16--DIGITAL ELECTRONIC CONTROL UNIT (DECU)

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION WEAPON SYSTEM: AH-64 Digital Electronic Control Unit (DECU) 1. Contracting Activity - US Army Contracting Command, AMCOM Contracting Center, ATTN: Aviation Logistics Directorate, CCAM-AL-M, Redstone Arsenal, Alabama 35898. 2. Description of Action a. The nature of this contractual action will be a new Firm Fixed Price, five year, Maintenance and Overhaul Indefinite Delivery Indefinite Quantity (IDIQ) contract. Army Working Capital Funds will be utilized. Foreign Military Sales (FMS) requirements will also be included for a quantity of 380. FMS requirements are not source directed. b. It is the Government's intention to place orders against this contract as required for the maintenance and overhaul for calendar years 2010 through 2015. The maximum estimated dollar value for this five year requirement is $26,557,440. This total amount is based on multiplying the Maintenance Expenditure Limit, $11,648 by the total estimated quantity of 2,280. 3. Description of Supplies/Services - The AMCOM Contracting Center proposes to acquire, on an other than full and open competition basis, the overhaul of the item listed below: Noun: Digital Electric Control Unit Weapon System: T700-GE-701C and T700-GE-701D Engine for AH-64 PRID: 08CT251 Input NSNs/P/Ns: 2995-01-340-5503/5078T29G01 2995-01-367-7628/5078T29G02 2995-01-396-1357/5078T29G04 2995-01-530-2353/5078T29G10 Output NSN/P/N: 2995-01-530-2353/5078T29G10 PRID: 08DT251 Input NSNs/P/Ns: 2995-01-482-9559/5078T29G05 2995-01-521-0520/5078T29G06 Output NSN/ P/N: 2995-01-521-0520/5078T29G06 Qty: Minimum 100; Maximum 2,280 The maximum quantity includes a quantity for FMS of 380 each Estimated Minimum Dollar Value: $1,164,800 Total Estimated Total Dollar Value: $26,557,440 The contractor shall furnish facilities, labor, parts, materials, equipment, tools and data (other than Government Furnished Property) necessary to accomplish the inspection and work/rework required to return the items listed above to condition code A, as defined by Army Regulation 725-50. 4. Authority Cited - Title 10 United States Code U.S.C. 2304(c) (1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1 - "Only One Responsible Source 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 based on the following: a. Depot Maintenance Work Requirement (DMWR) 1-2995-250 dated 22 January 2001, with Change 2; dated 31 December 2006 is insufficient to support competitive contracts for the induction of P/N's 5078T29G01, 5078T29G02, P/N 5078T29G04 for the overhaul and modification to P/N 5078T29G10. The referenced DMWR is also insufficient to support competitive contracts for the induction of upgrade P/N 5078T29G05 to P/N 5078T29G06. Paragraphs 2.6-2 and 2.6-4 of the cited DMWR require the DECUs be returned to the Original Equipment Manufacturer (OEM) for modification. This item has not been identified as a Critical Safety Item (CSI). BAE Systems Controls (2000 Taylor Street, Fort Wayne, IN 46802-4605, CAGE 63760) is the OEM and is the only known commercial source of overhaul for this item. The DECU is critical to the safe operation of the aircraft and, as such, requires extremely close overhaul tolerances and quality assurance provisions. The Government's required production schedule is at the rate of 15 each per month, 120 days after receipt of reparables. b. Any competing contractor could not be familiar with the total design parameters, specific repair part requirements, obsolescence issues, test processes, etc., and therefore can reasonably be expected to require a considerable length of time to commence or complete an overhaul/modification program, with no guarantee of success due to factors identified herein. These shortfalls would prevent a competitive contractor from having online/available capability to satisfy specific program requirements (quality aspects, tooling/test equipment, and engineering support) to meet the applicable delivery schedules and/or overhaul turnaround time frames. c. Failure to award the requirement to the OEM will result in serious injury to the U.S. Government's ability to provide quick reaction response teams in support of the Blackhawk fleets in operation enduring freedom and operation Iraqi freedom. 6. Efforts to Obtain Competition - This action will be synopsized on or about 19 March 2010 through the Federal Business Opportunities (FedBizOpps) as required by FAR 5.201, prior to issuance of the solicitation of the requirement. The only known source is shown in paragraph 5. Additional sources identified through the synopsis procedure will receive due consideration as prescribed by law. This item was published in the Competition Advocate's Shopping List (CASL) dated September 2009. PRIDs 08CT251 and 08DT251 have the same form, fit and function, and therefore are combined for a single award. As stated in paragraph 5, BAE Control Systems is the OEM for both configurations. 