J&A_Signed-Recertified_Redacted.pdf

Control Number: UH-0100-17 Sikorsky Support Services, Inc.

BLACK HAWK

For Official Use Only

FAR Part 6 Justification and Approval for Other than Full and Open Competition

1. Contracting Activity: Department of the Army, Army Contracting Command- Redstone, CCAM-UHA, Redstone Arsenal, AL 35898-5000.

2. Description of Action:

a. The Utility Helicopters Project Office (UHPO) Program Executive Office (PEO)

Aviation (AVN), International Programs requests approval to award a new five year Indefinite Delivery Indefinite Quantity (IDIQ) contract on a firm-fixed price (FFP) and cost reimbursement (for travel) basis with Sikorsky Support Services Inc. (SSSI), 6900 Main Street, Stratford, CT 05497, Contract and Government Entity (CAGE) Code 6Y878. The Government projects award for December 2017, fiscal year 2018. Foreign Military Sales (FMS) funds will be used. The FMS cases utilizing the CFSRs contract will be source directed and non-source directed and include potential customers and other FMS countries. The total effort included under this acquisition is $43,253,045.00. Although the contract will be for source directed and non-source directed FMS cases, only non-source directed efforts estimates as depicted below are included under this Justification and Approval (J&A) for a total of $20,408,993.00:

Other Potential FMS Customers Total $20,408,993.00

b. This action is a follow-on to contract W58RGZ-12-D-0018 which was not competed under authority 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a) (2) (iii)(A), “Only one responsible source and no other supplies or services will satisfy agency requirements.” In accordance with Defense FAR Supplement (DFARS) 206.302-1(d), and DFARS Procedures, Guidance and Information (PGI) 206.304-(a)(i), the actions to increase competition from contract W58RGZ-12-D-0018 are addressed in more detail below under paragraph 10.b. The previous justification ) was signed by , Deputy to the Commanding General, US Army Aviation and Missile Command on 20 July 2010.

c. This requirement will not be a Performance Based Services type contract. A Determination and Finding (D&F) for a Non Performance Based Service Contract was signed on 10 December 2015 by , Assistant PEO, Business Management, AVN; delegated by , PEO, AVN.

BLACK HAWK

For Official Use Only

3. Description of Supplies/Services:

a. The proposed contract is for CFSR support for BLACK HAWK helicopters in use by various foreign countries outside the continental United States with locations in the Middle East, Far East, Europe and the Americas. Potential FMS customers include but are not limited to:

. Estimated hours for all program years is 840 man-months and 1560 overtime hours. A negotiated man-month, overtime hourly rate and costs authorized for relocation and travel will be utilized. The planned contract will be awarded during Fiscal Year 2018 for a 60 month Period of Performance (PoP). A five year (60 month) IDIQ contract is contemplated and the maximum value of the effort is $43,253,045.00 to include source and non-source directed costs. The total estimated source directed cost is $22,844,412.00 and $20,408,993.00 for non-source directed. Below is the projected ordering periods and estimated annual cost for non-source directed FMS customers:

Non-Source Directed:

Ordering Period 1: 1 January 2018 to 31 December 2018 Ordering Period 2: 1 January 2019 to 31 December 2019 Ordering Period 3: 1 January 2020 to 31 December 2020 Ordering Period 4: 1 January 2021 to 31 December 2021 Ordering Period 5: 1 January 2022 to 31 December 2022

Total: $20,408,993.00

b. Under this contemplated procurement the Government intends to procure a minimum quantity of one man year (2,080 man hours ) of CFSR support and up to a maximum quantity of 84 man years (174,720 man hours) (14 CFSRs per year for five years). The maximum quantity is inclusive of source and non-source directed requirements. The estimated quantity for non-source directed requirements is a minimum one man year and a maximum of 30 man years which includes minimum costs of $648,041.00 and maximum costs of $20,408,993.00. These services are required to transmit the knowledge necessary to update the FMS’s customer technical skill capabilities to operate and maintain the equipment correctly.

c. The CFSRs provide subject matter expertise to update the FMS customer in the skill capabilities required to operate and maintain the customer unique UH-60 BLACK HAWK aircraft system and installed subsystems. The CFSRs provide on-the-spot advice to resolve technical problems incidental to the operation of the aircraft.

