PARC_Signed_R-0220_JandA_-_AB694-1_Sole_Source_Redacted.pdf

Solicitation: W58RGZ-14-R-0220

Source Selection Information- See FAR 3.104

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

UH-60 Blackhawk

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 sole source 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 overhaul of the non-critical safety item listed below:

SYSTEM: UH-60 Blackhawk NOMENCLATURE: Winch, Aircraft Mounted

INPUT NSN: 1680-01-505-3913

INPUT P/N: BL-29900-30-1

OUTPUT NSN: 1680-01-505-3913

OUTPUT P/N: BL-29900-30-1

PRID: AB694-1

ESTIMATED QUANTITY RANGE: 30 Minimum - 246 Maximum (includes 41 FMS)

ESTIMATED BASIC VALUE: $ 2,343,221.40

ESTIMATED OUT YEAR VALUE: $16,871,194.08

TOTAL ESTIMATED DOLLARS: $19,214,415.48

The estimated basic dollar value of the proposed procurement is $2,343,221.40 and the out-years (two-five) estimated value is $16,871,194.08 including FMS. The total estimated dollar value of the proposed procurement is $19,214,415.48. This calculation is based on multiplying the maintenance expenditure limit of $78,107.38 by the maximum quantity. This total estimated quantity range includes 41 each FMS requirements. The FMS requirement is not source directed.

Source Selection Information- See FAR 3.104

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

Estimated US Requirement

Est Qty Unit Price Total Price Year 1 30 (minimum) $78,107.38 $ 2,343,221.40 Year 2 35 $78,107.38 $ 2,733,758.30 Year 3 40 $78,107.38 $ 3,124,295.20 Year 4 50 $78,107.38 $ 3,905,369.00 Year 5 50 $78,107.38 $ 3,905,369.00

TOTAL 205 $16,012,012.90

Estimated FMS Requirement

Est Qty Unit Price Total Price Year 1 0 $78,107.38 $ 0.00 Year 2 9 $78,107.38 $ 702,966.42 Year 3 10 $78,107.38 $ 781,073.80 Year 4 11 $78,107.38 $ 859,181.18 Year 5 11 $78,107.38 $ 859,181.18

TOTAL 41 $ 3,202,402.58

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. Reasons for Authority Cited: The proposed acquisition requires the use of the cited statutory authority because technical data to include a Depot Maintenance Work Requirement (DMWR) is not available for the winch, aircraft mounted overhaul requirement. The technical data rights for this requirement are proprietary and controlled by the original equipment manufacturer (OEM), Breeze-Eastern Corporation, and not by the government. Breeze-Eastern Corporation stated by email dated 20 August 2014 that the technical data for this requirement is not for sale, and no other vendors have authorized access to the necessary data. The drawings necessary to complete the overhaul of assets are not available to the government and there are no plans to have a DMWR written for this item, based on the lack of government owned technical data rights. Currently there is only one source approved by the Aviation Engineering Directorate (AED) to perform the overhaul effort: Breeze-Eastern Corporation, Whippany, NJ (CAGE Code 08484).

The required delivery for the winch, aircraft mounted is 3 each per month, 90 days after receipt of assets. A M&O plan is required 30 days after contract award, and must be approved prior to acceptance of deliveries by the government. Breeze-Eastern Corporation is the only known source identified as having the essential qualifications to meet the government’s delivery requirements.

Source Selection Information- See FAR 3.104

6. Efforts to Obtain Competition: This item has been published in the December 2012 update to the Competition Advocate’s Shopping List (CASL) and will be listed in the next CASL update. A Sources Sought announcement was publicized in FedBizOpps on 12 September 2014. The following source expressed interest in this acquisition: The Clifton Corporation, Spartanburg, SC (CAGE Code 0CP90). On 15 September 2014, a Contracting Officer letter to respond to the inquiry was sent to the interested contractor notifying them that the item being procured must be acquired from an approved overhaul source and that the OEM has notified the government that no vendors have been granted authorized access to the technical data required to perform the overhaul of this item. The Clifton Corporation did not provide a response to this letter. Pursuant to FAR 5.201, the proposed acquisition will be synopsized in the Federal Business Opportunities (FedBizOpps) on or about 31 October 2014. As of 24 September 2014, there are no pending Source Approval Requests (SARs) 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. Action to Increase Competition: Technical data is currently not available to support a competitive solicitation, and there are no plans to have a DMWR written for the winch, aircraft mounted based on the lack of government owned technical data rights. There are currently no ongoing actions to increase competition for this requirement. Efforts to have this item overhauled are limited to the identified source as the government does not own nor have rights to the data required for overhaul. The only known source with the overhaul data necessary to perform this requirement is Breeze-Eastern Corporation. In an email dated 20 August 2014, Breeze-Eastern Corporation stated the technical data for this requirement is not available for sale, and no other vendors, to include Sikorsky (the prime contractor on this part), have authorized access to the necessary data. In the absence of government owned technical data, additional competition is not anticipated. Breeze-Eastern Corporation is the only source authorized to perform the overhaul. There is a reasonable basis to conclude that the agency’s minimum needs can only be satisfied by Breeze-Eastern Corporation. 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 was conducted by Roy Miller, Logistics Management Specialist, in the last 12 months in accordance with FAR 10.002(b). Research methods included the following: personal knowledge, contact with knowledgeable persons in government during April 2014: , Logistics Management Specialist; contact with knowledgeable persons in industry during September 2014: Christine Hawk, Director, Breeze-Eastern Corporation; review of government databases: FEDLOG, LMP, ICAPP, CMO, EDA in April 2014, and System for Award Management in September 2014; and publication in the December 2012 CASL. The approved source for this requirement is Breeze-Eastern Corporation. It has been determined after market research that the government’s needs cannot be satisfied

