70Z03820RJ0000001 - Attachment 4 - Redacted J-A.pdf

Justification for Other Than Full and Open Competition Under 10 U.S.C. 2304 (c)(l) Only One Responsible Source and No Other Supplies Will Satisfy Agency Requirements

Overhaul of Spindles, Modulation Valves, Bifdar Assemblies, Hubs, and Retention Plate Assemblies

Solicitation No. 70Z03820RJ0000001

Pursuant to the requirements of the Competition in Contracting Act (CICA), as implemented by the 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 Department of Homeland Security (DHS), United States Coast Guard (USCG), Aviation Logistics Center (ALC), Medium Range Recovery (MRR) Product Line Division, proposes to enter into a contract on a basis of other than full and open competition.

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

The MRR Procurement Branch requests approval to solicit and award, on a sole source basis, an Indefinite Delivery Requirements Type Contract for the overhaul of MH-60T Spindles, Modulation Valves, Bifilar Assemblies, Huhs, and Retention Plate Assemblies. Firm Fixed-Price (FFP) task orders will be issued off the base contract as Overhaul Services are required. The components are required for outfitting the USCG aircraft with the latest designed/drawing revision authorized on the MH-60T model and are essential to avoid grounding of the aircraft. All specifications, manufacturing drawings, data, test equipment, and tooling required to overhaul these components are proprietary to Sikorsky Aircraft Corporation (SAC). Stakeholders include the MRR Product Line Division and supported USCG Air Stations. This requirement will be solicited utilizing FAR Part 12 Acquisition of Commercial Items and FAR Part 15 Contract by Negotiation. The services will be purchased with Operations and Support (OS) (Fiscal Years 2020-2024) funds via issuance of individually funded Task Orders.

The previous contract was solicited on a sole source basis and awarded to SAC, a large business. USCG intends to award on a sole source basis this effort to SAC; contact information is as follows:

The estimated

29, 202

Sikorsky Aircraft Corporation 6900 Main Street POBox9729 Stratford, CT 06614-1385 Cage Code: 78286

29, 2021 - , 2022 29, 2022 - 8, 2023 9, 2023 - 8, 2024 9, 2024 - 8, 2025

Total Estimated Value

OnJy c.lne Responsible Source and No Other Supplies Will Satisfy Agency Requirements

Overhaul of Spindles, Modulation Valves, Bir.Jar Assemblies, Hubs, and Retention Plate Assemblies

Solicitation No. 70Z03820RJ0000001

(3) Description of Supplies/Services.

This overhaul requirement will provide replacement Ready for Issue spares for the fleet and programmed depot maintenance. The basic objective of this requirement is to preserve service life, reduce life cycle cost, and increase mission capabilities. The overhaul of these components is necessary for the operational needs of the MH-60T rotor. Rotors and ancillary components aid in the creation of lift for flight and forward movement of the helicopter. The Spindles, Modulation Valves, Bifilar Assemblies, Hubs, and Retention Plate Assemblies are necessary components, supporting the rotor head and the overhaul of these components is an ongoing, continual requirement for aircraft readiness.

The USCG currently operates a fleet of forty-five (45) MH-60T rotary wing aircraft. This specialized, high demand aircraft currently enables the USCG to perform missions such as search and rescue, law enforcement, international ice patrol, marine environmental protection, and marine resource conservation. With such a demanding operational tempo, aircraft condition and availability are essential to mission success. The components are interchangeable throughout the MH-60T fleet and are a flight Critical :;afety Item (CSI). SAC is the Original Equipment Manufacturer (OEM) of these components.

Delivery ranges from ninety (90) to one hundred and fifty (150) calendar days after induction, contingent upon component.

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

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304 (cXl) as implemented by FAR 6.302-1 entitled "Only One Responsible Source and No Other Supplies will Satisfy Agency Requirements."

(5) Identification of Exception to the Buy American Statute.

The requirement for the overhaul of spindles, modulation valves, bifilar assemblies, hubs, and retention plate assemblies does not require an exception to the Buy American statute.

(6) Demonstration that the proposed contractor's unique qualifications or the nature of the acquisition reqnires use of the authority cited.

