Tab_4_JA_(redacted).docx

Justification for Other Than Full and Open Competition Under 41 U.S.C 1901 Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements Solicitation No. 70Z03818QW0000170

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by Federal Acquisition Regulation (FAR) Subpart 13.5 and in accordance with the requirements of FAR 13.501, the justification for the use of the statutory authority under FAR Subpart 13.5 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), Aviation Logistics Center (ALC), Medium Range Surveillance (MRS) Division, Elizabeth City, NC, proposes to award a purchase order on the basis of other than full and open competition in support of the C-27J aircraft.

(2) Nature and/or Description of the Action being Approved.

The USCG, ALC, MRS Procurement Branch requests approval to award a Firm Fixed Price (FFP) purchase order on a sole source basis for the procurement of the following spare part to support the C-27J aircraft: Electronic Control Unit, P/N: 258600-102. As the Original Equipment Manufacturer (OEM), MOOG Inc. Aircraft Group, is the only source capable of providing the needed component.

(a) Type of action: Firm Fixed Price Purchase Order

(b) Estimated total cost of this requirement: $505,818

(c) Type of funding: Acquisition, Construction, & Improvement (AC&I)

(d) Year of funding: 2018

The proposed Contractor is:

MOOG Inc, Aircraft Group Torrance Operations 20263 Western Ave Torrance, CA 90501 Cage Code: 0ZWK8

(3) Description of Supplies/Service.

The proposed purchase order will accommodate the purchase of Electronic Control Units for sparing in support of the C-27J aircraft flight operations and missions. The anticipated contract action will have an estimated total value of $505,818.00 and will be funded with AC&I funds. This requirement is commercial in nature and will be procured utilizing the procedures listed in FAR Part 12, Acquisition of Commercial Items is conjunction with FAR Subpart 13.5, Simplified Acquisition Procedures for Certain Commercial Items. The required part is listed below:

(4) Identification of Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority permitting other than full and open competition is 41 U.S.C. 1901(c), as implemented in Federal Acquisition Regulation (FAR) 13.501 (a), “Sole source acquisition”.

(5) Demonstration that the Nature of the Acquisition Require Use of the Authority Cited.

The ECU is a highly specialized component that is required for use on the C-27J aircraft and is provided exclusively by the OEM, which is a non-Government activity. All technical data rights are proprietary to the OEM and have not been made available for acquisition by any other source. In addition, MRS Engineering personnel have determined that in order to ensure safety of flight, parts should only be provided only by the OEM.

The USCG self-certifies its aircraft in accordance with the standards established with the Federal Aviation Administration (FAA) and promulgated in CFR Title 14. The USCG will only procure parts that have airworthiness approval. The CFR Title 14, Aeronautics and Space, Part 21, Certification Procedures for Products and Articles, governs the procedural requirements for issuing and changing design approvals, production approvals, airworthiness certificates, and airworthiness approvals. 14 CFR 21 defines airworthiness approval as a document, issued by the FAA for an aircraft, aircraft engine, propeller, or article which certifies that the aircraft, aircraft engine, propeller, or articles conforms to its approved design and is in a condition for safe operation.

Title 14 of the CFR Subpart K covers the procedures for the FAA Parts Manufacturer Approval (PMA). The FAA PMA process is acceptable for an alternate manufacturer for the parts listed in this requirement provided the vendor submits a complete data package ensuring that the parts meet or exceed OEM specifications and subsequently passes the USCG form, fit, and function requirements. To date, there are no known approved FAA PMAs for the part listed in this solicitation. Furthermore, the part listed is specific to the C-27J and no other parts are acceptable based on COMDTINST M4408.8, Chapter 4.

