T108_Propeller-FSR_justification_and_approval_document -.pdf

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

CONTROLLED UNCLASSIFIED INFORMATION

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I. Agency and Contracting Activity.

Department of the Air Force

AFLCMC/LPK

3001 Staff Drive Tinker AFB, OK 73145

Purchase Request Number: TBD

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

This Individual Justification and Approval (J&A) authorizes other than full and open competition procedures to procure a new contract via an undefinitized contract action (UCA) for contractor Field Service Representatives (FSRs). The FSRs will support the sustainment of the T108 commercial engine's R391 Propeller, which powers the USAF C-130J aircraft through contracting with Rolls-Royce Corporation (RRC) in Indianapolis, IN, Commercial and Government Entity (CAGE) code 63005.

The Mission Care T108 follow on contract, was due to award 1 February 2022, but due to unforeseen budget constraints, the program offices at Warner Robins Air Force Base (AFB) and Tinker AFB decided to utilize an extension to the ordering period via Federal Acquisition Regulations (FAR) Clause 52.217-8. The Mission Care follow on contract included additional Dowty FSRs to support increased maintenance actions required due to the aging R391 propeller fleet. The Mission Care follow on contract is now planned to award no later than 1 December 2022. With the absence of additional Dowty FSRs from the follow on contract R391, spares are projected to be exhausted by September 2022, potentially grounding C-130Js. The program office is processing a UCA for the purpose of having no more than nine (9) Dowty FSRs to provide the additional maintenance and repair support of the R391 propellers for four (4) months, while the Mission Care follow on contract is awarded.

The government intends to enter into a FAR Part 12, firm-fixed price (FFP) definite "C" type contract upon the UCA denfinitzation. This UCA will be a new contract action and will not be a Bridge Action. The anticipated contract price is estimated at $3,000,000, with an estimated award date of 30 July 2022.

The estimated Period of Performance for this contract action will be from 1 August 2022 through 30 November 2022.

III. Description of supplies/services required to meet agency needs (including the estimated value).

The contractor will provide FSRs to perform maintenance, repairs, and overhauls (MRO) of the R391 propellers in coordination with the ongoing O-Level and D-Level maintenance operations currently being performed at sites, both CONUS and OCONUS. The FSRs will also assist with supporting government personnel with technical assistance and guidance to include but not limited to the following:

--FSRs will assist in Troubleshooting, interpreting and evaluating propeller discrepancies, provide technical manuals needed to maintain propellers in operable condition.

--FSRs will assist government personnel in determining when propellers, LRUs and components should be removed to also include on-the-job maintenance and system training.

--FSRs will also participate in propulsion system foreign object damage (FOD) investigations when feasible or requested by local maintenance authorities.

Contract Data Requirements Lists (CDRLs) for the FSRs support will be a requirement under this contract. The CDRL requirements and details of the contracting repair scope will be identified within the Performance Work Statement (PWS).

The contractor will provide services at designated bases utilizing government furnished equipment.

The estimated Period of Performance is for 4 months (1 August 2022 - 30 November 2022).

Funding is sourced via 3400 appropriations ($3 million).

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Breakout by Contract Line Item Number (CLIN) for this effort is as follows:

CLIN - Description 0001 - Roaming FSRs

0002 - DATA

IV. Statutory authority permitting other than full and open competition.

The statutory authority, which permits other than full and open competition for this acquisition is, 10 USC 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii)(B), and required by FAR 6.303-2(b)(4).

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

The government proposes a sole source acquisition for the T108 propeller sustainment of the C-130J aircraft effort to RRC with Dowty acting as the subcontractor. RRC is the only integrator that works with Dowty within the work scope defined for the T108 engine. RRC has the intellectual property of the T108 engine workload and Dowty has the intellectual property for the R391 propeller that is attached to the engine. No other vendor, other than RRC/Dowty can supply the parts or repair knowledge to complete this request.

Based on market research, separating the two entities has not been possible since Dowty has expressed interest in this effort as a subcontractor to RRC only. Therefore, RRC is the only company through teaming arrangements with Dowty that is capable of meeting the scope and scale of this effort. RRC provides comprehensive integrated logistical support for the C-130J Propulsion Systems consisting of the AE 2100®D31 Rolls-Royce engines (T108) and the R391 Dowty propeller assembly. Rolls-Royce is certified and licensed to provide these services either as the original equipment manufacturer (OEM) or teaming agreement with the propeller OEM (Dowty).

