Attachment 3 - Redacted J and A.pdf

REDACTED

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

Repair of HC-27J Components and Parts

Solicitation # 70Z03822RW0000003

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, proposed to enter into a contract on the basis of 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 repair of components for the HC-27J aircraft.

(b) Name and address of the contractor:

Leonardo Spa

Piazza Monte Grappa 4

Roma, Italy

Cage Code: A1512

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

(d) Estimated total value: $ 12,898,320

Period Estimated Amount Period of Performance

Base Year: $2,031,298 11/22/2022 - 11/21/2023

Option Year 1: $1,955,182 11/22/2023 - 11/21/2024

Option Year 2: $2,897,507 11/22/2024 - 11/21/2025

Option Year 3: $2,258,501 11/22/2025 - 11/21/2026

Option Year 4: $3,755,832 11/22/2026 - 11/21/2027

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

(f) Year of Funding: Fiscal Year 2022 through 2027

(g) Solicitation Number: 70Z03822RW0000003

(h) Background: The HC-27J is a medium range surveillance aircraft. These aircrafts are specifically equipped to perform all USCG missions which include: search and rescue, maritime safety, security, logistics, as well as national defense and of natural resources.

10 U.S.C 2304

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

Agency Requirements

Repair of HC-27J Components and Parts

3. Description of Supplies/Services.

The contractor will repair the failed components of the HC-27J aircraft. These components and parts are critical to the flight and operation to the aircraft to perform missions. The HC-27J is used to support the means to search and rescue, performing over water surveillance and other various missions. The list of components to be repaired are 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).

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;

In order to maintain structural integrity of the aircraft and ensure complete compatibility, the repair of the specified components and the associated spare parts listed in this requirement must be repaired by the Original Equipment Manufacturer (OEM) or an OEM authorized repair facility. The data, including complete specifications and drawings, required to support the repair of these components is proprietary to Leonardo Spa, the OEM. 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 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.

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

10 U.S.C 2304

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

Agency Requirements

Repair of HC-27J Components and Parts

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 services required to support operational maintenance and scheduled Programmed Depot Maintenance (PDM) of the HC-27J aircraft. Without the required repairs, the 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) If an announcement has already been made in Beta SAM, provide the date of publication:

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

Planning Forecast System (APFS), number F2021054210 published on September 21, 2021, and can be found at https://www.apfs.gov.

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

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 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.

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

Repair of HC-27J Components and Parts

The Contracting Officer anticipates that the prices will be fair and reasonable based on comparison with historical pricing, prices paid by other customers for same or similar items, and the Independent Government Cost Estimate (IGCE).

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 was conducted from June 3, 2021 through February 12, 2022 to determine a list of potential sources for the required HC-27J repairs. 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. 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 services with traceability of parts back to the OEM. Market research indicates only Leonardo Spa (OEM) can provide the specific required HC-27J aircraft services and repairs.

(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).

(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 services 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 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.

10 U.S.C 2304

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

Agency Requirements

Repair of HC-27J Components and Parts

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

The repairs of the specified components and parts are complex and must meet critical operational and reliability requirements which require unique production techniques and extensive and/or sophisticated testing. These repairs cannot be modified to enhance competition because the components and the subsequent technical data are only available from an OEM authorized distributor or by the OEM.

(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 or the

(applicable to all federal agencies) DHS-specific statutory 150-day limitation:

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.? Complete specifications and drawings for the HC-27J are not available to the USCG. The USCG does not possess technical expertise, nor were the data rights to drawings, specifications, and manuals purchased as part of the initial system acquisition for the HC-27J aircraft. As the Aircraft

Inventory Control Point (AICP), ALC is tasked with supporting systems that have been deployed for use in the aviation community. Complete specifications and drawings are not available and the cost to procure them is not easily quantifiable. The data for manufacturing/repair of these parts is proprietary to the OEM and therefore future competition for this effort is not known. Our budget does not include funding to procure data for these systems. As a result of the above, it would be difficult to foster a competitive procurement effort. However, in an effort to increase competition

MRS Engineering, Item Managers and Contracting continuously conduct market research to ensure that companies interested in doing business with the USCG are given every opportunity to compete for our requirements. The USCG will check annually with Leonardo Spa on the availability of technical data released in order to promote competition. If any additional viable

10 U.S.C 2304

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

Agency Requirements

Repair of HC-27J Components and Parts sources are identified through response to the solicitation, ALC will make a determination to compete the services based on limited competition.

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

Repair of HC-27J Components and Parts

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.

Monique H. Swinson, USCG, ALC, MRS 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.

Carlton Colton, USCG, ALC, MRS Date

Inventory Manager

APPROVAL:

Tabitha Callon, USCG, ALC Date

Chief of Contracting Officer, Deputy

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

Command Procuring Activity Competition Advocate

10 U.S.C 2304

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

Agency Requirements

Repair of HC-27J Components and Parts