Attachment 3- 70Z03822QB2000011_ Redacted J and A.pdf

Attachment 3- 70Z03822QB2000011 Redacted J and A

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901 Solicitation: 70Z03822QB2000011

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 United States Coast Guard (USCG), Aviation Logistics Center (ALC), Short Range Recovery (SRR) Product Line Division, 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, ALC, SRR Division has a requirement on a sole source basis for the procurement of spare parts for the pilot, co-pilot, and mechanic aircraft seats on the MH-65 Aircraft.

The parts are manufactured by BAE Systems Land & Armaments, L.P.

(known as BAE), the Original Equipment Manufacturer (OEM) and the only authorized distributor as indicated in Attachment 1.

(b) Name and address of the contractor:

BAE Systems Land & Armaments, L.P. (Cage Code: 54786) 7822 S 46th St.

Phoenix, AZ 85044-5313

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

Indefinite Delivery Requirements type contract consisting of a one-year Base Period and four (4) one-year Option Periods, if exercised. The spare parts will be procured using individually funded firm fixed-price delivery orders.

(d) Estimated total value (including options):

Period Length of Period Total Base 12 Months $506,495 Option One 12 Months $527,680 Option Two 12 Months $555,866 Option Three 12 Months $577,515 Option Four 12 Months $599,627

Total $2,767,183 Note: These Spare Parts were previously awarded under contract HSCG38-17-D-202035, which expired on April 18, 2020. The USCG is currently issuing purchase orders to BAE to ensure that spare parts can be provided for the MH65 Aircraft Fleet.

41 U.S.C. § 1901

(e) Type of funding: Operations and Support funds

(f) Year of funding: Operations and support funds will be provided annually for fiscal year 2022 through 2027.

(g) Solicitation number:70Z03822QB2000011

(h) Background information about the requirement:

The items in this requirement are assigned an Acquisition Method Codes (AMC) of three (3) which designates “Acquire directly from the actual manufacturer, whether or not the prime contractor is the actual manufacturer”. In addition, all the items are designated with Acquisition Method Suffix Codes (AMCS) of C, D, Q or R, all of which state the Government does not have adequate data, lacks rights to data, or both 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 for the procurement of spare parts for the pilot, co-pilot, and mechanic aircraft seats on the MH-65 Aircraft.

The following part numbers are included in this J&A:

108013-2 108041-1 108065-1 108044-1 108041-2 108039-2 108186-1 108192-1 108124-1 108023-1 108125-2 108090-1 108072-3 108014-2 108072-2 108033-1 108125-1 108035-1

LC-038G-8 108104-2 108192-2 108122-1 108031-1 108121-1

108042-3 108195-1 108039-3 108013-1 108108-2 108167-1 108103-1 108125-3 108091-1 108108-1 108198-1 108135-3 108136-1 108039-1 108080-2 108138-2 108135-4 108133-1 108042-2 108091-2 108014-1 108080-1 108184-3 108184-1 108037-2 108037-1 108184-2 108062-1 M2742630151B 108015-1 108035-2

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 as implemented by the FAR Subpart 13.501(a) “Sole Source acquisitions.” Responsible sources are limited to the OEM and their authorized distributors.

5. Identification of Exception to the Buy American Act.

The requirement for the procurement of these components does not take an exception to the Buy American statute. Therefore, the Buy American statue will be included in the terms and conditions of this contract.

41 U.S.C. § 1901

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 recurring basis, spare parts manufactured by BAE. BAE is the OEM and only authorized distributor for this requirement.

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 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. 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 a FAA production approval is suitable for installation on a type-certificated 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 exceed 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 solicitation.

The FAA issued Advisory Circular (AC) 20-62 dated September 14, 2018 to provide information and guidance for use in determining the quality, eligibility and traceability of aeronautical parts and materials intended for installation on US 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) Airworthiness Approval Tag (FAA Form 8130-3);

2) FAA Technical Standard Order (TSO) markings;

3) FAA PMA symbol;

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

5) 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 a condition for safe operation;

6) Maintenance release document;

7) Identification of critical components; and

8) Marking of life-limited parts.

