JA_0305-17_17-R-0109_AB687-1_signed(1)_Redacted.pdf

Solicitation: W58RGZ-17-R-0109

SOURCE SELECTION INFORMATION – SEE FAR 3.104

JUSTIFICATION REVIEW DOCUMENT

FOR OTHER THAN FULL AND OPEN COMPETITION

Program/Equipment: Overhaul of Data Interface Unit for UH-60 on behalf of the AMCOM Logistics Center (ALC)

Authority: 10 U.S.C. 2304(c)(1) as implemented by paragraph 6.302-1(a)(2)(ii)(B) of the Federal Acquisition Regulation (FAR) entitled, “Only one responsible source, and no other supplies or services will satisfy agency requirements.”

Amount: $10,351,692.00

Prepared by:

Typed Name: DSN:

Title: Contract Specialist Date: 15 May 2017

E-mail:

Contracting Officer:

Typed Name: DSN:

Date Reviewed: _15 May 2017_____

E-Mail:

Technical Representative:

Typed Name: DSN:

Title: Logistics Management Specialist Date: 21 October 2016

E-mail:

Requirements Representative:

Typed Name: DSN:

Title: Logistics Management Specialist Date: 15 September 2016

E-mail:

SOURCE SELECTION INFORMATION – SEE FAR 3.104

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

Legal Counsel:

Typed Name: _ ______ DSN: _ ______________

Signature: Date: ______________________ 26 June 2017

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 Aviation and Missile Command (AMCOM) Logistics Center (ALC) requests approval to award a new sole source, five-year Indefinite Delivery Indefinite Quantity (IDIQ), Maintenance and Overhaul (M&O) Contract on a firm-fixed-price (FFP) basis with Simmonds Precision Products Inc., 100 Panton Rd., Vergennes, VT, 05491-1008 (CAGE Code 89305). The Government projects award for November 2017. Army Working Capital Funds, Reparable will be utilized. The minimum quantity is 50 each, with a maximum quantity of 540 each.

Foreign Military Sales (FMS) quantities are included in support of the Memorandum of Understanding (MOU) among Security Assistance Management Directorate (SAMD), U.S. Army Aviation and Missile Command (AMCOM) Logistics Center (ALC), and ACC-R (approved 6 December 2004 by the Director, Maintenance and Special Projects Directorate for ACC-R). In accordance with the MOU, all M&O packages will include an FMS quantity equal to 20% over the Army’s maximum quantity for utilization by FMS customers if required. FMS funding will be used, but this is not a source directed action. Potential FMS customers include Egypt, Bahrain, Korea, Netherlands, Kuwait and Greece. At this time, FMS case numbers are unknown. The FMS quantity for this effort is 90 each.

The previous contract for the Data Interface Unit is W58RGZ-12-D-0083. This contract expired on 2 April 2017.

3. Description of Supplies: ALC has a requirement for contractor support to provide inspection and overhaul on the following part in order to return the items as specified by the Statement of Work entitled “Statement of Work (Sole Source) for NSN: 7025- 01-481-7741,” 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 Data Interface Unit.

Procurement Request Identification (PRID): AB687-1 Noun: Data Interface Unit Input NSN: 7025-01-481-7741 Output NSN: 7025-01-481-7741 Input P/N: 30192-0201 Output P/N: 30192-0201 Estimated Quantity Range: 50 Minimum – 540 Maximum (includes 90 FMS) Estimated Base Year Value: $958,490.00 Estimated Out Years (two – five) Value: $9,393,202.00 Total Estimated Dollars: $10,351,692.00

SOURCE SELECTION INFORMATION – SEE FAR 3.104

The estimated basic dollar value of the proposed procurement is $958,490.00 and the out-years (two – five) estimated value including FMS is $9,393,202.00. The total estimated dollar value of the proposed procurement is $10,351,692.00. This calculation is based on multiplying the maintenance expenditure limit (MEL) per unit of $19,169.80 the maximum quantity of 540 each. This total includes a combined quantity of 90 each FMS requirements. The FMS requirement is not source directed.

The contract will expire five (5) years after contract award.

