Signed_J A_for_Other_than_Full_and_Open_Competition.pdf

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J&A for Solicitation SPE4A5-15-R-0284

Source Selection Information – See FAR 2.101 & 3.104

COORDINATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

DLA CONTRACTING ACTIVITY, DLA AVIATION

PURCHASE REQUEST NUMBER/SOLICITATION NUMBER: SPE4A5-15-R-0284

PROGRAM COST ESTIMATE: $73.7 Million

AUTHORITY: 10 U.S.C. 2304(c) (1), as implemented by FAR 6.302-1(a)(2)

TYPE of J&A: Class

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge.

DATE JULIE LESUEUR

CONTRACT SPECIALIST

This justification has been reviewed and is recommended for approval.

DATE Schyla Howe

Contracting Officer

DATE GWENDOLYN PEARSON

Program Manager, DLA Aviation Competition

DATE TANYA HILL

Chief of the Contracting Office

DATE BENJAMIN G. PERKINS

Counsel, DLA Aviation

DATE C.M. LILLI

Deputy Commander

Head of the Contracting Activity gpp3004

Typewritten Text

Advocate

2015-02-26T16:01:22-0500

LESUEUR.JULIE.SMITH.1229535290

2015-02-27T09:14:25-0600

HOWE.SCHYLA.P.1267085648

2015-03-06T17:05:47-0500

PEARSON.GWENDOLYN.C.1229634263

2015-03-30T14:03:04-0400

TRACY.DONALD.S.1229463892

2015-04-10T11:28:33-0400

HILL.TANYA.F.1232232168

2015-04-15T07:54:23-0400

LILLI.CHARLES.MICHAEL.1035084246

DEFENSE LOGISTICS AGENCY

AVIATION

8000 JEFFERSON DAVIS HIGHWAY

RICHMOND, VIRGINIA 23297-5100

CLASS JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Class Justification and Approval (J&A) for Other Than Full and Open Competition supports requirements to Defense Logistics Agency (DLA) aviation warfighter customers. The contracting activity for this requirement is DLA Aviation, Strategic Acquisition and Programs Directorate/A in Richmond, VA.

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

Due to the circumstances contained herein, this activity requests authority to acquire Martin Baker sole source items/spares using other than full and open competition as prescribed in FAR 6.302-1, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements." Attachment 1 Pricing identifies the initial population but this J&A will allow for additional items. This action will result in the award of a new contract which is anticipated to be a ten (10) year Requirements Type Contract consisting of a four (4) year base period and three, two (2) year option periods.

The estimated maximum dollar value for the period of performance is $73.7 million. This figure is based on the current Item Consumption Rate (ICR) multiplied by the Unit Cost multiplied by 12 (for a yearly rate) in addition to a growth rate of 3% per year to reflect inflation.

This sole source requirement will be negotiated with small business Martin Baker America (CAGE 1Q842).

Year Contract value

Base Year (4 yrs)

$25,134,330

Option 1 (2 yrs) $15,114,619 Option 2 (2 yrs) $16,197,736

Option 3 (2yrs) $17,210,852 Total Contract 73.7 M

III. DESCRIPTION OF THE SUPPLIERS/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS (10 U.S.C. 2304(f)(3)(A))

DLA Aviation is requesting approval of this Class J&A, to include the authority to acquire sole source consumable items from Martin Baker using Other Than Full and Open Competition procedures as prescribed by FAR 6.302-1, Only one Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This initiative covers the following Martin Baker Contractor and Government Entity (CAGE) codes: 1Q842 and U1604. The Martin Baker locations are as follows:

Martin Baker America (1Q842) Martin Baker (U1604) HQ 423 Walters Ave Lower Road, Higher Denham, Johnstown, PA 15904, USA Near Uxbridge, Middlesex, UB9 5AJ, U.K

This initiative includes but is not limited to an estimated 546 consumable items. These items are in support of numerous weapons systems, primarily the Navy Aircrew Common Ejection Seat (NACES), but also EA-6B, QF-4, F-18 (A, B and C models), T-38, and T-

45. Of note, the F-18 A/B models are currently on a sundown plan. Model C will convert to the NACES seat configuration.

This proposed acquisition will result in the award of a new Requirements Type Fixed price contract with Prospective Price Redetermination, with a proposed four year base period and three, two year option periods. If the vendor does not agree to price redetermination at each option, redetermination periods of every three years will be proposed.

This contract will include a separate schedule of items for both a Customer Direct (CD) and Depot Direct (DD) support.

For items with CD support, Martin Baker will be responsible for performing a determined complete set of services necessary to provide the required level of support and will be measured on metrics that measure some standard of delivery performance.

Performance above or below the set standard will affect the contractor’s performance fee as such. A sliding fee schedule may be utilized to measure performance. The proposed performance requirement is a 90% Fill Rate.

Nine of the 546 NSNs have a surge requirement and are identified on the attachment Surge.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

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

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRE THE USE

OF THE AUTHORITY CITED ABOVE

This acquisition initiative will continue to aid in the long term health of these items by stabilizing requirements considering stock-on-hand, due-ins and demand requirements without the need for a transactional buy each time a requirement is established. The Agency is also attempting to utilize more single ordering vehicles, thereby reducing procurement workload with fewer individual contracting actions and reducing the workflow of manual purchase requests (PRs).

