DS8_Airbus_J&A_Approved_31OCT2017_(REDACTED).pdf

Justification for Other Than Full and Open Competition

Under 10 U.S.C. 2304 (c)(l) Only One Responsible Source and No Other Supplies

Solicitation Number: HSCG23-17-R-AHDS81

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by Federal Acquisition Regulation (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 United States Coast Guard (USCG) Headquarters, Formal Contracts Division VII (CG- 9127) Office of Contract Operations, in conjunction with the H-65 Conversion/Sustainment Program (CG-9315) proposes to enter into a contract on the basis of other than full and open competition.

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

This Justification and Approval (J&A) authorizes and approves the issuance of a sole source contract action to Airbus Helicopter Inc., the Original Equipment Manufacturer (OEM) of the H-65 aircraft, to obtain aircraft critical airworthy structural components to the H-65 in order to extend the aircraft' s service life, achieving operational requirements for the H-65/ Short Range Recovery (SRR) aircraft.

The anticipated contract type will be a Firm-Fixed Price (FFP) commercial contract, with one twelve month (12) base period and four (4) twelve month option periods. The total estimated value of this procurement is $19M. AC&I funds from Fiscal Year FY 18 will be used for this procurement.

The proposed contractor is:

Airbus Helicopters, Inc 2701 Forum Drive Grand Prairie, TX 75052-7099

(3) Description of Supplies/Services.

The proposed contract action will procure the following components:

Nomenclature Part Number/NHN Assembly, Canopy 366A25-0000-0451 I 143831126 Floor Assembly 366A21-1139-0201I01HR23046 Fitting Assy Low RH (9 Degree Frame) 365A21-3132-07 I 144881626

The total estimated value of this procurement is $19M, for a period of five years, broken down as follows:

Base Year Option 1 Option 2 Option 3 Option 4

Canopy $156,830.58 $164,672.11 $172,905.72 $181,551.00 $190,628.55

Floor Assembly $13,202.99 $13,863.14 $14,556.30 $15,284.11 $16,048.32

Per Shipset Cost $170,033.57 $178,535.25 $187,462.02 $196,835.11 $206,676.87

QTY 22 22 22 22 12

Subtotal $3, 740, 738.S4 $3,927, 775.50 $4,124,164.44 $4,330,372.42 $2,480,122.44

9 Degree Frame Set up $328,000.00

Annual Total $4,068, 738.54 $3,927, 775.50 $4,124,164.44 $4,330,372.42 $2,480, 122.44

Total Value $18,931,173.34

( 4) Identification of the justification and the rationale.

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304 (c) (1) as implemented by FAR 6.302-1 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.

The airworthy structural components are needed in order to maintain operational capabilities and sustain the H-65. The H-65 is a short range recovery helicopter that is manufactured by Airbus Helicopters Inc. These components are considered flight Critical Safety Items (CSI). A flight CSI is a part, assembly, installation or production system with one or more critical characteristics that, if not conforming to the design data or quality requirements, would result in an unsafe condition. Unsafe conditions relate to mishap severity categories I (catastrophic), and II (Critical) of Military Standard MIL-STD 882 and MIL-STD- I 00, System Safety program requirements, and include conditions which could cause loss or serious damage to the end item or major component, loss of control, and serious injury to life of the component. These components are flight critical and the overhaul/repair actions are documented for the life of the component.

Additionally, the H-65 Engineering Officer has determined that these components are coded with an Acquisition Method Code of three (3) or five (5) which directs the acquisition of new components directly from the OEM or prime contractor. In both cases, this is Airbus Helicopters Inc. Due to their designation as CSis, the USCG requires interested parties to possess and maintain OEM licenses to ensure continued access to OEM expertise, specifications and data.

Further, using parts other than those fully traceable to the OEM would compromise the integrity of the aircraft's airworthiness. Therefore, procurement of these parts from anyone other than the OEM would compromise the safety of the aircraft, the crew, and the original fit , form, and function of the original parts. The technical and manufacturing data, for the components to be procured under this J&A, are proprietary to Airbus Helicopters Inc.