The specifications, manufacturing drawings, data, test equipment, and tooling required to overhaul the components are proprietary to SAC. The USCG did not purchase rights to the proprietary data required to foster a competitive environment as part of any original provisioning for use on the MH-60T rotary wing am.raft and the costs to procure this data would be cost prohibitive. SAC was contacted on September 30, 2019 to inquire about the release of any proprietary technology to the USCG or any · distributors and as stated previously, their technology is proprietary and resale of their proprietary technology is prohibited.

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Overhaul of Spindles, Modulation Valves, Bifdar Assemblies, Hubs, and Retention Plate Assemblies

Solicitation No. 70Z03820RJ0000001

The components are interchangeable throughout the MH-60T fleet and are considered a CSL In order to successfully maintain airworthiness of the aircraft and aircraft systems, protect personnel safety, and perform the USCG's mission, acquisition of CS Is is restricted to approved sources. A CSI is a part, assembly, installation or production system with one or more critical characteristics that, if not conforming to the design data or quality requirements, would result in an unsafe condition. Unsafe conditions relate to mishap severity categories I (Catastrophic) and II (Critical), and include conditions which CC''.1ld cause loss or serious damage to the end item or major component, loss of control, serious injury to personnel, or death of personnel. In order to successfully maintain airworthiness of the aircraft and aircraft systems, protect personnel safety, and perfonn the USCG's mission, the acquisition of CSls is restricted to approved sources.

The Aviation Critical Safety Item Management Handbook, March 16, 2011, Page 7-1, Paragraph 7.1, CSI Procurement Restrictions, states "CSis and services for CSls (such as repair, overhaul, etc.) must be procured only from approved sources." Per ALC Instruction 4200.3A, ALC Spare Parts Breakout/New Product Development, dated January 27, 2011, CS Is may only be procured through approved sources.

In addition, the United States Naval Supply Weapons System Support (NA VSUP WSS) is the Primary Inventory Control Agency and has sole authority and responsibility for certifying sources of supply and support for MH-60T components. Certification of sources of supply was e.xecuted in accordance with Public Law 108-136 Section 802 of the Defense Appropriations Act of 2004 and Naval Air Systems Command Instruction (NA V AIRINST) 4200.56. Responsible sources are limited to NA VSUP WSS approved sources. ALC is the Coast Guard's Primary Inventory Control Agency and has sole authority and responsibility for certifying sources of support for unique parts used on the Coast Guard aircraft model. SAC is the only known ALC MRR Engineering approved source. There are no other overhauling sources or alternate part numbers available to meet the Government's requirements. Failure to approve this sole source Justification for Other Than Full and Open Competition (J&A) will jeopardize performance of MRR's mission due to grounding of the aircraft as a result ofno stock being available. as required.

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

This procurement forecast is posted as DHS -Acquisition Planning Forecast System (APFS) No:

F2019045286 on http://apfs.dhs.gov and was included in the DHS Forecast of Small Business Opportunities. A Request for Proposal Notice 70Z03820RJ0000001 will be posted to the Government-wide Point of Entry (GPE) via https://beta.sam.gov/ on or before March 20, 2020 with an estimated response date of April 23, 2020. A copy of the approved J&A on a sole source basis will be uploaded with the notice. Market research confinned SAC is the only approved overhaul source for the components specified herein. Any capability statement, proposal, or quotation received in response to the notice will be considered prior to award.

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Only One Respon1lble Source and No Other Supplies Will Satilfy Agency Requirements

Overhaul of Spindles, Modulation Valves, Bifilar As1emblles, Hubs, and Retention Plate Assemblies

Solicitation No. 70Z03820RJ0000001

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

The contracting officer determines that the anticipated price(s) will be fair and reasonable based on pricing information collected from market research and the previous paid contracted prices which was used in the development of the Independent Government Cost Estimate (IGCE) for this requirement.

The current Producer Price Index escalation rate based on the Final Demand-Intermediate Demand aggregation system was applied. Per FAR Part 15.402, the Contracting Officer may request data other than certified cost or pricing data as necessary to establish a fair and reasonable price. The Contracting Officer anticipates comparison of prices proposed with historical pricing, the IGCE, along with the data other than certified cost or pricing data will establish price reasonableness.

(9) Description of Market Research.

Marlcet research was conducted in accordance with FAR Part 10 from January to December 2019.

