JA.Redacted.doc

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

Solicitation Number 70Z03818QH0000036

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 (DHS), United States Coast Guard (USCG), Aviation Logistics Center (ALC), Long Range Surveillance (LRS) Product Line (PL), Elizabeth City, North Carolina, proposes to issue one (1) order on a limited sources basis and provides this Justification for Other Than Full and Open Competition (J&A) for review and approval.

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

The LRS PL requests approval to award, on a limited source basis, one (1) order with a Firm Fixed Price (FFP) structure for the procurement of Depot Level overhaul services for Hydraulic Boost Assemblies in support of the USCG fleet of HC-130H/J aircraft. This FFP requirement will be awarded in accordance with the procedures at FAR Subpart 6.3, Far Part 12 and FAR Subpart 13.5 and will provide an acquisition vehicle for the USCG to maintain an adequate inventory of Ready for Issue (RFI) components to supply depot level maintenance and field units. The Independent Government Cost Estimate (IGCE) which totals $671,857 was derived through an analysis of historical data, Fedlog pricing and current pricing from previously awarded purchase orders.

Market research, conducted for the past 18 months, reveals only two qualified sources in possession of the required test equipment. The two sources are Tactair Fluid Controls, Liverpool, NY and Frazier Aviation, San Fernando, CA. Lockheed Martin Aerospace (LMA) is listed as the Original Equipment Manufacturer (OEM) for these items, however Tactair is LMA’s authorized overhaul agent for the items. Tactair is a large business and Frazier Aviation is a small business concern.

3) Description of the Supplies/Services.

This requirement is for the purchase of Depot Level overhaul services for Hydraulic Boost Assemblies in support of the USCG fleet of HC-130H/J aircraft. The items which comprise this requirement and their exact quantities are listed by Nomenclature, National Stock and Part Numbers below:

4) Identification of the justification and the rationale.

The statutory authority permitting other than full and open competition is 10 U.S.C. 2301(c)(1) as implemented by the Federal Acquisition Regulation (FAR) 6.302-1 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 hydraulic boost assemblies are considered Flight Critical Safety Items (CSI) and as such, LRS Engineering personnel have determined that in order to ensure safety of flight, overhaul functions must be accomplished in accordance with (IAW) US Air Force (USAF) Technical Orders (AFTO) and Commercial Maintenance Manuals (CMM) which are maintained only by the USAF and Original Equipment Manufacturer (OEM). The Aileron, Rudder and Elevator (NSN 1650-00-784-9693) assemblies are all utilized on the HC-130H model aircraft and must be overhauled IAW specific AFTOs as published by the USAF. The technical data for the Elevator Boost Assembly (NSN 1680-01-472-5564) which is used on the HC-130J model aircraft, has not been released/sold to any Government agency for development of an AFTO and overhaul functions must adhere to the specifics of the OEM CMM. All the AFTOs and the CMM require the use of specific test equipment or “jigs” to ensure the adequate hydraulic pressure is maintained during operation of the aircraft. The specific required “jigs” are listed below:

NSN:1650-01-134-4415

P/N: 374455-7 or

NSN: 1650-00-784-9692

P/N: 374455-3 or 374455-2

NSN: 1650-01-132-3641

P/N: 372021-11 or

NSN: 1650-00-651-4180

P/N: 372021-5

NSN: 1650-00-784-9693

P/N: 374461-5 or

NSN: 1680-01-472-5564

P/N: 374461-11

These specific jigs are mandated for use either by the applicable AFTO or the CMM. These specific part numbers are only manufactured by the OEM’s authorized overhaul agent, Tactair Fluid Controls. Due to the flight critical nature of the Hydraulic Boost Assemblies, interested parties must assert to possession of these specific “jigs” or an OEM/US Air Force certified equivalent.

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

This procurement forecast was posted as DHS – Acquisition Planning Forecast System (APFS) number F2018040850 published on 30 January 2018, and was included in the DHS Forecast of Small Business Opportunities. In the interest of promoting competition to the maximum extent practicable, a sources sought notice, dated 01 November 2017 was posted to the Government-wide Point of Entry (GPE), Federal Business Opportunities (FBO) website seeking responses from interested parties capable of providing the required overhaul services. The notice specifically required the possession of the aforementioned “jigs”. Three responses were received: Tactair Fluid Controls asserted to ownership of the OEM “jigs”, Frazier Aviation asserted to the possession of “jigs” certified by the OEM/USAF and Sherwood Aviation asserted to the possession of equivalent “jigs” with no mention of certification.

This Justification for Other Than Full and Open Competition (J&A) will be posted to the Government-wide Point of Entry (GPE), Federal Business Opportunities (FBO) website with the Notice of Intent that the USCG will award this requirement on a limited source basis. Any capability statement, proposal, or quotation received in response will be considered prior to award, however any quote received must include documentation that evinces ownership of either an OEM “jig” or an OEM/USAF certified “jig”.