7. Actions to Increase Competition - The cited DMWR is insufficient to support competitive contracts for the induction of P/N's 5078T29G01, 5078T29G02, P/N 5078T29G04 for the overhaul/ modification and upgrade to P/N 5078T29G10 and the induction of P/N 5078T29G05 for the overhaul/modification and upgrade to P/N 5078T29G06. The only approved source for this item is stated in paragraph 5. 8. Market Research - Market Research was conducted within the last 12 months in accordance with FAR 10.002, including personal knowledge of technical representatives, contacting knowledgeable persons in Government and industry, and review of Government and/or commercial databases for relevant information. This requirement can be met by commercial items; therefore, FAR Part 12 will be utilized for this acquisition. BAE Controls Systems, (2000 Taylor Street, Fort Wayne, IN 46802-4605, CAGE 63760), is the OEM and is the only known commercial source of overhaul for this item. This item was last published in the AMCOM CASL in September 2009. 9. Interested Sources - In accordance with FAR 5.201, this requirement will be published in FedBizOpps on or about 19 March 2010 and any proposals received shall be considered. All interested sources identified through the market research and FedBizOpps will receive due consideration as prescribed by law. To date, no other sources have written to express interest in this requirement. 10. Other Factors - a. There is a reasonable basis to conclude that only BAE Systems Controls can satisfy the needs of the Government at this time. b. Follow-on acquisition is not anticipated to be fully competitive due to reasons stated in paragraph 5 above. c. Procurement History: Contract W58RGZ-05-D-0121 was awarded to BAE Systems Controls using the authority of FAR 6.302-1-Only one responsible source and no other supplies or services will satisfy agency requirements. Contract No. /D.O. Award Date Qty U/P Total Cost W58RGZ-05-D-0121/0007 09 December 2008 30 Each $4,221 $126,645 W58RGZ-05-D-0121/0004 12 March 2007 46 Each $4,462 $962,698 W58RGZ-05-D-0121/0003 01 November 2006 72 Each $4,459 $321,081 W58RGZ-05-D-0121/0002 21 March 2006 71 Each $4,847 $344,193 d. Acquisition Data Availability -Technical data is available; however, it is insufficient to support a full and open competitive solicitation. Items must be returned to the OEM for overhaul/modification. This DECU is not classified as a CSI. In accordance with DMWR 1-2995-250, Chapter 2-6.4 (page 2-3), part numbers 5078T29G01, 5078T29G02 and 5078T29G04 must be modified to 5078T29G10. Part numbers 5078T29G05 and 5078T29G06 must be modified to 5078T29G06. These modifications are to be performed by the original equipment manufacturer (OEM). The tooling, fixtures, and test equipment in DMWR 1-2995-250 have been identified as critical. The drawings, test stand and software required for this overhaul/modification are proprietary to the original equipment manufacturer (OEM) and are not available or obtainable for this requirement. Title 10 United States Code U.S.C. 2304(c) (1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1 - "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements." e. Subcontracting Competition- Per FAR 19.702 and FAR 19.704, a subcontracting plan is required for large businesses on negotiated acquisitions that exceed $550,000. 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 (except small businesses) to adopt a plan that complies with requirements of the clause at FAR 52.219-9, Small Business Subcontracting Plan, which covers Small Business, Small Disadvantaged Businesses, Women-Owned Small Business, Hub-Zone Small Business and Veteran-Owned Small Business Concerns. A Subcontracting Plan will be required from BAE Systems. The contractor must also include FAR 52.244-5, entitled Competition in Subcontracting. BAE Systems (Cage 63760) will be required to comply with these requirements. 1. The Contractor shall select subcontractors (including suppliers) on a competitive basis to the maximum practical extent consistent with the objectives and requirements of the contract. 2. If the Contractor is an approved mentor under the Department of Defense Pilot Mentor-Prot g Program (Pub. L. 101-510, section 831 as amended), the Contractor may award subcontracts under this contract on a noncompetitive basis to its prot g s.