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W58RGZ-14-R-0108

Source Selection Information- See FAR 3.104-4

Justification and Approval For Other than Full and Open Competition

Weapon System: AH-64D

1. Contracting Agency: Army Contracting Command-Redstone (ACC-RSA), ATTN:

CCAM-ALM, Redstone Arsenal, AL 35898-5000.

2. Description of Action: The nature of this contractual action will be a new limited competitive acquisition resulting in a single award firm fixed-price, three year Indefinite Delivery Indefinite Quantity (IDIQ) Maintenance and Overhaul contract. Army Working Capital Funds, Reparable will be utilized. Foreign Military Sales (FMS) quantities are included and will utilize FMS funding, but this is not a source directed action.

3. Description of Supplies: ACC-RSA proposes to issue a contract on an other than full and open competitive basis for the overhaul of the items listed below:

SYSTEM: AH-64D

NOMENCLATURE: Main Transmission INPUT NSNs: 1615-01-461-8845; 1615-01-520-9742;

1615-01-520-9744; 1615-01-527-4251

OUTPUT NSN: 1615-01-520-9744

INPUT P/Ns: 7-311310001-41; 7-311310001-51;

7-311310001-53; 7-311310001-43

OUTPUT P/N: 7-311310001-53

PRID: RH048

ESTIMATED QUANTITY RANGE: 32 Minimum – 219 Maximum (37 FMS)

ESTIMATED BASIC VALUE: $ 7,281,060.80

ESTIMATED OUT YEAR VALUE: $42,548,699.05

TOTAL ESTIMATED DOLLARS: $49,829,759.85

The estimated basic dollar value for the proposed procurement is $7,281,060.80. The estimated basic dollar value of the basic effort is for United States (US) effort only and does not include any FMS requirements. The out-years (two and three) for US and all years for FMS estimated dollar value is $42,548,699.05. The total estimated dollar value of the proposed procurement is $49,829,759.85. This calculation is based on multiplying the maintenance expenditure limit of $227,533.15 by the maximum quantity.

This total includes 37 each FMS requirement. The FMS requirement is not source directed.

The US and FMS requirements for the item are as follows:

Source Selection Information- See FAR 3.104-4

US Requirement

Qty Unit Price Total Price

Year 1 32 $227,533.15 $ 7,281,060.80 Year 2 75 $227,533.15 $17,064,986.25 Year 3 75 $227,533.15 $17,064,986.25

TOTAL 182 $41,411,033.30

FMS Requirement

Qty Unit Price Total Price Year 1 7 $227,533.15 $1,592,732.05 Year 2 15 $227,533.15 $3,412,997.25 Year 3 15 $227,533.15 $3,412,997.25

TOTAL 37 $8,418,726.55

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by paragraph 6.302-1(a)(2) of the Federal Acquisition Regulation (FAR) entitled, “Only one or a limited number of responsible sources, and no other supplies or services will satisfy agency requirements.”

5. Reasons for Authority Cited: The proposed acquisition requires the use of the cited statutory authority because the Main Transmission is a Critical Safety Item (CSI) and overhaul can only be performed by an approved source. Depot Maintenance Work Requirement (DMWR) 1-1615-299 Change #1, dated 14 May 2010, is sufficient to support a competitive contract; however, pursuant to the provision of Public Law No.

108-136, National Defense Authorization Act Fiscal Year 2004, Section 802, Quality Control in Procurement of Aviation Critical Safety Items and Related Services, as implemented for acquisition by Department of Defense Acquisition Regulation Supplement 209-270, contracts for modification, repair or overhaul of CSI items can only be awarded to a source approved by the head of the design control activity. The Main Transmission became a CSI item on 25 March 2005. Currently there are three sources approved to perform the overhaul of the Main Transmission: The Boeing Company, 5000 E. McDowell Road, Mesa, AZ 85215-9707 (CAGE Code: 8V613), Heligear Acquisition Company, DBA Northstar Aerospace, 6006 W 73rd Street, Bedford Park, IL (CAGE Code: 22907), and Timken Aerospace Transmissions LLC, 586 Hilliard Street, Manchester, CT 06040-2879 (CAGE Code: 15152).

The required delivery for the Main Transmission is 20 each per month, 120 days after receipt of assets. A Frozen Plan is required for the item within 30 days after contract award, and must be approved prior to acceptance of deliveries. The Boeing Company, (CAGE Code: 8V613), Heligear Acquisition Company, (CAGE Code: 22907), and Timken Aerospace Transmissions LLC, (CAGE Code: 15152) are the only known sources identified as having the essential qualifications to meet the Government’s delivery requirements. The Main Transmission is vital to the operation of the aircraft and if not available will impact readiness and could cause the fleet to be grounded.

