70Z03823QH0000081 Redacted J and A Radar Transmitter.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

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), Long Range Surveillance (LRS) Contracting Office, Elizabeth

City, North Carolina, 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 USCG intends to procure on a sole source basis, the purchase of: Receiver, Radar Transmitter, P/N: 780R270G10, used on the HC-130J aircraft.

(b) Name and address of the contractor:

NORTHROP GRUMMAN SYSTEMS CORPORATION

1580A W NURSERY RD

LINTHICUM HEIGHTS, MD 21090-2202

Cage Code 97942

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

(d) Estimated total value (including options): $1.6M

(e) Type of funding: PC&I

(f) Year of funding: Fiscal Year 2023

(g) Solicitation number: 70Z03823QH0000081

(h) Background information about the requirement: The specifications, manufacturing drawings, data, test equipment, and tooling required for the manufacture of the Receiver, Radar Transmitters are proprietary to the Original

Equipment Manufacturer (OEM) Northrop Grumman Systems Corp (NGC). This requirement meets the needs of the USCG stakeholders to include the LRS

Product Line and supported USCG Air Stations. Award of this requirement will provide a one-time purchase order for the purchase of spares of critical

Nomenclature Part Number Quantity Unit Price Amount

Receiver, Radar Transmitter 780R270G10 2 each $800,639 $1,601,278

$1,601,278Estimated Total Value components of this system to better support the C-130J fleet as determined by the LRS Product Line. It is a subcomponent of the MMR Radar System, which is the primary weather and target acquisition sensor on the C-130J aircraft. As the

Aviation Inventory Control Point (AICP), ALC must provide effective supply support for all USCG aviation units and for the Programmed Depot Maintenance

Program.

3. Description of Supplies/Services. This requirement will provide new Receiver, Radar

Transmitters as spare inventory to sustain the HC-130J fleet.

The Nomenclature, National Stock Number (NSN), and Part Numbers (P/N) for the receiver, radar transmitters are listed in the table below.

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 Subpart 13.501(a) sole source (including brand name) acquisitions as defined in FAR 2.101.

5. Identification of Exception to the Buy American Act. No exception listed under FAR

25.103(b)(2) or FAR 25.202(a)(2) applies to this requirement. FAR Clause 52.225-1, Buy

American-Supplies (May 2014), as prescribed in FAR 25.1101(a)(1) shall be incorporated into the solicitation and subsequent award.

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

(a) A web search was conducted using ILS Mart which is a web-based parts locator service used by ALC to identify industry venders for new buy sources. A complete search using ILS Mart identified no sources were available for this material. The C-

130J receiver, radar transmitters are defined as a flight critical item. In order to successfully maintain airworthiness of the aircraft and aircraft systems, protect personal safety, and perform the USCG’s mission, acquisition of flight critical items are restricted to approved sources.

(b) There is only one responsible source, NGC, capable of manufacturing a receiver, radar transmitter that is acceptable. NGC was queried as to the status of the manufacturing data, specifically whether or not the data was maintained as proprietary and if NGC had released the data to any third party. NGC confirmed via email, dated 03/21/2023, that all manufacturing data for the C-130J radar transmitter remained proprietary to NGC with no intention to release to any third party. USCG Aviation Engineering has determined that there are no alternate components capable of satisfying this requirement. An AMMIS (Aviation

Maintenance Management Information System) records search revealed historical

Nomenclature National Stock Number

Receiver, Radar Transmitter 5841-01-522-1618

Part Number

780R270G10 data of a previous buy of this material from the OEM, NGC of Warner Robbins, GA.

(c) As previously stated in Section 6(a), acquisition of flight critical items may only be procured through sources approved from an OEM or a source acceptable to USCG Aviation Engineering. A Sources Sought notice was posted in SAM.gov from 04/12/2023 to 04/27/2023. One vendor responded to the notice. However, the OEM, NGC has stated in a proprietary letter NGC is the only authorized distributor.

Therefore, market research concluded that no other manufactures or alternate part numbers (commercial or non-developmental) are available to meet the Government’s requirements.

(d) The use of radar transmitters improves the performance of the aircraft due to being a single component having the dual functions of generating electromagnetic energy for transmission, and of receiving, demodulating, and sometimes presenting intelligence from the reflected electromagnetic energy. Failure to approve this

Justification for Other than Full and Open Competition (J&A) will impact LRS’s ability to successfully perform its DHS-mandated missions. If the J&A is not approved the product will not be provided.

