70Z03822QS0000012 - Attachment 7 - Redacted JA.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

70Z03822QS0000012

In compliance with Federal Acquisition Regulation (FAR) 13.501(a)(ii), this justification uses the format at FAR 6.303-2 and is modified to state that the procedures in FAR subpart 13.5 are used.

1. Agency and Contracting Activity.

The Department of Homeland Security, United States Coast Guard (USCG), Aviation

Logistics Center (ALC), Aviation Logistics Division (ALD) prepared this justification for other than full and open competition.

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

(a) Nature of the action: The ALD Procurement Branch requests approval to solicit and award, on a sole source basis, a contract for Automated

Weight and Balance System (AWBS) software support services for ALC.

The Original Equipment Manufacturer (OEM) for the AWBS software is

Lockheed Martin Corporation (LMC), who is also the only Aeronautical

System Center approved source for these services.

(b) Name and address of the contractor:

Lockheed Martin Corporation (LMC)

1 Lockheed Blvd

Fort Worth, TX 76108-3619

CAGE Code 81755

(c) Type of action: Firm-Fixed Price Indefinite Delivery Requirements type contract consisting of a one-year Base Period and up to four (4) one-year

Option Periods, if exercised. The services to be provided will be purchased using individually funded firm-fixed price task orders.

(d) Estimated total value (including options): broken down as follows:

Period Total

Base Year 12 mo.

Option Year 1 12 mo.

Option Year 2 12 mo.

Option Year 3 12 mo.

Option Year 4 12 mo.

Note: These services were previously awarded under USCG contract HSCG38-17-D-

S00001. The period of performance for this USCG contract ends on 20 September 2022.

(e) Type of funding: Operations and Support funds

(f) Year of funding: Fiscal Year 2022 through 2027 funds will be used as appropriate.

(g) Solicitation number: 70Z03822QS0000012

(h) Background information about the requirement: The AWBS software support services identified in this requirement include software upgrades and maintenance, software training, software server hosting services, and software help desk support as well as upgrade an sustain the current HC-130 Automated

Form F, which is no longer certified, as well as design, develop, field, and sustain new software Automated Form F’s for the MH60, MH-65, HC-144, HC-27, and other aircraft as required. LMC owns the proprietary data and rights to the software and is the only Aeronautical System Center, located at Wright-Patterson

Air Force Base, approved source.

3. Description of Supplies/Services.

The contractor shall provide AWBS software support services and sustainment for all

USCG aircraft. Aircraft weight and balance is conducted using AWBS software which calculates and stores weight and balance data necessary to complete weight and balance charts and forms for all USCG aircraft. Use of the AWBS software across all U.S.

Government agencies allows for interchange of aircraft records and increases the accuracy, effectiveness, and ensures the Government aircraft are operating in a safe and efficient manner. Only the latest version of AWBS software is authorized for use.

USCG aircraft shall be weighed when any of the following conditions exist: at initial delivery to USCG inventory; following programmed depot maintenance; when major modifications or structural repairs are made that affect the weight and balance of the aircraft; when the calculated weight and balance data is suspected of being in significant error; whenever specified by Asset Computerized Maintenance System (ACMS); and when unsatisfactory flight characteristics are reported which cannot definitely be determined as caused by faulty flight control system, improper loading, or error in weight and balance data and/or computations. Painting can drastically change the aircraft weight and balance, therefore weight and balance is conducted on aircraft after stripping of paint and/or painting.

Proper weight and balance calculations ensure the aircraft will be flown within the approved center of gravity and weight limits and is critical for safety of flight.

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 implemented by FAR 13.501(a), Sole source (including brand name) acquisitions.

5. Identification of Exception to the Buy American Act.

This requirement is for AWBS software support services, therefore the Buy American Act does not apply to this requirement.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Require Use of the Authority Cited.

(a) The use of 41 U.S.C 1901 is necessary because LMC is the software OEM and only

Aeronautical System Center approved source for this requirement.

(b) In 2000, LMC designed and developed the AWBS software at their cost. The government purchased the software which is now utilized by all branches of the military. The AWBS software is used to maintain weight and balance records for both fixed and rotary wing aircraft. The Government has unlimited rights for distribution and use of the AWBS computer program, however LMC retains all data right to the AWBS computer software (source code). LMC is the only company that can modify the AWBS program and update the source code, which adds new features and is vital to aircraft safety. LMC is the only company who has the AWBS program that includes the software which calculates all center of gravity limits, in-flight limits, and fuel weights for the HC-130, MH-60, MH-65, HC-27, and HC-144 aircraft. The software calculates the best and worst case scenarios including mission configurations of the specific Mission Design Series.

The software significantly reduces the chances of error in calculations and helps determine the aircraft will stay within safety limits throughout the duration of the flight.

The USCG was a participant of the Joint Integrated Product Team along with representatives from the Air Force, Nave, and Army, who jointly provided guidance and input to LMC to certify the AWBS software provided the necessary weight and balance functions to aid the user in maintaining weight and balance records. In accordance with Air Operations Manual - Commandant Instruction

(COMDINST) M3710.1 (series), Aeronautical Engineering Maintenance

Management Manual - COMDINST M13020.1 (series), and Air Force Weight and

Balance Technical Manual CGTO 01-1B-50, the AWBS software has been approved by the Aeronautical System Center located at Wright-Patterson Air

Force Base, as the standard automated weight and balance software to be used by

U.S. Government agencies and their contractors. Standardization of AWBS software across all U.S. Government agencies allows for interchanging of AWBS records and increases record accuracy, effectiveness, and ensures Government aircraft are operating in a safe and efficient manner. The Joint Integrated Product

Team meets annually to decide by vote the changes to be made to the AWBS software, with each agency holding the right to release the latest AWBS software at their choosing.