The FAA issued Advisory Circular (AC) 20-62 to provide information and guidance for use in determining the quality, eligibility and traceability of aeronautical parts and material intended for installation on US type-certificated products and articles, and to enable compliance with Title 14 of the CFR. The AC states that acceptable replacement articles should be identified using one of the following methods:

1) Airworthiness Approval Tag (FAA Form 8130-3);

2) Foreign manufactured replacement parts when there is a Bilateral Airworthiness Agreement (BAA) between the country of manufacture and the United States. This certification may be verified on a form similar to the FAA Form 8030-3 (i.e. European Aviation Safety Agency (EASA) Form One);

3) FAA Technical Standard Order (TSO) markings;

4) FAA PMA symbol;

5) Production Approval Holder’s (PAH) documents or markings;

6) Direct ship authority. In order for manufactured parts with direct ship authority to be recognized as being produced under a manufacturer’s FAA production approval, the manufacturer must specifically authorize the shipping supplier, in writing, and must establish procedures to ensure that the shipped parts conform to the approved design and are in a condition for safe operation;

7) Maintenance release document;

8) Identification of critical components; and

9) Marking of life-limited parts.

The AC also states that aircraft part distributors and aircraft supply companies cannot certify the airworthiness of the parts they advertise and/sell, unless they are a PAH. Therefore, it is the installer’s responsibility to ensure airworthiness and to request documentation establishing traceability to a PAH. Parts provided that do not meet the FAA requirements could compromise structural and system integrity of the aircraft putting aircrew personnel and Government property at risk. The USCG neither compromises nor makes exceptions in matters of human safety and protection of Government property and does not accept lower standards in these matters. Use of OEM parts will ensure the parts are manufactured in accordance with OEM specifications and standards, conform to original form, fit, and function, and are compatible and interchangeable with existing components.

(6) Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable.

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 sole source basis. Any responsible vendor may submit a quotation; all responsible offers will be considered. If any responses are received as a result of this solicitation, the file will be documented accordingly and the requirement will be competed among all eligible offerors.

This acquisition is forecasted in the Department of Homeland Security (DHS) Acquisition Planning Forecast System (APFS), number F2018042504 published on July 18, 2018 and can be found at https://www.apfs.gov.

(7) Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The Contracting Officer will determine the prices to be fair and reasonable based on prior acquisition history and current published price lists.

(8) Description of Market Research.

The market research consisted of reviewing the provided pricing and lead time information by the OEM, in addition to email correspondence. Market research also consisted of searches of Online DOD EMALL and FedLog, with negative results. In addition, market research focused on identifying potential new sources of supply for the components covered under this J&A, resulting in no identifiable competition. Lastly, the following online (WEB) sources were reviewed; Haystack, Inventory Locator Service, Federal Logistics Data, and Federal Business Opportunities, all which supported the initial market research that showed no alternate supply sources identified. To date, no pricing information has been received from any other source.

(9) Any Other Facts Supporting the Use of Other Than Full and Open Competition.

The 2014 National Defense Authorization Act (NDAA) authorized the transfer of fourteen C-27J aircraft from the United States Air Force (USAF) to the USCG. In accordance with the congressionally mandated requirement associated with the transfer of those aircraft, the USCG must procure the spare parts, components, and supplies required to fully standup and support the C-27J APO. The USAF did not purchase full data usage rights as part of the acquisition of the C-27J aircraft and the USCG was not provided the opportunity to purchase. As a result, the USCG cannot foster full and open competition for this effort, as the manufacturing, performance, and acceptance data are proprietary, and the USCG does not possess adequate and appropriate technical data to provide to potential offerors.

(10) A listing of the Sources, if Any That Expressed, in Writing, an Interest in the Acquisition.

To date, no responses have been received by the Contracting Officer. Any responses received prior to the award of the procurement will be evaluated by the Contracting Officer.

(11) A Statement of the Actions, if Any, the Agency May Take to Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisition for Supplies or Services Required.

At this time, for the reasons set forth in paragraphs 5, 8, and 9, the USCG does not possess the technical data required to foster full and open competition. 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, C-27J program members intend to conduct internet database research and ensure procurements are advertised in FBO. In addition, the USCG will investigate the feasibility of purchasing technical data from the OEM. If another potential source emerges, and the USCG is able to obtain the required technical data, the USCG will assess whether competition for any future requirements are feasible.

(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.

Contracting Officer

(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.

Supply Cell Item Manager

(14) Legal Review and Concurrence:

I have reviewed this justification and deemed it legally sufficient.

Procurement Attorney

CG LSC-ALC

APPROVAL:

Contracting Officer