Attachment 3 Redacted J and A - 70Z03823QB2000129.pdf

Attachment 3 Redacted J and A – 70Z03823QB2000129

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 (DHS) 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 Product Line Division intends to procure on a sole source basis various spare parts used on the USCG MH-65 aircraft.

The parts are manufactured by Airbus Helicopters, France (AHF) the Original Equipment Manufacturer (OEM). The only authorized distributor in North America is Airbus Helicopters, Inc. (AHI) who handles the parts and products on behalf of the manufacturer as indicated in Attachment One (1) for the Part Numbers listed in Section Three (3).

(b) Name and address of the contractor:

Airbus Helicopters, Inc.

2701 Forum Drive Grand Prairie, TX 75052 Cage Code: 3GSZ1

(c) Type of action: The USCG intends to award a Firm Fixed-Price Requirements type contract consisting of a one-year Base Period and four

(4) one-year Option Periods, if exercised. The spare parts will be purchased using individually funded firm fixed-price delivery orders.

(d) (Estimated total value (including options) $7,230,027, broken down as follows:

Period Length of Period Total

Base 12 Months $1,232,405 Option One 12 Months $1,330,997 Option Two 12 Months $1,437,477 Option Three 12 Months $1,552,475 Option Four 12 Months $1,676,673

Total $7,230,027

Note: This is a new requirement. All thirty-one (31) Contract Line Item Numbers (CLINs) have been procured via purchase orders. SRR Contracting will continue to issue purchase orders to cover the gap until the contract is awarded.

(e) Type of funding: Operations and Support funds

(f) Year of funding: Fiscal Year Operation and Support Funds will be provided annually for Fiscal Years 2023 through 2027.

(g) Solicitation number: 70Z03823QB2000129

(h) Background information about the requirement: The items in this requirement are Flight Critical and assigned an Acquisition Method Code (AMC) of five (5) which designates “Acquire from Sole Source Contractor which is not the Original Manufacturer” and/or an AMC of three (3) which designates “Acquire directly from the actual manufacturer, whether or not the prime contractor is the actual manufacturer”. In addition, seven (7) of the items are designated an Acquisition Method Suffix Code (AMSC) of C, which requires engineering source approval by the design control activity in order to maintain the quality of the part. The remainder twenty-four (24) of the items are designated an AMSC of R or Q, both of which state the Government does not have adequate data 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 to be awarded to the OEM, or a responsible source, that has access to the original OEM parts and can provide traceability.

These parts are crucial to meet the USCG’s many missions. The material and estimated quantities to be procured are based on current and past usage data. Projected stocking levels are based on failure and corrosion trends; current upgrades and modifications in process;

historical and projected scrap rates; and procurement lead times. Stock level recommendations are also obtained from the USCG’s forecasting tool.

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

365A21-3172-21 365A21-3138-0401 366A25-1310-20 365A21-3367-1201 365A27-3164-21 366A32-1141-00 365A21-3367-1301 365A27-3263-20 366A32-1155-20 365A32-5428-21 365A32-1165-20 704A34-113-176 365A33-2165-20 365A32-4325-20 3210-32-08-052 365A53-1461-21 365A32-5300-20 365A27-3422-21 366A32-1187-20 365A32-6530-00 366A25-1307-20 704A33-698-024 365A33-3527-00 365A31-1175-21

PS701-6006-196 365A33-6212-23 366A25-1335-03

365A09-4055-26 365A34-1033-01 365A21-3138-0301 366A25-1227-20

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 (including brand name) acquisitions as defined in FAR 2.101.

5. Identification of Exception to the Buy American Act. The exception to the Buy

American Act, FAR 25.103(b)(1) Non availability Class Determinations was made for the articles listed at FAR 25.104, for “Spare and replacement parts for equipment of foreign manufacture, and for which domestic parts are not available” applies to this acquisition.

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 the OEM, AHF. AHF has one (1) authorized source of supply for North American customers, their affiliate, AHI, located in Grand Prairie, TX.

