Attachment 3 - Redacted J-A - 70Z03821QJ0000044.pdf

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Justification for Other Than Full and Open Competition (J&A) Under 41 U.S.C. 1901 Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements Solicitation Number: 70Z03821QJ0000044

In compliance with FAR 13.50 l (a)(ii), this justification uses the format at Federal Acquisition Regulation (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 (OHS), U.S. Coast Guard (USCG), Aviation Logistics Center (ALC), Medium Range Recovery (MRR) Division, Elizabeth City, NC, 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.

(a) Nature of the action:

The MRR Procurement Branch requests approval to solicit and award, on a sole source basis, a requirement type contract for the overhaul of till: main fuel control for the USCG MH-60T helicopter. The specifications, manufacluring drawings, ksl e4uipment and tooling required for the manufacture and repair of this component is proprietary lo the Original Equipment Manufacturer (OEM), Woodward, Inc., Cage: 66503. Woodward Inc. is the only source capable of providing the required overhaul of the main fuel control. There are no additional sources approved by Woodward Inc. to perform the required overhaul.

(b) Name and Address of the Contractor:

Woodward, Inc.

500 I N zNd Street Loves Park, IL 611 1 1-5808 Cage Code: 66503

(c) Type of Action:

Finn Fixed-Price Requirements Contract

(d) Estimate total value (including options):

Period Base Year Option Year I Option Year 2 Option Y car 3 Option Year 4 Total

Quantity 12 Each 12 Each 12 Each 12 Each 12 Each

Unit Price broken down as follows:

Total

The procurement of the overhaul under this justi ft cation was previously awarded by issuance of individually funded task orders under requirements contract HSCG38-l 6-D-JOOO 12 period of pcrfonnance 8/16/2016 - 8/15/2021.

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ATTACHMENT 3

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Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements Solicitation Number: 70Z03821QJ0000044

( e) Type of funding:

These components will be purchased with Operations and Support (OS) funds.

(t) Year of funding:

The appropriate year funds will be obligated on individual Task Orders between Fiscal Year 2021-2026.

(g) Solicitation number: 70203821 QJ0000044.

(h) Background information about the requirement:

As the Aviation Inventory Control Point, ALC is required to provide effective supply support for all USCG Aviation Units and for Program Depot Maintenance (PDM) support. A finn fixed price contract will be awarded to procure the overhaul of the main fuel controls. The vendor will provide all specifications, manufacturing drawings, data, test equipment, and tooling required to overhaul the main fuel controls which are proprietary to Woodward, Inc. Extensive market research has detem1ined that Woodward, Inc. is the only OEM authorized and NA VSUP WSS approved source capable of providing the required overhaul of these components. This has been verified via correspondence with the OEM and provided in the attached document labeled "Attachment l ". This requirement will be solicited utilizing FAR Part 12 Acquisition of Commercial Items and FAR Part 13.5 Simplified Procedures for Certain Commercial Items. The total estimated price for this requirement is

The United States Naval Supply Weapons Systems Support (NA YSUP WSS) is the Primary Inventory Control Agency and has sole authority and responsibility for certifying sources of support for MH60T components. Certification of sources of support was executed in accordance with Public Law 108-136 Section 802 of the Defense Appropriations Act of2004 and Naval Air Systems Command Instruction (NA VAIRfNST) 4200.56. Responsible Contractors are limited to NA YSUP WSS approved sources. However, parts managed solely by the Coast Guard are limited to ALC MRR Engineering approved sources. Woodward, Inc. is the only approved overhaul source for this requirement.

(3) Description of Supplies/Services.

The USCG currently operates a fleet of 45 MH60T rotary wing aircraft. This specialized, high demand, aircrat1 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. The main fuel control is interchangeable throughout the MH60T fleet. Desired delivery is 60 to 90 days after issuance of the task order. Woodward Inc. is the OEM and the only approved source to overhaul the main fuel controls.

