Attachment 2 - Redacted J and A - 70Z03824QH0000099.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

Attachment 2 - Redacted J&A - 70Z03824QH0000099

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) Product Line (PL), 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 LRS PL requests approval to solicit and award, on a sole source basis, a delivery order for factory new purchase of R391 Propeller Assembly spare parts in support of the USCG HC-130J aircraft.

(b) Name and address of the contractor:

GE Aviation Systems LLC 114 Powers Ct Sterling, VA 20166-9321 Cage Code: 93366

(c) Type of action: Firm Fixed Price Delivery Order issued against Defense Logistics Agency (DLA) Blanket Order Agreement (BOA) SPE4A1-19-G-0016

(d) Estimated total value (including options):

Part Number Nomenclature Quantity UOM Unit Price Total 697040292-14 Blade Assembly 4 EA 697040221 Hub Assembly 3 EA 666000488 OUTBD Bearing Assembly 5 EA 697056002 Spinner, Aircraft, MA 3 EA 697040601 Guard Assembly, Blade 5 E 697039655 Guard Assembly, Blade 20 EA P340921 Nut, Plate 5 EA 697005619 Spacer 30 EA 666000335 Wiring Harness 2 EA 697065001 Auxiliary Pump 3 EA 697039786 Retaining Sleeve 10 EA 697057231 Brush Block Bracket 2 EA 697039623 Shim 40 EA 697039685 Seal Retainer 30 EA P998155 O-Ring 30 EA

Total

(e) Type of Funding: The components will be purchased Operations and Support (O&S) funds.

(f) Year of Funding: Fiscal Year 2024

(g) Special Notice Number: 70Z03824QH0000099

(h) Background information about the requirement: R391 Propeller Assembly spare parts have previously been procured by Delivery Order via the Blanket Ordering Agreement (BOA) the Defense Logistics Agency (DLA) currently holds with GE Aviation Systems LLC. The BOA constitutes agreement of all applicable non-priced terms and conditions between the USCG and the Original Equipment Manufacturers’ (OEM) only authorized distributor, GE Aviation Systems LLC, in support of future spares purchases for R391 Propeller Assembly and related propeller components.

3. Description of Supplies/Services.

This requirement is for the purchase of spare parts for the GE Aviation Systems R391 Propeller Assembly in support of the HC-130J fleet to fulfill Coast Guard missions. These spare parts are to be installed during scheduled Program Depot Maintenance (PDM) cycles as well as during field maintenance. These highly specialized parts help the USCG to continue their missions without compromising safety, performance, or capability.

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.

The exceptions under FAR 25.103(b) or FAR 25.202(a)(2) do 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) Rationale for using the authority cited in section 4 of the J&A;

The R391 Propeller Assembly spare parts for this requirement are manufactured by GE Aviation Systems Ltd DBA Dowty Propellers UK (Dowty Propellers UK) and all specifications, manufacturing drawings, data, test equipment, and tooling required to manufacture these components are proprietary to Dowty Propellers UK. The USCG did not purchase the rights to the proprietary data required to foster a competitive environment as part of any original provisioning for use on the HC-130J fixed-wing aircraft and the cost to procure this data would be cost prohibitive. To maintain integrity of the system, ensure compatibility of the replacement components and safe operation of the aircraft, these R391 Propeller Assembly spare parts must be obtained from the OEM’s only authorized distributor, GE Aviation Systems LLC.

(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;

LRS Engineering Officers have determined that interested parties must have continued access to OEM manuals, specifications, and data in order to provide the most up to date OEM parts. The USCG is prohibited from disclosing any technical documents in their possession as these were developed at private expense by Dowty Propellers UK and GE Aviation Systems LLC, and are proprietary. Due to critical and proprietary nature of the requirement, the supplies to be provided cannot be separated to allow for competition.

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

GE Aviation Systems LLC is the only OEM authorized distributor that can sell new OEM spare parts.

There are no alternative sources. Therefore, no alternative sources may be considered.

(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 for Other than Full and Open Competition will jeopardize the performance of the USCG’s mission due to grounding of aircraft as a result of insufficient stock being available as the components are required for the HC-130J aircraft.

