Attachment 3 Redacted J and A - 70Z03825QB0000009.pdf

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

SOLICITATION NO. 70Z03825QB0000009

In compliance with Federal Acquisition Regulation (FAR) 13.501(a)(1)(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 United States Coast Guard (USCG), Aviation

Logistics Center (ALC), Short Range Recovery (SRR) Product Line Division, Elizabeth

City, North Carolina intends to award a firm-fixed price purchase order on the basis of other than full and open competition.

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

(a) Nature of the action: The USCG, ALC, SRR Product Line Division intends to procure two (2) Nose Landing Gear on a sole source basis used on the MH-65 Aircraft. The part is manufactured by Safran Landing

Systems, the Original Equipment Manufacturer (OEM). The only authorized distributor in North America is Airbus Helicopters, Inc. (AHI), who handles the parts and products on behalf of the aircraft manufacturer

(Airbus Helicopters France (AHF) as indicated in Attachment 1. The total estimate cost for this J&S approval is $435,852.

(b) Name and address of the contractor:

Airbus Helicopters, Inc.

2701 Forum Drive

Grand Prairie, TX 75052

Cage Code: 3GSZ1

(c) Type of action: The USCG intends to award a Firm-Fixed Price

Purchase Order.

(d) Estimated total value: $435,852

Note: This part has been procured via purchase orders.

(e) Type of funding: Operations and Support funds

(f) Year of funding: Operation and Support Funds will be provided for Fiscal Year

2025.

(g) Solicitation number: 70Z03825QB0000009

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(h) Background information about the requirement: The items in this requirement are assigned an Acquisition Method Code (AMC) of five (5), which designates

“Acquire from Sole Source Contractor which is not the Original Manufacturer.”

In addition, items are designated an Acquisition Method Suffix Code (AMSC) of

C which means Source Restricted, requires engineering source approval to maintain quality. This part must be acquired from an approved source that has unique design capability, engineering skills, and knowledge of manufacturing process. The approved source retains data rights, manufacturing knowledge, or technical data essential to maintaining quality assurance. At this time the

Government does not have adequate data needed to purchase the items from additional sources.

3. Description of Supplies/Services. As the Aviation Inventory Control Point (AICP), ALC must provide effective supply support for all USCG aviation units and for the

Programmed Depot Maintenance (PDM) Program. This requirement is to be awarded to the OEM, or a responsible source, that has access to the original OEM parts and can provide traceability. This part is crucial to meet the USCG’s many missions. The material and estimated quantities to be procured are based on current and past usage data.

Projected stocking levels are based on failure and corrosion trends, current upgrades and modifications in process, historical and projected scrap rates, and procurement lead times.

Stock level recommendations are also obtained from the USCG’s forecasting tool to ensure we can support all our mission requirements.

The following is the part number included in this J&A: 704A41420053

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 the FAR Section 13.501(a) entitled “Sole Source

(including brand name) requirements.” Responsible sources are limited to the OEM and their authorized distributors.

5. Identification of Exception to the Buy American Act. The 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.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Require Use of the Authority Cited. ALC has a requirement to purchase, on a one-time basis, the nose landing gear manufactured by the OEM, Safran

Landing Systems. AHF is the aircraft manufacturer and has only one (1) authorized source of supply for North American customers, their affiliates, AHI, located in Grand Prairie, TX.

The USCG self-certifies its aircraft in accordance with the standards established by the Code of Federal Regulations (CFR) and the Federal Aviation Administration (FAA). 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. 14 CFR 21 defines

Last Updated 11/01/24 Page 3 of 8 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 accordance with

14 CFR 21.9, with limited exceptions, only a replacement or modification article produced under a type certificate or produced under an FAA production approval is suitable for installation on a type-certificated product. The USCG will only procure parts which have airworthiness approval. In accordance with 14 CFR 21.9, with limited exceptions, only a replacement or modification article produced under a type certificate or produced under an

FAA production approval is suitable for installation on a type-certified product.

