J&A_-_013753160_-_0216-16__DB326_signed_Redacted.pdf

JUSTIFICATION REVIEW DOCUMENT

FOR OTHER THAN FULL AND OPEN COMPETITION

Program/Equipment: Overhaul of Cylinder Assembly for UH-60 Blackhawk

Authority: 10 U.S.C. 2304(c)(1)

Amount: $16,907,778.00

Prepared by:

Typed Name: DSN: 645-9230

Title: Contract Specialist Date: 25 April 2016

E-mail:

Contracting Officer:

Typed Name: DSN: 788-6021

Date Reviewed: ___________________

E-Mail:

Technical and Requirements Representative:

Typed Name: DSN: 897-1314

Title: Logistics Management Specialist Date Reviewed:

26 April 2016

13 Jun 2016

SOLICITATION: W58RGZ-15-R-0377

SOURCE SELECTION INFORMATION – SEE FAR 3.104

FOR OFFICIAL USE ONLY

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Program Manager/Requiring Activity/Office Chief

Typed Name: DSN: 897-1614

Signature: _ ___ Date: ______________________

Legal Counsel

Typed Name: DSN: ______________________

Signature: __ Date: ______________________

Special Competition Advocate

Typed Name: DSN: 746-2485

Signature: _ _ Date: ______________________

13 June 2016

788-6238

09 June 2016

27 May 2016

FOR OFFICIAL USE ONLY

JUSTIFICATION AND APPROVAL

FOR LIMITED SOURCE COMPETITION

WEAPON SYSTEM: UH-60

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

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

2. Description of Action: The Aviation Logistics Center requested a limited source competition be conducted amongst sources approved by the Aviation Engineering Directorate (AED) resulting in a new, single firm-fixed-price (FFP), five-year Indefinite Delivery Indefinite Quantity Maintenance and Overhaul (M&O) Contract. Army Working Capital Funds, Reparable will be utilized. The minimum quantity is 300, with a maximum quantity of 1800. Foreign Military Sales (FMS) quantities are included and will utilize FMS funding, and are not source directed.

3. Description of Supplies/Services: Aviation Logistics Center (ALC) has a requirement for contractor support to provide inspection and overhaul on the Cylinder Assembly in order to return the items as specified by the statement of work, to condition code A as defined by Army Regulation 725-50 Appendix C (table C-38). The contractor shall furnish all services, facilities, labor, parts, materials, equipment, tools, and data necessary to complete the inspection and overhaul. The following information is provided for the Cylinder Assembly.

PRID: DB326

Weapon System: UH-60 Noun: Overhaul for Cylinder Assembly Input NSN: 1650-01-375-3160 Input P/N: 70410-02561-112 Output NSN: 1650-01-375-3160 Output P/N: 70410-02561-112 Estimated Quantity Range: 300 Minimum-1800 Maximum (includes 300

FMS)

Estimated Base Year Value: $2,817,963.00 Estimated Out-Year (two–five) Value: $14,089,815.00 Total Estimated Dollars: $16,907,778.00

The estimated base year dollar value of the proposed procurement is $2,817,963.00 and the out-years (two-five) estimated value including FMS dollars is $14,089,815.00.

The total estimated dollar value for this procurement is $16,907,778.00 including FMS.

This calculation is based on utilizing the historical price and escalation rate from M&O Contract W58RGZ-09-D-0214 for Cylinder Assembly overhaul to obtain a current year price of $9,393.21 each, which is then multiplied by the maximum quantity. This total includes 300 each FMS requirements. The FMS requirements are not source directed.