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

US Requirement

Qty Unit Price Total Price Base Year 50 $19,169.80 $ 958,490.00 Year 2 100 $19,169.80 $1,916,980.00 Year 3 100 $19,169.80 $1,916,980.00 Year 4 100 $19,169.80 $1,916,980.00 Year 5 100 $19,169.80 $1,916,980.00

TOTAL 450 $8,626,410.00

FMS Requirement

Qty Unit Price Total Price

Base Year 0 $19,169.80 $ 0

Year 2 22 $19,169.80 $ 421,735.60

Year 3 22 $19,169.80 $ 421,735.60

Year 4 23 $19,169.80 $ 440,905.40

Year 5 23 $19,169.80 $ 440,905.40

90 $1,725,282.00

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)(B) of the Federal Acquisition Regulation (FAR) entitled, “Only one or a limited number of responsible sources, 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 technical data to include a Depot Maintenance Work requirement (DMWR) is not available for the Overhaul for the Data Interface Unit requirement. The Directorate for Engineering has determined this is not a critical safety item on 14 June 2016. Currently, there is only one source approved by the U.S. Army Aviation and Missile Research, Development and Engineering Center (AMRDEC), Aviation Engineering Directorate (AED) to perform the overhaul effort. The approved

SOURCE SELECTION INFORMATION – SEE FAR 3.104

source is Simmonds Precision Products Inc., 100 Panton Rd., Vergennes, VT 05491- 1008 (CAGE Code 89305). The technical data rights for this requirement are proprietary and controlled by the original equipment manufacturer, Simmonds, and not the Government. The drawings, tooling, and test equipment necessary to complete the overhaul of assets are not available to the Government, and the Government does not anticipate having the DMWR written for this item, based on the lack of Government owed technical rights.

The required delivery for the overhaul for Data Interface Unit is seven each per month, 120 days after receipt of assets. A Maintenance and Overhaul Plan is required 30 days after contract award, and must be approved prior to commencement of Product Verification Audit (PVA). The PVA must commence 90 days after receipt of reparables and must be approved prior to acceptance of deliveries. Simmonds Precision Products Inc. (CAGE Code 89305) is the OEM and the only known source identified as having the essential qualifications to meet the Government’s delivery requirements, such as a highly skilled workforce experienced/trained in the processes/procedures to overhaul this item. Failure to award this requirement will delay the ability to continue to provide the quick response to support warfighters’ needs with serviceable assets available to support field requirements. The UH-60 fleet will be greatly degraded due to the limited number of serviceable assets available for issue which could result in the grounding of aircraft.

6. Efforts to Obtain Competition:

a. Effective competition. The Data Interface Unit (7025-01-481-7741) was published in the December 2016 update of the AMCOM Competition Advocate’s Shopping List (CASL). A Sources Sought announcement was publicized in Federal Business Opportunities (FedBizOpps) on 27 January 2017. No sources expressed interest in this acquisition to date. Pursuant to FAR 5.201, the proposed acquisition will be synopsized in the FedBizOpps immediately upon approval of the J&A, on or about 7 August 2017, and there are no pending Source Approval Request (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, although a source must be approved in order to have a proposal evaluated for this requirement.

b. Subcontracting Competition. Per FAR 19.702 and FAR 19.704, a Subcontracting Plan is required for large businesses on acquisitions that exceed $700,000.00.

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.

Simmonds Precision Products Inc. (CAGE Code 89305) will be required to comply with

SOURCE SELECTION INFORMATION – SEE FAR 3.104

these requirements since they are a large business and the estimated dollar value of the contract exceeds $700,000.00.

7. Actions to Increase Competition: Technical data, to include a DMWR, is currently not available to support a competitive solicitation, and on DMWR is available for the overhaul of the Data Acquisition Unit. The required data, specifications, and drawings are owned and controlled be the contractor. The Government does not possess the rights to this data. Accordingly, no DMWR can be created at this time or for the foreseeable future, and the Government has no means of increasing competition. This effort requires contractor to meet all government special tooling and test equipment requirement with either: 1. Possession of the required tools, 2. Confirmed requisitions for the required tools, 3. Confirmed arrangements for subcontracting the processes requiring the special tools, or 4. Specific plans describing their technical approach to develop equivalent tools. At this time, the original equipment manufacturer, Simmonds Precision Products Inc., is the only known contractor with access to the required contractor controlled technical data and drawings. Based upon the fact the applicable technical data is contractor owned and controlled, the Government does not anticipate competing this action in the future.