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 Series) 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) FAA Technical Standard Order (TSO) markings;

2) FAA PMA symbol

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

4) 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;

5) Maintenance release document;

6) Identification of critical components; and

7) Marking of life-limited parts.

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

Parts provided 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. The USCG neither compromises nor makes exceptions in matters of human safety and protection of Government property and does not accept lower standards in these matters.

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.

AHI is the only known company that can provide the EASA Form One and traceability to the OEM as required by the CFR and FAA.

(a) The use of 41 U.S.C. 1901 as implemented by the FAR Subpart 13.501(a) Sole Source

(including brand name) Acquisitions is necessary because AHI is the only OEM authorized distributor in North America.

(b) In attempt to promote competition, extensive market research was conducted.

However, because of the OEM having only one (1) authorized distributor, the probability of any distributors obtaining prices for the part numbers in the requirement are unlikely.

(c) Alternative sources (OEM) could not be considered due to there are no known approved FAA PMA for the parts in the solicitation that meets or exceed OEM specifications and subsequently passes the USCG form, fit, and function requirements.

In addition, there is only one (1) North American OEM authorized distributor.

(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 or an OEM approved source. 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 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 Programmed Depot Maintenance. 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) This J&A is using the authority other than full and open competition 41 U.S.C. 1901

(e)(2) as implemented by the FAR Subpart 13.501(a) sole source (including brand name) acquisitions as defined in FAR 2.101. The parts in the requirements are spare parts utilized on the USCG MH-65/SRR aircraft. These parts are manufactured by the OEM, AHF and procured through AHI, their only North America authorized distributor capable of fulfilling the requirement. Procuring parts from any other manufacturers/contractors are unable to meet the requirements, because parts produced by another manufacturer/contractor may compromise form, fit, and function, which could comprise the functionality and dependability of the spare parts in the requirement thereby creating a safety of flight risk. A safety of flight risk is never acceptable.

Therefore, no alternate parts, or deviations from OEM specifications will be considered for this procurement.

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

Potential Sources as is Practicable.

(a) This procurement forecast is posted on the DHS-Acquisition Planning Forecast System (APFS) Number F2023061251 at http://apfs.dhs.gov, published 14 March 2023 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 www.sam.gov as a combined sole source synopsis solicitation. IAW FAR 5.207(c)(16)(ii), the synopsis/solicitation will include a statement that all responsible sources may submit a proposal with a capability statement, which shall be considered by the agency. The estimated date of publication is July 3, 2023.

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

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

9 . Description of Market Research.

(a) Market research was performed January 2022 through March 2023, and as prescribed by FAR 19.203(c), the 8(a), SDVOSB, and WOSB programs were first considered.

Extensive research was conducted through reviewing previous procurement history, Internet searches and discussions with the OEM. Based on the research, in conjunction with the statement provided by the OEM (Attachment 1) that AHI is the only approved source of supply in North America for the required parts, a Sources Sought Notice was not issued because the procurement situation would not change. Market research identified one (1) commercial source, AHI, capable of providing the OEM various spare parts identified in the requirement.

(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) See section (a).

(d) This requirement does not have or require patents, copyrights and/or intellectual property.

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

(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 part 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) For a proposed contract subject to the restrictions of FAR 6.302-1 for follow-on acquisition as prescribed in FAR 6.302-1(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.

(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) and HSAR 3006.302-270; this is not an unusual and compelling urgency.

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. AHI is the only North American distributor authorized by the OEM to sell the parts identified in this requirement. The proposed contract action will be advertised on the 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 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 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.

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.

Luis Mojica Date Contracting Officer

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.

Loretta Sassin Date Inventory Manager, USCG, ALC, SRR

Reviews:

Veronica Holley Date Level Above Contracting Officer Supervisory Contracting Officer, USCG, ALC

David S. Burgess Date Chief of Contracting Office

APPROVAL:

Frederick Steward Date Command Procuring Activity Competition Advocate (CPACA)