Dowty FSRs have been performing as a subcontractor for the on-going R391 repair and assistance efforts with highly specialized/skilled services on the current Mission Care contract since awarded 1 February 2017. The R391 propeller configuration is the only propeller type that will go on the T108 engine, with all data rights owned by the OEM, Dowty. The T108 program office believes that a search to award to any other source would result in unacceptable delays and the ability to provide satisfactory requirements to the U.S. Air Force. Accordingly, RRC/Dowty is the only OEM capable of providing the services described in section III above without the U.S. Air Force experiencing unacceptable delays in fulfilling the requirement needs.

The T108 program office asserts that if they went to another source other than RRC/Dowty for this work that it would take six

(6) months to one (1) year for another source to perform the work. The propeller data is intellectual property of Dowty.

Therefore, any alternate source would need a license from Dowty to secure the technical data. The T108 program office also asserts that it would take 3-5 years to reverse engineer the propeller due to Dowty's unwillingness to release this data to the government. The T108 program office believes both options would have a significant negative impact on the U.S. Air Force requirement needs, potentially grounding the C-130J.

RRC/Dowty will be utilizing the existing government owned equipment located at specific base locations where the FSRs will be assigned to the various sites, which are identified in the PWS. The FSRs will provide repair support for O-Level and beyond O-Level (D-Level) repairs on the R391 propellers to include Line Replaceable Units (LRUs) and components.

The Program office believes awarding to another contractor other than RRC/Dowty will cause unacceptable delays in fulfilling the Air Force requirement by negatively impacting the support and propeller availability for the C-130J aircraft.

VI. 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.

Due to the time constraints, the program office applied for a sources sought synopsis waiver, in accordance with the

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Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) 206.302-1(d), the contracting officer (CO) shall post a request for information or a sources sought notice, and shall include the result of this inquiry in the justification required by FAR 6.303. This requirement to post may be waived by the Head of Contracting Activity, or designee. The Air Force Federal Acquisition Regulation Supplement (AFFARS) Mandatory Procedures (MP) 5301.601(a)(i) further delegates to the Senior Contracting Official (SCO), if the SCO is a general or flag officer or a member of the Senior Executive Service. The Source Sought Waiver was approved 24 June 2022.

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

The CO will ensure that the items described herein are negotiated at a fair and reasonable price to the government. Other than certified cost and pricing data will be requested from the contractor. A detailed price analysis will be performed. The CO will request a technical evaluation from the Program Office and/or Defense Contract Management Agency (DCMA) to aid in the evaluation of the contractor's proposal. The CO will seek audit assistance from the Defense Contract Audit Agency (DCAA) if necessary.

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

Market research was conducted by means of email notification to the R391 propeller OEM, Dowty. The email was sent by the government on 18 May 2022 to Martin Smith the point of contact for the OEM (GE Aviation AKA Dowty). The government mentioned that this was an effort for conducting marketing research and request for information (RFI) only ,and that there is not a solicitation available at this time. The market research conducted and RFI sent to Dowty was about their interest in possible workload in the sustaining of the Dowty R391 propeller. Dowty responded back 18 May 2022 with they support the United States Air Force (USAF) workload sustaining of the Dowty R391 propeller in a teaming arrangement, and in which, to continue their support. The government replied back on 19 May 2022, asking Dowty if they had an interest in possible prime contracting or subcontracting opportunities. Dowty responded back on 27 May 2022 that they are currently subcontracting through RRC for the R391 propeller sustainment and they believe this mixed model approach has provided value to the

USAF.

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

No further information.

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

Dowty, CAGE/DUNS: 93366/00926651, Warner Robins, GA

Rolls-Royce Corporation, CAGE/DUNS: 63005/804755414, Indianapolis, IN

No other sources are available to express an interest as the OEM owns all data rights to the R391 Propeller. The OEM has a combined relationship with the Prime contractor RRC. Dowty subcontracts to the RRC MissionCare Contract in which they provide all the propeller system maintenance and assist with the Field Service Support as well as providing direct support to the USAF through an Indefinite Delivery Indefinite Quantity (IDIQ) spares contract.

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 or services required.

In an effort to overcome the barriers to competition, the Government will request if the OEM is willing to sell or license its data before making any subsequent acquisitions.

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XII. 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.

XIII. Certification by the technical/requirements personnel.

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.