J&A_0306-17__17-R-0140_Redacted.pdf

Solicitation: W58RGZ-17-R-0140

FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FOR OTHER THAN FULL AND OPEN COMPETITION

Program/Equipment: Overhaul of SAS Actuator Assy 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:

Prepared by:

Typed Name: DSN:

Title: Contract Specialist Date: 13 June 2017

E-mail:

Contracting Officer:

Typed Name: DSN:

Date Reviewed: _15 June 2017_____

E-Mail:

Technical Representative:

Typed Name: DSN:

Title: Logistics Management Specialist Date: 15 November 2016

E-mail:

Requirements Representative:

Typed Name: DSN:

Title: Logistics Management Specialist Date: 13 February 2017

E-mail:

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: ______________________22 June 2017

FAR PART 6 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), limited source basis. The Government projects award for December 2017. Army Working Capital Funds, Reparable will be utilized. The minimum quantity is 350 each, with a maximum quantity of 1860 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 310 each.

The previous contract for the SAS Actuator Assy is W58RGZ-12-D-0091. This contract expired on 15 March 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 (Competitive) for NSN: 1560- 01-129-1256,” 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 SAS Actuator Assy.

Procurement Request Identification (PRID): BB259 Noun: SAS Actuator Assy Input NSN: 1560-01-083-6813 Input NSN: 1560-01-129-1256 Output NSN: 1560-01-129-1256 Input P/N: 70410-02500-048 Input P/N: 70410-02500-049 Output P/N: 70410-02500-049 Estimated Quantity Range: 350 Minimum – 1860 Maximum (includes 310 FMS) Estimated Base Year Value:

Estimated Out Years (two – five) Value:

Total Estimated Dollars:

Length of Contract: 5 Years Type of Contract: FFP IDIQ

The estimated basic dollar value of the proposed procurement is and the out-years (two – five) estimated value including FMS is . The total estimated dollar value of the proposed procurement is . This calculation is based on multiplying the maintenance expenditure limit (MEL) per unit of the maximum quantity of 1860 each. This total includes a combined quantity of 310 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 350 Year 2 300 Year 3 300 Year 4 300 Year 5 300

TOTAL 1550

FMS Requirement

Qty Unit Price Total Price Base Year 0 Year 2 77 Year 3 78 Year 4 77 Year 5 78

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 the item is a Critical Safety Item (CSI). Depot Maintenance Work requirement (DMWR) 1-1560-290, dated 23 January 2010, Change # 2, is sufficient to support a competitive contract for the overhaul of NSN 1560-01-129-

1256, 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, AED. At this time, S&L Aerospace Metals, LLC (CAGE Code 05722), 12012 28th Ave., Flushing, NY 11354-1049; Cliffdale Manufacturing, LLC. (CAGE Code 34705), 20409 Prairie St., Chatsworth, CA 91311- 6029; AAR Allen Services, Inc. (CAGE Code 3Y015), 747 Zeckendorf Blvd., Garden City, NY 11530-2110; Spectrum Associates, Inc. (CAGE Code 4SQG0), 440 New Haven Ave., Milford, CT 06460-3613; and Sikorsky Aircraft Corp. (CAGE Code 78286), 6000 Main St., Stratford, CT 06615 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.

The required delivery for the overhaul for SAS Actuator Assy is 40 each per month, 196 days after receipt of assets. The PVA must commence 90 days after receipt of reparables and must be approved prior to acceptance of deliveries. S&L Aerospace Metals, LLC (CAGE Code 05722), 12012 28th Ave., Flushing, NY 11354-1049; Cliffdale Manufacturing, LLC. (CAGE Code 34705), 20409 Prairie St., Chatsworth, CA 91311- 6029; AAR Allen Services, Inc. (CAGE Code 3Y015), 747 Zeckendorf Blvd., Garden City, NY 11530-2110; Spectrum Associates, Inc. (CAGE Code 4SQG0), 440 New Haven Ave., Milford, CT 06460-3613; and Sikorsky Aircraft Corp. (CAGE Code 78286), 6000 Main St., Stratford, CT 06615 are the only known sources identified as having the essential qualifications to meet the Government’s delivery requirements, such as required machinery and 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. This item is designed to form, fit, and function. 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 SAS Actuator Assy (NSN 1560-01-129-1256) was published in the June 2016 update of the AMCOM Competition Advocate’s Shopping List (CASL). A Sources Sought announcement was publicized in Federal Business Opportunities (FedBizOpps) on 16 February 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 July 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. AAR Allen Services, Inc. (CAGE Code 3Y015) and Sikorsky Aircraft Corp. (CAGE Code 78286) will be required to comply with these requirements since they are a large business and the estimated dollar value of the contract exceeds $700,000.00. However, S&L Aerospace Metals, LLC (CAGE Code 05722), Cliffdale Manufacturing, LLC. (CAGE Code 34705), and Spectrum Associates, Inc. (CAGE Code 4SQG0) are currently defined as a small businesses 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.