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

FOR OFFICIAL USE ONLY

US Requirement

Time Qty

Estimated Unit Price Total Price

Base Year 300 $9,393.21 $2,817,963.00 Year 2 300 $9,393.21 $2,817,963.00 Year 3 300 $9,393.21 $2,817,963.00 Year 4 300 $9,393.21 $2,817,963.00 Year 5 300 $9,393.21 $2,817,963.00

TOTAL 1500 $14,089,815.00

FMS Requirement

Time Qty Estimated Unit Price Total Price

Base Year 0 $9,393.21 $0.00 Year 2 75 $9,393.21 $704,490.75 Year 3 75 $9,393.21 $704,490.75 Year 4 75 $9,393.21 $704,490.75 Year 5 75 $9,393.21 $704,490.75

TOTAL 300 $2,817,963.00

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c) (1), as implemented by Subsection 6.302-1(a)(2)(ii)(B) of the Federal Acquisition Regulation (FAR), "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 the item, as cited in paragraph 3, is a Critical Safety Item (CSI). Depot Maintenance Work requirement (DMWR) 1-1650-385, dated 27 January 2011 is sufficient to support a competitive contract for the overhaul of NSN 1650-01- 375-3160, however, pursuant to the provisions 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 (DFARS) 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. At this time, Texas Aerospace Services, Inc. (CAGE code 29242), Overhaul Support Services, LLC.

(CAGE code 52VE4), Sikorsky Aircraft Corp. (CAGE code 78286), and Moog, Inc.

(CAGE code 94697) are the only approved sources for overhaul of this item. Should a new source(s) become qualified via the Source Approval Request (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.

FOR OFFICIAL USE ONLY

The required delivery for the overhaul for Cylinder Assembly is 30 each per month, 120 days after Product Verification Audit (PVA) approval.

6. Efforts to Obtain Competition: This item was last published in the December 2015 update to the AMCOM Competition Advocate’s Shopping List (CASL). A Sources Sought announcement was publicized in Federal Business Opportunities (FedBizOpps) on 20 July 2015. No other sources expressed an interest for this requirement, as of 31 July 2015. As of 25 April 2016, 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.

7. Action to Increase Competition: At this time DMWR 1-1650-385 is sufficient to support competition for the overhaul of NSN 1650-01-375-3160. However, this item has been identified as a CSI; therefore only approved sources can be considered. There is a reasonable basis to conclude the agency’s minimum needs can only be satisfied by Texas Aerospace Services, Inc. (CAGE code 29242), Overhaul Support Services, LLC.

(CAGE code 52VE4), Sikorsky Aircraft Corp. (CAGE code 78286), and Moog, Inc.

(CAGE code 94697).

8. Market Research: Meaningful market research was conducted by the Commercial M&O Manager, in the last 12 months in accordance with FAR 10.002(b). Research methods included the following: personal knowledge in procuring supplies/services of this type; contacting knowledgeable person in the Government during July 2015:

, Logistics Management Specialist, Utility Directorate; reviewing provisioning database (ICAPP, Fedlog, ARISE, and LMP Database); publication in the CASL on 30 December 2015; and a sources sought was posted in FedBizOpps 20 July 2015. It has been determined after market research that the Government’s needs cannot be satisfied by commercial items, commercial items with customary or reasonable modifications, or non-developmental items. Furthermore, a re-evaluation has been made in accordance with FAR 10.002(b), which determined the Government requirement cannot be modified in a way that will allow for the item needs to be met commercially. The Overhaul of Cylinder Assembly was designed to a unique military specification, and due to these specifications, the market place does not have a commercial effort available. To ALC’s knowledge, this effort has never been performed for other than the Government. 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. Based on the results of the market research, Texas Aerospace Services, Inc.

(CAGE code 29242), Overhaul Support Services, LLC. (CAGE code 52VE4), Sikorsky Aircraft Corp. (CAGE code 78286), and Moog, Inc. (CAGE code 94697) are the only potential sources identified.

9. Interested Source(s): A Sources Sought announcement was publicized in FedBizOpps on 20 July 2015. 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

FOR OFFICIAL USE ONLY

published, and any proposals received shall be considered. Any potential sources will be encouraged to submit SAR packages. As of 25 April 2016, there are no pending SARs per the ARISE database. This item was identified as a CSI. There is a reasonable basis to conclude at this time, that the agency’s minimum needs can only be satisfied by Texas Aerospace Services, Inc. (CAGE code 29242), Overhaul Support Services, LLC.