Department of Homeland Security (DHS) APFS entries were reviewed and there were no previous APFS entries. A review of the Asset Maintenance Management Information System (AMMIS) database history was conducted. The MRR Product Line has been in constant communication with the Navy regardin1s the sustainment of the MH-60T aircraft and knowledgeable individuals were interviewed within the Government. Government databases such as General Services Administration (GSA), Federal Logistics repository (FED LOG), and FEDMALL were all reviewed as part of market research.

Existing OHS-wide and-multi-component contract vehicles with DHS Strategic Sourcing Program Office and/or on DHS Enterprise-wide Contract Vehicle Portal were reviewed and were determined out of scope of this procurement. Market Research confirmed SAC is the only approved overhaul source for the components specified herein. The components are commercial in nature and prevalent in private aviation and commercial aviation and are used on other military aviation aircraft; Navy MH-60T models. All terms and conditions are not expected to differ from customary terms and conditions in the marketplace or standard Government practices. Contract financing is not applicable to this requirement.

There are no laws or regulations unique to this requirement. No environmentally preferable services were identified during market research and the Trades Agreement Act, Section 508 regulations, and Safety Act are not applicable to this requirement. The Buy American statute is applicable to this order and will be included in the solicitation and award.

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

SAC is the only approved source to overhaul the components, therefore, the acquisition is not suitable for full and open competition. Inquiries were made on September 30, 2019 to determine if SAC would sell the intellectual property data rights for the components being overhauled and SAC responded on October 7, 2019 that they Hshall retain exclusive rights to any intellectual property associated with the

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Overhaul of Spindles, Modulation Valves, Bifilar Assemblies, Hubs, and Retention Plate Assemblies

Solicitation No. 70Z03820RJ0000001 overhaul of the Spindles which includes any associated items, components, processes, or procedures that were developed or created exclusively at SAC's private expense, and does not grant rights to the USCG through consent, license, or sale." Failure to approve this sole source J&A will jeopardize performance ofMRR's mission due to grounding of the aircraft as a result ofno stock being available as components are required. See Attachment l.

(11) A Listing of the Sources, if Any that Expressed, in Writing, an Interest in the Acquisition.

No vendors have expressed an interest, in writing, in regards to this acquisition. A combined synopsis/solicitation will be issued through Contract Opportunities on Beta SAM website upon approval of this document. Once the Justification and Approval for Other than Full and Open Competition has been po~~.ed to Beta SAM, all offerors will be considered.

(12) 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.

There is only one (1) responsible source approved by NA VSUP WSS and ALC MRR Engineering to perform the overhaul requirements, which is SAC. The USCG did not purchase rights to the proprietary technology required to foster a competitive environment as part of any original provisioning for use on the MH-60T aircraft. Every reasonable effort will be made to remove barriers to competition for future requirements. These efforts will include continuing to identify additional sources that may eventually become approved by NA VSUP WSS to perform the overhaul requirements.

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.J11stification for Other Than Full nnd 01wn Compclition Under 10 U.S.C. ?304 (c){l} Only One Responsible Source aod No Other Supplil.'s \\'ill Sutisfy Agency Requirements

O\'crhau[ of Spindtes, Modulation Vah:e5, Bifilnr Assemblies, Huhs, and R.ctenlion Plate Assemblies

Solicit:1tioo No. i0Z03820R.J000000 l

(f2) ContritctingOfficcr's Ccrtificntioll.

l certify that the data supporting the rl!comllll!nd.:d use of other than full and op..:.n competition is accumtc and complete to the bcsl ofmy knowledg;.: 'and belief.

(13) Technical/Requirements Personnel Ccrtifacation.

I c.:rtilY this requirement meets the Govemmem·s minimum need and that lhe supporting data, which fonns a basis for this justification. is complete and accurate.

--Date

(14) Legal Re\'ieW and Concurrence.

I reviewed this Justification and Approval for Other Than Full and Open Competition in accordance with HSAM 3006.304-70.

Date

(15) Concurrence:

Rcricws:

JutificaCiea (itr Other Th:1n Fllll and Open Competition Under 10 U.S.C. 1304 (c){l} Only One Responstble Source and No Other Sap,Ues Will Sa.tisfy Agency Reqlliremenb

Overt.aul ofSpilldles, Mod.o.btiun Valves, Bifill!:r Assemblies, Httlfs, and Retention Plate.

Assemblies

Solicitation No. 70l.03820RJOOOOOOl

Re\iews (cOHtiHtLed):

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