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Only One Responsible Source and No Other Supplies or Services Will Safofy

Agency Requirements Solicitation Numher: 70Z03821Q.J0000044

Description National Stock Part Number Unit of Estimated Number (NSN) (PIN) Issue Yearly

Total Quantity

Main Fuel 2915-01-492-3907 4046T52G37 or Each 12

Control 8930-337

(4) Identification of Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority pennitting other than full and open comp<.:tition is 41 U.S.C. 190 I (e)(2) as implemented by FAR 13.501 (a), "Sole Source Acquisition." Responsible sources are limited to NA VSUP WSS or ALC MRR Engineering approved sources. There are no other supply sources or alternate part numbers available to meet the Government's requirements.

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

The requirement for the procurement of these components docs not tak<.: an 1.:xception to tlw Buy American statute. Thcrcfor1:, the Buy Amerkan statute will be included in the tenns and conditions of the contrm:t.

(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 specifications, manufacturing drawings, data, test equipment, and tooling required for the overhaul of the main fuel controls are proprietary to the OEM, Woodward, Inc. The USCG did not purchase rights to the proprietary data required to foster a competitive environment as part of any original provisioning for use on the MH60T rotary wing aircraft. Per correspondence with Woodward, Inc., they do not approve the release or sale of their proprietary technology and there are no authorized distributors. No acceptable alternate vendors have been identified. See Attachment t.

(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 c an he segregated to allow for competition:

As cited in 6a, the OEM was contacted regarding the release or sale of their proprietary technology as well as potential authorized distributors. Per correspondence with Woodward, Inc., they do not approve the sale of their proprietary technology, and there are no authorized distributors. Given this infonnation, no portion of the work can be segregated to allow for competition, as Woodward, Inc. is the OEM and there are no OEM authorized vendors.

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

USCG may only consider certified sources of support for the MH60T aircraft components. The OEM has communicated they have no authorized vendors and their proprietary technology is not for release or sale. There are no alternatives that may be considered. See Attachment 1.

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Justification for Other Than Full and Open Competition (J&A) Under 41 U.S.C. 190 l Only One Responsible Source and No Other Supplies or Services \Viii Satisfy

Agency Requirements Solicitation Number: 70Z03821QJ0000044

(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 J&A will jeopardize the perfonnance of USCG's mission due to grounding of the aircraft as a result of no stock being arailable as the components are requin.:d. In addition, this component is being changed during regularly scheduled PDM periods.

Unavailability of these components would delay the PD� process and reduce the availability of aircraft for USCG missions.

(e) Rationale for use of the nonavailability exception to the Buy American statute, including detailed information explaining why the panicular 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 the overhaul of the main fuel control does not take an exception to the Buy American statute.

(7) Description of Efforts l\lade to Ensure that Offers arc Solicited from as Many Potential Sources as is Practicable.

(a) If an announcement has already been made in Beta SAM. pro,·idc tl1c date of publication:

An announcement has not been made in Beta Sam.

(b) If an announcement is being planned for posting in Beta SAM, provide the estimated date of publication:

A Request for Quote Notice, 70203821 QJ0000044. will be posted to the Government-wide Point of Entry (GPE) \'ia https://beta.sarn.gov/ on or before February 2, 2021 with an estimated response date of March 2, 2021. A copy of the approved J&A on a sole source basis will be uploaded with the notice.

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

There arc 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:

There are no applicable exceptions and an announcement will not be published after award.

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

The Contracting Officer determines that the anticipated price(s) will be fair and reasonable based on pricing information collected from market research and the previous paid contracted prices which were used in the development of the Independent Government Cost Estimate ([GCE) for this requirement.

The current Producer Price Index escalation rate was applied to the IGCE and will be reviewed prior to award. The contracting officer anticipates the price for this procurement will be fair and reasonable.

This analysis will be based on comparison of the proposed price with prices found fair and reasonable on previous purchases (FAR 13.106-3(a)(2)(ii)) and comparison to the IGCE (FAR 13.106-3(a)(2)(vi)).

