Attachment 2 Redacted JA.docx

Justification for Other than Full and Open Competition Under 41 U.S.C. 1901(c) Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements Modification for Block 1 Upgrade of Avionics Systems Solicitation #70Z03821RL0000001

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by Federal Acquisition Regulation (FAR) Subpart 13.5 and in accordance with the requirements of FAR 13.501(a)(ii), the justification for the use of the statutory authority under FAR Subpart 13.5 is justified by the following facts and rationale required under FAR 13.501(a)(1) as follows:

(1) Agency and Contracting Activity.

The United States Coast Guard (USCG), Aviation Logistics Center (ALC), Medium Range Surveillance (MRS) Procurement Branch, Elizabeth City, North Carolina, proposes to enter into a contract on a basis of other than full and open competition.

(2) Nature and/or description of the action being approved.

The USCG, ALC, MRS Procurement Branch seeks approval to award a firm fixed price (FFP) Requirements contract on a sole source basis for the modification of HC-144 avionics parts required for Block 1 Upgrade of the Flight Management System to improve situational awareness, flight safety, communications, and navigation modifications. This modification is necessary to achieve compliance with Air Force Instruction 63-137, AC 20-165A, and Title 14 of the Code of Federal Regulations 14 CFR 91.225 and § 91.227. As the Original Equipment Manufacturer (OEM), Rockwell Collins maintains all proprietary data, software, and technical rights, and is therefore solely qualified to perform the required modification.

(a) Nature of action: The USCG intends to procure on a sole source basis a FFP Requirements contract consisting of one (1) one-year base and two (2) one-year option periods for the modification of HC-144 avionics components.

(b) Name and address of Contractor:

Rockwell Collins 400 Collins Rd. NE Cedar Rapids, IA, 52498 Cage Code: 13499

(c) Type of action: Firm Fixed Price Contract

(d) Estimated total value: $832,357

Original

Modified Base Year POP 12 mos Opt Year 1 POP 12 mos Opt Year 2 POP 12 mos

Previous contract 70Z03818DL0000002 expired 9/9/20.

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

(f) Year of funding: FY 2021

(g) Solicitation number: 70Z03821RL0000001

(h) Background information about the requirement: The OEM of the HC-144 Avionics components is Rockwell Collins, Cage code: 13499. The avionics Block 1 Upgrades were previously procured under contract 70Z03818DL0000002.

This requirement is commercial in nature and will be procured utilizing the procedures listed in FAR Part 12, Acquisition of Commercial Items in conjunction with FAR Subpart 13.5, Simplified Acquisition Procedures for Certain Commercial Items.

(3) Description of Supplies/Services.

The USCG operates a fleet of HC-144 aircraft that utilize avionics components manufactured by Rockwell Collins to support communication, surveillance, navigation, and pilot control systems essential to flight operations and missions. The purpose of this requirement is to modify existing avionics components for the Ocean Sentry Refresh Block 1 Upgrade in support of the HC-144B avionics system. The modification of the avionics equipment is necessary to achieve compliance with Air Force Instruction 63-137, AC 20-165A, and Title 14 of the Code of Federal Regulations 14 CFR 91.225 and 91.227.

(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(e)(2), as implemented in FAR 13.501 (a), “Sole Source Acquisition.”

(5) Identification of Exception to the Buy American Act.

Identify the nonavailability exception listed under FAR 25.103(b) or FAR 25.202(a)(2).

N/A

(6) Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Requires use of the Authority Cited.

(a) Rationale for using the authority cited in section 4 of the J&A:

The USCG currently uses Rockwell Collins avionics components on the HC-144 and recently completed a Rockwell Collins software upgrade of the Flight Management System. These existing Rockwell Collins avionics components and software are not compatible with other operating systems. As such, the modification of these OEM avionics components is essential for the continued safe operation of HC-144 aircraft and in compliance with Air Force Instruction 63-137, AC 20-165A, and Title 14 of the Code of Federal Regulations 14 CFR 91.225 and 91.227.

In addition, the Government Data Rights are insufficient for the purposes of soliciting vendors to manufacture and certify air worthiness of aircraft components and piece parts. The USCG did not purchase the data rights as part of the initial system acquisition for the aircraft; as a result, it would be difficult to foster a competitive procurement effort. Complete specifications and drawings are not available and the cost to procure them is not easily quantifiable. The data for these components are proprietary to the OEM, and furthermore, using parts other than the OEM’s would compromise the integrity of the aircraft’s airworthiness and would void any existing warranties.

(b) Details covering what events lead to the situation requiring use of other than full and open competition procedures:

In order to maintain integrity of the aircraft and ensure complete compatibility, the modification services to upgrade the avionics components must be obtained from the OEM. Use of OEM parts and services will ensure the avionics components are modified in accordance with OEM specifications and standards, conform to original form, fit, and function, and are compatible and interchangeable with existing components. For these reasons, it is in the USCG’s best interest and in the interest of the safety of our flight crews to procure only Rockwell Collins authorized services and parts.

