J A_0160-15_JA_ATBT128(3).pdf

Solicitation: W58RGZ-14-R-0111

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

WEAPON SYSTEM: T-700

1. Contracting Activity: 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 for other than full and open competition acquisition resulting in a fixed-price, five-year Indefinite Delivery Indefinite Quantity Maintenance and Overhaul (M&O) 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 M&O of the two items listed below:

Item #1:

PRID: AT128

Noun: anti-ice start bleed valve Input/ Output NSN: 2995-01-313-0691 Input/ Output P/N: 4046T28G15 Estimated Quantity Range: 50 Minimum – 180 Maximum (includes 30 FMS) Estimated Basic Value: $167,017.50 Estimated Out Year (two – five) Value: $434,245.50 Total Estimated Dollars: $601,263

Item #2:

PRID: BT128

Noun: anti-ice start bleed valve Input/ Output NSN: 2995-01-294-9867 Input/ Output P/N: 4046T28G14 Estimated Quantity Range: 200 Minimum – 2640 Maximum (includes 352 FMS) Estimated Basic Value: $668,070.00 Estimated Out Year (two – five) Value: $8,150,454.00 Total Estimated Dollars: $8,818,524.00

Combined Estimated Basic Value: $835,087.50 Combined Estimated Out Year (two – five) Value: $8,584,699.50 Combined Total Estimated Dollars: $9,419,787.00

The combined estimated basic dollar value of the proposed procurement is $835,087.50 and the combined out-years (two – five) estimated value is $8,584,699.50. The combined total estimated dollar value of the proposed procurement including FMS dollars is $9,419,787.00. The estimated amounts are based on a maximum expenditure limit of $3,340.35 each multiplied by the quantities outlined above. The maximum quantity

SOURCE SELECTION INFORMATION – SEE FAR 3.104

includes a total of 470 each for FMS requirements. The FMS requirements are not source directed.

The United States (US) and FMS requirements, by year, are as follows:

US Requirement

Qty Unit Price Total Price Year 1 50 $3,340.35 $167,017.50 Year 2 25 $3,340.35 $ 83,508.75 Year 3 25 $3,340.35 $ 83,508.75 Year 4 25 $3,340.35 $ 83,508.75 Year 5 25 $3,340.35 $ 83,508.75

TOTAL 250 $501,052.50

FMS Requirement

Year 1 6 $3,340.35 $ 20,042.10 Year 2 6 $3,340.35 $ 20,042.10 Year 3 6 $3,340.35 $ 20,042.10 Year 4 6 $3,340.35 $ 20,042.10 Year 5 6 $3,340.35 $ 20,042.10

TOTAL 30 $100,210.50

US Requirement

Year 1 200 $3,340.35 $ 668,070.00 Year 2 500 $3,340.35 $1,670,175.00 Year 3 500 $3,340.35 $1,670,175.00 Year 4 500 $3,340.35 $1,670,175.00 Year 5 500 $3,340.35 $1,670,175.00

TOTAL 2200 $7,348,770.00

FMS Requirement

Year 1 88 $3,340.35 $ 293,950.80

Year 2 88 $3,340.35 $ 293,950.80 Year 3 88 $3,340.35 $ 293,950.80 Year 4 88 $3,340.35 $ 293,950.80 Year 5 88 $3,340.35 $ 293,950.80

TOTAL 440 $1,469,754.00

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)(ii) of the Federal Acquisition Regulation (FAR) entitled, “Only one responsible source, and no other supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited: The proposed acquisition requires the use of the cited statutory authority because the anti-ice start bleed valve is a Critical Safety Item (CSI) and overhaul can only be performed by an approved source. Depot Maintenance Work Requirement (DMWR) 55-2995-231 Change # 4, dated 15 May 1983, has been identified for this requirement. 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 anti-ice start bleed valves became a CSI in NSN: 995-01-313-0691, approved on 08/14/2001 and NSN:

2995-01-294-9867, approved on 08/14/2001.

Currently there are only two sources approved by the Aviation Engineering Directorate (AED) to perform the overhaul effort. The approved sources are Vacco Industries Inc., El Segundo Products Division (CAGE code: 1PVC5), 10350 Vacco St., South El Monte, CA 91733-3316 and AAR Aircraft Components (CAGE code: 3Y015), 747 Zeckendorf Blvd., Garden City, NY 11530-2188. The overhaul shall be accomplished in accordance with (IAW) the approved DMWR 55-2995-231 Change # 4. The required delivery is 50 each per month for 2995-01-313-0691 and 50 each per month for 2995-01-294-9867 120 days after receipt of assets. A frozen plan is required 30 days after contract award, and a Product Verification Audit must be performed within 90 days after frozen plan approval. Both of these requirements must be approved prior to acceptance of deliveries by the government. Vacco Industries and AAR Aircraft Components are the only known sources identified as having the essential qualifications to meet the government’s delivery requirements.

6. Efforts to Obtain Competition: The anti-ice start bleed valve (2995-01-294-9867) was published in the December 2014 update of the Competition Advocate’s Shopping List (CASL). The anti-ice start bleed valve (2995-01-313-0691) was published in the September and December 2013 update of the CASL. A Sources Sought announcement was publicized in FedBizOpps on 16 October 2014. One source expressed interest in this acquisition: TAT Technologies, Re'em Industrial Park, 2 Neta Boulevard, Bney Ayish 60860, Israel thru Guest Associates Inc. (CAGE code: 2P909), 2707 Artie Street Bldg 300 Suite 2, Huntsville, AL 35805-4794. TAT Technologies is not currently an approved maintenance and overhaul source for the anti-ice start bleed valve. An email was sent to Guest Associates acknowledging their interest and instructing them to visit the website provided in the announcement for the submission of a Source Approval Request (SAR). Pursuant to FAR 5.201, the proposed acquisition will be synopsized in the Federal Business Opportunities (FedBizOpps) on or about 24 April 2015. The Army Aviation Sustainment Gateway (ARISE) CSI database, Source Management module, was queried on 7 April 2015 and there was a pending SAR package Z02-003-14 in process for TAT Technologies. Should TAT Technologies or 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: DMWR 55-2995-231 Change # 4, dated 15 May 1983 is currently available to support this requirement. However, this item has been identified as a CSI; therefore, only approved sources can be considered. The overhaul effort is limited to the sources approved by the head of the design control activity.

Vacco Industries Inc., El Segundo Products Division and AAR Aircraft Components are the only sources authorized to perform the overhaul. There is a reasonable basis to conclude that the agency’s minimum needs can only be satisfied by Vacco Industries Inc., El Segundo Products Division and AAR Aircraft Components. 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.

8. Market Research: Meaningful market research for the anti-ice start bleed valves (2995-01-294-9867) and (2995-01-313-0691) was conducted by Karen Phipps, Logistics Management Specialist, AMCOM Logistics Center, in the last 12 months in accordance with FAR 10.0002(b). Research methods included the following: contacting knowledgeable persons in government and industry during September 2014 (Edward Newell, Common Engines Supply Team Lead), review of government and/or commercial databases for relevant information during September 2014 (LMP, EDA, and FedLog), and the CASL in various occasions between December 2013 and December 2014.

It has been determined after market research that the government needs cannot be satisfied by 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 utilized. Through market research, it was also determined that General Electric Company (GE) had been a maintenance and overhaul source for this requirement in the past but are no longer a qualified source as shown in ARISE. To be certain that GE was informed of their status in regards to this requirement, a letter IAW 9.207(b), “Changes in Status Regarding Qualification Requirements” was sent on 15 August 2014. As determined by the market research, the only approved sources for this requirement are Vacco Industries Inc. and AAR Aircraft Components.

9. Interested Sources: A Sources Sought announcement was publicized in FedBizOpps on 16 October 2014. The results of the sources sought announcement are addressed in paragraph 6 of this document. To date, no other sources have expressed a written interest in this acquisition. All notices required by FAR 5.201(b)(1)(i) shall be published, and any proposal received shall be considered. Any potential sources will be encouraged to submit SAR packages. The ARISE CSI database, Source Management module, was queried on 7 April 2015 and there was a pending SAR package Z02-003- 14 in process for TAT Technologies. Should TAT Technologies or another contractor become an approved source before contract award, their proposal, if submitted, will be considered. There is a reasonable basis to conclude at this time, that the agency’s minimum needs can only be satisfied by Vacco Industries Inc. and AAR Aircraft Components. The synopsis will be publicized in FedBizOpps on or about 24 April 2015.

