T53 Redacted JA Aug Extension Final.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.

AFLCMC/LPK

3001 Staff Drive Tinker Air Force Base, OK 73145-3021 Purchase Request: TBD Contract Number: FA8124-16-D-0001

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

The United States Air Force (USAF), through the Air Force Life Cycle Management Center and the Propulsion Sustainment Contracting Office, AFLCMC/LPK, requests approval to procure T53-L-703 depot level engine repair and overhaul in support for the USAF under the Justification and Approval (J&A) for Other Than Full and Open Competition detailed in this document.

The purpose of this individual J&A is to utilize FAR Clause 52.217-9, "Option to Extend the Terms of the Contract", by modification of contract FA8124-16-D-0001 for T53 engine repairs. FAR 52.217-9 option was not evaluated as part of the initial award process and to comply with FAR 17.207 (f), a J&A must be approved to satisfy FAR Part 6 requirements. The initial award for FA8124-16-D-0001 was made as a full and open competition award to Airborne Engines, Ltd.

Current Contract: FA8124-16-D-0001 Contractor: Canadian Commercial Corporation (CCC) in support of: Airborne Engines, Ltd.

7762 Progress Way, Delta, BC B4G 1A4 Cage: 98247 Award Date: 24 August 2021 Period of Performance: 25 August 2021-24 February 2022 Basis of Award: Competition

The follow-on source selection is underway and was anticipated to be completed by the end of September 2021. Due to the need for continuity of contract performance, Propulsion Sustainment Contracting Office, AFLCMC/LPK, modified the current contract to include clause FAR 52.217-9 and exercise the option to extend the terms of the contract for a period of up to six-months to provide repair support from 25 August 2021-24 February 2022. With the current contract extension end date arriving on 24 Aug 21, an additional extension will be added as a modification of the contract for a period of up to six-months to provide support from 25 Aug 2021-24 Feb 2022. The six months will be in exercised in a 3 month option period with three 1 month options.

The estimated dollar value for this six-month extension is The contract CLINs are FFP. There are Over and Above CLINs anticipated The estimated award date is 24 August 2021.

The contract will be awarded to: Canadian Commercial Corporation (CCC) in support of: Airborne Engines, Ltd.

Canadian Commercial Corporation (CCC) in support of:

Airborne Engines, Ltd.

7762 Progress Way, Delta, BC B4G 1A4

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

The T53-L-703 engine powers the TH-1H training helicopter missions. The engine fleet is small, only 29 active engines with six spares, and is heavily tasked to meet training serviceability requirements. Being such a small fleet, any drop in repair levels drives a negative TSR rating and impacts to the mission.

Under the current contract, the depot level repair includes Contract Line Item Numbers (CLINs) for Teardown & Inspection Levels for 1250, 2500, and 5000 hour inspection interval repair efforts, along with 1250 and 2500 hour inspection interval

April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 5April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 5 repair levels, a 5000 hr overhaul repair CLIN, a test support CLIN, and an Over and Above (O&A) CLIN. The contract extension will be awarded as a FFP for a period of up to six-months, executed in a 3 month option period with three 1 month options, with an estimated contract value of USD Under the extension period (25-Aug-21 thru 24-Feb-22), Airborne Engines will provide the following services for repair requirements for the T53 engine:

(1) Repairs in support scheduled and unscheduled engine removals to meet the designated 1250, 2500, and 5000 hour inspection intervals.

(2) O&A support efforts for items outside the normal repair workload scope or work discovered during the course of performing overhaul, maintenance, and repair.

(3) Program Management and supply chain support to meet the production requirement needs and contract reporting requirements.

(4) Engineering and Technical assistance in support of contract requirements and T53 maintenance actions.

(5) Data not separately priced.

In order to perform the required services, a contractor must be a licensed Original Equipment Manufacturer (OEM) approved repair source. Airborne Engines has the appropriate Honeywell technical repair license to perform the depot level T53 engine repairs.

While there are three approved OEM sources, the current contractor, Airborne Engines, would be the only source able to continue to provide support for this requirement due to the necessary transition and start up time that would be required to meet the USAF's needs for this requirement. Awarding to other sources for this six-month period of additional services would result in unacceptable delays in fulfilling the agencies needs.

Funding for this effort will be 3400 Operations & Maintenance Centralized Asset Management Contract Depot funds.

Due to the circumstances described in Sections V, IX, and XI, there are no immediate actions that could have been taken to develop competition for this extension. Therefore, it is considered appropriate to seek approval to add FAR Clause 52.217-9, "Option to Extend the Terms of the Contract".

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

10 U.S.C. 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) Part 6.302-1(a)(2)(iii), and required by FAR 6.303-2(b)(4) Only One Responsible Source and No Other Supplies or Services will satisfy Agency Requirements. For this requirement, services in this case are deemed to be available from only the current source and awarding to any other source would result in unacceptable delays in fulfilling the agency's needs.