4. Authority Cited: The statutory authority permitting the use of other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a) (2) (iii) (A), “Only one responsible source and no other supplies or services will satisfy agency requirements and award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition”.

BLACK HAWK

For Official Use Only

5. Reason for Authority Cited:

a. As described at FAR 6.302-1(a)(2) (iii) (A), when only one responsible source and no other supplies or services will satisfy agency requirements, full and open competition need not be provided for. The previous organization which provided field services for the UH-60 BLACK HAWK aircraft was a part of Sikorsky Aircraft Corporation (SAC), which at the time was a Division of United Technologies Corporation (UTC), and the prime manufacturer and developer of the UH-60 aircraft. A decision was made to transfer the field technical representative services function and personnel from SAC to SSSI, 6900 Main Street, Stratford, CT 05497, CAGE Code 6Y878, and Data Universal Number System number 107254062. With the transfer of responsibility, a new organization was formed, SSSI, Field Services Operation (FSO), effective 1 January 1993. Lockheed Martin purchased SAC from United Technologies Corporation on 6 November 2015. As a result, SSSI, which later dropped the ‘FSO’, is a wholly owned subsidiary of Lockheed Martin and is the only source capable of performing this effort.

(1) SSSI is the only source that can provide the latest technical data and resolve technical problems incidental to the operation and maintenance of the aircraft, as it is the only source that has access to all current data to include proprietary data. To ensure aircraft readiness, technical expertise provided must be accurate and reflective of all configuration changes. Only CFSRs employed by SSSI have access to proprietary data and the latest configuration changes needed to provide on-the-spot advice and immediate resolution of technical problems incidental to the operation of equipment, thereby insuring unit readiness and safe installation, operation and maintenance of the UH-60 aircraft. The contractor will provide communications link for the CFSRs to contact the engineering section at the manufacturer’s facility to enable immediate resolution of technical problems that exceed organic capability. An additional source for CFSR support cannot be obtained without first qualifying an additional source for the UH-60 aircraft which would require access SAC proprietary data.

(2) The only contractor capable of providing the required services at the present time is SSSI; an in-depth technical expertise (knowledge) of the UH-60 aircraft is the primary skill being procured. It is imperative that technicians have the instruction, training, and direct assistance which can only be provided by the prime contractor. The CFSRs provide subject matter expertise to update the FMS customer in the skill capabilities required to operate and maintain the customer unique UH-60 BLACK HAWK aircraft system and installed subsystems. The absence of the CFSR on-the-spot advice and immediate resolution of technical problems could jeopardize safety and lives.

(3) The Government does not own and does not intend to acquire technical data rights. If the Government was required to purchase the proprietary rights to the data it is estimated to be . UHPO derived this cost based on the estimated cost to develop, produce, test, and qualify a second source for the aircraft, based upon escalation of the initial production costs. The Government has not attempted to duplicate the time and cost that would be incurred to bring another source

BLACK HAWK

For Official Use Only on board, which is estimated to take five to seven years. These costs could not be recaptured through competition, nor would the second source have, or be able to obtain, the engineering knowledge and experience possessed by SAC. Additionally, the time necessary to establish and approve a second source, inclusive of drawing and work instruction development, supplier data review and approval of suppliers, tool design and validation, production line and source approval, and airworthiness approval is estimated to exceed five years, and would result in an unacceptable delay in filling agency requirements.

b. Alternatives: Due to the constraints of the proprietary data and the skill experience necessary to perform this service, competition cannot be obtained. It is neither cost effective nor realistic that another contractor can perform this requirement. For a new source to be UH-60 qualified the following efforts must be performed: (1) Drawing conversion, (2) Creation of work instructions, (3) Supplier data review and conversion,

