RedactedJA.pdf

CUI

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

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6.302-1 – 10 USC 3204(a)(1), Only One Responsible Source - No Other Supplies or Services Will Satisfy Agency Requirements

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This Class Justification and Approval is to request authority for Other Than Full and Open Competition supporting requirements generated for the Air Force Life Cycle Management Center (AFLCMC)/WNZ. The contracting activity for this requirement is AFLCMC/WNKAC. The purchase request number supporting this contract action is FD2060-24-31655.

Due to the circumstances described herein, the activity requests authority for a bridge contract to acquire Overhaul support for the Tunner 60,000-pound capacity aircraft cargo loader/transporter system 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. Currently, the incumbent contractor, DRS Sustainment Systems Inc (DRS), is the only company that can perform necessary Tunner Loader overhaul services. The program office attempted to competitively award this effort in a larger Aircraft Cargo Loader (ACL) acquisition and released a Request for Proposal (RFP) on 30 May 2023; however, DRS was the only offeror who submitted a proposal on 10 July 2023. Since DRS was the only offeror on the competitive effort, certified cost and pricing data was required to negotiate a fair and reasonable price. After multiple delays and several attempts to obtain the data, the PEO cancelled the 10-year ACL effort on 15 February 24 in favor of four bridge contract actions to prevent causing operational impacts while a longer-term, competitive strategy can be developed and re-solicited. Additionally, a Sources Sought Request for Information (RFI) was posted to SAM.gov on 28 February 2024 and DRS was the only respondent. Moreover, current market research does not reveal any other capable or viable alternative sources other than DRS at this time.

Based on analyzing Industry feedback from who the Program Office contacted directly as to why they did not propose in 2023 or 2024, the Program Office plans to revise the Tunner Loader Overhaul Services requirement and conduct follow-on market research. As a result, the Program Office is confident it can achieve a competitive solution by the estimated timeframe of January 2029. Additional details of the efforts to secure a competitive acquisition are in Section IV while current market research is in Sections V and VII.

This bridge contract will be a Fixed Price Incentive Firm Target (FPIF) and Firm-Fixed Price (FFP) Requirements Indefinite Delivery Contract (IDC), with 1-year basic and four (4) option years. Based on the projected contract award date, task orders can be issued from February 2025 through February 2030, if all options are exercised. This bridge acquisition supports the continuation of services that were previously performed under contract FA8519-14-D-0001 and will prevent a lapse in overhaul support to the Tunner Loader fleet. The contract (FA8519-14-D-0001) expired 05 November 2023, which at that time eliminated the Government’s ability to place additional funded orders on this contract. Before the contract expired 1 November 23, the Government awarded the last delivery order for overhauls at a quantity of 16. These overhauls are currently in work and the last loader will be delivered 14 April 2025 resulting in completion of the contract. Air Mobility Command (AMC), the Lead Command and primary user of the Tunner Loader, has determined that a new contract is required by February 2025 to avoid decreased operations. Tunner is the only rapid generation capability to meet Air Mobility requirements. Tunner is not procurable today and the field must rely on equipment overhauls to provide reliable cargo loading capability. Failure to execute the bridge contract will result in a 50% increase in ground turn-around time on nearly all air cargo movements world-wide causing reduced sortie generation and an unacceptable risk to Agile Combat Operations. This bridge contract will ensure continued Tunner Loader availability while the follow-on competitive ACL Component Level, Performance Based Logistics (PBL) acquisition strategy is re-defined and re-solicited to provide for competition by the estimated timeframe of January 2029.

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This effort is for Tunner Loader Overhaul support to the Air Force Policy Directive 10-9 designated Tunner weapon system National Stock Number (NSN): 3930-01-409-0339CT (includes -501, -601, and -605 configurations). The Tunner weapon system touches the majority of all United States Transportation Command (TRANSCOM) air cargo moved worldwide. Overhaul support is needed for the 318 Tunners at over 125 worldwide locations, used by AMC (Lead Command), Air Combat Command, Air Force Materiel Command, Air Force Special Operations Command, US Air Forces Central, Pacific Air Forces, US Air Forces in Europe, Air Education and Training Command, Space Force, National Guard Bureau, and Air Force Reserves. Tunner performance and availability is a key element in AMC’s Rapid Global Mobility mission.

