JA_W58RGZ-15-R-0172_Redacted.pdf

Control Number: W58RGZ-15-R-0172

SOURCE SELECTION INFORMATION- SEE FAR 3.104

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: AMCOM Logistics Center has a requirement for contractor support to provide overhaul/repair of the Collimator, Infrared and overhaul/upgrade/repair of the Digital Captive Boresight Harmonization Kit in order to return the items to condition code A as defined by Army Regulation 725-50. The following information is provided for the Collimator, Infrared and Digital Captive Boresight Harmonization Kit:

Item #1: AH498-1 System: AH-64 Apache Noun: Collimator, Infrared Input NSN: 4920-01-202-4135 Output NSN: 4920-01-202-4135 Input P/N: 2305000 Output P/N: 2305000 Estimated Quantity Range: 2 Minimum – 11 Maximum (includes 1 FMS) Estimated Basic Value:

Estimated Out Year (two – five) Value:

Total Estimated Dollars:

Item #2: BH410-1 System: AH-64 Apache Noun: Digital Captive Boresight Harmonization Kit Input NSN: 4920-01-412-4978 4920-01-535-3520 Output NSN: 4920-01-535-3520 Input P/N: 2300000-22 2300000-30 Output P/N: 2300000-30 Estimated Quantity Range: 25 Minimum – 200 Maximum Estimated Basic Value:

Estimated Out Year (two – five) Value:

Total Estimated Dollars:

SOURCE SELECTION INFORMATION- SEE FAR 3.104

Combined Estimated Basic Value:

Combined Estimated Out Year (two – five) Value:

Combined Total Estimated Dollars:

The combined estimated basic dollar value of the proposed procurement is and the combined out-years (two – five) estimated value is . The combined total estimated dollar value of the proposed procurement is . For PRID AH498-1, this calculation is based on a unit price of each multiplied by the maximum quantity of 11 each. For PRID BH410-1, this calculation is based on a unit price of each multiplied by the maximum quantity of 200 each. The unit prices were determined based on the unit price for period of performance 2015 – 2016 of the historical contract (W58RGZ-11-D- 0145). This total includes a quantity of 1 each FMS requirements. The FMS requirement is not source directed.

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

Item #1: AH498-1

US Requirement Quantity Unit Price Total Price

Year 1 2 Year 2 2 Year 3 2 Year 4 2 Year 5 2

TOTAL 10

FMS Requirement Quantity Unit Price Total Price

Year 1 1 Year 2 0 $0.00 Year 3 0 $0.00 Year 4 0 $0.00 Year 5 0 $0.00

TOTAL 1

Item #2: BH410-1

US Requirement Quantity Unit Price Total Price

Year 1 25 Year 2 25 Year 3 50 Year 4 50

SOURCE SELECTION INFORMATION- SEE FAR 3.104

Year 5 50

TOTAL 200

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)(A) and (B) 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 there is only one source approved by the Aviation Engineering Directorate (AED) to overhaul these items. There is no Depot Maintenance Work Requirement (DMWR) or technical data identified to support a competitive solicitation for the overhaul of the above items. The only approved source is DRS Laurel Technologies (CAGE code: 0ERB9, large business), 645 Anchors Street, Fort Walton Beach, FL 32548. DRS Laurel Technologies is the Original Equipment Manufacturer. These items are not classified as critical safety items (CSIs). In the absence of Government owned technical data, additional competition is not anticipated.

AED has evaluated the cost and time associated with processing a Source Approval Request (SAR) and has estimated that it will take 105 man hours or engineering labor to qualify a new source. The calendar timeframe on developing another source could be up to a year. The costs to process a SAR request could be up to $200,000. In addition, any competing contractor would not be familiar with the total design parameters, specific repair parts requirements, and test processes for the AH-64, and therefore, can reasonably be expected to require a considerable length of time to commence or complete a repair program with no guarantee of success due to factors identified herein.

These shortfalls would prevent a competitive contractor from having on-line/available capability to satisfy specific program requirements (quality aspect, tooling/test equipment, engineering support) to meet the applicable delivery schedules and turnaround time frames. The required delivery is 2 each per month 120 days after receipt of order (ARO) for Prid AH498-1 and 6 each per month 120 days after receipt of order for Prid BH410-1. An M&O Plan is required 30 days after contract award, and a Product Verification Audit (PVA) 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 Collimator, Infrared was published in the Competition Advocate’s Shopping List (CASL) in June 2015 and the Digital Captive Boresight Harmonization Kit was published in the CASL in October 2014. A Sources Sought announcement that included both items was publicized in Federal Business Opportunities (FedBizOpps) on 10 February 2015. No sources expressed interest in this acquisition. Pursuant to FAR 5.201, the proposed acquisition will be synopsized in the FedBizOpps immediately upon approval of the J&A. The Army Aviation Sustainment Gateway (ARISE) CSI database, Source Management module, was queried on 10 June 2015 and there are no pending SAR packages awaiting processing.