(4) Tool design and validation, (5) Data package creation and validation, (6) Second source qualification, and (7) Airworthiness approval. The Government does not own and does not intend to acquire technical data and data rights required to perform this service because it contains SAC proprietary data. Any additional source would require access to that data, and would, therefore, have to negotiate an arrangement with SAC, which is not considered feasible due to the fact that SAC is unwilling to allow access to the proprietary information. The Government does not have the ability to develop a performance specification which would permit another source to compete, since essential data is held by SAC. The requirement is FMS military unique and cannot be performed by another source. No alternatives are available.

c. As stated above, the verified minimum requirement for CFSR support is one man year or 2,080 man hours which equate to estimated costs of $648,041.00.

If this J&A is not approved, mission readiness for FMS customers will be seriously impacted. The CFSRs provide critical UHPO services. The previous CFSR IDIQ contract, W58RGZ-12-D-0018, expired 31 December 2016. An interim Undefinitized Contract Action (UCA) was awarded 22 December 2016 for one year to bridge the gap for current CFSR requirements and will expire 31 December 2017. Contract coverage for an additional five years is required in order to provide continuous CFSR support. If the UH-60M BLACK HAWKs are not maintained correctly, the readiness and safe installation, and the operation and maintenance of the H-60 aircraft will be jeopardized.

The BLACK HAWKs provide valuable security and safety to the United States interests as the foreign countries frequently collaborate with the United States in joint environments.

6. Efforts to Obtain Competition:

a. Effective Competition. SSSI is the only contractor capable of providing the required services at the present time; in-depth technical expertise (knowledge) of the UH-60 aircraft is the primary skill being procured. It is imperative that technicians have the instruction, training, and direct assistance on the equipment which can only be provided

BLACK HAWK

For Official Use Only by the prime contractor. No effective competition is anticipated for this acquisition. The Contracting Officer shall publish the notices required by FAR 5.201 on or about 20 March 2017 and any bids or proposals received shall be considered. The CFSR requirement was published in the Army Aviation and Missile Command (AMCOM) Competition Advocate Shopping List (CASL) on 3 November 2016 and revised on 9 November 2016.

b. Subcontracting competition. The resulting contract will include FAR 52.244-5, Competition in Subcontracting, which requires the contractor to select subcontractors on a competitive basis to the maximum practical extent, consistent with the objectives and requirements of the contract. Since performance of CFSR duties requires access to proprietary data, CFSRs must be employed by SSSI. Functions such as CFSRs logistics support (travel and relocation support) are competed to the maximum extent possible in accordance with SAC/SSSI Fiscal Year 2017 Comprehensive Subcontracting Test Program Plan, signed on 3 October 2016, between the Defense Contract Management Agency and SAC/SSSI. The DFARs clause 252.219-7004, Small Business Subcontracting Plan (Test Program) will be included in the resultant contract award.

7. Actions to Increase Competition:

a. No contractor other than SSSI can provide the latest technical information and resolve technical problems incidental to the operation and maintenance of the UH-60 aircraft. No action will be taken to increase competition.

b. The Government does not own and does not intend to acquire technical data and data rights required to perform this service because it is not realistic to pursue acquisition of the propriety data, SAC has objected to providing the proprietary data for public use.

Any source would require access to that data, and would, therefore, have to negotiate an arrangement with SAC, which is not considered realistic. The Government does not have the ability to develop a performance specification which would permit another source to compete, since proprietary data is held by SAC.

c. The FMS Project Manager’s Office, within UHPO maintains continuous surveillance of domestic suppliers, foreign suppliers, and cost effective opportunities with other U.S.

military or foreign suppliers and has not found another contractor that possesses the technical skills, capabilities, expertise and knowledge to support this requirement.