8. Market Research: Meaningful market research was conducted by the Logistics Management Specialist, AMCOM Logistics Center, in the last 12 months in accordance with FAR 10.0002(b). Research methods included the following: personal knowledge in procuring supplies/services of this type, contact with knowledgeable persons in Government and/or industry practices in this are of supply/services (Supervisory Logistics Management Specialist, AMSAM-MAV-UA); publication of a formal request for information (a sources sought announcement was posted 27 January 2017), review of Government and/or commercial databases for relevant information in December 2016 (ICAPP, FEDLOG, ARISE, LMP, SAM), and publication in AMCOM Competition Advocates Shopping List (CASL) in December 2016. It has been determined after market research that the Governments needs can 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 sufficient for use in this acquisition and will be utilized. As determined by the market research, the only approved source for this requirement is Simmonds.

9. Interested Sources: A Source Sought announcement was publicized in FedBizOpps on 27 Jan 2017. The results of the source sought announcement are address in paragraph 6 of this document. To date, no other sources have expressed a written interest in this acquisition. The notice 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 24 April 2017 and there are no pending SAR packages. There is a reasonable basis to conclude at this time, that the agency’s minimum needs can only be satisfied by Simmonds Precision Products Inc. (CAGE Code 89305).

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

a. Procurement history:

SOURCE SELECTION INFORMATION – SEE FAR 3.104

Contract Number Award Date Qty Unit Price Contractor

W58RGZ12D0083-0005 3/29/2017 100 SIMMONDS PRECISION PRODUCTS INC

W58RGZ12D0083-0004 2/17/2017 74 SIMMONDS PRECISION PRODUCTS INC

W58RGZ12D0083-0003 1/6/2016 72 SIMMONDS PRECISION PRODUCTS INC

W58RGZ12D0083-0002 5/4/2015 28 SIMMONDS PRECISION PRODUCTS INC

W58RGZ12D0083-0001 4/9/2012 4 SIMMONDS PRECISION PRODUCTS INC

The presumed statutory authority cited for W58RGZ-12-D-0083 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.”

b. Previous Action(s) to Increase Competition:

There were no action(s) to increase competition, because the technical data is owned by the OEM, Simmonds Precision Products, Inc. (CAGE Code 89305). Funding restrictions at the time of the component’s induction into the supply system influenced the Government’s decision to proceed without purchasing the technical data necessary to support the execution of a DMWR for future competition(s).

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: Date: 2017FEB22

Title: Logistics Mgmt 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: Date: 2017FEB22

Title: Approval Representative Signature: See attachment

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. This determination will be based on the use of techniques which include:

cost/price analysis, and use of independent Government estimates and comparative techniques. Certified Cost and Pricing data will not be required IAW FAR 15.403-3(c) since this is a commercial effort. Field Pricing Assistance will be requested if needed.

Name: Date: _____________________________

Title: Contracting Officer Signature:

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:

SOURCE SELECTION INFORMATION – SEE FAR 3.104

Approval

Based on the foregoing justification, I hereby approve the procurement of Overhaul of the Data Interface Unit on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1(a)(2)(ii)(B) 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 and property herein described have otherwise been authorized for acquisition.

PRID: AB687-1

Noun: Data Interface Unit Input NSN: 7025-01-481-7741 Output NSN: 7025-01-481-7741 Input P/N: 30192-0201 Output P/N: 30192-0201 Estimated Quantity Range: 50 Minimum – 540 Maximum (includes 90 FMS) Estimated Base Year Value: $958,490.00 Estimated Out Years (two – five) Value: $9,393,202.00 Total Estimated Dollars: $10,351,692.00 Length of Contract: 5 Years Type of Contract: FFP IDIQ

Contractor:

Simmonds Precision Products Inc. (CAGE Code 89305)

Date: Signature __