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Only One Responsible Source and No Other Supplies or Services \Viii Satisfy

Agency Requirements Solicitation Number: 70Z03821QJ0000044

(9) Description of I\Jarkct 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 IO from January 2020 to November 2020. This procurement forecast is posted as OHS -Acquisition Planning Forecast System (APFS) No: F202 l 053133 on http: .apfs.dhs.gov and was included in the OHS Forecast of Small Business Opportunities. The APFS was posted on December 11, 2020. To date, there have been no inquiries regarding the APFS entry. A review of the Asset Maintenance Management Information System (AMMIS) database history was conducted. Government databases such as General Services Administration (GSA), Federal Logistics repository (FED LOG), and FED MALL were all reviewed as part of market research. Existing OHS-wide and multi-component contract vehicles with OHS Strategic Sourcing Program Office and/or on OHS Enterprise-wide Contract Vehicle Portal were reviewed and were determined out of scope of this procurement. The OEM was contacted and market research con finned Woodward, Inc. is the only approved source lo overhaul the main fuel control. The overhaul of the main fuel control is commercial in nature and is prevalent in private aviation and commercial aviation and are used on other military aviation aircraft models. All tenns and conditions are not expected to differ from customary terms and conditions in the marketplace or standard Government practices.

Contract financing is not applicable to this requirement. The Buy American Act is applicable to this order. This is a sole source acquisition justified in accordance with FAR 13.50 I (a);

therefore, in accordance with FAR 25.40l(a)(S), the Trade Agreements Act is not applicable to this requirement.

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

This J &A 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.

Market research wos conducted in nccordnncc with fAR Pait 10 from January 2020 10 November 2020.

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

Inquiries were made on July 20, 2020 to detennine if Woodward, Inc. would sell the intellectual property data rights for the components being procured and Woodward, Inc. responded on July 20, 2020 that they do not have any approved sources to oYcrhaul the main fuel control and that their proprietary data is not currently for sale. Sec Attachment I.

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

(a) Woodward, Inc. is the only approved source for the overhaul of the main fuel controls. therefore.

the acquisition is not suitable for full and open competition. Inquiries were made on July 20.

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Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements Solicitation Number: 70Z03821QJ0000044

2020 to detennine if Woodward, Inc. would sell the intellectual property data rights for the components being procured and Woodward, Inc. responded on July 20, 2020 that they do not have any approved sources to overhaul the main fuel control and that their proprietary data is not currently for sale. See Attachment I.

(b) This requirement cannot be modified to enhance competition because the components and the subsequent technological data are not available from any distributor other than the OEM, Woodward Inc.

(c) This proposed contract is not subject to the restrictions of FAR 6.302-1 for follow-on acquisitions.

(d) This proposed contract is not subject to the restrictions of FAR 6.302-2(d) or HSAR 3006.302- 270.

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

To date, there have been no inquiries regarding this procurement. Any inquiries or responses received prior to contract award will be evaluated by the Contracting Officer.

(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.?

Woodward Inc. is the OEM and the only NAVSUP WSS approved source to overhaul the main fuel control. The USCG did not purchase rights to the proprietary technology required to foster a competitive environment as part of any original provisioning for use on the MH60T aircraft. The proprietary technology and data rights are not for sale, per correspondence with Woodward, Inc.

Every reasonable effort will be made to remove barriers to competition for future requirements.

These efforts will include continuing to identify additional sources to provide the overhaul of the main fuel controls.

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JllStif"aatia for Otber lbau F.O aod Opal Compdition (J&A) Undtt 41 U.S.C. 1901 Only One Respoasa"ble Somu ed No Other Supp&s or Services WiD SJltisfy

Ageoc:y Requircmcots Salicibtion Nwnber: 70Z03821Q.J0000044

(13) Contracting Offictt's Cutifiation.

I cotlfy that the dali1 supporting the ,rmamncndcd use of other than fiill and open competition is accurate and complete to the best of my bowledge and belief.

(14) Ted:mkal/Rcquittment:s Penonnd Certification.

I certify that this requirement meets the Go\'Cmment's minimum need and that the supporting data, which forms a basis for the justification, is accurate and complete.

(15) Concurrence:

Review:

(16) Approval:

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