REDACTED_-_JA_-_ATI_-_W56HZV-16-C-0074_2016-060.pdf

CMO Control Number: 2016-060

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command – Warren (ACC-WRN) is the procuring activity for this action.

2. Description of Action: ACC-WRN awarded a new Firm-Fixed-Price contract on 23 February 2016, based on urgency, to Airlift Technologies International (ATI) located in Milton, FL, for three lengths of Type V Side Rails. This procurement is required to satisfy high priority backorders which are well beyond their required delivery date. FY16 Army Working Capital Funds (AWCF) were used on this contract.

3. Description of Supplies: Three lengths of Type V Side Rails packages (PKs);

Lengths are 16 Foot (FT), 28 FT, and 32 FT. The Type V Side Rails are bolted to the side of connected Type V panels to assemble airdrop platforms. Details are listed in the table below:

Type V Side Rail NSN Part Number Quantity Unit Price Extended Price

16 FT 1670-01-162-2369 11-1-2793-3 877 PKs $759.02 $665,660.54

28 FT 1670-01-162-2367 11-1-2793-6 6 PKs $1,291.86 $7,751.16

32 FT 1670-01-169-9154 11-1-2793-7 26 PKs $1,458.35 $37,917.10

Total value of this contract is $711,328.80.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(2), as implemented by Federal Acquisition Regulation (FAR) 6.302-2, "Unusual and Compelling Urgency."

5. Reason for Authority Cited: As authorized by FAR 6.302-2, the rationale for citing urgency is as follows:

a) The urgent need for Type V Side Rails must be met to fill the high priority backorders necessary to make cargo airdrop operations mission-capable. The amount of backorders is 877 PKs for the 16 FT Type V Side Rail, 6 PKs for the 28 FT Type V Side Rail, and 26 PKs for the 32 FT Type V Side Rail. The required delivery date for the Type V Side Rails ranges from April 2014 to September 2015. The lead time for ATI to produce these items is 90 days after award. ATI will begin deliveries in May 2016 and will deliver set quantities every 30 days until the final delivery date in February 2017. Currently there is no excess Type V Side Rails available creating an inability to transfer between units.

Inability to readily fill the requests renders the unit incapable of performing their mission.

b) Using an unproven vendor would increase the production lead time to an unacceptable level. The vendor would need to meet quality requirements (ISO 9001 Certified) and undergo First Article Testing (FAT) on each product.

Additionally, if they have never produced these items, there will be increased setup time and additional upfront costs, as they will need to establish tooling dies and a production line. The additional time it would take to acquire these rails could place missions in jeopardy and would adversely affect cargo airdrop resupply missions. ATI is a reputable source that has previously met FAT requirements, and is capable of providing these items in a timely manner.

c) The items needed to be procured by the quickest means possible since full and open competition would not achieve the required delivery date. Full and open competition could take at a minimum six months to a year to award. Currently, ACC-WRN is in the process of procuring Type V Side Rails under a long term contract. The long term procurement started in May 2015 has encountered significant delays and ACC-WRN is still evaluating and determining the responsibility of the vendors that proposed. The delivery dates as indicated in this contract to ATI start in May 2016 and will continue for the next year. This contract ensures stock will be available for the Army’s supply system to support both CONUS and OCONUS airdrop missions.

6. Efforts to Obtain Competition:

a. Effective Competition: This requirement for Type V Side Rails was not competed for reasons stated in section 5 above.

b. Subcontracting Competition: FAR 52.244-5 – Competition in Subcontracting and 52.219-9 – Small Business Subcontracting Plan were included in the contract to ensure that the contractor obtains as much competition in subcontracting as possible.

7. Actions to Increase Competition: For future acquisitions the Government intends to solicit for these rails under full and open competition.

8. Market Research: Market research was conducted by the contract specialist on 22 March 2016. Procurement history indicated that two prior known sources, ATI and Capewell Components are able to manufacture this item. Internet research revealed that there are multiple suppliers and distributors of the Type V Side Rails, but it does not appear they manufacture the items . Those sources include Part Target.com, Buyaircraftparts.com, CSG parts, ISO Group, and New Century Components Inc.

However, as mentioned in section 5 above, ATI is a reputable source who has previously supplied these items to the Government, and is able to provide them at a fair and reasonable price.

FOIA #5 Reflects deliberative process of Gov't.

well as comparing it to the Independent Government Cost Estimate (IGCE). The final negotiated price for this procurement fell below certified cost or pricing data threshold.

Printed Name: Cletus Nwalozie Signature: //s//Cletus Nwalozie Title: Contracting Officer Date: 15 Mar 2016

14. Procuring Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief:

Printed Name: Cletus Nwalozie Signature://s//Cletus Nwalozie Title: Contracting Officer Date: 15 Mar 2016