Attachment 2 - JandA_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

PROCUREMENT OF T700-401C ENGINES

Solicitation Number: 70Z03822QJ0000191

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 (DHS), United States Coast Guard (USCG), Aviation Logistics Center (ALC), Medium Range Recovery (MRR) Product Line Division, 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: USCG, MRR intends to procure on a sole source basis, four (4) T700-401C engines.

(b) Name and address of the contractor:

General Electric Aviation (GE) 1000 Western Avenue Lynn, MA 01910-1910 Cage Code: 99207

(c) Type of action: Firm Fixed-Price Contract with a Period of Performance of twelve (12) months from effective award date.

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

Item Quantity Unit Price Total Engine, T700-401C 4 Ea.

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

(f) Year of funding: Fiscal Year 2022

(g) Solicitation number: 70Z03822QJ0000191

(h) Background information about the requirement: This requirement is for the procurement of T700-401C engines for MH-60T aircraft. The USCG currently operates a fleet of forty-eight (48) 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. These T700-401C engines are

(b) Details covering what events lead to the situation requiring use of other than full and open competition procedures including whether any portion of the work can be segregated to allow for competition:

The components of this acquisition are proprietary to GE, and there are no other authorized distributors. As cited in 6a, NAVSUP WSS was contacted in order to obtain a source list of all NAVSUP WSS certified distribution facilities. Only one responsible source, GE, was identified by NAVSUP WSS. Given this information, no portion of the work can be segregated to allow for competition, as GE is the only approved distributor.

(c) Summarize alternatives considered and why they will not work:

The USCG may only consider NAVSUP WSS certified sources for the MH-60T aircraft components. NAVSUP WSS has communicated that there are no authorized distribution sources other than the OEM, GE. Therefore, no alternative sources may be considered. See Attachment 1

(d) Impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided:

Failure to approve this sole source justification will jeopardize the performance of MRR’s mission to meet the congressional mandated delivery of three (3) additional aircraft to the USCG fleet beginning in Fiscal Year 2023. Therefore, failure to approve this sole source justification will increase the risk of grounding aircraft as a result of no stock being available as the engines are required.

(e) Rationale for use of the nonavailability exception to the Buy American statute, including detailed information explaining why the particular articles, materials, or supplies of the class or kind to be acquired, either as end items or components, are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality.

The nonavailability exception to the Buy American Statute does not apply to this requirement.

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

Sources as is Practicable.

(a) If an announcement has already been made in Contract Opportunities, provide the date of publication:

An announcement has not been made on Contract Opportunities.

(b) If an announcement is being planned for posting in Contract Opportunities, provide the estimated date of publication: This Justification for Other Than Full and Open Competition (J&A) will be posted to the GPE website, SAM.gov. It is anticipated that a Request for Quote (RFQ) will be posted to the Government wide Point of Entry (GPE) via SAM.gov on approximately June 30, 2022. Market research confirmed that GE is the OEM and the only approved source to provide the engines. A copy of the approved sole source justification will be uploaded with the notice.

Any capability statement or quote received in response to the notice will be considered prior to award.

(c) If an announcement will not be published, identify the applicable exception under FAR 5.202:

There are no applicable exceptions and an announcement will be published.

(d) If an announcement will be published after award, cite the applicable exception under FAR

6.305:

The justification will be posted within 14 days of contract award in accordance with FAR 6.305.

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

The Contracting Officer anticipates that prices will be determined fair and reasonable based on comparison of proposed prices with prices found reasonable on previous purchases (FAR 13.106- 3 (a)(2)(ii), comparison with similar items in a related industry (FAR 13.106-3(a)(2)(iv), and comparison to the IGCE (FAR 13.106-3(a)(2)(vi).

9. Description of Market Research.

(a) Describe the market research techniques used, results, date when the market research was conducted, and how it was used by the contracting officer to determine price reasonableness:

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

F2022058412 to http://apfs.dhs.gov, published 05/22/2022, and was included in the DHS Forecast of Small Business Opportunities. Market research has been conducted in accordance with FAR Part 10 from December 2021 to May 2022. Based upon the proprietary nature of the manufacturing data, it has been determined that GE is the only certified source to procure the T700-401C engines. Being the only NAVSUP WSS certified source, there was not a sources sought notice posted. The engines are commercial in nature and prevalent in private aviation and commercial aviation and are used on other military aviation aircraft; Navy MH-60T models. The prices from previous contracts and other commercial prices for similar items will be reviewed while completing the Fair and Reasonable determination.

(b) Describe the market research results that support the determination that the items are nonavailable:

Not applicable; this requirement does not include the exceptions at FAR 25.103(b)(2) or FAR 25.202(a)(2).

(c) If market research was not conducted, state why:

Not applicable. Market Research was conducted in accordance with FAR Part 10 from December 2021 to May 2022.

(d) If patents, copyrights, and/or intellectual property are applicable to the acquisition, describe the circumstances for acquiring a patented or copyrighted product on the representation of the intellectual property holder that has not been licensed for resale.

Patents, copyrights, and/or intellectual property are not applicable to this acquisition.

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

(a) An explanation why technical data packages, specifications, statement of work, or purchase descriptions are not suitable for full and open competition:

The MH-60T aircraft including its engines were procured and provisioned by USCG Headquarters; however, this procurement did not include the technical data packages, specifications, and documentation necessary to enable full and open competition. Therefore, it would be difficult to take steps to foster competition as the manufacturing performance and acceptance data are proprietary, as USCG does not have adequate technical data to provide to potential offerors.

(b) Discuss why your requirement cannot be modified to enhance competition:

The specifications, manufacturing drawings, data, test equipment, and tooling required to procure the T700-401C engines are proprietary to the OEM, GE. Due to the flight critical nature of the engines, any deviation from the use of NAVSUP WSS certified sources could result in a safety of flight risk. Any new engine must conform to the design data and quality requirements, or an unsafe condition could result which may cause damage to, or loss of, assets and significant injury or loss of life. The engines must meet all form, fit, and function requirements specified in NAVAIR and OEM overhaul manuals. Therefore, this requirement cannot be modified to enhance competition, as a risk to flight safety is never acceptable.

(c) For a proposed contract subject to the restrictions of FAR 6.302-1 for follow-on acquisitions as described in 6.302(a)(2)(iii), provide an estimate of the cost to the Government that would be duplicated and detailed information on how the estimate was derived.

This requirement is not a follow-on action as described in 6.302-1(a)(iii).

(d) For a proposed contract subject to the restrictions of FAR 6.302-2(d) or HSAR 3006.302-270 and where FAR 6.302-2 is cited as the authority, describe the exceptional circumstances allowing for an award for a period of performance in excess of the one-year limitation (applicable to all federal agencies) or the DHS-specific statutory 150-day limitation:

This requirement is not subject to the restrictions of FAR 6.302-2(d) or Homeland Security Acquisition Regulation (HSAR) 3006.302-270.

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

A combined synopsis/solicitation will be issued through Contract Opportunities on SAM.gov website upon approval of this document. Once the J&A has been posted to SAM.gov, all offerors will be considered. To date, there have been no inquiries regarding this procurement.

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) Will the Government revise overly technical specifications, acquire data rights, etc.?

The USCG does not possess the technical data required to foster full and open competition for the parts covered under this justification and approval. 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, MH-60T program members conduct internet database research and ensure procurements are advertised in SAM.gov. 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.