JA Redacted.docx

Solicitation Number: 70Z03818RL0000002 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 Procurement of HC-144 Spare Parts Solicitation Number: 70Z03819RL0000002

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by Federal Acquisition Regulation (FAR) Subpart 6.3 and in accordance with the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 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 enter into a contract on the basis of 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 Indefinite Delivery Requirements contract on a sole source basis to Airbus Space and Defense, Inc., the Original Equipment Manufacturer (OEM), for the procurement of the HC-144 Spare Parts identified on the attached Schedule of Supply to support the HC-144 Maritime Patrol Aircraft (MPA). The contract will be awarded on a basis of other than full and open competition and will consist of one (1) one-year base and four (4) one-year option periods. The anticipated contract action will have an estimated value of $40.8M to be funded with Operations and Support (OS) funds. This requirement will be awarded in accordance with FAR Part 12, Acquisition of Commercial Items in conjunction with FAR part 15, Contracting by Negotiation.

(a) Nature of the action: The USCG intends to procure on a sole source basis a FFP contract consisting of one (1) one-year base and four (4) one-year option periods for the purchase of HC-144 Spare parts and associated components.

(b) Name and Address Airbus Defense and Space, Inc.

2550 Wasser Terrace Suite 9000 Herndon, VA. 20171-6382 Cage Code: 8W891

(c) Type of action: Firm Fixed Priced Contract, Base Plus four (4) one year options periods

(d) Estimated total value (including options):

Base Yr:

Opt Period 1:

Opt Period 2:

Opt Period 3:

Opt Period 4:

(e) Type of funding: OS

(f) Year of funding: Each order will be funded with funds current at the time the order is issued.

(3) Description of Supplies/Services:

The USCG ALC, Elizabeth City, NC, has a requirement to obtain spare and sustainment parts to support the HC-144 MPA flight operations and missions. Based on recent ordering history, USCG Engineering has identified 1,009 line items for the base period and each of the four additional option periods, that will be essential for the continuity of safe operation of the aircraft. The following table identifies a sampling of 10 higher priced components included on the Schedule of Supplies:

(4) Identification of the justification and the rationale:

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304 (c)(1), as implemented by the 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 USCG self-certifies its aircraft in accordance with the standards established by the Federal Aviation Administration (FAA) and promulgated in 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. Title 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.

In order to maintain structural integrity of the aircraft and ensure complete compatibility, the supply of the HC-144 Spare Parts listed in this requirement must be obtained from the OEM. Use of OEM parts will ensure the HC-144 aircraft, and the associated spare 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. 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 Airbus Space and Defense, Inc. authorized parts.

(6) A 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 contract for supply of HC-144 components and associated spare parts 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 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 F2018043237 published on October 31, 2018, and can be found at www.apfs.gov.

(7) Determination by the Contracting Officer that the anticipated cost will be fair and reasonable:

The Contracting Officer anticipates that prices negotiated for this procurement will be fair and reasonable based on comparison with prior acquisition history and from current published price lists for the same services.

(8) Description of the market research:

Sources Sought notices 70Z03818IL0000006 and 70Z03819IL0000006 were posted to FBO on July 12, 2018, and May 23, 2019, respectively, with no responses received. Market research indicates the HC-144 spare parts are not listed on a General Services Administration (GSA) contract or available through GSA Advantage. DHS Strategic Sourcing vehicles were reviewed and were determined out of scope for this requirement. Market research also consisted of querying the Industry Base System, Inventory Locator System (ILS) and previous procurement history reveals a very limited marketplace. Only one vendor has been found capable of providing the HC-144 spare parts with traceability of parts back to the OEM.

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

The supplies to be procured under this acquisition are highly specialized in nature, developed by a non-Government entity and the technical data required for acquisition by other than the OEM is not available. Airbus Space and Defense, Inc. is the prime contractor and OEM for the HC-144 spare parts. The MRS Engineering Officer has determined that the required parts are critical for flight and has assigned an Acquisition Method Code (AMC) of 3 or 5 and Acquisition Method Suffix Codes (AMSC) of C, Q, or R. In accordance with DoD 4100.39 (series) Volume 10, Table 71, an AMC of 3 or 5 require the purchase of the items required for this service from the actual manufacturer or prime contractor only. An AMSC of C, Q, or R stipulates that the part requires engineering source approval by the design control activity in order to maintain the quality of the part or the data or rights to use the data needed to purchase these parts from additional sources are not owned by the Government.

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

No responses were received in response to the Sources Sought notices, 70Z03818IL0000006 and 70Z03819IL0000006 released to FBO July 12, 2018, and May 23, 2019 respectively. Any responses received prior to the award of this 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 required supplies or services:

The supplies 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 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-144 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.