The AWBS software currently utilized by the USCG incorporates the USCG’s unique flight profile for each of its aircraft platforms. Over time, the limiting weight and balance factors have become more complex and many errors in interpreting the weight and center of gravity results have occurred. Increases in the number of weight limits, in-flight limits, tire limits, nose wheel steering limits, and fuel capabilities have compounded the problem. Multiple limits make identifying unsafe aircraft even more critical. The software calculates all center of gravity limits, in-flight limits, and fuel weights and moments. The software calculates the best and worst case scenarios including mission configurations of the specific Mission Design Series. The software significantly reduces the chances of error in calculations and helps determine the aircraft will stay within safety limits throughout the duration of the flight.

Legacy attempts to piecemeal server and technical support have proven woefully inadequate and subjected operational units to revert to non-standardized and untested weight and balance computations, with widely disparate results. A lack of centralized server support, aligned with software help desk support, limits the data management application and program oversight. These deficiencies, in addition to the USCG’s ongoing cyber security requirements, have placed weight and balance sustainment at-risk of service-wide failure.

(c) Alternative sources could not be considered due to LMC being the software OEM and only authorized source by the Aeronautical System Center for use throughout the U.S. Government agencies and their contractors.

(d) A lapse in contractual coverage, even if for a brief period of time, would result in all required AWBS support having to be negotiated under other contracting actions

(i.e., purchase orders, etc.) resulting in lengthy award processes; AWBS software could become outdated and no longer be authorized for use by USCG; USCG would no longer be authorized for use of LMC’s AWBS server, which is used to store

USCG records and data; and USCG would no longer have access to the AWBS Help

Desk support, software training, or software server hosting services. There is currently no storage limit on the server for USCG data and records, no limitations on the network bandwidth available, which would be subject to change is a lapse in services occurs.

(e) The exemption at FAR 25.103(b)(2) is not taken.

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

Potential Sources as is Practicable.

(a) This procurement was forecasted in the DHS Acquisition Planning Forecast System

(APFS) No. F2022057549 on 8 March 2022 and included in the DHS Forecast of Small

Business Opportunities. There were no inquiries received in response to the published

APFS.

(b) In accordance with FAR 5.230(a)(2) and FAR 12.603, the proposed contract action will be advertised on the Contract Opportunities website at SAM.gov as a sole source combined synopsis/solicitation. The estimated date of publication is 10 August 2022.

(c) The exceptions under FAR 5.202 do not apply to this requirement.

(d) The exceptions under FAR 6.305 do not apply to this requirement.

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

The Contracting Officer anticipates that prices for this procurement will be determined fair and reasonable based on comparison to previous prices paid (FAR Subpart 15.404- 1(b)(2)(ii)), comparison to the Independent Government Cost Estimate (IGCE) (FAR Subpart 15.404-1(b)(2)(v)), and to similar services in a related industry (FAR Subpart 15.404-1(b)(2)(vi)).

9. Description of Market Research. In accordance with FAR Part 10, various methods of market research were launched for this requirement.

(a) Market research was conducted from October 2021 through June 2022 and consisted of

Internet searches and utilizing General Services Administration (GSA) Advantage. A review was conducted of the Asset Maintenance Management Information System

(AMMIS) database history. Existing DHS-wide and multi-component contract vehicles with DHS Strategic Sourcing Program Officer and/or on DHS Enterprise-Wide contract

Vehicle Portal were reviewed and determined out of scope for this procurement.

(b) This J&A requirement does not include the exceptions at FAR 25.103(b)(2) or FAR

25.202(a)(2) for the Buy American Act.

(c) Market research has been conducted.

(d) This requirement does not have nor requires patents, copyrights, and/or intellectual property.

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

(a) The USCG does not own the necessary technical data required to support the AWBS software in this requirement. The technical data and AWBS software support services are proprietary and available only from the OEM.

(b) The AWBS software support services identified cannot be provided from any other source than LMC. Use of the AWBS software across all U.S. Government agencies allows for the interchange of aircraft records and increases the accuracy, effectiveness, and ensures the Government aircraft are operating in a safe and efficient manner.

(c) This requirement is not a follow-on for the continued provision of highly specialized services pursuant to FAR 6.302(a)(2)(iii).

(d) Not applicable to FAR 6.302-2(d) or HSAR 3006.3020270. This is not considered unusual and compelling urgency.

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

Acquisition.

No other sources have expressed interest in this acquisition. The Contracting Officer will evaluate any inquiries or responses received prior to the award of the contract.

The proposed contract action will be advertised on the SAM.gov website and will include a statement that all responsible sources may submit a quotation with a capability statement, which shall be considered by the agency.

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.

(a) Complete specifications and data for the AWBS software is proprietary to the OEM and therefore, not available to the USCG. Absent unrestricted access to the source codes, there is little the USCG can do to foster additional competition.

(b) LMC has asserted that the AWBS software was developed at private expense and then sold to the U.S. Government, excluding the source code. LMC has not expressed any desire to sell the proprietary source code information to a third party. There are no actions the USCG can take to remove or overcome barriers to competition for this requirement. In the event that LMC chooses to release the source code, the acquisition of the AWBS software will be pursued on a full and open basis.

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