(e) No exception listed under FAR 25.103(b)(2), FAR 25.202(a)(2) or FAR Clause

52.225-1, Buy American-Supplies Section applies to this requirement.

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

Potential Sources as is Practicable.

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

(APFS) No. F2023061479 at https://apfs.dhs.gov on March 1, 2023.

(b) In accordance with FAR 5.203(a)(2) and FAR 12.603 the proposed contract action will be advertised on the Contract Opportunities website beta.SAM.gov as a combined sole source synopsis solicitation. IAW FAR 5.207(c)(16)(ii) the solicitation will include a statement what all responsible sources may submit a proposal which shall be considered by the agency. Sources Sought was posted on 04/12/2023.

(c) An announcement shall be published, therefore an exception under FAR 5.202 is not applicable.

(d) An announcement shall be published prior to award, therefore an exception under FAR

6.305 is not applicable.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable. The Contracting Officer determines that the anticipated price(s) will be fair and reasonable based on comparison of prices proposed with the IGCE, USCG pricing obtained from historical AMMIS, FEDLOG and OEM catalog prices.

9. Description of Market Research.

(a) Market Research was conducted from January 2023 through March 2023 and revealed the commercial marketplace consists of only one source capable of satisfying this requirement. As stated previously, NGC was queried as to the status of the manufacturing data, specifically whether or not the data was maintained as proprietary and if NGC had released the data to any third party. NGC confirmed via email, dated

03/21/2023 that all manufacturing data for the C-130J radar transmitters remained proprietary to NGC with no intention to release to any third party.

Additionally, Sources Sought notice was posted in SAM.gov from 04/12/2023 to

04/27/2023. One notice of interest was received. However, NGC confirmed that there are no domestic distributors for these items and NGC is the only authorized distributor.

There are no other potential sources of supply. These components were developed by

NGC at private expense. Therefore, the component meets the definition of commercial items are FAR 2.101. This J&A will be posted to the Government Point of Entry (GPE) via beta.SAM.gov. Any capability statement, proposal, or quotation received in response will be considered prior to award.

(b) An exception listed under FAR 25.103(b)(2) or FAR 25.202(a)(2) does not apply to this acquisition.

(c) Market research was conducted; therefore, this section does not apply.

(d) The OEM, NGC owns all necessary rights to proprietary data for the manufacturing of the radar transmitter and has no intention to release the data to any third party.

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

(a) The Government did not procure the manufacturing data as part of the initial purchase and the specifications, manufacturing drawings, data, test equipment, and tooling required for the manufacture of the radar transmitters remain proprietary to the OEM, NGC. This requirement is for the purchase of spare radar components of the C-130J

Aircraft.

(b) Absent the proprietary data, fostering competition would depend on a reverse engineering effort and self-certification by USCG Engineering Personnel; both efforts would result in duplicative costs, extensive testing, and unacceptable delays and would be extensive to overcome the sole source barrier. Therefore, no alternate parts or deviations from the

OEM specification will be considered at this time.

(c) The proposed contract shall not be subject to the restrictions of FAR 6.302-1 for follow-on acquisitions as described in 6.302(a)(2)(iii).

(d) The proposed contract shall not be subject to the restrictions of FAR 6.302-2(d) or HSAR

3006.302-270.

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

Acquisition.

• No capable sources have been identified in the acquisition other than NGC.

However, one notice of interest was received in response to Sources Sought notice in SAM.gov. As previously mentioned, not acceptable on basis of there are no domestic distributors for these items and NGC is the only authorized distributor. The USCG has not received any inquires or notice of interest in response to the APFS No. F2023061479.

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) This requirement will provide radar transmitters as spare inventory to sustain the C-

130J fleet. The Government did not procure the manufacturing data as part of the initial purchase and the specifications, manufacturing drawing, data, test equipment, and tooling required for the manufacture of the brakes and wheel remains proprietary to the OEM, NGC. Absent the proprietary data, fostering competition would depend on a reverse engineering effort and self-certification by USCG Engineering Personnel;

both efforts would result in duplicative costs, extensive testing, and unacceptable delays. The USCG will continue to conduct market research and make every reasonable effort to remove barriers from competitions.

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