(CAGE code 52VE4), Sikorsky Aircraft Corp. (CAGE code 78286), and Moog, Inc.

(CAGE code 94697). The synopsis will be publicized in FedBizOpps on or about 15 May 2016.

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

a. Procurement History: Maintenance and Overhaul.

Date Contract CLIN Qty Unit Price Contractor 11-Sep-12 W58RGZ09D0214/0004 0001AA 6 $8,346.00 Texas Aerospace 11-Sep-12 W58RGZ09D0214/0004 0001AB 233 $7,767.00 Texas Aerospace 17-May-11 W58RGZ09D0214/0003 0001AA 537 $8,103.00 Texas Aerospace 17-May-11 W58RGZ09D0214/0003 0001AB 432 $7,541.00 Texas Aerospace 28-Sep-10 W58RGZ09D0214/0002 0001AA 17 $8,103.00 Texas Aerospace 28-Sep-10 W58RGZ09D0214/0002 0001AB 523 $7,541.00 Texas Aerospace 29-Sep-09 W58RGZ09D0214/0001 0001AA 13 $7,867.00 Texas Aerospace 29-Sep-09 W58RGZ09D0214/0001 0001AB 225 $7,321.00 Texas Aerospace

Maintenance and Overhaul: Previous authority cited was 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(ii), “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 is available. Depot Maintenance Work Requirement (DMWR) 1-1650-385, dated 27 January 2011, is sufficient to support a competitive contract for the overhaul of NSN 1650-01-375-3160; however, since this is a CSI, only approved sources can 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 $700,000. 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 subcontractors (except small business concerns) that receive subcontracts in excess of $700,000 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. Sikorsky Aircraft Corp., Overhaul Support Services, LLC., and Moog, Inc., will be required to comply with this requirement since they are large businesses. However, Texas Aerospace Services, Inc. is currently defined as a small business and will not be required to submit a subcontracting plan, if they remain within the definition of a small business and are awarded the contract.

FOR OFFICIAL USE ONLY

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

Name: Date: __07 April 2015_____

Title: Logistics Mgmt Spec Signature: See attached signed Technical Certification

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

Name: Date: __24 June 2015_____

Title: Logistics Mgmt Spec Signature: See attached signed Requirements Certification

13. Fair and Reasonable Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. The determination of fair and reasonable cost 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 competition.

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

Name: Date: _05/09/2016__________

Title: Contracting Officer Signature:

FOR OFFICIAL USE ONLY

Approval

Based on the foregoing justification, I hereby approve the procurement of the following FFP procurement action:

PRID: DB326

Weapon System: UH-60 Noun: Overhaul for Cylinder Assembly Input NSN: 1650-01-375-3160 Input P/N: 70410-02561-112 Output NSN: 1650-01-375-3160 Output P/N: 70410-02561-112 Estimated Quantity Range: 300 Minimum-1800 Maximum (includes 300 FMS) Estimated Base Year: $2,817,963.00 Estimated Out-Year (two–five) Value: $14,089,815.00 Total Estimated Dollars: $16,907,778.00

Contractors:

Texas Aerospace Services, Inc. (CAGE code 29242) 3550 Maple St.

Abilene, TX 79602-7130

Overhaul Support Services, LLC. (CAGE code 52VE4) 5 Connecticut South Dr.

East Granby, CT 06026

Sikorsky Aircraft Corp. (CAGE code 78286) 6000 Main St.

Stratford, CT 06615

Moog, Inc. (CAGE code 94697) 300 Jamison Rd.

East Aurora, NY 14052

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

2304(c)(1), as implemented by Subsection 6.302-1(a)(2)(ii)(B) of the Federal Acquisition Regulation (FAR), "Only one responsible source and no other supplies or services will satisfy agency requirements." This approval is subject to availability of funds, and provided that the services/supplies and other properties herein described have otherwise been authorized for acquisition.

Date: _08/24/2016______ Signature:

Principal Assistant Responsible for Contracting