described. Furthermore, it would be difficult for a new contractor to acquire the technical knowledge and specific expertise to pick up the contract work without delay and without posing an unacceptable risk to the DoD and National Security.

A break in service is not an option as the CRAF Study Phase II requires continuous involvement and execution to keep the AMC/CC apprised of current events and their potential impact to CRAF and the Commercial Airlift ecosystem. By providing up to date information on the aviation industry, the global economy, and the DoD, it enables AMC to implement effective proactive solutions to emerging threats to the DoD's airlift capacity. Failure to account for, and adjust to these events would force AMC and DoD to be reactive and could result in mission delay and significant increased cost. In today's environment with the cargo market changing daily would increase cost to our operations and risks that could have been mitigated and would now go without action. The CRAF program is a $1.6B program with 25 carriers that is responsible for providing 90% of the passenger airlift for the DoD and 40% of the cargo airlift for the DoD. Additionally, CRAF works with an additional 63 commercial carriers who have contacts with the DoD around the world. Any delay in the mission would affect multiple carriers and cause an exponential impact on those costs and possible mission failure. Depending on the carrier and the mission the cost could range from tens of thousands of dollars to hundreds of millions of dollars. If a developing situation is not recognized it would result in mission delays. In order to prevent those delays, compensation would need to be provided to all air carriers which would have a substantial financial impact on

DoD. A 10% increase on the CRAF program budget is a $160 million cost. Continuous oversight of economic, geopolitical, military, and industry events is crucial in order for the AMC/CC to pro-actively manage the commercial airlift support to the DoD. AMC/A3B is the only entity in the DoD that provides this type of oversight. The CRAF provides an essential component to this oversight due to their strategic perspective, and unique in- depth expertise spanning across multiple sectors. A break in service would increase AMC's and DoD's risk as well as threaten the DoD's airlift capacity now and in the future which could cause significant mission delays resulting in mission failure.

Accordingly, CLR, Inc is the only firm capable of providing the highly specialized services described in Section III above without the U.S. Air Force experiencing unacceptable delays in fulfilling its requirement.

Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

In accordance with FAR 5.201, a synopsis (synopsis number FA4452-18-C-0006) was posted on FedBizOpps (FBO) on 01 November 2019 with a response due date of 08 November 2019. The posting notified all interested parties of the Government's intention to extend the current contract up to six months via FAR 52.217-8. Interested parties were given the opportunity to identify their interest and capability to respond to the requirement, or submit proposals. The only response received was from CLR, which leads to the conclusion there are no other interested parties for the required contract extension.

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

In accordance with FAR 52.217-8, Option to Extend Services, the prices specified in the contract were determined fair and reasonable in accordance with FAR 13.106-3(a)(2)(vi), prior to award. Option Year Two rates will be utilized for the six-month EOS.

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

As described in Section VI above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed extension, advising industry of the pending extension, and soliciting inquiries from interested parties. The synopsis allowed companies to identify their interest and capability. The extension for the CRAF Phase II requirement was synopsized on 01 November 2019 (closed 08 November 2019). CLR was the only vendor that expressed an interest in the extension.

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

None.

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

See Section VI above.

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.

A RFI and Sources Sought were posted for the follow-on requirement to determine if other sources exist in the industry for the knowledge needed to accomplish this requirement. Four responses were received to include the incumbent, CLR. Currently the Contracting Officer is working with the Mission Partner to further review the capability statements in order to ensure competition is obtained from all capable sources.

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.

Certification by the technical/requirements personnel.

As evidenced by my signature above, I certify that any supporting data contained herein, which is my responsibility, is both accurate and complete.