7) Determination by the contracting officer that the anticipated cost to the government will be fair and reasonable.

The Independent Government Cost Estimate (IGCE) which totals $671,857 was derived through an analysis of historical data, Fedlog pricing and current FFP pricing established by previously awarded purchase orders. The Contracting Officer anticipates that the cost will be determined fair and reasonable in comparison with historical data, similar item pricing, and current FFP pricing. If required, the Contracting Officer will request other than cost or pricing data.

8) Description of market research.

Market research is continuously conducted to identify new sources of supply and/or services necessary to maintain the aircraft fleet. Market research for this requirement was conducted for the past eighteen (18) months using AMMIS, FEDLOG, ILSmart, WEBFLIS, Haystack, and the Internet for potential supply sources. In the interest of promoting competition to the maximum extent practicable, a sources sought notice, dated 01 November 2017 was posted to the Government-wide Point of Entry (GPE), Federal Business Opportunities (FBO) website seeking responses from interested parties capable of providing the required overhaul services. The notice specifically required the use of the aforementioned “jigs”. Three responses were received: Tactair Fluid Controls asserted to ownership of the OEM “jigs”, Frazier Aviation asserted to the possession of “jigs” certified by the OEM/USAF and Sherwood Aviation asserted to the possession of equivalent “jigs” with no mention of certification.

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

The AFTOs specified by the Statement of Work (SOW) are readily available to interested parties via the USAF technical data portal. Interested parties must be registered with Defense Logistics Information Services (DLIS) in order to obtain access to the USAF portal. The USCG does not possess the CMM for release. Additionally, the USCG cannot assist interested parties with obtaining OEM “jigs” or the required certifications for any purported equivalent “jig” in support of this requirement. Due to a recent fleet-wide inspection conducted by the Department of Defense in regard to these items, the USAF and USCG are experiencing a high failure rate due to cracks discovered in the housings. The USCG conducted a similar inspection and discovered a 25% rate of cracked housings, resulting in very limited inventory of RFI assemblies and a relative urgency for these services.

ALC’s commercial history reveals a variance in pricing for previous overhauls in FY15 to the present. The range in pricing is due to the Government’s discovery that overhaul agents were not using the test jigs required by the applicable technical directives. It was further discovered that the use of non-compliant test jigs did not subject newly overhauled Boost Packs to the pressure and cyclic tests required by the test jigs specified by the technical directives. Newly overhauled Hydraulic Boost Packs leaked immediately upon installation on the aircraft or within limited flight time on the aircraft. Therefore, the use of OEM/USAF certified test jigs is critical to the efficient and safe operation of the Hydraulic Boost Packs during flight as leaks are discovered and minimum cyclic criteria are subjected to a pass/fail determination at the contractor’s facility prior to return to service.

As per LRS engineering, the use of any other test equipment/jig would require extensive oversight and duplication of costs on the part of the USCG. The certification process would require the use of RFI assets which are in short supply as a result of the fleet-wide inspection. It is important to note that the criticality of these components cannot be diminished; failure of any of the components could result in a catastrophic failure; i.e., loss of life and Government property. It is therefore, equally critical that the USCG have confidence that the components have been overhauled and properly tested to ensure flight safety.

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

In the interest of promoting competition to the maximum extent practicable, a sources sought notice, dated 01 November 2017 was posted to the Government-wide Point of Entry (GPE), Federal Business Opportunities (FBO) website seeking responses from interested parties capable of providing the required overhaul services. The notice specifically required the possession of the aforementioned “jigs”. Three responses were received: Tactair Fluid Controls asserted to ownership of the OEM “jigs”, Frazier Aviation asserted to the possession of “jigs” certified by the OEM/USAF and Sherwood Aviation asserted to the possession of equivalent “jigs” with no mention of certification.

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.

In support of the Competition in Contracting Act, LRS Engineering, Contracting, and New Product Development Branch (NPD) representatives continuously conduct market research through FEDLOG, ILSmart, DoDEmall, Haystack, and Commercial websites to ensure that companies interested in doing business with the USCG are identified and given every opportunity to compete for new requirements. In the event new hydraulic boost assemblies are replaced with a higher configuration, LRS will ensure efforts are made to maximize competition as must as possible.

(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.

Renee Wood

Date

Contracting Officer, LRS

(13) Technical/Requirements Personnel Certification 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.

Shelly Stonehocker

Item Manager

(14) Legal Review and Concurrence I have reviewed this justification and deemed it legally sufficient.

Attorney

USCG LSE

APPROVAL:

Nancy DeBerry

Contracting Officer, LRS

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