SPRRA112R0054_Redacted.pdf

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

CLASS JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL & OPEN COMPETITION

SPRRA1-12-R-0054

AMENDMENT

Statutory Authority: 10 U.S.C. 2304(c)(1). Regulatory Authority: FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This amendment relies upon the statutory and regulatory authority recited in the Class J&A, and the purchase is sole source for the reasons recited therein. DLA Aviation requests authority to extend the duration of the contract an additional six months to December 20, 2021.

Pursuant to solicitation number SPRRA1-12-R-0054, a firm-fixed price, Indefinite Delivery, Indefinite Quantity Contract SPE4AX-13-D-9417 was awarded on June 20, 2013, to Woodward, Inc. (66503), for a maximum contract value of The contract’s duration is eight years, which consist of a five-year base period with a single three-year option period. The contract’s final expiration date is June 19, 2021.

At this time, all existing options written into the contract have been exercised. Woodward, Inc. (66503) is not interested in receiving a successor contract due to forming an exclusive agreement with AAR Supply Chain, Inc. (AAR) (1Y249), which establishes AAR as the sole exclusive distributor for all Woodward, Inc. (66503) spare parts.

The anticipated award date for the follow-on contract with AAR is June 2021. Under the anticipated contract, item transitioning must synchronize between AAR, DLA Distribution, and DLA Aviation. The transition period will take 180 days after the award date of the contract to execute, which creates a six-month gap in coverage for all active items on contract if the current Woodward contract is allowed to expire in June 2021. Due to the required transition period, Woodward will remain the only source able to meet the requirement until the transition period is complete. To ensure customer requirements remain satisfied without experiencing unacceptable delays, DLA Aviation seeks to provide uninterrupted support by extending the term of contract SPE4AX-13-D-9417 an additional six months.

The total estimated price of the six-month extension is , and was calculated by using the Bureau of Labor and Statistics (BLS) Producers Price Index ( PPI) value at the time of calculation (November 2020), divided by the historical BLS PPI value at the time the three-year option period was exercised (June 2018). A 2.4% average was returned and applied as the rate used to escalate the unit price of all active line items on contract to current year dollars.

Escalated unit prices were then multiplied by each line items estimated annual demand quantity to calculate the estimated total price under the extension.

This amendment does not impose an increase to the maximum dollar value of the Class J&A at approved by the DLA Senior Procurement Executive on July 14, 2012. As of

November 4, 2020, the contract’s spend value is . The total estimated price of the six-month extension at ; this amount, plus the contract’s current spend value of

, yields a total estimated contract price of and remains within the maximum contract value of

Based on the foregoing, the Contracting Officer hereby determines t he anticipated cost to the overnment will be fair and reasonable.

Attachment(s):

Amendment to Class J&A Price Estimate.

BLS PPI Data.

Contract Value (2020-11-04).

SPRRA-12-R-0054 Class J&A.