Attachment 4 - Redacted JA.doc

70Z03820QW0000043

Justification for Other Than Full and Open Competition Under 41 U.S.C 1901 Limited Source Justification Solicitation Number: 70Z03820QW0000043 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 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 Division seeks approval to award a Firm Fixed Price Purchase Order for overhaul of the HC-27J Main Landing Gear (MLG) Assemblies on a sole source basis to Leonardo SpA, the aircraft Original Equipment Manufacturer (OEM). This effort supports the scheduled Programmed Depot Maintenance (PDM) of the HC-27J aircraft fleet.

Market research on previous efforts indicated two possible sources able to coordinate the MLG overhaul effort: MLG OEM, APPH Limited dba Heroux-Devtek in England, and the aircraft OEM, Leonard SpA in Italy. However, a letter received from Heroux-Devtek on December 12, 2018, specified that an agreement was signed between Leonardo SpA and Heroux-Devtek on October 9, 2018, granting Leonardo SpA exclusive rights to all HC-27J Main Landing Gear supply, including overhaul services, for 20+ years. This letter states in part: “This agreement prevents Heroux-Devtek from bidding for, or from receiving any further orders from C27J Operators or third parties…”

Type of action: The USCG intends to award on a sole source basis one (1) purchase order with firm-fixed prices for the overhaul of one (1) set HC-27J MLG assembly.

(a) Nature of action: The USCG intends to procure on a sole source basis one (1) purchase order with firm-fixed prices for the overhaul of one (1) HC-27J MLG assembly set.

(b) Name of address of the Contractor:

Leonardo SpA

Piazza Monte Grappa 4

Roma, Italy, 00195

Cage Code: A1512

POC: Luca Elio Nuzzo

Ph: +39 081 8871539

Email: lucaelio.nuzzo@leonardocompany.com

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

(d) Estimated total value: $670,000

(e) Type of funding: Operations & Support (O&S)

(f) Year of Funding: FY 2020

3. Description of Supplies/Service. The USCG ALC, Elizabeth City, NC has a requirement to overhaul one (1) HC-27J MLG assembly set. The overhaul of the left and right hand assemblies is essential to avoid grounding of aircraft. The anticipated contract action will have an estimated total value of $670,000 to be funded with FY 2019 O&S 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.

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 Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Required Use of the Authority Cited. The overhaul to be procured under this acquisition is highly specialized, designed and manufactured by a non-Government activity and the technical data required for acquisition by other than the aircraft OEM is not available. In addition, the MLG assembly is considered a Flight Critical Safety Item (CSI) and as such, MRS Engineering personnel have determined that in order to ensure safety of flight, overhaul and repair functions must be accomplished in accordance with (IAW) Commercial Maintenance Manuals (CMM) which are maintained only by the MLG OEM, Heroux Devtek, or the designee, Leonardo SpA. The technical data for the MLG assembly which is used on the HC-27J aircraft, has not been released or sold to any Government agency and overhaul functions must adhere to the specifics of the OEM CMM.

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 limited 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 competed among all eligible offerors.

This acquisition is forecasted in the Department of Homeland Security (DHS) Acquisition Planning Forecast System (APFS), number F2020049181 published on January 22, 2020, 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 from current published price lists.

8. Description of Market Research. The market research consisted of reviewing the aircraft OEM’s, Leonardo SpA, 2019 new and repair price lists individually with lead time information. Previous Heroux-Devtek overhaul pricing information was reviewed to include MLG assembly OEM pricing. In addition to the pricing lists, the online DOD EMALL and FedLog were searched with negative results. Market research focused on identifying new sources of supply for the components covered under this J&A, but resulted with no firm competition. 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.

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 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, 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.

Kia Walton

Date

Contracting Officer, USCG, ALC, MRS

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.

Sam Vigo

Supply Cell Item Manager, USCG, ALC, MRS

14. Legal Review and Concurrence:

I have reviewed this justification and deemed it legally sufficient.

Allen Lotz

Procurement Law Division (LSC-ALC) USCG

APPROVAL:

Monique H. Swinson

Supervisory Contracting Officer, USCG, ALC, MRS