J+A_Dowty_Props-redacted.docx

Justification for Other Than Full and Open Competition Under 10 U.S.C. 2304 (c) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by FAR 6.3 and in accordance with the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR 6.3 is justified by the following facts and rationale required under FAR 6.303-2 as follows:

(1) Agency and Contracting Activity.

The Department of Homeland Security, United States Coast Guard (USCG), Office of Contract Operations (CG-9127), Formal Contracts Division VII, proposes to enter into a commercial contract on the basis of other than full and open competition.

(2) Nature and/or description of the action being approved.

The Coast Guard has a requirement to procure six (6) R391 propeller assemblies to support the HC-130J Long Range Surveillance (LRS) fleet from multiple operating sites.

The proposed contractor is:

GE Aviation Systems LLC (doing business as Dowty Propellers) 114 Powers Court Sterling, VA 20166

CAGE: 93366

(3) Description of Supplies/Services.

The requirement is to provide six (6) R391 propeller assemblies. The propeller assembly is used on the U.S. Coast Guard's fleet of eleven (11) HC-130J fixed-wing aircraft. NIIN and part number information is below:

The estimated total value of the proposed action is $XXX and will be funded with Fiscal Year 2014 Acquisition, Construction and Improvement (AC&I) funds.

(4) Identification of the justification and the rationale.

The statutory authority permitting other than full and open competition is 10 USC 2304(c)(1) as implemented by the Federal Acquisition Regulations (FAR) Subpart 6.302-1(a) entitled Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

(5) Demonstration that the nature of the acquisition requires use of the authority cited.

GE Aviation Systems LLC (GE Aviation) is the Original Equipment Manufacturer (OEM) of the R391 propeller assembly used on the HC-130J aircraft. The R391 propeller assembly is a commercial off-the-shelf (COTS) product with applications across multiple military and civilian aircraft types. GE Aviation is the only known firm who can provide the approved products and own the rights to the proprietary data, specifications and drawings. GE Aviation owns the data rights needed to competitively reproduce the R391 propeller assembly and will not sell the data rights to the USCG or any third parties, as the data is considered proprietary.

If the Coast Guard was to undertake a competitive process for the replacement of the propeller assemblies to one other than the current model produced and procured for the C-130J aircraft from GE Aviation, it would also have to conduct non-recurring engineering (NRE) to ensure the alternate solution would be compatible with the existing C-130J propulsion system, engage in airworthiness testing, and then replace all of the propeller assemblies in the fleet in order to maintain commonality. The replacement of 15 operational systems with four six-blade propeller assemblies on each aircraft, not including spares, would result in a significant duplication of cost and unreasonable delay. Replacing 15 aircrafts worth of propeller assemblies with an alternate solution would cost approximately $XXM.

In order to successfully maintain airworthiness of the aircraft and aircraft systems, protect personnel safety, and perform the USCG's mission, acquisition of Critical Safety Items (CSIs) is restricted to sources approved by USCG Office of Aeronautical Engineering (CG-41). GE Aviation is the only approved source-of-supply for the R391 propeller assembly. USCG certification of sources of supply is executed in accordance with Public Law 108-136 Section 802 of the Defense Appropriations Act of 2004.

(6) A description of the efforts made to ensure that offers are solicited from as many potential sources as is practicable.

In accordance with FAR 5.201, Federal Business Opportunities (FedBizOpps) notice was posted on 5/30/2018 and APFS website on 4/27/2018. As this item is commercial in nature and falls within the FAR 13.5 Test Program, Simplified Acquisition Procedures is expected.

(7) Determination by the Contracting Officer that the anticipated cost to the government will be fair and reasonable.

The Contracting Officer (KO) will make a determination of fair and reasonable price in accordance with FAR 15.404-1(b)(2)(ii), price analysis. In determining fair and reasonable pricing, the KO will utilize historical prices as well as commercial item pricing lists.

(8) Description of market research.

Market surveys are continually conducted to identify new sources of supply for the required parts. Market research was conducted in April 2018 by researching FedLog for additional suppliers, completing internet queries and utilizing ALMIS for prior procurement history. Since GE Aviation is the only contractor in possession of the rights to the proprietary technical data and OEM parts required, additional competition is not expected. Any other source would have to have access to the technical data that GE Aviation holds as proprietary information and will not sell or license to any third parties.

(9) Any other facts supporting the use of other than full and open competition.

N/A

(10) A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

GE Aviation is the only contractor that has expressed interest in this procurement to date.

(11) A statement of actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for required supplies or services.

The USCG will continuously conduct market research to ensure that companies interested in doing business with the USCG are given every opportunity to compete for future USCG requirements. In an effort to increase competition, Program Staff intend to annually attend aviation trade shows, conduct market research, and ensure procurements are advertised on FBO/APFS.

(12) Contracting Officer’s Certification.

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

(13) Technical/Requirements Personnel Certification.

I certify that this requirement meets the USCG’s need and that the supporting data, which forms a basis for the justification, is accurate and complete.

(14) Legal Review and Concurrence:

I have reviewed this justification and deemed it legally sufficient.

(15) Approval < $13.5M: