Attachment 3 - Redacted J and A.docx

ATTACHMENT 3

REDACTED

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901 Solicitation Number: 70Z03823QL0000034

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, United States Coast Guard (USCG), Aviation Logistics Center (ALC), Medium Range Surveillance (MRS) Product Line, Elizabeth City, NC, 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, MRS Division requests approval to solicit and award, on a sole source basis, the procurement of Batteries for use on the HC144 aircraft.

(b) Name and address of the contractor:

SPECMAT Technologies Inc 215 Dunavant Dr.

Rockford, TN 37853 CAGE Code: 0DLY8

(c) Type of action: Firm-Fixed Price Requirements Contract consisting of a one-year base period, with four (4) one-year option periods, will be issued for the identified Batteries.

(d) Estimated total value (including options): $412,285

This acquisition was previously awarded under contract 70Z03818DL0000003, the period of performance is from September 19, 2018 through September 18, 2023.

(e) Type of funding: Operations and Support (O&S) Funds

(f) Year of funding: Fiscal Year 2023

(g) Solicitation number: 70Z03823QL0000034

(h) Background information about the requirement:

The USCG operates eighteen (18) HC-144 aircrafts. Both aircrafts are critical to the USCG’s search and rescue missions. The HC-144 is a medium range surveillance aircraft. These aircrafts are specifically equipped to perform all USCG missions which include: search and rescue, maritime safety, security, and logistics, as well as national defense and protection of natural resources. The procurement of these Battery spares are needed to support USCG search and rescue missions.

3. Description of Supplies/Services.

The requirement for spares in this requirement are needed to equip the HC-144 aircrafts in order to support the USCG mission. The spares are considered Critical Safety Items (CSIs) and without the spares to support the aircrafts this could potentially ground the aircrafts. Therefore, procurement of these spares from the Original Equipment Manufacturer (OEM) will maintain airworthiness. The contract will contain the two (2) types of batteries as shown in the following table:

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 in Federal Acquisition Regulation (FAR) 13.501(a), sole source (including brand name) acquisitions.

5. Identification of Exception to the Buy American Act.

Not applicable.

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 use of 41 U.S.C. 1901 is necessary because SPECMAT Technologies, Inc. is the OEM for the Batteries used on the HC-144 aircrafts. The data required to manufacture these spares is proprietary to the OEM and is not available from another source. The USCG does not have adequate technical data to provide to potential offerors to promote competition.

(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 MRS Engineering Officers has determined that the required spares for the procurement are critical for flight and has assigned an Acquisition Method Code (AMC) of 3 and Acquisition Method Suffix Codes (AMSC) of C for all parts.

In accordance with DoD 4100.39 (series) Volume 10, Table 71, an AMC of 3 require the purchase of these items required for this acquisition from the actual manufacturer or prime contractor only. An AMSC of C stipulates that the part requires engineering source approval by the design control activity in order to maintain the quality of the part. Due to the critical and proprietary nature of the requirement, the work cannot be segregated to allow for competition.

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

This requirement is restricted to the OEM or an OEM authorized distributor and must maintain airworthy condition. There are no alternatives to acquire these supplies from other than the OEM due to the critical safety, proprietary data, and maintaining airworthy condition of the aircraft.

(d) Impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided.

This procurement will provide spares to support the operational missions of the HC-144 aircrafts. Without the spares the aircrafts would be grounded for extensive periods of time until the failed part could be replaced. Failure to approve this sole source J&A will jeopardize the performance of USCG’s mission due to grounding of the aircraft as a result of insufficient stock being available of the components as required.

(e) Section is required to be completed when the J&A includes the exception listed under FAR 25.103(b)(2) or FAR 25.202(a)(2)).

The exemption at FAR 25.103(b)(2) is not taken.

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.

The acquisition is forecasted in the Department of Homeland Security (DHS) Acquisition Planning Forecast System (APFS), number F2022058006 published 08/31/2022 and can be found at www.afps.gov.

(b) If an announcement is being planned for posting in Contract Opportunities, provide the estimated date of publication.

