W9124G20C0008 Rucker JA.pdf

Control No: MICC 2022-50 Contractor: CAE, USA Inc.

Program/Equipment: Advanced Helicopter Flight Training Support (AHFTS)

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

1. Contracting Activity: U.S. Army Mission and Installation Contracting Command (MICC-Fort Rucker), 453 Novosel Street, Building 5700, Fort Rucker, AL 36362-5105

2. Description of Action: This action will modify contract W9124G-20-C-0008, a Firm- Fixed-Price contract which provides Advanced Helicopter Flight Training Support (AHFTS) for the U.S. Army Aviation Center of Excellence (USAACE) at Fort Rucker, Alabama. Contract No. W9124G-20-C-0008 for AHFTS was awarded 5 May 2020. The Government projects award of the modification occurring on or around 30 September 2022. Operations and Maintenance Army (OMA) funds will be used for this requirement.

Concurrent with this modification, the Government will make expeditious efforts to finalize a new competitive procurement for the expanded requirements under a successor contract, determined by appropriate advance planning, and then properly publicized through the release of a new solicitation.

3. Description of Supplies/Services: USAACE provides the Army with professionally trained aviators and non-rated crew members through planning, coordinating and performing formal flight instruction at the undergraduate and graduate level. The 110th Aviation Brigade accomplishes this mission through staff assistance from its Headquarters and Headquarters Company and four subordinate battalions: the 1-11th, 1-14th, 1-212th, and 1-223rd. Brigade objectives include flight training and ancillary support to conduct rotary wing courses; prepare student pilots for the field in �Go to War� aircraft; and strategic plans support for the Aviation Enterprise. The 110th Department has a diverse mission while producing the world�s best Army Aviators. The brigade also provides crash, rescue and air ambulance support to the USAACE and surrounding communities, while also serving as the Department of the Army Night Vision Device training and Operations staff agency.

This modification will provide for an increase of non-personal and mission-essential services for the USAACE AHFTS contract at Fort Rucker, Alabama, prior to a new procurement award. Contract No. W9124G-20-C-0008 provides student training capabilities in AH-64, CH-47F, and UH-60M helicopters. These mission essential services are accomplished by the contractor providing Instructor Pilots, Maintenance Examiners and Non-Rated personnel who support the training mission. Rotary wing aircraft pose serious inherent hazards not just to program personnel and aviation students, but also to citizens who dwell in the surrounding communities. Strict adherence to quality control outlined in the contract, contractor responsibility and outstanding professionalism are key to providing a safe flying environment.

The awarded contract had a 30-day phase-in, a base period of eleven (11) months, and six (6) 1-year option periods with a pre-modification total value of $88,285,183.04.

Under modification P00014 on 9 September 2022, the Contracting Officer (KO) events mark significantly-changed conditions from when full and open competition of this contract occurred.

A competitive procurement process in compliance with FAR Part 6 has become necessary to replace this contract, yet the requirements must continue without disruption of services. Operations remain essential as a vital national security interest and must continue/evolve uninterruptedly while planning for and awarding the follow-on contract. In this situation, only the incumbent contractor can provide these services without disruption and endangering the safety of program personnel and their fellow citizens.

The Government will re-compete this requirement but must continue to have services in place while the re-compete occurs. At any point during the competition to award a successor contract, failure by the contractor providing the additional AH-64 instructor pilot services to comply with contract requirements poses serious risk to flight safety. Any transition of this requirement to a vendor besides the incumbent exacerbates this risk.

AH-64 Instructor Pilots are a small, quite elite, cadre inside the already exclusive environs of USAACE�s AHFTS program. These personnel comprise a key component within rotary wing weapon systems and need frequent replenishment. The special demands placed upon AH-64 pilots � the �top guns� of their field � shrinks the number of qualified personnel to a point where competition would fail to produce sufficient additional capacity in a timely manner to satisfy Government requirements.

The inherently non-commercial nature of the AH-64 airframe contributes to an extreme scarcity of personnel with the correct qualifications to serve as instructor pilots. Fort Rucker is the only venue where the United States produces new AH-64 pilots.

Therefore, shortages of instructor pilots at Fort Rucker exacerbate staffing problems force-wide. Compounding this scarcity, a student trained to fly the AH-64 can readily be trained to fly other aircraft. Commercial airlines use Rotor Transition Programs to convert pilots from helicopters to passenger jets. Historic commercial pilot shortages increased helicopter pilot transfers from 5% in 2016 to 25% in 2018. The commercial pilot shortage has intensified in 2022, leading to commercial airlines reducing services because of pilot shortages but as a result, placing an even higher demand to lure helicopter pilots to fill these shortages.

the incumbent has not been able to find adequate subcontractor support to provide AH-64 instructor pilots at the original contract price. The restricted labor market for AH-64 instructor pilots and recent procurement history demands that the Government be very specific on the content they desire to see in capability statements from alternative sources. The capability statements must provide clear and convincing evidence they possess a large pool of untapped applicants that is exclusive of the current AH-64 workforce on contract, who can be integrated into the AHFTS almost immediately to satisfy the Government�s need for uninterrupted service at no additional risk to program safety. The Government prefers long-term solutions through a new full and open competition but must mitigate this worsening situation non-competitively for the immediate part of this requirement.