The AC also states that aircraft part distributors and aircraft supply companies cannot

41 U.S.C. § 1901 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.

(a) The use of 41 U.S.C. 1901 as implemented by FAR Subpart 13.501(a) Sole Source) Acquisitions is necessary because BAE is the OEM and there are no known authorized distributors. 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.

(b) In attempt to promote competition, extensive market research was conducted. However, because of the OEM not having authorized distributors, the probability is unlikely of any distributors obtaining prices for the part numbers in this requirement.

(c) Alternate sources (OEM) 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. Parts 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.

(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.

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 matters of human safety and protection of the Government property and does not accept lower standards in these matters. Therefore, the mission will be impacted as of 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 stock age 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 changing mission requirements.

(e) Rational for use of the nonavilability 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 requirement for the procurement of these components does not take an exception to the Buy American statute.

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

Potential Sources as is Practicable.

41 U.S.C. § 1901

(a) This procurement forecast is posted on the DHS-Acquisition Planning Forecast System (APFS) Number F2022056777 at http://apfs.dhs.gov, published 21 October 2021 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 sam.gov as a combined sole source synopsis solicitation. IAW FAR 5.207(c)(16)(ii) will include a statement that all responsible sources may submit a quote with a capability statement, which shall be considered by the agency. The estimated date of publication is April 01, 2022.

(c) The exceptions under FAR 5.202 are not applicable to this requirement.

(d) The exceptions under FAR 6.305 are not applicable 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 with prices found reasonable on previous purchases (FAR Subpart 13.106-3 (a)(2)(ii)), comparison with similar items in a related industry (FAR Subpart 13.106-3 (a)(2)(iv)), and comparison to the Independent Government Cost Estimate (IGCE) (FAR Subpart 13.106-3 (a)(2)(vi).

9. Description of Market Research.

IAW FAR Part 10 various methods of market research were conducted for this requirement.

(a) Market research was conducted during May 2020 through September 2021. During this time, extensive research was conducted through reviewing previous procurement history, internet searches, and discussions with the OEM. Based on the extensive research in conjunction with the statement provided by the OEM, on February 8, 2022, a Sources Sought Notice was not issued because the procurement situation would not change. 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 BAE.

(b) This 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.

(c) Market Research was conducted, See section (a).

(d) This requirement does not have or required patents, copy rights and/or intellectual property.

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

http://apfs.dhs.gov/

41 U.S.C. § 1901

(a) The USCG does not own the necessary technical data required to support the manufacture of the required parts. The drawings and technical data are proprietary and available only from the OEM. The USCG did not purchase the rights as parts of the original acquisition. Due to the proprietary rights, it will be difficult to take steps to foster competition.

(b) The parts in the schedule cannot be reverse engineered and/or modified by other sources, because 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 or an OEM approved source.

(c) The proposed contract shall not be subject to restrictions of FAR 6302-1 for follow-on acquisitions as described in 6.302(a)(2)(iii).

(d) Not applicable to FAR 6.302-2(d) or HSAR 3006.302-270, this is not an unusual and compelling requirement.

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. BAE is the OEM and only authorized distributor to sell the parts identified in this requirement. The proposed contract action will be advertised on the beta.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 Aviation Inventory Control Point (AICP), ALC is tasked with supporting systems that have been deployed for use in the aviation community. In an effort to increase competition among manufacturers, affiliates, and distributors, SRR Product Line members attend annual aviation trade shows and host industry days at the ALC.

b) Extensive internet database research is conducted and requirements are 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

41 U.S.C. § 1901 products. Engineering, Contracting and NPD representatives continuously conduct market research to ensure that companies 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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41 U.S.C. § 1901

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, USCG, ALC, SRR

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.

Robert E. Askew, Jr. Date Technical Representative/Item Manager, USCG, ALC, SRR

15. Approval.

Catrina M. McDonald Date Level Above the Contracting Officer Supervisory Contracting Officer, USCG, ALC, SRR

David S. Burgess Date Chief of the Contracting Office, USCG, ALC

Frederick Steward-ALC, CG914, SILC-CON Date Command Procuring Activity Competition Advocate (CPACA)