Source Selection Information- See FAR 3.104-4

Failure to award this requirement will delay the ability to provide the quick response to support soldier’s needs. The AH-64D will be greatly degraded due to the limited number of serviceable assets available for issue.

6. Effort to Obtain Competition: The Main Transmission (Output NSN: 1615-01-520- 9744) was most recently published in the Competition Advocate’s Shopping List (CASL) database for December 2013. Pursuant to FAR 5.201, the proposed acquisition will be synopsized in the Federal Business Opportunities (FedBizOpps) on or about 5 June 2014. As of 1 April 2014, there are no pending Source Approval Requests (SAR) per the Army Aviation Sustainment Gateway (ARISE) CSI database, Source management module. Should another contractor become an approved source before contract award, their proposal, if submitted, will be considered. Any additional sources identified through the synopsis procedure will receive due consideration as prescribed by law.

7. Actions to Increase Competition: At this time DMWR 1-1615-299 Change #1, dated 14 May 2010 is sufficient to support competition for this requirement. This item has been identified as a CSI; therefore, only an approved source(s) can be considered.

The approved sources to perform this requirement are: The Boeing Company, Heligear Acquisition Company, and Timken Aerospace Transmissions, LLC. There is a reasonable basis to conclude that the agency’s minimum needs can only be satisfied by, The Boeing Company, Heligear Acquisition Company, and Timken Aerospace Transmissions, LLC, the approved sources that will be sought to perform the overhaul.

As such, a single award IDIQ will be awarded to one of the three sources based on their response to the solicitation requirements. Should a new source(s) become qualified via the SAR process during the contract period of performance, the requirement for future orders will be reviewed. If a new requirement can be validated, a new contract package will be processed and the new source(s) will be given an opportunity to compete for the award. Single award versus multiple award has been determined to be in the Government’s best interest for this requirement as documented in the Determination and Findings dated 17 March 2014, located in the contract file.

8. Market Research: Meaningful market research was conducted by Melissa Chambers, Logistics Management Specialist, Apache Directorate, in the last 12 months in accordance with FAR 10.002(b). Research methods included the following:

contacting knowledgeable persons (Kevin Rodriguez, Chief of AH64 Airframe Division, AH-64 Attack Directorate; Dave Neumeyer, PM Aerospace Support Division, Boeing;

Bert Hernandez, Chief of Maintenance and Acquisition and Projects Branch, Maintenance Engineering Division, Corpus Christi Army Depot in December 2013;

reviewing of Government databases Interactive Configuration Management and Procurement Program, Logistics Modernization Program, Federal Logistics Data, and Integrated Lead Time Management and Reporting System in December 2013. The Main Transmission was most recently published in the Competition Advocate’s Shopping List (CASL) database for December 2013. The approved sources, revealed through market research, for the Main Transmission are The Boeing Company, Heligear Acquisition Company, and Timken Aerospace Transmissions, LLC. It has been determined after market research that the Government’s needs cannot be satisfied by

Source Selection Information- See FAR 3.104-4 commercial items, commercial items with customary or reasonable modifications, or non-developmental items. Based upon the above, the basic clauses and provisions prescribed in FAR Part 12 are not sufficient for use in this acquisition and will not be used.

9. Interested Sources: All notices required by FAR 5.201(b)(1)(i) shall be published, and any proposals received shall be considered. To date, no other sources have expressed a written interest in this acquisition. Any potential sources will be encouraged to submit SAR packages. As of 1 April 2014, there are no pending SARs per the ARISE database. There is a reasonable basis to conclude at this time, that the agency’s minimum needs can only be satisfied by The Boeing Company, (CAGE Code:

8V613), Heligear Acquisition Company, (CAGE Code: 22907), and Timken Aerospace Transmissions LLC, (CAGE Code: 15152). The synopsis will be publicized in FedBizOpps on or about 5 June 2014.

10. Other Factors:

a. Procurement History (Maintenance and Overhaul) – The most recent related Maintenance and Overhaul history for the Main Transmission is under contract W58RGZ-11-D-0153 awarded on 22 April 2011 to The Boeing Company, CAGE Code:

8V613. The Maintenance and Overhaul contract W58RGZ-11-D-0153 delivery orders 0001 through 0004 facts are in the below chart.