Title 14 of the CFR Subpart K covers the procedures for the FAA Parts Manufacturer

Approval (PMA). The FAA PMA process is acceptable for an alternate manufacturer for the parts listed in this requirement, provided that the vendor submits a complete data package ensuring that the part meets or exceeds OEM specifications and subsequently passes the

USCG form, fit, and function requirements. To date, there are no known approved FAA

PMA’s for the parts listed in this requirement.

The FAA issued Advisory Circular (AC) 20-62 (series) to provide information and guidance for use in determining the eligibility, quality, and identification of aeronautical replacement parts and materials intended for installation on United States (U.S.) type-certificated products and articles, and to enable compliance with Title 14 of the CFR. The AC states that acceptable replacement articles should be identified using one of the following methods:

1) If applicable, Airworthiness Approval Tag (FAA Form 8130-3).

2) If applicable, Foreign manufactured replacement parts when there is a Bilateral

Airworthiness Agreement (BAA) between country of manufacture and the U.S.

This certification may be verified on a form similar to the FAA Form 8130-1 (i.e.

European Aviation Safety Agency (EASA) Form 1);

3) FAA Technical Standard Order (TSO) markings;

4) FAA PMA symbol;

5) Production Approval Holder’s (PAH) documents or markings;

6) Direct ship authority. In order for manufactured parts with direct ship authority to be recognized as being produced under a manufacturer’s FAA production approval, the manufacturer must specifically authorize the shipping supplier, in writing, and must establish procedures to ensure that the shipped parts conform to the approved design and are in condition for safe operation;

7) Maintenance release document;

8) Identification of critical components; and

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9) Marking of life-limited parts.

The AC also states that aircraft part distributors and aircraft supply companies cannot certify the airworthiness of the parts they advertise and/or sell unless they are a PAH.

Therefore, it is the installer’s responsibility to ensure airworthiness and to request documentation establishing traceability to a PAH.

Parts provided that do not meet the CFR and FAA requirements could compromise structural and system integrity of the aircraft, putting aircrew personnel and Government property at risk. The USCG neither compromises nor makes exceptions in matter of human safety and protection of Government property and does not accept standards in these manners.

Use of OEM parts will ensure the 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.

AHI is the only known vendor that can provide the Certificate of Airworthiness and traceability to the OEM as required by the CFR and FAA.

(a) The use of 41 U.S.C. 1901 is necessary because AHI is the only OEM authorized distributor in North America.

(b) In attempt to promote competition, extensive market research was conducted.

However, because of the OEM having only one (1) authorized distributor, the probability of any distributors obtaining prices for the part numbers in the requirement are unlikely.

(c) Alternate sources could not be considered due to there are no known approved FAA

PMA for the parts in the solicitation that meets or exceeds OEM specifications and subsequently passes the USCG form, fit, and function requirements. In addition, there is only one (1) North American OEM authorized distributor.

(d) In order to maintain structural integrity of the aircraft and ensure complete compatibility of replacement parts, the parts listed in this requirement must be obtained from the OEM and their authorized distributor. Parts produced by another manufacturer will compromise structural and system integrity of the aircraft, putting aircrew personnel and Government property at a safety of flight risk. The USCG neither compromises nor makes exceptions in matter of human safety and protection of Government property and does not accept lower standards in these matters.

Therefore, the mission will be impacted as a result of this J&A not being approved as stated above and not having these parts will negatively impact flight operations of the SRR aircraft and progress of PDM. In a fiscal and stockage environment requiring minimal investment in inventory, it is critically important to secure a reliable supplier that can satisfy the contractual requirements needed to react to ever-

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

Potential Sources as is Practicable.

(a) This procurement forecast was posted on the DHS-Acquisition Planning Forecast System

(APFS) Number F2025068648 at http://apfs.dhs.gov, published November 5, 2024, and included in the DHS Forecast of Small Business Opportunities. There were no inquiries received in response to the published APFS.