(e) Section is required to be completed when the J&A includes the exception listed under FAR 25.103(b)(2) or FAR 25.202(a)(2)).

The exceptions under FAR 25.103(b) or FAR 25.202(a)(2) do 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; or

An announcement has not been made in 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 Government wide Point of Entry (GPE) website, SAM.gov. It is anticipated that a special notice will be posted to the GPE via SAM.gov on approximately 08/16/2024. 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:

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

(d) If an announcement will be published after award, cite the applicable exception under FAR 6.305:

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

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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 found reasonable with similar items in a related industry (FAR 13.106-3(a)(2)(iv)).

Prices of some items may be found reasonable with comparison to historical prices paid.

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:

Market Research was conducted in accordance with FAR Part 10 from June 2024 through July 2024.

Market Research indicates that the spare parts identified in this requirement are not listed on a General Services Administration (GSA) contract or available through GSA Advantage. Market research also consisted of querying the Acquisition history, Internet Search, Inventory Locator System (ILS), Catalog and product literature, DHS-Wide and Multi-Component Contract Vehicles, Excess from Other Agencies, AbilityOne, and Contracting Opportunities. These searches revealed no alternate supply sources. The OEM’s only authorized distributor is the only approved source to provide the required R391 propeller system spare parts. These spare parts for the HC-130J are commercial in nature and are prevalent in private aviation and commercial aviation. All terms and conditions are not expected to differ from customary terms and conditions in the marketplace or standard Government practices.

Sources sought notice 70Z03824IH0000018 was posted on 07/18/2024 and closed 07/25/2024. The Sources Sought posting received two (2) responses. After the Sources Sought Notice closed, an email was sent to GE Aviation Systems LLC on 07/29/2024 requesting manufacturer information. GE Aviation Systems LLC responded to our market research questions confirming that Dowty Propellers UK is the OEM and GE Aviation Systems LLC is the only OEM authorized distributor.

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

This requirement does not include the exceptions at FAR 25.103(b)(2) or FAR 25.202(a)(2) for the Buy American Act.

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

Not applicable. Market Research was conducted in accordance with FAR Part 10 from June 2024 through July 2024.

(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:

This requirement does not have patents, copyrights, and/or intellectual property.

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 supplies to be procured under this acquisition are highly specialized in nature and developed by a non-Government activity. The technical data required to procure the components from sources other than the OEM’s only authorized distributor is not available. GE Aviation Systems LLC is the OEM’s only authorized distributor for the required HC-130J spares. Dowty Propellers UK and GE Aviation Systems LLC has not shown an interest in selling or providing the proprietary data rights to the Government or any other entity. It is not economically feasible for the USCG to purchase these proprietary rights.

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

The supplies to be procured are complex and must meet critical operational and reliability requirements, the achievement of which requires unique production techniques and extensive and/or sophisticated testing. The Government has not yet acquired or developed the technical data. 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 is feasible.

(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 for the continued provision of highly specialized spare parts pursuant of FAR 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:

Not applicable to FAR 6.302-2(d) or Homeland Security Acquisition Regulation (HSAR) 3006.302-270.

This is not considered unusual or compelling urgency.

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

A sources sought notice was issued in Contract Opportunities on SAM.gov on 07/18/2024 and closed on 07/25/2024 requesting that parties express their interest in writing to the Contracting Officer. Two (2) responses were received, one being from GE Aviation Systems LLC. GE Aviation Systems LLC confirmed that Dowty Propellers UK is the OEM and GE Aviation Systems LLC is the only OEM authorized distributor that can sell new OEM spare parts.

A special notice will be issued through Contract Opportunities on SAM.gov website upon approval of this document. However, market research and the sources sought notice revealed that only Dowty Propellers UK owns all proprietary rights to the parts listed in Section 2, and that GE Aviation Systems LLC is the only authorized distributor.

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.

The HC-130J aircraft consists of four R391 Propeller Assemblies of which manufacturing is proprietary to the OEM. The USCG does not possess the technical expertise, nor the software data rights for the R391 Propeller Assembly and their spare parts.

(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, HC-130J 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 is feasible.

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.

Date

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.

Date

RECOMMENDED FOR APPROVAL

Date

APPROVAL

Date 8/13/2024