29--Valve, Assembly

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION WEAPON SYSTEM: UH-60 Valve, Assembly 1. Contracting Activity - US Army Contracting Command, Aviation and Missile Command Contracting Center (AMCOM), 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 (AWCF) will be utilized. Foreign Military Sales (FMS) requirements will also be included in this effort representative of 20 percent of the maximum Army requirement. b. It is the Government's intention to place orders against this contract as required for the maintenance and overhaul for calendar years 2009 through 2014. The maximum estimated dollar value for this five year requirement is $27,033,300.00. This total amount is based on multiplying the Maintenance Expenditure Limit, $4,291.00, by the total estimated quantity of 6,300. 3. Description of Supplies/Services - AMCOM proposes to acquire, on an other than full and open competition basis, the overhaul of the item listed below: Noun: Valve, Assembly Weapon System: T700 Engine for UH-60 Input NSNs/P/N s: 2995-01-460-1334/5066T38G08 2995-01-460-1334/5066T38G07 2995-01-305-6942/5066T38G04 Output NSN/P/Ns: 2995-01-460-1334/5066T38G07 and 5066T38G08 Qty: Minimum 1,250 Maximum 6,300 PRID: 08KT128 PRON: AX9M0092AX The maximum quantity includes 20 percent (1,050) for FMS Estimated Dollar Value: $27,033,300.00 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 or a Limited Number of Responsible Sources and No Other Supplies or Services Will Satisfy Agency Requirements." 5. Reason for Authority Cited - 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 (CSI) 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. The Directorate for Engineering has determined that this part is a CSI. The Valve, Assembly was determined a CSI on 31 October 2005. The only approved sources are AAR Aircraft Component (Cage 3Y015), Honeywell International Inc. (Cage 59364), General Electric Company (Aircraft Engine Business Group) (Cage 99207) and TAT Technologies (Cage S4883). The required output delivery schedule is anticipated to be 120 days after receipt of assets to the overhaul/repair facility. 6. Efforts to Obtain Competition - This action was originally synopsized through the Federal Business Opportunities (FedBizOpps) on 27 August 2008 and 04 September 2008 as required by FAR 5.201, prior to issuance of the solicitation of the requirement. The only approved sources are shown in para 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 June 2009. This action was originally synopsized as two separate actions. An amendment to the synopsis was issued on 24 July 2009 combining the two actions (08KT128 and 08LT128). These two actions must be combined because this item is provisioned to rework the configurations to be corrosion resistant. Part Number 5066T38G04 will be upgraded to P/N 5066T38G08. This upgrade will make it corrosion resistant. Part Number 5066T38G07 is currently corrosion resistant. This requirement will be limited to the four approved sources identified in para 5. 7. Actions to Increase Competition - Depot Maintenance Work Requirement (DMWR) 1-2995-241-dated 30 September 1992, with Change 2, is currently available to support a competitive solicitation; however this item has been identified as a CSI and as such requires overhaul/modification from an approved source in accordance with DFARS, Subpart 209.2 oer Sustainment Engineers Division, AED, AMSRD-AMR-AE-K. The only approved sources for this item are stated in Para 5. The Army Aviation Sustainment Gateway (ARISE) database was queried on 02 October 2009 and there are no pending Source Approval Requests (SAR's) Based on reasons stated in paragraph 5, a more effective competition is not anticipated. 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. This item was last published in the AMCOM CASL in June 2009. 9. Interested Sources - In accordance with FAR 5.201, this requirement was published in FedBizOpps on 27 August 2008 and 04 September 2008. An amendment to the synopsis was issued on 24 July 2009 combining the two PRIDs (08KT128 and 08LT128). All interested sources identified through the market research and FedBizOpps will receive due consideration as prescribed by law. Submission of this item in the June 2009 Competition Advocate's Shopping List will allow other sources to submit data and request approval as a qualified source. Interested sources identified through the market research and FedBizOpps are Aero Turbine Inc, and Alco Aircraft Logistics Support. Both contractors were instructed to seek SAR approval in order to compete for this or future solicitations by submitting documentation in accordance with the Competition Advocate's Shopping List (CASL) procedures. Contractors were notified these procedures are outlined at the following web site: http://www.redstone.army.mil/cmo/ on 23 July 2009. To date neither contractor has submitted their request for SAR approval. 10. Other Factors - a. There is a reasonable basis to conclude that only AAR Aircraft Component, Honeywell International Inc., TAT Technologies, or General Electric Co. can satisfy the needs of the Government at this time. These four sources are the only approved sources of overhaul for this Critical Safety Item. 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-0231 was awarded using the authority of FAR 6.302-1-Only one responsible source and no other supplies or services will satisfy agency requirements.(Sole Source) to Honeywell International. Contract No. /D.O. Award Date Qty U/P Total Cost W58RGZ-05-D-0231/0015 11 Jul 2008 300 Each $5,536.00 $1,660,800.00 W58RGZ-05-D-0231/0008 14 Dec 2006 580 Each $5,321.00 $3,086,180.00 W58RGZ-05-D-0231/0003 22 Nov 2005 523 Each $5,217.00 $2,728,491.00 Contract W58RGZ-05-D-0231 consisted of several Output NSNs. The procurement history stated above is for Output NSN 2995-01-460-1334 only. The procurement history for Input NSN 2995-01-305-6942 lists Valco Industries as a source, however, Valco Industries is a manufacturing source not a repair source. d. Acquisition Data Availability -Technical data is currently available to support a full and open competitive solicitation; however, this is a CSI and therefore must be overhauled by an approved source. 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 AAR Aircraft Component, Honeywell International Inc., and General Electric Company. TAT Technologies will not be required to submit a subcontracting plan per FAR 19.702 (b)(3) Statutory Requirements. Contractors performing entirely outside the United States and its outlying areas are not required to submit a subcontracting plan.