JA15R0042.pdf

Solicitation: W58RGZ-15-R-0042

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

WEAPON SYSTEM: UH-60

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 a new 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 M&O of the item listed below:

PRID: B415-1

Weapon System: UH-60 Noun: Coupling Assembly, Servo Input NSN: 1615-01-141-7532 Output NSN: 1615-01-141-7532 Input P/N: 70400-06100-042 Output P/N: 70400-06100-042 Estimated Quantity Range: 75 Minimum – 1,800 Maximum (includes 300 FMS) Estimated Basic Value: $145,811.25 Estimated Out Year (two – five) Value: $3,353,658.75 Total Estimated Dollars: $3,499,470.00

The minimum estimated basic dollar value of the proposed procurement is $145,811.25.

The maximum estimated dollar value of the proposed procurement is $3,499,470.00.

The maximum estimated dollar value is based on the Maintenance Expenditure Limit (MEL) of $1,944.15 multiplied by the maximum quantity of 1,800. This total includes 300 each FMS requirements. The FMS requirement is not source directed.

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

US Requirement

Quantity Unit Price Total Price Year 1 75 $1,944.15 $145,811.25 Year 2 375 $1,944.15 $729,056.25 Year 3 350 $1,944.15 $680,452.50 Year 4 350 $1,944.15 $680,452.50 Year 5 350 $1,944.15 $680,452.50

TOTAL 1500 $2,916,225.00

SOURCE SELECTION INFORMATION – SEE FAR 3.104

FMS Requirement Quantity Unit Price Total Price

Year 1 0 $1,944.15 $0.00 Year 2 75 $1,944.15 $145,811.25 Year 3 75 $1,944.15 $145,811.25 Year 4 75 $1,944.15 $145,811.25 Year 5 75 $1,944.15 $145,811.25

TOTAL 300 $583,245.00

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 coupling assembly, servo is a Critical Safety Item (CSI) and overhaul can only be performed by an approved source. Depot Maintenance Work Requirement (DMWR) 1-1615-365 (Change #1), dated 4 October 2010, 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 coupling assembly, servo became a CSI in February 2008. Currently the following three sources are approved by the Aviation Engineering Directorate (AED) to perform the overhaul effort:

Overhaul Support Services LLC (CAGE code: 52VE4, large business); Sikorsky Aircraft Corporation (CAGE code: 78286, large business); and PCX Aerostructures LLC- Newington (CAGE code: 82001, small business). The overhaul shall be accomplished in accordance with the approved DMWR 1-1615-365 (Change #1). The required delivery is 30 each per month 30 days after receipt of order (ARO). An M&O Plan is required 30 days after contract award, and a Product Verification Audit must be performed within 90 days after M&O Plan approval. Both of these requirements must be approved prior to acceptance of deliveries by the government.

6. Efforts to Obtain Competition: The coupling assembly, servo (1615-01-141-7532) has been published in the 30 June 2014 update of the Competition Advocate’s Shopping List (CASL). Pursuant to FAR 5.201, the proposed acquisition will be synopsized in the Federal Business Opportunities (FedBizOpps) on or about 30 November 2014. The Army Aviation Sustainment Gateway (ARISE) CSI database, Source Management module, was queried on 30 October 2014 and there are no pending Source Approval Requests (SAR) packages awaiting processing. 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: DMWR 1-1615-365 (Change #1) 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. The following three sources have been identified as the current sources authorized to perform the overhaul:

Overhaul Support Services, Sikorsky Aircraft Corporation, and PCX Aerostructures LLC-Newington. There is a reasonable basis to conclude that the agency’s minimum needs can only be satisfied by these three sources. 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, Utility Directorate, 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 October 2014 (Bernida Childs, Supervisory Logistics Management Specialist), review of government and/or commercial databases for relevant information during October 2014 (Interactive Configuration Management and Procurement Program, Electronic Data Access, Competition Management Office, Army Aviation Sustainment Gateway, and System for Award Management) and publication in CASL in 30 June 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. As stated in paragraph 5, the overhaul effort is limited to the sources approved by the head of the design control activity. Therefore, Market Research has identified the following three sources as the current sources authorized to perform the overhaul:

Overhaul Support Services, Sikorsky Aircraft Corporation, and PCX Aerostructures LLC-Newington.

9. Interested Sources: A Sources Sought announcement was publicized in FedBizOpps on 30 September 2014. The following sources expressed interest in this acquisition: AeroWorx (CAGE code: 1KYJ6), 2565 West 237th Street, Torrance, CA 90505-5216; Kellstrom Repair Services, Inc. (CAGE code: 1YUC5), 3701 Flamingo Road, Miramar, FL 33027-2934; Aeronautical Systems, Inc. (CAGE code: 0EPR3), 43671 Trade Center Place Suite 100, Sterling, VA 20166-2118; thru Able Engineering and Component Services, Inc. (CAGE code: 1QCB8), 7706 East Velocity Way, Mesa, AZ 85212-6006. Interested contractors received an email acknowledging their interest and instructions to submit a SAR in order to become an approved source for this acquisition. 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 database was queried on 30 October 2014 and there are no pending SAR packages awaiting processing. There is a reasonable basis to conclude at this time, that the agency’s minimum needs can be satisfied. The synopsis will be publicized in FedBizOpps on or about 30 November 2014.

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

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

Contract Date Qty Unit Price Contractor W58RGZ-13-D-0095/0001 23 Apr 13 250 $2,350.00 Prototype Engineering W58RGZ-07-D-0122/0012 22 Nov 11 689 $1,678.00 Prototype Engineering W58RGZ-07-D-0122/0011 29 Jul 11 499 $1,678.00 Prototype Engineering

Due to Prototype Engineering having quality issues and failing to pass product verification audit, AED has revoked Prototype Engineering’s approval to work any contracts for CSI items.

Previous authority cited was Title 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302- 1, “Only one or a limited number of responsible sources, and no other supplies or services will satisfy agency requirements.” This justification is still valid for this procurement.

b. Acquisition Data Availability: DMWR 1-1615-365 (Change #1) 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, the following three sources are approved by the Aviation Engineering Directorate (AED) to perform the overhaul effort: Overhaul Support Services LLC, Sikorsky Aircraft Corporation, and PCX Aerostructures LLC-Newington.

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.

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: Bernida Childs Date: 2014SEP04 .

Title: Logistics Management Specialist Signature: See attachment .

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: Bernida Childs Date: 2014SEP05 .

Title: Logistics Management Specialist Signature: See attachment .

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”. In accordance with FAR 15.403-1(b)(1), certified cost or pricing data will not be required if there is adequate price competition.

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

Name: Jennifer Jackson Date: ____________________________

Title: Contracting Officer Signature: ________________________

Approval

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

PRID: B415-1

Weapon System: UH-60 Noun: Coupling Assembly, Servo Input NSN: 1615-01-141-7532 Output NSN: 1615-01-141-7532 Input P/N: 70400-06100-042 Output P/N: 70400-06100-042 Estimated Quantity Range: 75 Minimum – 1,800 Maximum (includes 300 FMS) Estimated Basic Value: $145,811.25 Estimated Out Year (two – five) Value: $3,353,658.75 Total Estimated Dollars: $3,499,470.00

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:__________________________________