Source Selection Information- See FAR 3.104 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 used.

9. Interested Source(s): A Sources Sought announcement was publicized in FedBizOpps on 12 September 2014. The following source expressed interest in this acquisition: The Clifton Corporation, Spartanburg, SC (CAGE Code 0CP90). On 15 September 2014, a Contracting Officer letter to respond to the inquiry was sent to the interested contractor notifying them that the item being procured must be acquired from an approved overhaul source and that the OEM has notified the government that no vendors have been granted authorized access to the technical data required to perform the overhaul of this item. The Clifton Corporation did not provide a response to this letter. 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 proposals received shall be considered. Any potential sources will be encouraged to submit SAR packages. As of 24 September 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 Breeze-Eastern Corporation. The synopsis will be publicized in FedBizOpps on or about 31 October 2014.

10. Other Factors:

a. Procurement History (Maintenance and Overhaul)

Previous authority cited was Title 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.

b. Acquisition Data Availability – Technical data to include a DMWR is not currently available to support a competitive solicitation. This item is not CSI, but the drawings necessary to complete the overhaul of the assets are not available to the government, and there are no plans to have a DMWR written for this item based on the lack of government owned technical data rights. Therefore, competition cannot be increased at this time. The only known source of the overhaul data necessary to perform this requirement is Breeze-Eastern Corporation. In an email dated 20 August 2014 Breeze- Eastern Corporation stated the technical data for this requirement is not available for sale, and no other vendors have authorized access to the necessary data. In the

Contract Number Effective Date Qty Unit Price Contractor W58RGZ12D0162/0003 26 SEP 2013 17 ea $68,826.52 Breeze-Eastern Corporation W58RGZ12D0162/0002 18 DEC 2012 28 ea $66,821.86 Breeze-Eastern Corporation W58RGZ12D0162/0001 27 JUL 2012 2 ea $66,821.86 Breeze-Eastern Corporation W58RGZ09P0569* 15 SEP 2009 1 ea $28,483.58 Breeze-Eastern Corporation *FMS order

Source Selection Information- See FAR 3.104 absence of government owned technical data, all follow-on efforts are projected to be limited to Breeze-Eastern Corporation.

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, “Competition in Subcontracting” to ensure that all subcontracts are awarded on a competitive basis to the maximum extent possible. Breeze-Eastern Corporation is a small business and is thereby exempt from the requirement.

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: DATE: see attached

TITLE: Logistics Management Specialist 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: DATE: see attached

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 historical analysis, independent government estimates, and comparative techniques.

Certified cost or pricing data will be requested in order to determine the price fair and reasonable. An audit will be requested if needed.

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

NAME: DATE: _____________________________________

TITLE: Contracting Officer SIGNATURE: ______________ _

Date: 2014.10.29 14:58:57 -05'00'

Source Selection Information- See FAR 3.104

APPROVAL

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

SYSTEM: UH-60 Blackhawk NOMENCLATURE: Winch, Aircraft Mounted

INPUT NSN: 1680-01-505-3913

INPUT P/N: BL-29900-30-1

OUTPUT NSN: 1680-01-505-3913

OUTPUT P/N: BL-29900-30-1

PRID: AB694-1

ESTIMATED QUANTITY RANGE: 30 Minimum - 246 Maximum (includes 41 FMS)

ESTIMATED BASIC VALUE: $ 2,343,221.40

ESTIMATED OUT YEAR VALUE: $16,871,194.08

TOTAL ESTIMATED DOLLARS: $19,214,415.48

Breeze-Eastern Corporation (CAGE Code: 08484) 35 Melanie Lane Whippany, NJ 07981-1638

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: