Tab_12_ATTACHMENT_C_JA_redacted.doc

ATTACHMENT C

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 Procurement of Rolls Royce Engine Spares Solicitation Number: 70Z03819QW0000216 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) Product Line (HC-27J), Elizabeth City, NC, proposes to enter into a purchase order on the basis of other than full and open competition.

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

The USCG, ALC, MRS Procurement Branch seeks approval to award a firm fixed price purchase order on a limited source basis for parts required to support the engine and engine components of the HC-27J aircraft. The Original Equipment Manufacturer (OEM) of the engine and the components is Rolls Royce, however Aviall, Inc. is the authorized distributor of the Rolls Royce components required under this procurement. This effort will provide the initial components and parts required to support operational maintenance and scheduled Programmed Depot Maintenance (PDM) of the HC-27J aircraft.

(a) Nature of action: The USCG intends to procure on a limited source basis, one Firm Fixed Price Purchase Order for the purchase of recommended Rolls Royce engine sparing.

(b) Name and address of Contractor(s):

Rolls Royce (63005)

Aviall, Inc

450 S Meridian Street

951 Aviation Parkway, Ste 100 Indianapolis, IN 46225-1103

Morrisville, NC 27560 Phone: (317) 230 6623

Phone: (919) 462-1481 Attn: Jason.D.Kimbley@rolls-royce.com

(c) Type of Action: Firm Fixed Price Purchase Order

(d) Estimated Total Value:

(e) Type of funding: PC&I

(f) Year of Funding: FY 2020

(3) Description of Supplies/Services.

The proposed contract action is for purchase of spare parts of the engine in support of the HC-27J aircraft Roll Royce engine overhaul contract. These parts have been identified by the USCG as critical inventory parts for replenishment. The anticipated action will have an estimated total contract value of $500,000 to be funded in FY20 with PC&I funds. This requirement will be awarded in accordance with FAR Part 12 Acquisition of Commercial Items and FAR Part 13.5 Simplified Procedures for Certain Commercial Items. The following table identifies a sampling of 10 components included on the 169 Line Item Schedule of Supplies.

(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 Requires Use of the Authority Cited.

The USCG self certifies its aircraft in accordance with the standards established the Federal Aviation Administration (FAA) and promulgated in Code of Federal Regulations (CFR) Title 14. The USCG will only procure parts which 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 article conforms to its approved design and is in a condition for safe operation.

The USCG has determined that interested parties must possess and maintain an OEM license to ensure continued access to OEM specifications and data and OEM replacement parts. The USCG is prohibited from disclosing any technical documents in their possession as these were developed at private expense by Rolls- Royce and are proprietary to Rolls-Royce, the OEM. Rolls-Royce is the only source in possession of the proprietary data, OEM approved spare parts, engineering design change and product improvement capability. The technical and manufacturing data for the required components are proprietary to Rolls Royce as the OEM, and only the OEM can provide the airworthiness certification for these components. Using parts other than those traceable to the OEM would compromise the integrity of the aircraft’s airworthiness. In addition to the OEM, Market research has identified Aviall, Inc. as the only authorized distributor of the required Rolls Royce components.

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

In accordance with FAR 5.201, the Government’s intent to award a contract for the purchase of engine components will be posted to the Government Point of entry (GPE), Federal Business Opportunities (FBO). Any responsible vendor may submit a quotation; all responsible offers will be considered. If any responses received as a result of the 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 F2019047494 published on September 4, 2019, 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 evaluate all quotations in accordance with FAR 13.106-3, and the prices will be determined fair and reasonable based on prior acquisition history and from current published price lists.

(8) Description of Market Research.

The market research consisted of reviewing the OEM pricing with lead-time information. Research was conducted using the online DOD EMALL and FedLog with negative results. Market research focused on identifying potential sources of supply for the components covered under this J&A. Aviall Inc. was identified as a potential source. In addition, 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 only Aviall and Rolls Royce as possible sources of supply.

(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 HC-27J aircraft from the United States Air Force (USAF) to the USCG. In accordance with the congressionally mandated requirements associated with the transfer of those aircraft, the USCG must procure the spare parts, components, and supplies required to fully standup and support the HC-27J APO. The USAF did not purchase data rights as part of the acquisition of the HC-27J aircraft. As a result, the USCG cannot foster full and open competition for this effort, as the manufacturing, performance, 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, only the OEM, Rolls Royce has responded to requests for information. Any responses received prior to the award of this procurement will be evaluated by the Contracting Officer.

(11) A Statement of 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 for the supplies covered under this J&A. 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-27J program members intend to conduct internet database research and ensure procurements are advertised in FBO. 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.