7. Actions to Increase Competition: At this time DMWR 1-1560-290 is sufficient to support competition for the overhaul of NSN 1560-01-129-1256. However, this item has been identified as a CSI; therefore only approved sources can be considered. As of 22 July 2017, there are no pending SARs per the ARISE database. There is a reasonable basis to conclude the agency’s minimum needs can only be satisfied by S&L Aerospace Metals, LLC (CAGE Code 05722), Cliffdale Manufacturing, LLC. (CAGE Code 34705), AAR Allen Services, Inc. (CAGE Code 3Y015), Spectrum Associates, Inc. (CAGE Code 4SQG0), and Sikorsky Aircraft Corp. (CAGE Code 78286). 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.

8. Market Research: Meaningful market research was conducted by the Logistics Management Specialist, AMCOM Logistics Center, in February 2017 accordance with FAR 10.002(b). Research methods included the following: personal knowledge in procuring supplies/services of this type, contact with knowledgeable persons in Government and/or industry regarding the commercial nature of this requirement and/or standard industry practices in this are of supply/services (Supervisory Logistics Management Specialist, January 2017); publication of a formal request for information (a sources sought announcement was posted 16 February 2017), review of Government and/or commercial databases for relevant information in November 2016 (ICAPP, EDA, FEDLOG, ARISE, LMP), and publication in AMCOM Competition Advocates Shopping List (CASL) in June 2016. 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 SAS Actuator Assy 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, S&L Aerospace Metals, LLC (CAGE Code 05722), Cliffdale Manufacturing, LLC. (CAGE Code 34705), AAR Allen Services, Inc. (CAGE Code 3Y015), Spectrum Associates, Inc. (CAGE Code 4SQG0), and Sikorsky Aircraft Corp. (CAGE Code 78286) are the only potential sources identified.

9. Interested Sources: A Source Sought announcement was publicized in FedBizOpps on 16 February 2017. The results of the source sought announcement are addressed 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 5 June 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 S&L Aerospace Metals, LLC (CAGE Code 05722), Cliffdale Manufacturing, LLC. (CAGE Code 34705), AAR Allen Services, Inc. (CAGE Code 3Y015), Spectrum Associates, Inc. (CAGE Code 4SQG0), and Sikorsky Aircraft Corp. (CAGE Code 78286).

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

a. Procurement history:

Contract Number Award Date Qty Unit Price Contractor

W58RGZ12D0091-0007 3/7/2017 660 SPECTRUM ASSOCIATES, INC

W58RGZ12D0091-0006 2/25/2016 1 SPECTRUM ASSOCIATES, INC

W58RGZ12D0091-0005 12/10/2015 1 SPECTRUM ASSOCIATES, INC

W58RGZ12D0091-0004 11/18/2015 699 SPECTRUM ASSOCIATES, INC

W58RGZ12D0091-0003 5/1/2015 498 SPECTRUM ASSOCIATES, INC

W58RGZ12D0091-0002 5/15/2014 500 SPECTRUM ASSOCIATES, INC

W58RGZ12D0091-0001 4/9/2012 1271 SPECTRUM ASSOCIATES, INC

The statutory authority cited for W58RGZ-12-D-0091 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.”

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: 2017FEB13

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: 2016NOV15

Title: Logistics Mgmt 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.

A formal audit provided by DCAA or Field Pricing Assistance will be requested if needed. 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 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.

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:

19 June 2017

19 June 2017

Approval

Based on the foregoing justification, I hereby approve the procurement of Overhaul of the SAS Actuator Assy 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: BB259

Noun: SAS Actuator Assy Input NSN: 1560-01-083-6813 Input NSN: 1560-01-129-1256 Output NSN: 1560-01-129-1256 Input P/N: 70410-02500-048 Input P/N: 70410-02500-049 Output P/N: 70410-02500-049 Estimated Quantity Range: 350 Minimum – 1860 Maximum (includes 310 FMS) Estimated Base Year Value:

Estimated Out Years (two – five) Value:

Total Estimated Dollars:

Length of Contract: 5 Years Type of Contract: FFP IDIQ

Contractors:

S&L Aerospace Metals, LLC (CAGE Code 05722) 12012 28th Ave.

Flushing, NY 11354-1049

Cliffdale Manufacturing, LLC. (CAGE Code 34705) 20409 Prairie St.

Chatsworth, CA 91311-6029

AAR Allen Services, Inc. (CAGE Code 3Y015) 747 Zeckendorf Blvd.

Garden City, NY 11530-2110

Spectrum Associates, Inc. (CAGE Code 4SQG0) 440 New Haven Ave.

Milford, CT 06460-3613

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

Stratford, CT 06615

Date: Signature:

Special Advocate for Cometition/Alternate

27 July 2017