Attachment 3 - Redacted JA - 70Z03822QJ0000215.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

Procurement of MH-60T Seat Parts (70Z03822QJ0000215)

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 Recovery (MRR) Product Line, 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: USCG intends to procure on a sole source basis, the purchase of plate and table assemblies for MH-60T seats hereafter referred to as parts. The parts are manufactured by Stevens Manufacturing Company, Inc.

(SMC), the Original Equipment Manufacturer (OEM). SMC is the only approved source for these parts.

(b) Name and address of the contractor:

Stevens Manufacturing Company, Inc. (SMC) 220 Rock Lane Milford, CT 06460-3853 Cage Code: 8F781

(c) Type of action: Firm Fixed-Price Contract with one (1) base year and four (4) option years.

(d) Estimated total value of (including options) is broken down as follows:

Period Total* Base Year 12 mo.

Option Year 1 12 mo.

Option Year 2 12 mo.

Option Year 3 12 mo.

Option Year 4 12 mo.

*All totals have been rounded to the nearest dollar

Note: The procurement of the parts under this J&A were previously awarded under contract number 70Z03818DJ0000002 with a period of performance end date of 2/21/2023.

(d) Type of funding: Operations and Support funds

(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 components of this acquisition are proprietary to SMC, and there are no other authorized distributors. Given this information, no portion of the work can be segregated to allow for competition.

(c) Summarize alternatives considered and why they will not work: The OEM is the only source that may be considered as the USCG does not own the technical data/drawings to support the manufacture. The OEM (SMC) is the only known source with the technical data/drawings. 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. Therefore, no alternatives can be considered for this requirement.

(d) Impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided: Failure to approve this sole source justification will jeopardize the performance of MRR’s mission to meet the congressional mandated delivery of three (3) additional aircraft to the USCG fleet beginning in Fiscal Year 2023. Therefore, failure to approve this sole source justification will increase the risk of grounding aircraft as a result of no stock being available as the seats are required.

(e) Rationale for use of the nonavailability exception to the Buy American statute, including detailed information explaining why the particular articles, materials, or supplies of the class or kind to be acquired, either as end items or components, are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality. The nonavailability exception to the Buy American Statute does not apply to this requirement.

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: An announcement has not been made on Contract Opportunities.

(a) If an announcement is being planned for posting in Contract Opportunities, provide the estimated date of publication: Sources sought 70Z03822IJ0000006 was posted on July 8, 2022 and closed on July 18, 2022. No responses were received as a result of the sources sought posting on Sam.gov. This Justification for Other Than Full and Open Competition (J&A) will be posted to the GPE website, SAM.gov on approximately August 15, 2022. Market research confirmed that SMC is the OEM and the only approved source to provide the seat parts. Any capability statement, proposal or quotation received in response will be considered prior to award.

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

There are no applicable exceptions and an announcement will be published.

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

There are no applicable exceptions and an announcement will be published.

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 found fair and reasonable by utilizing a combination of price analysis techniques to include: comparison of proposed prices to historical prices paid (FAR 13.106-3 (a)(2)(ii)), comparison to similar items (FAR 13.106-3 (a)(2)(iv)), and a comparison to the Independent Government Cost Estimate (FAR 13.106-3 (a)(2)(vi)).

9. Description of Market Research.

(b) 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: The procurement forecast is posted as DHS – Acquisition Planning Forecast System (APFS) No:

F2022057652 to http://apfs.dhs.gov, published 6/14/2022. Market research was conducted in accordance with FAR Part 10 from February 2022 – March 2022. A review of the Asset Maintenance Management Information System (AMMIS) database history was conducted.

Government databases such as General Services Administration (GSA), Federal Logistics repository (FEDLOG), FEDMALL were all reviewed as part of the market research. There were no entries in FEDLOG or FEDMALL and the components were not found in GSA. Existing DHS-wide and multi-component contract vehicles with DHS Strategic Sourcing Program Office and/or on DHS Enterprise-wide Contract Vehicle Portal were reviewed and were determined out of scope of this procurement. Based upon the proprietary nature of the seat parts, it has been determined that SMC is the only certified source to procure from. Sources sought 70Z03822IJ0000006 was posted on July 8, 2022 and closed on July 18, 2022. No responses were received as a result of the sources sought posting on Sam.gov.

(c) Describe the market research results that support the determination that the items are nonavailable: Not applicable; this requirement does not include the exceptions at FAR 25.103(b)(2) or FAR 25.202(a)(2).

(d) If market research was not conducted, state why: Market research was conducted from February

2022 – March 2022.

(e) 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: SMC maintains all technical data as proprietary and will not release drawings or data rights to any outside third part for the purpose of reverse engineering or re-manufacturing under different part numbers. These parts are commercial in nature and prevalent in private aviation, commercial aviation, and military aviation worldwide. Based upon the proprietary nature of the aircraft parts, it has been determined that SMC is the only source of supply.

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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 MH-60T aircraft was procured and provisioned by USCG headquarters; however, this procurement did not include the technical data packages, specifications, and documentation necessary to enable full and open competition.

Therefore, it would be difficult to take steps to foster competition as the manufacturing performance and acceptance data are proprietary, as USCG does not have adequate technical data to provide to potential offerors.

(b) Discuss why your requirement cannot be modified to enhance competition: The specifications, manufacturing drawings, data, test equipment, and tooling required to procure the seat parts are proprietary to the OEM, SMC. Any deviation from the source OEM could result in a safety risk.

The seat parts must meet all form, fit, and function requirements specified in OEM manuals.

Therefore, this requirement cannot be modified to enhance competition, as a risk of flight safety is never acceptable.

(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 action as described in 6.302-1(a)(iii).

(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: This requirement is not subject to the restrictions of FAR 6.302-2(d) or Homeland Security Acquisition Regulation (HSAR) 3006.302- 270.

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

Acquisition.

A combined synopsis/solicitation will be issued through Contract Opportunities on SAM.gov website upon approval of this document. Once the J&A has been posted to SAM.gov, all offerors will be considered. To date, there have been no inquiries regarding this procurement.

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.

Will the government revise overly technical specifications, acquire data rights, etc.? The USCG does not possess the technical data required to foster full and open competition for the parts covered under this justification and approval. 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. In an effort to increase competition, MH-60T program members conduct internet database research and ensure procurements are advertised in SAM.gov.

If another potential source emerges, and the USCG is able to obtain the required technical data, the USCG will assess whether competition for any future requirements are feasible.