Tunner and Power Pack Upgrade (PPU) Overhaul efforts are considered non-commercial requirements. In addition, three PPU Overhauls will occur during the basic contract period. The PPU is a fleet wide Tunner engine upgrade to a Mercedes engine. Out of the 318 total Tunner fleet, 315 were upgraded with the PPU Mercedes engine under the previous contract.

The Overhaul requirement is complex and requires integration of major subtasks, each of which are complex on their own. Major subtasks include supply chain management with worldwide distribution (over 3,000 unique Tunner parts must be sourced/built/qualified by the contractor); systems engineering (requires contractor acceptance of design responsibility); and unscheduled depot level repairs that are all integrated to meet system availability requirements.

This effort includes the following tasks to achieve loader availability sustainment and completion of PPU Overhauls, ensuring product life-cycle management:

a. Loader Overhauls

b. Unscheduled Depot Level Maintenance (UDLM) for excess damage to the loader over and above what is normally included in the Overhaul Instruction Manual, performed at the contractor's Overhaul facility and includes the development of repair procedures and repair during the Overhaul process.

c. Contract Data Requirement List (CDRL). These CDRLs are not separately priced and are delivered at various periods on a case-by-case basis (Monthly, Quarterly, and Yearly). The data will be Government owned and managed by the contractor. Intellectual Property (IP) is not being purchased as the Government already owns the rights to the IP. The CDRL Contract Line Item Number (CLIN) is for the contractor to submit technical documents and data required by the Performance Work Statement.

d. Modifications. When directed, the contractor is responsible for implementing Tunner modifications such as PPU engine upgrades. This task is implemented on a case-by-case basis. Modifications fall under UDLM.

e. PPU. The PPU is a fleet-wide Tunner engine upgrade to a Mercedes engine. Out of the 318 total Tunner fleet, 315 Tunners have been upgraded with the PPU Mercedes engine under the previous contract. The remaining three PPU overhauls will be performed during the base period of this follow-on bridge contract.

The total estimated cost for the bridge contract is as indicated below:

PERIOD FISCAL YEAR ESTIMATED TOTAL

Basic FY25 Option I FY26 Option II FY27 Option III Option IV

FY28

FY29

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The basis for this estimate is historical cost data with a 3% inflation factor applied to each option year. This requirement will be funded with Operation &Maintenance 3400, Transportation Working Capital Fund, Air Force Reserve Command, and Air National Guard funds.

The Government owns unlimited rights to Level III technical data for the Tunner Loader. There will be no technical data packages or IP deliverables under this bridge contract. The CDRL deliverables will be as follows:

CDRL A002 - Integrated Program Management Data and Analysis (IPMDAR) CDRL A003 - Contract Funds Status Report (CFSR) CDRL A004 - Conference Minutes CDRL A005 - Configuration Audit Summary Report (CASR) CDRL A006 - Test Report CDRL A007 - Systems Engineering Plan (SEP) CDRL A008 - Overhaul Instruction Manual (OIM) CDRL A009 - Item Unique Identification Marking Plan (IUID) CDRL A010 - Accident Report CDRL A011 - Quality Assurance Program Plan (QAPP)

This Class J&A covers all orders issued against this Requirements IDC. Based on the projected contract award date, task orders can be issued from February 2025 through February 2030, if all options are exercised.

