REDACTED_JA_-_Radar_Transponder_(APX-119).pdf

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

70Z03819QL0000132

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the 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 proposes to enter into a purchase order on a basis other than full and open competition.

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

The USCG, ALC, MRS division seeks approval to award a firm fixed price purchase order on a sole source basis for the procurement of Radar Transponders, to support the HC-144B aircraft to meet the FAA 2020ADS-B Out certification. The Original Equipment

Manufacturer (OEM) is Raytheon Company.

(a) Nature of the action: Procurement of five (5) Radar Transponders.

(b) Name and address of the contractor:

Raytheon Company

Doing business as (DBA)

Raytheon

6260 Guardian Gateway

Aberdeen Proving Ground, MD 21005-1300

Cage Code: 06845

(c) Type of action: Firm Fixed-Price Purchase Order

(d) Estimated total value: REDACTED

(e) Type of funding: Operations and Support;

(f) Year of funding: FY 2019

The requirement will be awarded in accordance with FAR Part 12, Acquisition of

Commercial Items in conjunction with FAR Part 13.5, Simplified Acquisition Procedures for Certain Commercial Items.

Market research shows that Raytheon Company, OEM is the only capable vendor to provide the required Radar Transponders. Additional offerors must be authorized by the

OEM, having access to current Air Force Instructions 63-137 and AC 20-165A and must be FAA Part 145 certified.

3. Description of Supplies/Services: USCG, ALC, MRS division seeks approval to procure the following components identified below to support the HC-144B aircraft.

NSN: 5841-01-645-6210

Part Number: 4079100-0531

Nomenclature: Radar Transponder (APX-119)

Quantity: Five (5) each

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 FAR 13.501 (a) “Sole source acquisition.”

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

The navigation equipment is necessary for the Ocean Sentry Refresh (OSR) Block 1

Upgrade (B1U) software, version L.3 software and technical refresh to the navigation system of the HC-144B aircraft. This software and technology refresh addresses flight safety concerns of the HC-144B aircraft to meet the ADS-B “Out” solution for the navigation system. Use of OEM components will ensure the Radar Transponders are manufactured in accordance with OEM specifications and standards. For these reasons, it is in the USCG’s best interest and in the interest of the safety of our flight crews to procure only Raytheon Company authorized parts.

6. Description of Efforts Made to Ensure that Offers are Solicited from as Many

Potential Sources as is Practicable:

In accordance with FAR 5.201, the intent to procure the Radar Transponders will be advertised on Federal Business Opportunities (FBO.gov). 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 competed among all eligible offerors.

This acquisition is forecasted in the Department of Homeland Security (DHS) Acquisition

Planning Forecast System (APFS), number F2019046664 published July 24, 2019 and can be found at 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 price analysis utilizing a combination of price analysis techniques to include comparison of historical prices to current market research price.

http://www.apfs.gov/

8. Description of Market Research.

Market research indicates that the purchase of the Radar Transponders are not available through, Internet research, General Services Administration (GSA) contract, or available through GSA Advantage. Market research also consisted of querying the Industry Base

System, Inventory Locator System (ILS), and previous procurement history. ILSmart queried which returned only one vendor (vendor replied no bid). Contacted the MRR

Contracting Division and it was found that a current solicitation was posted on the FBO website and it is still active as of this report (70Z03819QJ0000205).

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

The USCG currently uses Raytheon components on the HC-144B, and the OSR B1U operating system software refresh has been designed to work with the Raytheon APX-119.

The Radar Transponders to be procured under this acquisition is highly specialized in nature, developed by a non-Government activity and the technical data required for acquisition by other than the OEM is not available. The USCG does not have the capability to design and certify a navigation system using the OSR B1U operating system software refresh. It is not cost effective to perform a complete redesign of the navigation system due to its impact on the entire suite of avionics components and the Flight Management System

(FMS). The commercial avenue of using Raytheon is more cost effective and allows for completion of the project in a timely manner by eliminating any research and development phase. In addition, there are OEM components that are not being replaced that would not be compatible with other operating systems. The Government Data rights are insufficient for the purposes of soliciting vendors to manufacture and certify air worthiness aircraft components and piece parts. The MRS Engineering Officer has determined that the required assemblies are critical for flight and has assigned an Acquisition Method Code (AMC) of 3 and Acquisition Method Suffix Codes (AMSC) of C. In accordance with DoD 4100.39

(series) Volume 10, Table 71, an AMC of 3 or 5 requires the purchases from the actual manufacturer or prime contractor only. An AMSC of C, Q, or R stipulates engineering source approval by the design control activity in order to maintain the quality of the parts.

10. A Listing of the Sources, if Any That Expressed, in Writing, an Interest in the

Acquisition.

A notice of intent will be submitted to FBO.gov upon approval of this document. Any responsible offeror capable of providing the Radar Transponders with traceability back to the OEM will be considered. If responses to the solicitation indicate additional sources are available, the file will be documented accordingly and the requirement competed among all eligible offerors.

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.

The Radar Transponders to be procured are complex and must meet critical operational and reliability requirements, the achievement of which require unique production techniques and extensive and/or sophisticated testing, and the Government has not yet acquired or developed the technical data. The USCG did not purchase the data as part of the initial system acquisition for the aircraft. Complete specifications and drawings are not available and the cost to procure them is not easily quantifiable. The data for these components are proprietary to the OEM. Using parts other than the OEM’s would compromise the integrity of the aircraft’s airworthiness and would void any existing warranties.

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, HC-144B 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.