Attachment 3 Redacted J and A 70Z03824QB0000161.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

SOLICITATION NO. 70Z03824QB0000161

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Section 13.501(a), the following facts and rationale required justify the use of such authority:

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.

(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 purchase order.

(d) Estimated total value: $898,340

Note: This is a new requirement, all three (3) parts have been procured via purchase orders.

(e) Type of Funding: Operation and Support Funds.

(f) Year of Funding: Operation and Support Funds will be provided annually for

Fiscal Years 2024.

(g) Solicitation number: 70Z03824QB0000161.

(h) Background information about the requirement: The items in this requirement are not Flight Critical, but are assigned an Acquisition Method Code

(AMC) of five (5) which designates “Acquire from Sole Source Contractor which is not the Original Manufacturer”. In addition, the items are designated an

Acquisition Method Suffix Code (AMSC) of Q, which states that the

Government does not have adequate data, lacks rights to data, or both, needed to purchase this part from additional sources.

3. Description of the 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. 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:

RING GEAR

FIXED

365A32-7035-21

BEVEL, GEAR

REAR

360A32-1218-09

GEAR

365A32-1067-00

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 the FAR Section 13.501(a) entitled “Sole Source (including brand name) acquisitions.” Responsible sources are limited to the OEM and their authorized distributors.

5. Identification of Exception to the Buy American Act. The exceptions under FAR

25.103(b)(2) or FAR 25.202(a)(2)) do not apply 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. In accordance with 14 CFR 21.9, with limited exceptions, only a replacement or modification article produced under a type certificate or produced under an 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 exceeds 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 requirement.

The FAA issued Advisory Circular (AC) 20-62 (series) to provide information and guidance for use in determining the eligibility, quality, and identification of aeronautical replacement parts and materials intended for installation on United States (U.S.) 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) Foreign manufactured replacement parts when there is a Bilateral Airworthiness

Agreement (BAA) between country of manufacture and the United States. This certification may be verified on a form similar to the FAA Form 8130-3 (i.e., European Aviation Safety Agency (EASA) Form 1.);

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 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 CRF 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 standards in these manners.

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 vendor that can provide the Certificate of Conformance and traceability to the OEM as required by the CFR and FAA.

(a) The use of 41 U.S.C. 1901 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) Alternate sources 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. 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 and their authorized distributor. 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 matter of human safety and protection of Government property and does not accept lower standards in these matters. Therefore, the mission will be impacted as 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 stockage 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.

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

Sources as is Practicable.

(a) This procurement forecast was posted on the DHS-Acquisition Planning Forecast System

(APFS) Number F2024066491 at http://apfs.dhs.gov, published June 6, 2024 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 solicitation/synopsis 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 August 01, 2024.

(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)), comparison with similar items in a related industry (FAR Part 13.106-3(a)), and comparison to the Independent

Government Cost Estimate (IGCE) (FAR Part 13.106-3(a)).

9. Description of Market Research.

(a) Market research was performed January 2024 through May 2024. During this time extensive research was conducted through reviewing previous procurement history, internet searches, and discussions with the OEM. Based on the extensive research, a

Sources Sought Notice was not issued because this procurement is a sole source requirement. Due to the sole source nature of the requirement there is only one (1)

OEM authorized distributor in North America, a subsidiary that is registered as a large business in SAM.gov. AHI is the only authorized distributor of the OEM requirements.

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 Airbus Helicopter, France products to North

American customers.

(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).

http://apfs.dhs.gov/

(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 and their authorized distributors.

(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.

N/A 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. 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. To date, there have been no inquiries for this requirement.

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.

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.

Emma C. Holland Craft 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.

Dawn O’Connor Date

Inventory Management Specialist, USCG, ALC, SRR

RECOMMENDED FOR APPROVAL:

Kristen R. Copeland Date

Leve Above Contracting Officer

Supervisory Contracting Officer, USCG, ALC, SRR

David S. Burgess Date

Chief of the Contracting Office, USCG ALC

Frederick Steward Date

The Procuring Activity Advocate for Competition (PAAC)