Attachment 3 - J and A Redacted 70Z03825QH0000017.pdf

been procured by Delivery Order with Rolls-Royce Corporation.

Nomenclature National Stock Number

(NSN)

Part Number

Adapter, Flange 1610-01-562-3843 23088766 Lock 1560-01-483-3122 23057442 Cone 2995-01-483-3102 23053463

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 nonavailability exception to the Buy American Statute does 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 AE2100D3 engine spare parts for this requirement are manufactured by Rolls- Royce Corporation and all specifications, manufacturing drawings, data, test equipment, and tooling required to manufacture these components are proprietary to Rolls-Royce Corporation. 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 AE2100D3 parts must be obtained from the OEM.

(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 HC-130J AE2100D3 engine technology remains unchanged. Changes within the marketplace have not occurred since the HC-130J was inducted into service. Rolls-Royce and its subcontracting partners own all the technical data for the AE2100D3 engine and supporting spare parts.

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

There are no alternative sources other than the OEM, Rolls-Royce Corporation. The USCG has limited inventory of the Flight Critical AE2100D3 engines for the HC- 130J fleet. These spare parts will enable the engine assemblies to be repaired in the field and keep them on wing, allowing the USCG to continue fulfilling their mission. Flight Critical parts that fail, have the potential for catastrophic or critical consequences to personnel and equipment. Purchasing similar components from another vendor may result in dangerous conditions and compromise the integrity of the aircraft thereby creating a flight safety risk. A flight safety risk is never acceptable, 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 will jeopardize the USCG’s mission due to grounding of HC-130J aircraft as a result of no stock being available as 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 11/8/2024; 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 11/26/2024 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: 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: An announcement will be published with the solicitation.

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 has been conducted in accordance with FAR Part 10 in November 2024.

A review of the Asset Maintenance Management Information System (AMMIS), Government databases such as General Services Administration (GSA), Webflis, FEDMALL were all reviewed as part of the market research. Sources sought notice 70Z03825IH0000001 was posted on 11/8/2024 and closed 11/15/2024. Rolls-Royce was the only company to respond to the notice. In their response they stated that they are the OEM for the AE2100D3 engine and its related factory parts.

(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 in November 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:

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

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. Engineering has assigned these items an Acquisition Method Code (AMC) of 3 IAW Volume 10, Table 71 of DOD 4100.39 (series); an AMC of 3 indicates that the item must be acquired directly from the actual manufacturer.

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

The specifications, manufacturing drawings, data, test equipment, and tooling required to procure the parts for the AE2100D3 engine are proprietary to the OEM, Rolls-Royce Corporation. Any deviation from the OEM could result in a safety of flight risk. 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: Not applicable. 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 sources sought notice was issued in Contract Opportunities on SAM.gov on 11/8/2024 and closed on 11/15/2024 requesting that parties express their interest in writing to the Contracting Officer. Only Rolls-Royce Corporation responded.

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 reveal that only Rolls-Royce Corporation owns all proprietary rights to the parts listed in section 2a.

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 Rolls-Royce AE2100D3 engines of which manufacturing is proprietary to the OEM. The USCG does not possess the technical expertise, nor the software data rights for the engines 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.