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

This procurement is forecasted in the DHS Acquisition Planning Forecast System (APFS) No.

F2017036371 at www.apfs .dhs.gov. In accordance with FAR 5.203(a)(2) and FAR 12.603, the proposed contract action will be advertised in the Federal Business Opportunities (FBO) as a combined synopsis/solicitation. Any responsible offers received prior to award will be considered.

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

The Contracting Officer anticipates prices negotiated will be fair and reasonable based on price analysis in accordance with FAR 15.404-1 (b)(2)(iv) Airbus published prices in comparison with the IGE, and FAR 15.404-1 (b)(2)(ii) historical information. Historical information will include:

purchase order verification of the proposed prices as compared to prices paid by other commercial customers and prior USCG acquisition history. The Contracting Officer will utilize this information to negotiate a fair and reasonable price. If necessary, data other than certified cost or pricing data may be requested in order to assist with a determination of fair and reasonableness.

(8) Description of market research.

Market Research was conducted from August2010 through June 2017 to determine a list of potential sources for the H-65 components. This market research included interviewing knowledgeable individuals in industry, reviewing Government databases (ALMIS, GSA, FED LOG, and the Inventory Locator Service ILS), reviewing 0 EM catalog literature and websites, attending industry conferences and issuing a OHS Acquisition Planning Forecast System Notice. All market research efforts resulted in no alternate supply sources that can meet the USCG's need.

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

Airbus Helicopters, France is the OEM of the H-65 helicopter but has authorized its United States (US) affiliate, Airbus Helicopters, Inc. in Grand Prairie, Texas to be the only approved source of supply for parts and products for the H-65 aircraft. All parts purchased and delivered under the contract will require clear, documented traceability to Airbus Helicopters, France.

Parts produced by another manufacturer may compromise form, fit and function which could compromise the structural integrity of the aircraft thereby creating a safety of flight risk. A safety of flight risk is never acceptable, therefore, no alternate parts, or deviations from OEM specifications will be considered for this purchase. Airbus Helicopters, Inc., located in Grand Prairie, TX is the only source approved by the OEM, Airbus Helicopters, France to sell the products in North America.

On 01 December 2016, the USCG received an official letter from the Distribution & Services Network of Airbus Helicopters stating that "Airbus Helicopters, Inc in Grand Prairie, Texas is the only approved source of supply in North America for parts and products for the H-65 aircraft." Airbus Helicopters, France does not sell direct to its customers. All parts must be purchased using an OEM approved distributor. Use of only OEM approved distributors will ensure all parts are manufactured to OEM specifications for form, fit, and function ·and will include documented traceability of parts to the OEM thereby eliminating flight risks and enhancing safety.

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

No other sources have been identified as of29 June 2017.

In accordance with FAR 6.302-1 (c) (ii) (C), the approved J&A will be posted with solicitation on FBO.

(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.

At this time, for the reasons set forth in paragraphs 5 & 9, the USCG does not possess the technical expertise required to perform, or the technical data required to foster full and open competition for this effort. 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, H-65 SRR Product Line members will attend aviation trade shows, conduct internet database research, and ensure procurements are advertised on FBO.

(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.

FERRALLl.SUSAN.M. 1458896360

Susan Ferrall i H-65 Contracting Officer

Digitally signed by FERRALL/.SUSAN.M.1458896360 ON: c=US, o=U.S. Government, ou=DoD, ou=PKJ, ou=USCG, cn=FERRALL/.SUSAN.M.1458896360 Date: 2017.08.1611:47:54-04'00'

(13) Technical/Requirements Personnel Certification.

08/16/2017 Date

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

CDR John H. Axtell, USCG CG-9315 Program Manager

(14) Legal Review and Concurrence:

I have reviewed this justification.

LOBOSCO.JULIA.A.136

2787269

Julia A. LoBosco Legal Advisor

APPROVAL:

Digitally signed by LOBOSCOJUL/A.A.1362787269

ON: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USCG, cn=LOBOSCOJUL/A.A.1362787269

Date: 2017.08.16 14:05:51 -04'00'

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