8. Market Research: Market Research was conducted by the Procurement and Production Analyst in accordance with FAR 10.002(b)(2)(vii). The market research detailed below was based on personal knowledge in procuring similar services, historical information and discussions with knowledgeable persons in the Government. UHPO technical personnel perform on-going monitoring of the market place. UHPO monitors the market place through regular review of commercial sources within industry and other Government agencies. As a result of continuous surveillance of the market, the UHPO personnel have determined that the technical details of the requirement accurately reflect

BLACK HAWK

For Official Use Only the current market environment and that no other sources are capable of providing the specialized service. This research also resulted in the determination that there are no commercial or non-developmental items that will satisfy this requirement; therefore, the procedures of FAR Part 12 will not be utilized for this acquisition. The Market Research Report/Commerciality Determination report number 170163 was approved by the Special Advocate for Competition on 1 December 2016.

a. The Product Director, International Programs, UHPO, conducted market research for this effort using the following techniques:

(1) Contact with knowledgeable persons in the Government and industry, including:

Chief, International Programs Technical Management, and Product Director, International Programs, 30 September 2016.

(2) Review of source lists for identical or similar items obtained from Government, professional, and/or industry sources: JANES Publications, 30 September 2016.

(3) Review of catalogs and/or other generally available product literature.

(a) Rotor & Wing Magazine, Aviation Week & Space Technology, Aircraft Maintenance Technology Magazine, and Avionics Today. Reviews were conducted between June 2016 and September 2016 and continue to be on-going.

(b) Government technical agencies and contracts such as Aviation Joint Administration Management Support Services and Rapid Response contract vehicles.

(4) Publication in the Army AMCOM CASL on 3 November 2016 and revised on 9 November 2016.

(5) In accordance with DFARS 205.205-71, DFARS 206.302-1(d), and DFARS PGI 206.302-1(d), a sources sought was posted to FedBizOpps on 27 September 2016 for 14 days and the results are addressed in Paragraph 9 below.

9. Interested Sources: Four companies expressed interest, including SSSI, the incumbent. Arista Aviation, LLC, CAGE code 6SR03, expressed an interest in competing but are unable to meet the requirements due to not being qualified for the North American Industry Classification System code and the inability to access the technical and proprietary data necessary to perform the services. Cambridge International Systems Inc., CAGE code 1P051, and USfalcon Inc., CAGE code 4CWP6, also expressed an interest in competing but are unable to meet the requirements due to the inability to access the technical and proprietary data necessary to perform the services.

To date, no other sources have written to express interest in the acquisition. Notices required by FAR 5.201 shall be published, and any bids or proposals received shall be

BLACK HAWK

For Official Use Only considered. The anticipated projected date of synopsis in FedBizOpps is 20 March 2017. The anticipated result of that synopsis is that only one approved source is expected due to the specialized expertise and required access to proprietary data.

10. Other Facts: Other factors supporting the acquisition of services on an Other Than Full and Open Competition include the following:

a. Procurement history: Listed below are the previous sole source contracts approved:

Bridge Contract, Undefinitized Contract Action (UCA): W58RGZ-17-C-0018 Award date: 22 December 2016 Competitive Status: Sole source to SSSI under authority of 10 USC 2304(c)(1) and FAR 6.302-1(a)(2)(ii).

Description of Effort: Eleven CFSRs for BLACK HAWK helicopters in FMS countries Approval Authority: Special Advocate for Competition PoP: 1 January 2017 – 31 December 2017 NTE amount: $6,510,324.55

IDIQ Contract: W58RGZ-12-D-0018 Award date: 29 December 2011 Competitive Status: Sole source to SSSI under authority of 10 USC 2304(c)(1) and FAR 6.302-1(a)(2)(ii).

Description of Effort: CFSRs for BLACK HAWK helicopters at FMS countries Approval Authority: Principal Assistant for Contracting (PARC) PoP: 1 January 2012 – 31 December 2016 Estimated amount: $48,509,936.00

IDIQ Contract: W58RGZ-09-D-0113 Award date: 3 June 2009 Competitive Status: Sole source to SSSI under authority of 10 USC 2304(c)(1) and FAR 6.302-1(a)(2)(ii).

Description of Effort: CFSRs for BLACK HAWK helicopters for U.S. Army and FMS countries.

Approval Authority: PARC PoP: 1 July 2009 – 24 March 2014 Estimated amount: $11,582,484.00

IDIQ Contract W58RGZ-04-C-0036 Award date: 3 July 2004 Competitive Status: Sole source to SSSI under authority of 10 USC 2304(c)(1) and FAR 6.302-1(a)(2)(ii).

Description of Effort: CFSRs for BLACK HAWK helicopters for US Army and FMS countries Approval Authority: PARC PoP: 1 August 2004 – 1 July 2009

BLACK HAWK

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Estimated amount: $4,527,048.00

IDIQ Contract DAAH23-99-C-0025 Award date: 1 January 1999 Competitive Status: Sole source to SSSI under authority of 10 USC 2304(c)(1) and FAR 6.302-1(a)(2)(ii) Description of Effort: CFSRs for BLACK HAWK helicopters for US Army and FMS countries Approval Authority: PARC PoP: 1 January 1999 – 31 July 2004 Estimated amount: $4,621,908.00

IDIQ Contract DAAJ09-97-C-0108 Award date: 1 March 1997 Competitive Status: Sole source to SSSI under authority of 10 USC 2304(c)(1) and FAR 6.302-1(a)(2)(ii) Description of Effort: CFSRs for BLACK HAWK helicopters for US Army and FMS countries Approval Authority: PARC PoP: 1 April 1997 – 1 January 1999 Estimated amount: $761,102.00

b. The current J&A, Section 7 for the bridge contract, W58RGZ-17-C-0018, states the following:

(1) No action will be taken to increase competition. Only SSSI can provide the latest technical information and resolve technical problems incidental to the operation and maintenance of the UH-60 aircraft.

(2) The Government does not own and does not intend to acquire technical data and data rights required to perform this service because it contains SSSI proprietary data.

Any additional source would require access to that data, and would therefore have to negotiate an arrangement with SSSI, which is not considered realistic. The government does not have the ability to develop a performance specification which would permit another source to compete, since essential data is held by SSSI. The requirement is FMS unique and cannot be performed by another source.

(3) No significant changes from the previous J&A have transpired that would make competition realistic. The CFSRs are currently in place. Continuation of services is imperative; if this J&A is not approved it would seriously impede mission readiness for FMS customers. The CFSRs provide subject matter expertise to update the FMS customer in the skill capabilities required to operate and maintain the customer unique UH-60 BLACK HAWK aircraft system and installed subsystems. The absence of the CFSR on-the-spot advice and immediate resolution of technical problems will jeopardize the safety and lives of personnel in the foreign countries.

BLACK HAWK

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Approval

Based on the foregoing justification, I hereby approve the procurement of services for Foreign Military Sales, Contractor Field Service Representatives for the H-60 BLACK HAWK helicopters in use at various foreign countries Outside the Continental United States (OCONUS) including locations in the Middle East, Far East, Europe and the Americas for a five year (60 month) Indefinite-Delivery/Indefinite Quantity contract. The period of performance for this effort is 1 January 2018 to 31 December 2022. The total maximum estimated cost is $43,253,045.00 inclusive of the source-directed and non-source directed requirements. The contract will be awarded to Sikorsky Support Services Inc., CAGE Code 6Y878 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)(iii)(A), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”, subject to availability of funds, and provided that the services property herein described have otherwise been authorized for acquisition.

Date: ________________ Signature: _____________________________ Principal Assistant Responsible for Contracting

WEIRICK.REBECC

A.E.1148886063

Digitally signed by

WEIRICK.REBECCA.E.1148886063

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=WEIRICK.REBECCA.E.1148886063 Date: 2017.04.03 16:00:10 -05'00'