ATTACHMENT 3 Redacted JA 70Z03822QJ0000231.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

Procurement of MH-60T Main Gearbox (70Z03822QJ0000231)

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 Division, 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 MRR Procurement Branch intends to procure on a sole source basis, a new buy contract for the main gearbox utilized on the USCG MH-60T.

(b) Name and address of the contractor:

Sikorsky Aircraft Corporation (SAC) 6900 Main St.

PO Box 9729 Stratford, CT 06614-1385 Cage Code: 78286

(c) Type of action: Indefinite Delivery – Requirements Contract with firm-fixed price delivery orders. The contract will consist of one (1) base year and two (2) option years.

(d) Estimated total value (including options): $6,251,249.00 broken down as follows:

Period Total* Base Year 12 mo.

Option Year 1 12 mo.

Option Year 2 12 mo. ___________

*All totals have been rounded to the nearest dollar.

(e) Type of funding: Operations and Support funds

(f) Year of funding: Fiscal Year 2023-2026

(g) Solicitation number: 70Z03822QJ0000231

(h) Background information about the requirement: As the USCG Aviation Inventory Control Point (AICP), Aviation Logistics Center (ALC) provides supply support for all USCG field units and the MH-60T aircraft Program Depot Maintenance (PDM) program. This requirement is to purchase a new component specifically manufactured by SAC for use on the MH-60T aircraft.

The aircraft component in this acquisition must have a clear, documented traceability to the OEM, SAC. An alternate component, a component manufactured as a result of reverse engineering, and components provided by a distributor that is not authorized by SAC cannot be considered due to the inherent safety of flight risk.

3. Description of Supplies/Services.

The USCG currently operates a fleet of forty-eight (48) MH-60T rotary wing aircraft. This specialized aircraft currently enables the USCG to perform missions such as search and rescue, law enforcement, international ice patrol, marine environmental protection, and marine resource conservation. With a demanding operational tempo, aircraft condition and availability are essential to mission success. This requirement is to purchase, on a recurring basis, main gearboxes manufactured by SAC for use on the

MH-60T.

Nomenclature NSN P/N Unit of Issue

Total Per Ordering Period

Main Gearbox 1615-01-552-3522 70351-38100-049 EA 2

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 (c), as implemented in FAR 13.501 (a)(ii), “Sole Source Acquisition”. Responsible sources are limited to the OEM or MRR Engineering approved sources.

5. Identification of Exception to the Buy American Act.

The nonavailability exception to the Buy American Statute does not apply to this requirement.

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 specifications, manufacturing drawings, data, test equipment, and tooling required to purchase the component of this acquisition is proprietary to the OEM, SAC. The USCG did not purchase rights to the proprietary data required to foster a competitive environment as part of any original provisioning for use on the MH-60T rotary wing aircraft and the costs to procure this data would be cost prohibitive. No other part numbers can be utilized.

(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 component is interchangeable throughout the MH-60T fleet and considered a flight Critical Safety Item (CSI) part. In order to successfully maintain airworthiness of the aircraft and the aircraft systems, protect personnel safety, and perform the USCG’s mission, acquisition of CSIs is restricted to approved sources. A CSI is a part, assembly, installation or production system with one or more critical characteristics that, if not conforming to the design data or quality requirements, would result in an unsafe condition. Unsafe conditions relate to mishap severity categories I (catastrophic) and II (critical), and include conditions which could cause loss or serious damage to the end item or major component, loss of control, serious injury to personnel, or death of personnel. In order to successfully maintain airworthiness of the aircraft, protect personnel safety, and perform the USCG’s mission, the acquisition is restricted to the OEM or

MRR Engineering approved sources. 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 aircraft component in this acquisition must have a clear, documented traceability to the OEM, SAC. An alternate component, components manufactured as a result of reverse engineering, or components provided by a distributor that are not authorized by SAC cannot be considered due to the inherent safety of flight risk.

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 For Other Than Full and Open competition will jeopardize performance of MRR’s mission due to grounding of the aircraft as a result of no stock being available as 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.

(b) If an announcement is being planned for posting in Contract Opportunities, provide the estimated date of publication: This Justification for Other Than Full and Open Competition (J&A) will be posted to the GPE website, SAM.gov on approximately August 12, 2022. Market research confirmed that SAC is the OEM and the only approved source to provide the Main Gearboxes. Any capability statement, proposal or quotation received in response will be considered prior to award.

(c) 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.

(d) If an announcement will be published after award, cite the applicable exception under FAR 6.305: The justification will be posted within 14 days of contract award IAW 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 comparison of prices proposed with historical pricing (FAR 13.106-3 (a)(2)(ii)), as well as the IGCE (FAR 13.106-3 (a)(2)(vi)).

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: This procurement forecast is posted as DHS – Acquisition Planning Forecast System (APFS) No: P2022057110 on http://apfs.dhs.gov, published 6/29/2022, and was included in the DHS Forecast of Small Business Opportunities. Market http://apfs.dhs.gov/ research was conducted in accordance with FAR Part 10 from December 2021 through April 2022.

Department of Homeland Security (DHS) APFS entries were reviewed and there were no previous entries. A review of the Asset Maintenance Management Information System (AMMIS) database history was conducted. The MRR Product Line is in constant communication with the Navy regarding the sustainment of the MH-60T and has a USCG liaison officer on location. Government databases such as General Services Administration (GSA), Webflis vice FEDLOG, and FEDMALL were all reviewed as part of the market research. 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. A sources sought action was initiated to further confirm no other sources were able to provide the required components. Sources sought 70Z03822IJ0000007 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. See attachment 2.

(b) 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).

(c) If market research was not conducted, state why: Market research was conducted from December 2021 –

April 2022.

(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: Not applicable.

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: SAC is the only approved source for the procurement of these components, therefore, the acquisition is not suitable for full and open competition. See attachment

1. As the OEM (SAC) owns all specifications, manufacturing drawings, data, test equipment, and tooling required to manufacture the main gearboxes. The USCG does not have the rights to the proprietary data and it is cost prohibited to obtain.

(b) Discuss why your requirement cannot be modified to enhance competition: This requirement cannot be modified to enhance competition because the components and the subsequent technological data are not available from any vendor other than the OEM, as well as the 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 Justification and Approval for Other than Full and Open Competition 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 did not purchase rights to the proprietary technology required to foster a competitive environment as part of any original provisioning for use on the MH-60T aircraft. Only one (1) source is able to supply the main gearbox of this acquisition approved by ALC MRR Engineering. Every reasonable effort will be made to remove barriers to competition for future requirements. These efforts will include continuing to identify additional sources that may eventually become approved by ALC MRR Engineering.

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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.

Hayley Osmon 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.

Ismael Melendez Date Technical Representative/COR

APPROVAL:

Hayley Osmon Date Contracting Officer

David S. Burgess Date Chief of the Contracting Office

Frederick Steward - ALC, CG-914, SILC-CON Date Command Procuring Activity Competition Advocate (CPACA)