Thus, it is not feasible at this time to transition to a new contractor for up to the 27 months it would take to fully and openly compete a new contract.

Event Milestone Date Solicitation Release 10/24/2023 Evaluations Begin 03/25/2024 Contract Award 09/24/2024 60 Day Contract Transition Period Begins

09/25/2024

b. Alternatives. While it would be technically possible for other companies to provide the required services, this could only be achieved by expending considerable resources and risk lower quality in performance with breaches of safety protocols leading to an increased potential for fatal accidents.

Along with market information available from the previous solicitation, the

Government has conducted labor market analysis in support of OPM Special Salary Rate Request for GS-2181 Helicopter Flight Instructor AH-64D/E pilots. The risk that a hasty transition hurts program stability creating an unacceptable risk to American lives cannot be overstated. The program relies upon a 2:1 instructor/student ratio to ensure the fewest possible mishaps. The highest program quality, ultimately, remains in the Government�s best interest because every day of the contract involves the risk of death to program personnel as well as to the citizens who live below the airspace used by rotary wing aircraft. The incumbent has a long history of safe and successful execution of this program.

c. Impact if justification not approved. Failure to begin immediate procurement for the Government�s increased AH-64 instructor pilot requirement would create unacceptable delays and a severe, negative effect upon operational readiness which, in turn, degrades national security. The current AH-64 seat reduction accounts for of the number of Warrant Officers (WO) needed each year and equals to

. The current AH-64 WO fill-rate is and projected to decline. If the program loses another seats in FY23, the losses will equal worth of aviation WOs. This training gap will adversely affect mission capability and the security of the United States, which comes from skilled pilots, for years to come. The

Government has made a determination that modifying Contract No. W9124G-20-C- 0008 is the best alternative to ensure continued support of the AHFTS program until the award of a new procurement conducted with full and open competition.

6. Efforts to Obtain Competition:

a. Effective Competition: The Notice of Intent (NOI) publicized in Sam.gov allowed all responsible sources to submit a capability statement, proposal, or quotation, which would have been considered. The NOI stated such capability statements, etc., must be submitted in writing and must contain clear and convincing evidence that competition of this 27-month interim requirement would be advantageous to the Government. Further, the capability statement must have outlined a reasonable rapid transition to meet contract timelines and guarantee no disruption of program services, operations or any safety protocols. The NOI thirty-day period expired on 29 August 2022.

b. Subcontracting Competition: CAE USA Inc. has an approved subcontracting plan and has complied with Electronic Subcontracting Reporting System (eSRS) reporting requirements. The Government will request a revised subcontracting plan for this modification and will coordinate review of the revised plan with the Small Business Specialist (SBS) and Small Business Administration (SBA) Procurement Center Representative (PCR) as required by FAR 19.705-4(d)(7). Additionally, the approved plan will be incorporated and made a material part of the contract as required by FAR 19.705-5(a)(5). Finally, a copy of the award document will be provided to the Area Director for the SBA Area Office where the contract will be performed as required by FAR 19.705-6(a) and a copy of the final negotiated subcontracting plan will be provided to the SBA PCR as required by FAR 19.705-6(c).

7. Actions to Increase Competition: This is a modification to a contract that was competed under full and open competition. The circumstances which have precipitated this change are unique and emergent. The Government fully intends to re-solicit this requirement in a competitive manner and has already begun acquisition planning as required by FAR Part 7. This modification will correct or right-size this requirement for future competitions and this ensures adequate competition for instructor pilots.

8. Market Research: Along with market information available from the previous solicitation, the Government has conducted labor market analysis in support of OPM Special Salary Rate Request for GS-2181 Helicopter Flight Instructor AH-64D/E pilots (see Attachment 1). This market research demonstrates that while there are enough prime contractors to compete this requirement, labor remains insufficient to satisfy the Government�s requirement without incurring unacceptable risk and delay. This contract modification is synopsized with the issuance of the Notice of Intent to Sole Source.

9. Interested Sources: The Notice of Intent was posted on SAM.gov from 29 July 2022 to 29 August 2022. The only response the Government received from this notice was

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

Date: See digital signature

Contracting Officer�s Representative

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

Director of Flight Training, USAACE

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated price for this contract action will be fair and reasonable. The techniques identified in FAR 15.404-1(b), Price Analysis for commercial and non-commercial items, will be used to ensure award will be at fair and reasonable prices. The Contracting Officer used a comparison of historical data and industry cost for similar work. The Independent Government Cost Estimate (IGCE) has been compared in an analysis of the contractor�s proposed cost. The proposed costs for this modification are reasonable in comparison to the market rate currently being paid. IAW FAR 15.403-4(a)(1) Certified Cost or Pricing Data will be required.

Contracting Officer

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

Contracting Officer