Delivery Order

Award Date

Quantity

Unit Price

0001 22 April 2011 76 $131,460.26 0002 27 September 2011 20 $131,480.00 0003 29 August 2012 39 $141,207.27 0004 5 March 2014 80 $148,323.00

b. Acquisition Data Availability – The overhaul of the Main Transmission effort will be performed in accordance with DMWR 1-1615-299 Change #1, dated 14 May 2010.

While extensive technical data packages have been developed to foster competition, this item has been identified as a CSI and only approved sources are allowed to perform this effort. At this time, The Boeing Company, (CAGE Code: 8V613), Heligear Acquisition Company, (CAGE Code: 22907), and Timken Aerospace Transmissions LLC, (CAGE Code: 15152) are the only sources authorized by the Aviation Engineering Directorate to perform this overhaul.

b. Subcontracting Competition – Per FAR 19.702 and FAR 19.704, a Subcontracting Plan is required for large businesses on acquisitions that exceed $650K.

According to FAR 19.704, the contractor must include FAR 52.219-8, entitled, “Utilization of Small Business Concerns”, in all subcontracts that offer further subcontracting opportunities and shall require all subcontracts that offer further subcontracting opportunities, except small businesses, to adopt a plan that complies with the requirements of the clause at FAR 52.219-9, “Small Business Subcontracting

Source Selection Information- See FAR 3.104-4

Plan”. Per FAR 44.204(c), the solicitation and resulting contract will include the FAR clause 52.244-5, “Competition in Subcontracting” to insure that all subcontracts are awarded on a competitive basis to the maximum extent possible. The Boeing Company, (CAGE Code: 8V613), Heligear Acquisition Company, (CAGE Code: 22907), and Timken Aerospace Transmissions LLC, (CAGE Code: 15152) will be required to comply with these requirements since they are large businesses.

11. Technical Certification: "I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief."

NAME: Labonte, Cary DATE: 8 April 2014

TITLE: Depot Team Lead SIGNATURE: see attached

12. Requirements Certification: “I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.”

NAME: Labonte, Cary DATE: 10 April 2014

TITLE: Logistics Management Specialist SIGNATURE: see attached

13. Fair and Reasonable Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. This determination will be based on use of techniques which include: cost/price analysis, use of independent Government estimates, and comparative techniques. In the event that only one proposal is received, certified or data other than certified cost or pricing data will be requested as needed in order to determine the price fair and reasonable. An audit will be requested if needed. If more than one proposal is received, certified cost or pricing data will not be required in accordance with FAR 15.403-1(b)(1).

14. Procuring Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

NAME: Jeanie Clark DATE: ______________________________

TITLE: Contracting Officer SIGNATURE: _________________________

Source Selection Information- See FAR 3.104-4

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of the following from the restricted sources identified below:

SYSTEM: AH-64D

NOMENCLATURE: Main Transmission INPUT NSNs: 1615-01-461-8845; 1615-01-520-9742;

1615-01-520-9744; 1615-01-527-4251

OUTPUT NSN: 1615-01-520-9744

INPUT P/Ns: 7-311310001-41; 7-311310001-51;

7-311310001-53; 7-311310001-43

OUTPUT P/N: 7-311310001-53

PRID: RH048

ESTIMATED QUANTITY RANGE: 32 Minimum – 219 Maximum (37 FMS)

ESTIMATED BASIC VALUE: $ 7,281,060.80

ESTIMATED OUT YEAR VALUE: $42,548,699.05

TOTAL ESTIMATED DOLLARS: $49,829,759.85

The Boeing Company (CAGE Code: 8V613) 5000 E. McDonnell Road Mesa, AZ 85215-9707

Heligear Acquisition Company (CAGE Code: 22907) DBA Northstar Aerospace, 6006 W 73rd Street Bedford Park, IL

Timken Aerospace Transmissions LLC (CAGE Code: 15152) 586 Hilliard Street Manchester, CT 06042-2897

The statutory authority permitting other than full and open competition is 10 U.S.C.

2304(c)(1), as implemented by paragraph 6.302-1(a)(2) of the Federal Acquisition Regulation (FAR) entitled, “Only one or a limited number of responsible sources, and no other supplies or services will satisfy agency requirements”, subject to availability of funds, and provided that the services/supplies and properties herein described have otherwise been authorized for acquisition.

Date: ____________ Signature:____________________________________________

REBECCA E. WEIRICK

Principal Assistant Responsible for Contracting

Justification and Approval