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

This acquisition is sole source because there is insufficient time to execute a competitive acquisition to meet the need for repair of T53 engine maintenance requirements or for any other source to transition and set up facilities to support this requirement for the six-month period that is needed. The T53 is used on a daily basis across the globe. Its capability is vital to the projection of United States power and critical for emergency response to helicopter training missions worldwide. Any disruption of T53 availability would cause serious injury to the United States, our allies, and beneficiary countries.

Without an immediate contract extension award of existing contract by 24 August 2021, there will be a gap in the repair line.

The lead-time for Source Selection procedures is in approximately 6 months, which is considered an unacceptable delay that will limit the supply of spare engines and potentially ground TH-1H aircraft, delaying support to the USAF mission. Currently, the USAF is in the source selection phase, with source selection team working to complete a post award corrective action for a competitive contract award. The extension is estimated to provide sufficient coverage for repair production until award and to account for any delay in award due to potential protest.

Accordingly, Airborne Engines, Ltd. is the only firm capable of providing the required services in Section III above without the USAF experiencing unacceptable delays in fulfilling its requirements.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 4 of 5April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 4 of 5 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.

The proposed contract action will be made under an existing contract that was previously competitively awarded. In addition, market research has been conducted supporting a competitive follow-on contract.

A few key elements of that market research are included as follows:

A Sources Sought Synopsis/Request For Information, "T53-L-703_Repair-Overhaul," was posted 14 June 19. It was focused on obtaining interested vendors in supporting T53-L-703 military variant engine support to include production and supply chain support for general capability/capacity questions in providing T53 capabilities. Five company vendors responded, all of whom had T53 commercial experience, capability and capacity along with general interest in providing T53 support. All five respondents were small businesses, thus driving a SB set aside effort. A Pre-Solicitation Industry Day Telecom was also conducted on 18 Mar 20. The T53 team outlined proposed contract strategy with PWS requirements to provide full mission support upon the expiration of the existing T53 contract. Five companies (Air Technology Engines, Mint Turbine Engines, VSE Corporation, Airborne Engines, and Ozark Areoworks) participated via a group telecom session and individual question/ answer sessions regarding understanding T53 strategy and PWS requirements along with any draft RFP questions/concerns.

All showed interest in bidding on workload.

The extension covered under this J&A ensures T53 engine repair support coverage until the source selection process is complete and full performance has begun. A notice of proposed Contract Action IAW FAR 5.201 was publicized on 5-Aug-21 with an unknown anticipated contract award date.

At this time there are only three approved sources for the follow-on acquisition. No other sources could become qualified in time to compete and support this requirement. In addition, as the time it will take to award the source selection, transition and set up performance, no other contractor could provide these specialized services without risk to this program. In order to minimize the impact of excluding the other sources from this requirement, the additional 6 months available by this action will be exercised in a 3 month option period with three 1 month options.

A SCO waiver was approved on 11-AUG-2021 to forego an additional Sources Sought Synopsis/Request For Information.

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

The current contract prices were established and determined to be fair and reasonable via the competitive source selection contract award. The pricing for the extension will be in accordance with FAR 52.217-9 that requires continued performance of services at the current rates specified in the contract.

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

As noted in VI, Market Research conducted for the current T53 engine competitive acquisition effort consisted of a Requests for Information (RFIs), Industry Days, Draft RFP questions and answers, and a Pre-Solicitation Conference. With the current T53 competitive acquisition in source selection, time involved is of the essence to reduce any high risk that may impact the mission and potential grounding of the TH-1H fleet.

As a result of the market research conducted, the follow-on effort has been solicited using full and open competitive procedures. Per FAR 10.002(b)(2)(i) on 19 July 2021 the current source selection team and program team were contacted to reconfirm market capabilities to meet requirements of the T53; market market capabilities have not changed. Add'l internet searches conducted on 20 July 2021 confirmed that competition exists to perform this effort, but not within the time allotted before a lapse of contract coverage. This additional option period will allow for the completion of the source selection and for the follow-on effort to begin with no gap in coverage.

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

The Government does not own the technical data, equipment, supply chain, or depot level repair capability for the commercial T53 engine. There is not sufficient time to qualify sources of repair to meet the mission as any source must have

April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 5 of 5April 2021 CONTROLLED UNCLASSIFIED INFORMATION Page 5 of 5 the Honeywell license and credentials to perform the workload. While there are three approved OEM sources, given that this extension is needed for up to six-months and that the time it will take to award a source selection and transition/set up performance will exceed the time needed before the current source selection is completed, no other source but Airborne Engines can meet the timeline required.

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

As discussed in Section VI, five companies (Air Technology Engines, Mint Turbine Engines, VSE Corporation, Airborne Engines, and Ozark Areoworks) responded to the SSS/RFI and expressed interest in the competitive acquisition.

Due to source selection procedures, Offerors will not be discussed outside of the Source Selection Team.

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.

There are no foreseeable barriers to future competition at this time. Actions are currently underway to finalize and complete the competitively awarded follow-on contract with an estimated award date that like wont occur until November 2021 and could be delayed until February 2022.

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.