Attachment 3 - Redacted J and A.pdf

Attachment # 3 Redacted J&A

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

10 U.S.C 2304

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

Agency Requirements

Spare Parts and Components for the HC-27J Aircraft

Solicitation #: 70Z03822RW0000004

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3 and in accordance with the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 is justified by the following facts and rationale required under FAR 6.303-2 as follows:

1. Agency and Contracting Activity.

The United States Coast Guard (USCG), Aviation Logistics Center (ALC), Medium Range

Surveillance (MRS) Division, 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 intends to procure on a sole source basis, an Indefinite Delivery Requirements contract for the procurement of spare parts and components for the HC-27J aircraft. The contract will consist of one

(1) year base period and four (4) one-year option periods.

(b) Name and address of the contractor:

Leonardo SPA

Piazza Monte Grappa 4

Roma, Italy 00195

Cage Code: A1512

(c) Type of action: Firm Fixed Price Indefinite Delivery Requirements

Contract

(d) Estimated total value: $8,270,000.

Period Estimated Amount Period of Performance

Base Year: $ 805,642 06/06/2022-06/05/2023

Option Year 1: $1,548,301 06/06/2023-06/05/2024

Option Year 2: $1,820,422 06/06/2024-06/05/2025

Option Year 3: $1,959,265 06/06/2025-06/05/2026

Option Year 4: $2,135,562 06/06/2026-06/05/2027

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

(f) Year of Funding: Fiscal Year 2022 through 2027; appropriate fiscal year funding will be used based on the date of order.

10 U.S.C 2304

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

Agency Requirements

(g) Solicitation Number: 70Z03822QW0000001

(h) Background: The USCG operates fourteen (14) HC-27J aircrafts. The HC-27J

Maritime Patrol Aircraft (MPA) is a medium range aircraft used in search and rescue and maritime patrol missions. The procurement of these spare parts and components are needed for depot maintenance of the aircraft to support the USCG missions.

3. Description of Supplies/Services.

The contractor will provide spare parts and components to support HC-27J aircraft flight operations and missions, Air Station Sacramento operations, and depot maintenance of the aircraft. These parts are essential to avoid grounding of the aircraft. All parts listed in this requirement are identified in Attachment 1.

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

Competition.

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented in the FAR Subpart 6.302-1, entitled “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Identification of Exception to the Buy American Act.

The following requirement is an Exception to the Buy American Act due to Non-availability in accordance with FAR 25.103(b)(1). These spare parts and components are manufactured outside the U.S. therefore, these items considered as a class, are not available from domestic manufacturers.

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;

In order to maintain structural integrity of the aircraft and ensure complete compatibility, the supply of the HC-27J components and the associated spare parts listed in this requirement must be obtained from the Original Equipment Manufacturer (OEM) or an OEM approved source. The use of OEM parts will ensure the HC-27J aircraft and the associated spare 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.

(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:

10 U.S.C 2304

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

Agency Requirements

The MRS Engineering Officer has determined that the required parts are critical for flight and has assigned an Acquisition Method Code (AMC) of 3 or 5 and Acquisition Method Suffix

Codes (AMSC) of C, Q, or R. In accordance with DoD 4100.39 (series) Volume 10, Table 71, an AMC of 3 or 5 require the purchase of the items required for this service from the actual manufacturer or prime contractor only. An AMSC of C, Q, or R stipulates that the part requires engineering source approval by the design control activity in order to maintain the quality of the part or the data or rights to use the data needed to purchase these parts from additional sources are not owned by the Government. The USCG does not have proprietary data or drawings to supply to private industry or other sources. The USCG does not have adequate technical data to provide to potential offerors to promote competition.

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

The alternate would be to procure similar components from an alternate manufacturer, however, the alternative will not work because the components are critical safety items and must be procured from the OEM to maintain 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 the spares required to support operational maintenance and scheduled Programmed Depot Maintenance (PDM) of the HC-144 aircraft. Without spare parts aircraft would be grounded for extensive periods of time. Failure to approve this sole source J&A will jeopardize the performance of USCG’s mission due to grounding of aircraft as a result of insufficient stock being available as the components are 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)

Not Applicable.

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

Potential Sources as is Practicable.

(a) This acquisition is forecasted in the Department of Homeland Security (DHS)

Acquisition Planning Forecast System (APFS), number F2021053646. Published on

August 17, 2021 and can be found at https://www.apfs.gov.

(b) This Justification for Other Than Full and Open Competition will be posted to the

Government-wide Point of Entry (GPE), via https://www.beta.sam.gov with the combined synopsis solicitation that the USCG intends to award to Leonardo SPA on a sole source basis. Any capability statement, proposal, or quotation received will be considered prior to award and the Contracting Officer will make a determination to https://www.apfs.gov/ https://www.beta.sam.gov/

10 U.S.C 2304

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

Agency Requirements 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.

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

8. Determination by the Contracting Officer that the Anticipated Cost to the

Government will be Fair and Reasonable.

The Contracting Officer anticipates that prices for this procurement will be fair and reasonable based on comparison with prior acquisition history and current published prices lists for same or similar items.

9. Description of Market Research. Market research is required by FAR Part 10, and the results of the market research should be summarized here. Include the following information:

(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 from June 15, 2021 through November 30, 2021 to determine a list of potential sources for HC-27J spare parts. This market research included: interviewing knowledgeable individuals in industry, reviewing Government databases (ALMIS, GSA, FEDLOG, and the Inventory Locator Service ILS), OEM catalog literature and websites and querying the Industry Base System and previous procurement AMMIS history. A sources sought notice was issued on February 24, 2021. All market research efforts resulted in no alternate supply sources that can meet the USCG’s need. Only one vendor has been found capable of providing the HC-27J components and spare parts with traceability of parts back to the OEM.

Market research indicates only Leonardo SPA (OEM) can provide the HC-27J spares and components.

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

10 U.S.C 2304

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

Agency Requirements

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

(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 both been licensed for resale.

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:

The supplies to be procured under this acquisition are highly specialized in nature, developed by a non-Government activity and the technical data required for acquisition by other than the OEM is not available. Leonardo SPA is the prime contractor and the

OEM for the HC-27J engine assembly and spare parts. Leonardo SPA has not shown an interest in selling the data rights or other intellectual property, as presented in the attached letter. It is not economically feasible for the USCG to purchase these data rights.

The USCG will maintain open communications with Leonardo SPA and will continually conduct market research to identify possible additional sources that may eventually receive authorization to access OEM drawings and specifications.

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

The USCG does not possess the technical data required to foster full and open competition for the supplies covered under this J&A.

(c) For 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:

(d) For 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:

10 U.S.C 2304

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

Agency Requirements

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

Acquisition.

To date, no responses has been received by the Contracting Officer. Any responses received prior to the award of the procurement 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.? The

USCG does not possess the technical expertise required to perform, or the technical data required to foster full and open competition for this effort. 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.

(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.

Not applicable.

10 U.S.C 2304

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

Agency Requirements

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.

Kia R. Walton Date

Contracting Officer, USCG, ALC, MRS

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.

Jennifer C. Eure Date

Inventory Manager, USCG, ALC, MRS

APPROVAL:

Monique H. Swinson, Level Above Date

Supervisory Contracting Officer

Tabitha Callon, Chief of Contracting Officer, Deputy Date

Aviation Logistics Center

Mr. Frederick Steward, ALC, CG-914,SILC-CON Date

Command Procuring Activity Competition Advocate