The Government attempted to compete the Tunner sustainment requirement as part of an overarching ACL sustainment effort. The original acquisition strategy plan for the Tunner ACL10-year effort was to combine both the Tunner and Halvorsen sustainment and overhaul requirements into one contract. The competitive RFP was released on 30 May 2023. DRS was the only vendor to submit a proposal on 10 July 2023; therefore, certified cost or pricing data was required for negotiations and due 15 September 2023. After multiple delays, the PEO cancelled the 10-year ACL effort on 15 February 24 in favor of four bridge contract actions to prevent causing operational impacts while a longer-term strategy could be developed. Requirements were broken down into four efforts due to immediate field support needed, which could only be accomplished by separating each of the two loader system requirements and further breaking each loader system requirement between Contractor Logistics Support (CLS) and overhaul requirements. Furthermore, the bridge length of five years restored the contractor’s ability to obtain sub-vendor pricing. This resulted in four bridge contracts for Halvorsen CLS, Halvorsen Overhaul, Tunner CLS, and Tunner Overhaul. This J&A is only for the Tunner Overhauls and completion of the three PPU overhauls.

This bridge contract will continue the Tunner Overhaul portion of services that were previously covered under contract FA8519-14-D-0001. The previous contract was awarded competitively to DRS for sustainment of the Tunner weapon system which included both CLS and Tunner Overhaul. The prior requirements contract was awarded 06 November 2013 and expired 05 November 2023, and the last delivery order provides overhaul deliveries until 14 April 2025. AMC, the Lead Command and primary user of the Tunner Loader, has stated a new contract to provide overhaul capabilities is required by February of 2025 to avoid reduced Air Mobility operations world-wide from increased failures, a decreased mission capability rate, and increased cargo loading times on all Air Mobility assets world-wide after 14 April 2025.

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The Program Office has determined DRS is currently the only firm capable of providing the services described in Section III above without the United States Air Force experiencing unacceptable delays in fulfilling its requirements. This determination is based on DRS being the incumbent contractor, DRS being the only offeror to respond to the attempted ACL competition on 10 July 2023, and DRS being the only respondent to a Sources Sought RFI posted to SAM.gov on 28 February 2024. Moreover, internet-based market research by the Program Office demonstrated that no other capable sources are available who can begin performance by February 2025.

Further, the Program Office estimates a competitive acquisition, and a new source would take at least five years (60 months) to achieve the necessary level of performance to sustain the Tunner Loader and support the Rapid Global Mobility mission. The five-year estimate is based on the time needed to restructure the competition strategy and obtain a new approved acquisition strategy (12 months), plan for and conduct the source selection (24 months), and transition the equipment and logistics support for a new vendor based on extensive ramp-up requirements estimated at 24 months. The Program Office projections are based on the historical startup time in the previous Tunner Loader sustainment contract.

A delay of five years would detrimentally harm the Air Force's ability to execute the Department of Defense Air Cargo and Rapid Global Mobility mission. Without continued Tunner sustainment, there is an unacceptable degradation to air cargo ground loading and unloading velocity, loader availability and vehicle Overhaul system capabilities world-wide. The Tunner weapons system touches 90% of TRANSCOM air cargo moved worldwide. The loss of operational Tunner's will increase aircraft ground turnaround time by up to 50%. The resulting reduction in cargo velocity will have a direct and immediate impact on available cargo sorties, thus, reducing delivery of mission critical assets and warfighting capability worldwide on the following vital aviation platforms: C5, C17, C40, C130, KC10, KC46, and KC135. This mission degradation is unacceptable to the Agency and National Defense as the Air Force is reoptimizing for Great Power Competition.

Accordingly, DRS Sustainment Systems Inc. is the only vendor capable of providing the requirements described in Section III above without the Government experiencing unacceptable delays in fulfilling its requirements until the follow-on requirement can be revised and advertised for the follow-on competition.

A Sources Sought RFI was posted to SAM.gov on 28 February 2024 with a response date of 29 March 2024 under Notice ID FA8534-24-R-00. The RFI requested responses from interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this bridge effort. DRS was the only vendor that responded to the SS/RFI. The vendor was evaluated for their capability and determined to be capable.

This bridge requirement was synopsized on SAM.gov on 06 May 2024 in accordance with FAR 5.201. It was anticipated that sources having an interest in subcontracting would be identified through this synopsis, no contractor's responded to the synopsis.

In accordance with DAFFARS 5306.304(a)(4)(ii), the Senior Contracting Official authorized release of the solicitation concurrent with forwarding the justification package to SAF/AQC. An early solicitation release was required to mitigate potential milestone delays associated with proposal preparation, technical and pricing evaluation, negotiations, and various review/clearance cycles.

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The Contracting Officer anticipates the costs to the Government can be determined fair and reasonable based on the following;

- Evaluation of the certified cost or pricing data provided with the DRS proposal in accordance with FAR

15.403-4.

- Program office technical analysis of proposed basis of estimates.

- Inputs from the Defense Contract Management Agency, including from the Administrative Contracting

Officer.

- Review of cost history on the previous contract, FA8519-14-D-0001.

Market research was conducted by the Program Office for the attempted larger ACL acquisition, and for this refined Overhaul requirement, from 15 August 2023 through 11 April 2024 in accordance with FAR Part

10.001 and 10.002. Market research included knowledge gained during the ACL effort, experience with the marketplace under the previous contract, and the RFI and the public synopsis described in section V.

Market research also included online searches that revealed six (6) different vendors who manufacture or support equipment similar to the Tunner Cargo Loader and have varied experience with the Government.

Several of the vendors were contacted about their interest in proposing the overarching ACL effort but they all responded the scope of the contract was too complex to bid. With exception to the incumbent, there is no interest in the overarching ACL effort. Until that effort can be re-defined, it was determined the incumbent is the only vendor capable of providing Tunner and PPU Overhaul sustainment during the bridge period. The vendors evaluated were as follows:

TLD America (CAGE: 6M481) Allied Systems (CAGE: 60848) RCL Components INC. (CAGE: 34AH4)

ATAP INC (CAGE: 22638)

DRS Sustainment Systems INC (CAGE: 98255) JBT Aerotech (CAGE: 93408)

In addition, a Small Business Administration Dynamic Small Business Search and internet queries were conducted using North American Industry Classification System code 333924 and keywords "Aircraft Cargo loaders, hydraulic loaders, and deck loaders." Other than the incumbent, these queries produced no other potential vendors for the bridge effort.

The market research concluded DRS is the only capable vendor who can fulfill the Government's requirement during this potential 5-year bridge period.

The Market Research Report was completed on 12 April 2024

None.

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See Section V above.

This acquisition is for a bridge contract to provide coverage until the competitive ACL/PBL follow-on contract is awarded, estimated timeframe of January 2029. Four out-year options will be included on the bridge contract to mitigate delays in the award of the follow-on contract and reduce the chances of a lapse in coverage of Tunner Overhaul support. If the opportunity becomes available to convert to a competitive sooner than the five years of this contractual action, the option year will not be exercised to move to that competitive solution.

Presently, the absence of qualified contractors, other than the incumbent, is due to the requirement for a contractor to lean forward on long lead items at contractors’ risk, which required a contractor to use internal investment dollars to develop a robust inventory to meet program requirements. Financial incentives did not overcome the risk the contractor was required to assume under the contract in relationship to parts for field support and combined requirements of systems, which created a magnitude of work outside potential offerors capabilities. It is anticipated the barrier to competition listed above and were present in the original ACL/ PBL solicitation will be overcome through the team conducting additional market research analysis and holding Industry Days to gain feedback from vendors to determine a contract structure, which industry views as having acceptable risk. The IPT will then take information from market research analysis and Industry Days to review contract structure, terms and conditions, and solicit the requirements. The Government owned Technical Data Package will be included in the solicitation. Through these actions, the Government does not anticipate barriers to full and open competition beyond the estimated timeframe of January 2029.

As evidenced by my signature above, I certify that this justification is accurate and complete to the best of my knowledge and belief.

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