Redacted_J&A_J0000153.pdf

Justification for Othsr than Full and Oprn Competition Under dl U.S,C. l90I No Other Supplies or Services Will Satisfy Agency Requirements

Procurement of Modern Signal Processor

70203818QJ0000153

Pursuant to the requirements of ths Competition in Contracting Act and in accordance rvith the requirements of Federal Acquisition Regulation (FAR) 13.5, this justification is prepared under the authorityof FAR 13.501. Use of FAR 13.501 is justified by the following facts and rationale using the format ar FAR 6.303-2, rnodified to reflect an acquisition under the authority of Simplified Acquisition Procedures at 4l U.S.C. l90l .

I. Agency and Contracting Activity.

The Department of Homeland Security (DHS), United Statcs Coast Cuard (USCC), Aviation Logistics Center (ALC), Medium Range Recovery (MRR) Procurement Branch, located in Elizabeth City, North Carolina" proposes to enter into a purchase order with firm fixed pricing on a basis of other than full and open competition.

2. Nature andlor description of the action being approved.

Thc MRR Procurement Branch requests approval to solicit and award, on a *cle source basis, a purchase order for five (5) each Modern Signal Processor's (MSP's), hereafler referred to as Component. -fhe spares will increase the revolving pool of the Component for distribution to the USCG intermediate and dcpot lcvel facilities preventing aircraft grounding as a result of Non Ready For Issue (NRFI) Components, tlrat were depleted during the increased operational tempo in support of hurricane Harvey recovery missions. The specifications, drawings, data, test equipment, and tooling required for the Cornponent procurement are proprietary to Honeywell. Stakeholders include the MRR Product Line and supported USCG Air Stations. The estimated contract value is $266K. Honeywell's contact inforrnation is as follows:

Honeywetl INC Air Transport Phoenix 2llll N*rth lgth Ave."

Fhoenix Arirona 85027-5027 Cage: 58960

3. Descrip{ion of Supplies/Services.

The USCC currently operates a fleet of forty-six (46) H-60 rotary wing aircraft manufactured by Sikorsky Aircraft Corporation (SAC). This specialized, higtr demand, aircraft currently enables the USCC to pcrfiorm missions such as search and rescue, law enforcement, international ice patrol, marine environmental protection, and marine resource conservation. With such a dcmanding operational tempo, aircraft condition and availability are essential to mission success. The Component is the MSP for the Aircraft Diagrrostic and Vibration Management System (ADVMS). ADVMS is the system that allorvs maintenance personnel to analyzr rnaintenance data during post flight inspections. ln order to successfully maintain airworthiness of the aircraft and aircraft systems, protect personnel safety, and perfonn the USCG's mission, the Components are restricted to the OEM. The basic service objective of this requirement is to prescrvc scrvice life, reduce life cycle cost, and increase mission capabilities through the acquisiticn ol'the required Components. All pafis shall be new and OEM approved for their intended use unless a deviation is approved by the Contracting Officer (KO) in writing.

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Justification for Other than Full and Opcn Competition Under 4: ti.S.C. lg0l No Other Supplies or Services \Yill Satisfy Agency Requirements

Procurement of Modern Signal Processor 70203818QJ00001s3

4. Identification of the justificstion and the ratiunale.

The statutory authority permitting other than full and open competition is 4l U.S.C. l90l{c), as irnplemented in FAR 13.501 (a), "Sole source acquisition."

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

The USCG did not purchase rights to the proprietary data required to foster a competitive environment as part of any original provisioning for use on the H-60 rotary wing aircraft and the costs to procure this data would be cost prohibitive. In order to successfully maintain ainvorthiness of the aircraft and aircraft systems, protect personnel safety, and perform the USCS's mission, thc purchase of this Component is restricted to the OEM and OEM approved sources. Honeywell is the OEM for the required Components and no other Components are compatible with the existing avionics architecture.