(b) The proposed contract action will be advertised on the Contract Opportunities website, www.SAM.Gov as a combined sole source synopsis/solicitation. IAW FAR

5.207(c)(16)(ii), the solicitation/synopsis will include a statement that all responsible sources may submit a proposal with a capability statement, which shall be considered by the agency. The estimated date of publication is Dec. 16, 2024.

(c) The exceptions under FAR 5.202 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 the prices for this procurement will be fair and reasonable. This is based on comparison of proposed prices found reasonable on previous purchases (FAR Part 13.106-3(a)(2)(ii)), comparison with similar items in a related industry (FAR Part 13.106-3(a)(2)(iv)), and comparison to the Independent Government Cost Estimate (IGCE) (FAR Part 13.106-

3(a)(2)(vi)).

9. Description of Market Research. In accordance with FAR Part10, various methods of market research were launched for this requirement.

(a) Market research was conducted during June 2024 through October 8, 2024. During this time extensive research was conducted through reviewing previous procurement history, internet searches, and discussions with the aircraft OEM. Based on the extensive research, a Sources Sought Notice was not issued because this procurement is a sole source requirement. Due to the sole source nature of the requirement, there is only one

(1) OEM authorized distributor in North America, AHI, a subsidiary that is registered as a large business in SAM.gov. The USCG will maintain open communications with the

OEM and will continually conduct market surveys to identify possible additional sources that may eventually receive OEM authorization to sell AHF products to North American customers.

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

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

(c) Market Research was conducted. See Section (a).

http://apfs.dhs.gov/ http://www.sam.gov/

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(d) This requirement does not have or require 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 manufacture of the required part. The drawings and technical date are proprietary and available only from the OEM. The USCG did not purchase the rights as part of the original acquisition. Due to the proprietary rights, it will be difficult to take steps to foster competition.

(b) The part in the schedule cannot be reverse engineered and/or modified by other sources in order to maintain structural integrity of the aircraft and ensure complete compatibility of replacement parts, the parts listed in this requirement must be obtained from the OEM and their authorized distributors.

(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-(d) and HSAR 3006.302-270, this is not an 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 inquires or responses received prior to the award of contract. AHI is the only North American distributor authorized by the

OEM to sell the part identified in this requirement. The proposed Purchase Order action will be advertised on the SAM.gov website and will include a statement that all responsible sources may submit a proposal 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 drawings for the components are proprietary to the

OEM and therefore not available to the USCG. The USCG does not possess the technical expertise, nor the software data rights for the components. It is difficult to take steps to foster competition as the manufacturing, performance, and acceptance data are proprietary to the OEM. As the AICP, ALC is tasked with supporting systems that have been deployed for use in the aviation community.

To increase competition among manufacturers, affiliates, and distributors, SRR Product Line members attend annual aviation trade shows and host industry days at the ALC.

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(b) Extensive internet database research was conducted, and requirements were advertised on Contract Opportunities (SAM.Gov). In support of the Competition in

Contracting Act, ALC established the New Product Development Branch (NPD), and a representative of the NPD Branch is assigned to the SRR Product Line. This representative has the responsibility to search for alternate sources of supply/services and alternate acceptable products. Engineering, Contracting, and NPD representatives continuously conduct market research to ensure that vendors interested in doing business with the USCG are given every opportunity to compete for requirements. NPD is exploring avenues of reverse engineering for some of the hard to find or expensive to repair items, which should further encourage competition, however, this process is lengthy, costly, and labor intensive.

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13. 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.

Terrie L. Pickard Date

Contracting Officer

14. 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.

Vernon Clark Date

Inventory Management Specialist, USCG, ALC, SRR

RECOMMENDED FOR APPROVAL:

Terrie L. Pickard Date

Contracting Officer