Should another contractor become an approved source before contract award, their

SOURCE SELECTION INFORMATION- SEE FAR 3.104

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: Technical data is currently not available to support a competitive solicitation. Efforts to have these items overhauled are limited to the source above, and the Government does not own nor have rights to the data required for overhaul. The Government cannot provide a DMWR due to the cost associated with the development of a DMWR for these items. There is a reasonable basis to conclude that the agency’s minimum needs can only be satisfied by DRS Laurel Technologies. Any additional sources identified through the synopsis procedure will receive due consideration as prescribed by law. 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 , Logistics Management Specialist, Avionics and Radar Branch, Apache Project Office, in the last 12 months in accordance with FAR 10.0002(b). Research methods included the following: personal knowledge in procuring supplies of this type, contacting knowledgeable persons in government and industry during October 2014 (

, Logistics Management Specialist, , DRS Program Manager, , Engineer), publication of a formal request for information (sources sought published on 10 February 2015), review of government and/or commercial databases for relevant information during December 2014 (ICAPP and PADDS), review of source list for identical or similar items obtained from Government, professional, and/or industry source August thru November 2014 (Bradstreet, Commerce Net, Aircraft Internet Parts Locator, System Government Wide Acquisition Contract Scientific and Engineering, Industry Link). 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. The market research has identified the following source as the current source authorized to perform the overhaul: DRS Laurel Technologies.

9. Interested Sources: A Sources Sought announcement was publicized on FedBizOpps on 10 February 2015. 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 10 June 2015 and there are no pending SAR packages awaiting processing. As stated above, a synopsis will be publicized in FedBizOpps immediately upon approval of the J&A.

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

SOURCE SELECTION INFORMATION- SEE FAR 3.104

a. Procurement history: There is no M&O procurement history for these items.

b. Acquisition Data Availability: Technical data to include a DMWR is not currently available to support a competitive solicitation. This item is not a CSI. The drawings necessary to complete the repair of the assets are not available to the Government. No DMWR will be provided due to the costs to develop a DMWR. Therefore, competition cannot be increased at this time. The only known source of repair for this requirement is DRS Laurel Technologies. In the absence of Government-Owned technical data, all follow-on efforts are projected to be limited to DRS Laurel Technologies.

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 ensure that all subcontracts are awarded on a competitive basis to the maximum extent possible. DRS Laurel Technologies will be required to comply with these requirements since they are a large business.

SOURCE SELECTION INFORMATION- SEE FAR 3.104

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: BH410-1 Date: 2014NOV 20 .

AH498-1 Date: 2015JAN 15

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: BH410-1 Date: 2014DEC 15 .

AH498-1 Date 2014 DEC 30

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”. Sole Source negotiations are anticipated and the requirement for certified cost and pricing data will be included in the solicitation in accordance with FAR 15.403-4.

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: ___________

16 September 2015

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:

Item #1: AH498-1 System: AH-64 Apache Noun: Collimator, Infrared Input NSN: 4920-01-202-4135 Output NSN: 4920-01-202-4135 Input P/N: 2305000 Output P/N: 2305000 Estimated Quantity Range: 2 Minimum – 11 Maximum (includes 1 FMS) Estimated Basic Value:

Estimated Out Year (two – five) Value:

Total Estimated Dollars:

Item #2: BH410-1 System: AH-64 Apacje Noun: Digital Captive Boresight Harmonization Kit Input NSN: 4920-01-412-4978 4920-01-535-3520 Output NSN: 4920-01-535-3520 Input P/N: 2300000-22 2300000-30 Output P/N: 2300000-30 Estimated Quantity Range: 25 Minimum – 200 Maximum Estimated Basic Value:

Estimated Out Year (two – five) Value:

Total Estimated Dollars:

Combined Estimated Basic Value:

Combined Estimated Out Year (two – five) Value:

Combined Total Estimated Dollars:

Contractor:

DRS Laurel Technologies (CAGE code: 0ERB9) 246 Airport Road Johnstown, PA 15904-7224

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)(A) and (B) 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:__________________________________

Principal Assistant Responsible for Contracting