Martin-Baker is the world's leading manufacturer of ejection seats and related equipment.

It is the only company that can offer a fully integrated escape system that satisfies the very latest in pilot operational capability and safety standards. Martin-Baker offers a complete 'end-to-end service’, from helping the customer to establish operational safety and escape requirements, including design, development and qualification, to on-going support throughout the entire service life of the aircraft. Based on the Acquisition Method Suffix Code (AMSC), these are sole source to Martin Baker. Applicable AMSCs are AMSC C – the part requires engineering source approval by the design control activity in order to maintain the quality of the part; AMSC D – the data needed to acquire this part is not economically available; AMSC L – the annual buy value of the part falls below the screening threshold established by DOD; AMSC P – the rights to use the data needed to purchase this part from additional sources are not owned by the government and cannot be purchased, developed or otherwise obtained; and AMSC Q – the government does not have adequate data, lacks rights to data or both and it is not economical to buy data or rights to the data.

DLA Aviation and Martin Baker are currently on their second Long Term Contracting vehicle. SP04006D9408 was awarded as a sole source requirements type contract in April 2006 and expires March 31, 2016. The original estimated value of the contract for ten years was $46,817,978. The contract was set up as a Customer Direct (CD) with the potential for DLA Direct (DD). This contract contains a 2 year base period with four, 2 year options for 455 NSNs. This contract, along with this initiative effort will continue to support a multitude of ejection seat configurations on numerous weapon systems ranging from the largest body of NSNs that support the Navy Aircrew Common Ejection Seat (NACES) to the support of the retiring F-14 and scheduled and unscheduled maintenance of the QF-4, T-38, and the T-6 Texan II, a joint Air Force and Navy trainer that have both common and unique NSNs that can be added to this contract.

Martin Baker also demonstrates the capability to support Foreign Military Sales (FMS);

therefore, the Request for Proposal will ask to include FMS on the Long Term Contract.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

Future interest from additional sources is not anticipated at this time; however, this requirement has been synopsized in the Federal Business Opportunities (FedBizOpps) web page as required by FAR 5.201. Any potential contractor who expresses interest in this requirement will be directed to the solicitation.

VII. 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. In accordance with FAR 15.403-4, the contractor will be required to provide certified cost and pricing data to be used in supporting the Government’s evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types and quantities of material, other direct costs, and direct and indirect rates will be negotiated by the Government based on recommendations from the Defense Contract Audit Agency (DCAA) and expert technical personnel supporting the program. The contract price will be negotiated in accordance with the procedures in FAR Part 15. Based on the foregoing, the Contracting Officer hereby determines the anticipated cost to the Government will be fair and reasonable.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR STATEMENT OF THE REASONS MARKET RESEARCH WAS

NOT CONDUCTED

Primary market research efforts included detailed data mining and analysis of DLA’s systems regarding ejection seats, internet searches, and information gathering from Subject Matter Experts (SME) in ejection seat components.

The data mining resulted in 546 items being identified for the current candidate list based on being sole source to Martin Baker and utilizing the Acquisition Advice Codes (AAC), annual demand frequency (ADF), annual demand spend and historical spend.

Internet searches included but were not limited to searches for ejection seats and ejection seat components, Martin Baker and Martin Baker Helicopters, and weapon systems T-6, T-38, MK 16. Searches for historical and current performance based endeavors did not reveal further sources.

Discussions were conducted with the SMEs from DLAs procurement activity, including pre-award and post-award, product specialists, and supply chain personnel. In addition, open and frank discussions conducted with Martin Baker provided considerable information for analysis and consideration contributing to data mining, and lessons learned from the previous long- term contracting vehicles for the last 14 years.

The research did not identify sources other than Martin Baker America who possess the data, capability and technical knowledge to manufacture these life support, sole source items.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION

The government has not purchased or developed technical data that would be needed in order to procure support from a source other than Martin Baker. For other sources to make significant reliability improvements, such sources and ultimately the Government, would need to invest significant time and money to reverse engineer and develop and conduct testing on hundreds of unique components. Martin Baker and DLA have been in Long Term Contract agreements for these ejection seats and ejection seat components since 2000. The monetary costs and man-hours are prohibitive to break a new supplier into this level of management.

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

ACQUISITION

To date, no other sources have expressed interest in this requirement. If other sources express interest, DLA Aviation will work with them to determine capability in performing this effort.

XI. 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

Due to the complex nature of this work, there is no current opportunity to remove barriers to competition at the prime contractor level. Ejection Seat technical data and rights and engineering configuration control is proprietary and resides with Martin Baker-America;

therefore, these items have not been subject to reverse engineering nor are they Break out candidates to achieve competition. Aircraft ejection seats are military unique with most coded as Critical Safety Items (CSI), determined by the cognizant Engineering Support Activity (ESA), and there is no consideration for commercial items. As stated above, Martin Baker- America is the only known source with the capability of performing the required logistics support.

Future requirements will nevertheless be advertised in the FedBizOpps website (www.fedbizopps.gov) in order to ensure that potential alternate sources are aware of the requirement and can identify interest in support for the applicable items.

XII. CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on the Coordination and Approval Document evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidenced by their signatures on the Technical Data Certifications Justification for

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