10. Other Facts: Other factors affecting this effort are as follows:

a. Procurement history: The procurement history for M&O is as follows:

NSN: 2995-01-313-0691

Contract

W58RGZ-07-D-0324/0007

Date 21 Jul. 2011

Qty

Unit Price $1,854

Contractor AAR AllenServices

W58RGZ-07-D-0324/0005 19 Aug. 2009 25 $1,854 AAR AllenServices W58RGZ-07-D-0324/0004 21 Oct. 2008 3 $1,854 AAR AllenServices W58RGZ-07-D-0324/0002 12 Mar. 2008 2 $1,854 AAR AllenServices W58RGZ-07-D-0324/0001 28 Sep. 2007 96 $1,854 AAR AllenServices DAAH23-02-D-0120/0006 21 Mar. 2006 23 $2,069 AAR AllenServices DAAH23-02-D-0120/0005 3 May 2005 23 $2,069 AAR AllenServices

NSN: 2995-01-294-9867

Contract

W58RGZ-07-D-0324/0008

Date 28 Dec. 2011

Qty

Unit Price $1,854

Contractor AAR AllenServices

W58RGZ-07-D-0324/0007 21 Jul. 2011 500 $1,854 AAR AllenServices W58RGZ-07-D-0324/0006 11 Mar. 2010 498 $1,854 AAR AllenServices W58RGZ-07-D-0324/0005 19 Aug. 2009 246 $1,854 AAR AllenServices W58RGZ-07-D-0324/0003 17 Apr. 2008 246 $1,854 AAR AllenServices W58RGZ-07-D-0324/0001 28 Sep. 2007 287 $1,854 AAR AllenServices DAAH23-02-D-0120/0008 28 Feb. 2007 141 $2,069 AAR AllenServices DAAH23-02-D-0120/0006 21 Mar. 2006 123 $2,069 AAR AllenServices

Previous statutory authority cited for all contracts identified in the historical contract list above was 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, “Only one responsible source and no other type of supplies or services will satisfy agency requirements.” This justification is still valid for this procurement. Planned actions to address missed opportunities for competition cited in the previous J&A cannot be addressed since a copy of the previous J&A is not available in Paperless Contract Files

(PCF).

b. Acquisition Data Availability: DMWR 55-2995-231 Change # 4, is currently available to support this requirement. However, this item is a CSI; therefore, only sources approved by the head of the design control activity can be considered. At this time, Vacco Industries Inc. and AAR Aircraft Components are the only sources authorized by the AED to perform the overhaul.

c. 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 Plan”.

Per FAR 44.204(c), the solicitation and resulting contract will include the FAR clause 52.244-5, entitled “Competition in Subcontracting” and DFARS clause 252.219-7004, entitled “Small Business Subcontracting Plan (Test Program)” to insure that all subcontracts are awarded on a competitive basis to the maximum extent possible.

Vacco Industries Inc. and AAR Aircraft Components will be required to comply with these requirements since they are both large businesses.

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

Name: John Mackusick AT128 Date: 2014APR22

BT128 Date: 2014APR23

Title: Logistics Management Specialist Signature: See attachments

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

Name: Alicia M. Fields AT128 Date: 2013JUN14

BT128 Date: 2013MAY08

Title: Logistics Management Specialist Signature: See attachments

13. Fair and Reasonable Cost 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 historical analysis and comparative techniques. The determination of fair and reasonable costs will comply with the policies, regulations, and procedures in FAR Part 15, “Contracting by Negotiation”. As per FAR 15.403-1(b)(1), certified cost or pricing data is not required.

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

Name: Jennifer F. Jackson Date:

Title: Contracting Officer Signature:

Approval

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

Noun: anti-ice start bleed valve Input/ Output NSN: 2995-01-313-0691 Input/ Output P/N: 4046T28G15 Estimated Quantity Range: 50 Minimum – 180 Maximum (includes 30 FMS) Estimated Basic Value: $167,017.50 Estimated Out Year (two – five) Value: $434,245.50 Total Estimated Dollars: $601,263

Noun: anti-ice start bleed valve Input/ Output NSN: 2995-01-294-9867 Input/ Output P/N: 4046T28G14 Estimated Quantity Range: 200 Minimum – 2640 Maximum (includes 352 FMS) Estimated Basic Value: $668,070.00 Estimated Out Year (two – five) Value: $8,150,454.00 Total Estimated Dollars: $8,818,524.00

Combined Estimated Basic Value: $835,087.50 Combined Estimated Out Year (two – five) Value: $8,584,699.50 Combined Total Estimated Dollars: $9,419,787.00

Contractos:

Vacco Industries Inc. (CAGE Code: 1PVC5) 10350 Vacco St.

South El Monte, CA 91733-3316

AAR Aircraft Components (CAGE Code: 3Y015) 747 Zeckendorf Blvd.

Garden City, NY 11530-2188

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)(ii) of the FAR entitled, “Only one responsible source, 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:

JUSTIFICATION AND APPROVAL