The Justification for Other than Full and Open Competition (J&A) will be posted to the Government-wide Point of Entry (GPE), via https://www.sam.gov, with the Notice of Intent that USCG intend to award to SPECTMAT Technologies, Inc on a sole source basis. Any capability statement, or quotation received will be considered prior to award and the Contracting Officer will make a determination to solicit the requirement based on limited competition, if appropriate.

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

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

(d) If an announcement will be published after award, cite the applicable exception under FAR 6.305.

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 pricing will be determined fair and reasonable in accordance with FAR 13.106-3. The prices will be determined fair and reasonable based on comparison to previously paid pricing, prior Asset Maintenance Management Information system (AMMIS) history, and current published pricing for similar items.

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 indicates that the components are not listed on a General Services Administration (GSA) contract or available through GSA Advantage. Market research also consisted of querying the Acquisition history, Internet Search, FedLog, Industry Base System, Inventory Locator System (ILS), Catalog and product literature, DHS-Wide and Multi-Component Contract Vehicles, Excess from Other Agencies, AbilityOne, Contracting Opportunities, and the Acquisition Planning Forecast System revealed no alternate supply sources. The OEM is the only approved source to provide the spares. The spares for the HC-144 are commercial in nature and is prevalent in private aviation and commercial aviation. All terms and conditions are not expected to differ from customary terms and conditions in the marketplace or standard Government practices.

A sources sought notice (70Z03823IL0000003) was posted on January 11, 2023 and closed on February 10, 2023. Two responses were received from RKKS Enterprise, LLC (RKKS) and EOS-AV International Corp (EOS-AV). Neither company is an authorized distributor for SPECMAT Technologies, Inc. nor are approved by USCG Engineering to provide the identified Batteries in this requirement. Therefore, these companies were not considered potential sources. After conducting extensive market, through the methods identified, it was determined that this requirement shall be posted as sole source to SPECMAT Technologies, Inc.

(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 25.002(a)(2) for the Buy American Act.

(c) If market research was not conducted, state why.

Market research has been conducted.

(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.

This requirement does not have nor requires patents, copyrights, and/or intellectual property.

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.

SPECMAT Technologies, Inc., the OEM, is the only approved source to provide the spares. Therefore, this requirement is not suitable for full and open competition. The technical data package, including drawings, specifications, manuals, and publications required to develop additional sources to provide the spare were not procured by the Government and are proprietary to the OEM.

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

The supplies to be procured cannot be modified to enhance competition because the components and the subsequent technical data are not available from any distributor other than the OEM.

(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.

This requirement is not a follow-on for the continued provision of highly specialized services pursuant to FAR 6.302(a)(2)(ii).

(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(d) or HSAR 3006.3020270. This is not considered unusual and compelling urgency.

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

A sources sought notice (70Z03823IL0000003) was posted on January 11, 2023 and closed on February 10, 2023. Two responses were received from RKKS and EOS-AV. Neither company is an authorized distributor for SPECMAT Technologies, Inc. nor are approved by

USCG Engineering to provide the identified Batteries in this requirement. Therefore, these companies were not considered potential sources.

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?

The manufacturing, performance, and acceptance data are proprietary to the aircraft OEM. The USCG does not possess adequate and appropriate technical data to provide to potential offerors.

(b) When a J&A is issued for the purposes of acquiring goods or services while a competitive procurement is being conducted, the justification should include a detailed timeline for completion of the competitive procurement. The period of performance for the sole source action should fairly balance the time needed to complete the competitive procurement. The focus should be on minimizing the need for additional sole source awards.

SPECMAT Technologies, Inc. has not expressed any interest nor a desire to sell the proprietary data rights to the Batteries identified in this requirement. There are no actions the USCG can take to remove or overcome barriers to competition for this requirement. In the event that SPECMAT Technologies, Inc. chooses to release proprietary data rights, the acquisition of the identified Batteries will be pursued on a full and open basis.

12. 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.

Contracting Officer

13. 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.

Technical Representative

APPROVAL:

Level Above Supervisory Contracting Officer