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

Market research was performed to identify any alternate source capable of supplying the technical data and for alternate parts that would satisfy this requirement; however, no alternate sources were identified. The modification of the parts specified by this requirement remain the only suitable ones to ensure safe system operation and functionality of the aircraft; therefore, this requirement cannot be satisfied with another component or with another modification service.

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

The HC-144 aircraft supports the USCG Search and Rescue (SAR) missions, as well as surveillance and reconnaissance missions performed primarily over water. The aircraft’s ability to successfully meet mission requirements relies heavily on fully functional avionics systems. The technical and manufacturing data for the required components are proprietary to Rockwell Collins, as the OEM, and only the OEM can provide the airworthiness certification for these components. Using parts other than those traceable to the OEM would compromise the integrity of the aircraft’s airworthiness, and would severely impact the aforementioned missions of the USCG.

(e) Rationale for use of the nonavailability exception to the Buy American stature: N/A

(7) Description of the 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.

This acquisition is forecasted in the Department of Homeland Security (DHS) Acquisition Planning Forecast System (APFS), number F2020051267 published August 6, 2020, and can be found at www.apfs.gov. There were no responses to the APFS posting.

(b) If an announcement is being planned for posting in Contract Opportunities, provide the estimated date of publication.

In accordance with FAR 5.201, this Justification for Other Than Full and Open Competition will be posted to the Government-wide Point of Entry (GPE), via https://www.beta.sam.gov with the Notice of Intent that USCG intend to award this requirement to Rockwell Collins on a sole source basis. Any capability statement, proposal, or quotation received will be considered prior to award and ALC will make a determination to solicit the requirement based on limited competition, if appropriate.

(c) If an announcement will not be published, identify the applicable exception under FAR 5.202. N/A

(d) If an announcement will be published after award, cite the applicable exception under FAR 6.305. N/A

(8) Determination by the Contracting Officer that the Anticipated Cost will be Fair and Reasonable:

The Contracting Officer will evaluate all quotations in accordance with FAR 13.106-3, and the prices will be determined fair and reasonable based on prior acquisition history of similar modification services.

(9) Description of the 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.

The market research performed in June 2020 for the modification of the avionics components indicates that only Rockwell Collins has the ability to modify the three components listed: ADC-86A (P/N 822-0371-165); MMR (P/N 822-1591-002); & SIU-80 (P/N 622-9884-003).

For this specific procurement, four repair facilities were contacted; Regional Avionics Repair, LLC, Field Aerospace, ASAP Semiconductor, and Southeast Aerospace, with each responding by email that they could not modify the components to the newer models. Southeast Aerospace advised the USCG that the OEM is the only entity capable of modifying the components.

Additional offerors must be authorized by the OEM, having access to current OEM manuals and data rights to perform the modifications of the avionics components.

(b) Describe the market research results that support the determination that the items are nonavailable. N/A

(c) If market research was not conducted, state why. N/A

(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.

Based on current market research, it has been determined that the OEM, Rockwell Collins, is the only available source able to support the required modification. In addition, the acquisition of the data rights was not part of the initial system acquisition when the HC-144 aircraft was procured. Without rights to the data, the USCG would not be able to foster competition for the procurement of non-brand services.

(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 services to be procured under this acquisition are highly specialized in nature, developed by a non-Government activity and the technical data required for acquisition by other than the OEM is not available. The modification of these components will enhance the capabilities of the following features essential to the safe operation of the HC-144 aircraft:

i. Communication, Navigation, Surveillance /Air Traffic Management (CNS/ATM) compliance with Air Force Instruction 63-137.

ii. Required Navigational Performance (RNP) / Area Navigation (RNAV) compliance with AC No. 20-138D.

iii. Flight Management System (CDU-7000).

iv. Wide Area Augmentation System (WAAS) Lateral Precision with Vertical guidance (LPV) Approach capability.

v. Mission Computer Interfaces.

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

The USCG did not purchase data rights as part of the acquisition of the HC-144 aircraft. As a result, the USCG cannot foster full and open competition for this effort, as the manufacturing, performance, acceptance data are proprietary, and the USCG does not possess adequate and appropriate technical data to provide to potential offerors.

(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. N/A

(d) For a proposed contract subject to the restrictions of FAR 6.302-2(d) or HSAR 2006.302-270 and where FAR 6.302-2 is cited as the authority, 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. N/A

(11) A Listing of Sources, if any that expressed, in writing, an Interest in the Acquisition:

A notice of intent will be submitted to BetaSAM.gov upon approval of this document. Any responsible offeror possessing the necessary proprietary data rights capable of providing the HC-144 Avionics component modifications will be considered. If responses to the notice of intent indicate additional sources are available, the file will be documented accordingly and the requirement competed among all eligible offerors.

(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 Required Supplies or Services:

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

The modification services to be procured are complex and must meet critical operational and reliability requirements, the achievement of which require unique technical proprietary data, software, and technical rights, and therefore only the OEM is solely qualified to perform the required modification. These services will continue to be proprietary to the OEM until a time when the data rights are available for purchase and distribution. 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.

(b) When a J&A is issued for the purposes of acquiring goods or services while a competitive procurement is being conducted, the justification should include a detailed timeline for completion of the competitive procurement.

N/A