6. Description of efforts made to ensure thrt offers are solicited from !s many potential source$ fls practicable.

This procurement forecast is posted as DHS * Acquisition Planning Forecast System (APFS) No:

F2018041492 on http://apfs.dhs.gov, published ?8 March 2018, and rvas included in ths DHS Forecast of Small Business Opportunities. This Justification for Other Than Full and Open Compctition (J&A) rvill bc posted to the CPE website, utau.fedbizopps.goy. Any capability statement, propasal or quotation received in response from an OEM approved source will be considered prior to award.

7. Detcrmination by the contracting officer that the anticipated cost to the Government will be fair and ressonablc.

Pricing information collected from market research and the previously arvarded purchase orders was used in the development of the Independent Covemment Cost Estimate (ICCE) for this requircment. The averagc purchase prices were multiplied by the quantity estimated for each Component to derive the ordering period pricing. The current Producer Price Index (PPI) escalation rate based on the Final Demand-lntermediate Dcntand (FD-ID) aggregation system was applied to the ordering period. The Contracting 0fficer anticipales cornparison of prices proposed with historical pricing and tlie ICCE will establish price reasonableness.

I 2390-2250-FA l0 months

Justilication for Other than Full and Open Competition Under 4I U.S.C. l90I No Othcr Supplies or Serryices t#ill Satisfy Agency Requirements

Procurement of Modern Signal Processor 702038t8QJ000t1153

8. Description of market research.

Market research was conducted in accordance with FAR Part l0 from March 2018 through April 2018 and confirms that Honeywell is the only known source for the required Components. The Componenls are commercial in nature and prevalent in private aviation, commercial aviation, and military aviation rvorldwide. All terms and conditions (inciuding payrnent, deiivery, inspection, acceptance, arnd warranties) are not expected to differ from customary tenns and conditions in the marketptace or standard Covernment practices. Contract financing is not applicable to this requirement. Tlrere are no larvs or regulations unique to this requirement. No environmentally preferable services were identified during market research and the Buy American Act/Trade Agreements Act#section 508 Regulations/Safety Act are not applicable to this requirement.

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

Honeywell was contacted to inquire about the release of any proprietary data to the USCO or any distributors. Honeywell responded that their data is proprietary and resale of their proprietary data is prohibited. This requirement falls within the guidelines of an "Other Than Full and Open Competition" and is not suitable for "Full and Open Competition." Failure to approve this Justification lor Other Tharr Full and Open Ccmpetition willjeopardize performance of MRR's mission duc to grounding of the aircraft as a result of safety concerns stemming from non-availability of Ready for Issue (RFI) components.

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

Honeywell is the OEM and the oniy known company that provides the required Components.

Honeywell INC Air Transport 2l ll I North lgth Ave.

Phoenix Arizona 85A27 -5A?7 POC: Jim Westem Phone: 57 l -93 I -6857 CaEe:58960

I t. A stntement of the actions, if any, the agency may take to remove or overeome any barriers to competition beforc any subsequent acquisition for rcquired supplies or services, The USCC will conduct rnarket research prior to execution of any follorv on requirement tCI identify additional sources for the Components if any exist.

Honeywell is the OEM and only source.

Large Business

Justilication for Other than Full and Open Competition Under 4l U.S.C. t90l No Other Supplies or Services lTill Satisfy Agency Requirements

Procuremcnt of Modern Signal Processor 70203818QJmoots3

(r2) C0NTRACTTNG OFFTCER'S CERTITICATTON:

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

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(I 3} TECHNICAL/RBQUIREMENTS PERSONNEL CERTIFICATION:

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

{&€*"$***-* tlr y/t { Brian lC McGowan Item Manager, USCG MRR

(14) Legal Review and Concurrence:

I have reviewed this justification.

Lorz.A LL E N. 1 r#;;:H;?Xiii,'.,,", 177422726 Date:2018.07.re13:2s:0s

Attorney Allen LoE USCG Acquisitions Law and Claims {LSC ALC}

(15 Approval:

Date

7t19t2fr18

Date u;;|l'oir r

Monique Contractingl tns0n r, USCC MRR

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