Attachment 3 Redacted JA - 70Z03824QJ0000133.pdf

ATTACHMENT 3 Redacted J and A – 70Z03824QJ0000133

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, Elizabeth City, North Carolina prepared this justification for other than full and open competition.

2. Nature and/or Description of the Action being Approved. The USCG, ALC, MRR

Product Line Division intends to procure on a sole source basis Air Pressure Controller(s)

(AP Controller) utilized on the USCG MH-60T aircraft. The parts are manufactured by

Hamilton Sundstrand Corporation (Hamilton Sundstrand), a part of Collins Aerospace, the

Original Equipment Manufacturer (OEM), and is the only Naval Supply Systems Command

(NAVSUP) Weapons Systems Support (WSS) approved source for the procurement of this part.

(a) Nature of the action: The USCG intends to procure on a sole source basis.

(b) Name and address of the contractor:

Hamilton Sundstrand Corporation

1007 E University Dr

Phoenix, Arizona 85034-6513

Cage Code: 0CAM5

(c) Type of action: The USCG intends to award a Firm Fixed-Price Indefinite Delivery

Requirements type contract consisting of a one (1) one-year Base Period and four (4) one-year Option Periods, if exercised. The parts will be purchased using individually funded firm fixed-price delivery orders.

(d) Estimated total value (including options): $1,916,515 broken down as follows:

Period Length of Period Total

Base 12 Months $346,841

Option One 12 Months $364,183

Option Two 12 Months $382,392

Option Three 12 Months $401,512

Option Four 12 Months $421,587

Total $1,916,515

(e) Type of funding: Operations and Support Funds

(f) Year of funding: Operation and Support Funds will be provided annually for Fiscal

Years 2024 through 2029.

(g) Solicitation number: 70Z03824QJ0000133

(h) Background information about the requirement: The item in this requirement is assigned an Acquisition Method Code (AMC) of three (3) which designates

“Acquire directly from the actual manufacturer, whether or not the prime contractor is the actual manufacturer”. In addition, the item is designated an Acquisition Method

Suffix Code (AMSC) of B, which states “Acquisition of this part is restricted to source(s) specified on “Source Control”, “Altered Item” or “Selected Item” drawings and documents.

3. Description of Supplies/Services. As the Aviation Inventory Control Point (AICP), ALC must provide effective supply support for all USCG aviation units and for the

Programmed Depot Maintenance (PDM) Program. This requirement is to be awarded to the OEM that has access to the original OEM parts and can provide traceability. These parts are crucial to meet the USCG’s many missions. The material and estimated quantities to be procured are based on current and past usage data. Projected stocking levels are based on failure and corrosion trends, current upgrades and modifications in process, historical and projected scrap rates, and procurement lead times. Stock level recommendations are also obtained from the USCG’s forecasting tool.

The following are the part numbers included in this J&A:

773040-2 (ALT P/N: 70309-23808-101)

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. 3304(a)(1) as implemented by FAR 6.302-1 entitled “Only One Responsible

Source and No Other Supplies or Services will Satisfy Agency Requirements.”

Responsible sources are limited to the OEM.

5. Identification of Exception to the Buy American Act. The requirement for the procurement of these components does not take an exception to the Buy American statute.

Therefore, the Buy American statute will be included in the terms and conditions of this contract.

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 for the acquisition of the AP Controller are proprietary to the OEM, Hamilton Sundstrand. The USCG did not purchase rights to the proprietary date required to foster a competitive environment as part of any original provisioning for use on the MH-60T rotary wing aircraft and the cost http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3 to procure this data would be cost prohibitive. No acceptable alternate vendors have been identified (See Attachment 1).

(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. As cited in 6a, the OEM was contacted regarding the release or sale of their proprietary technology, as well as potential authorized distributors. Per correspondence with Hamilton Sundstrand, they do not approve the release or sale of their proprietary technology and there are no Hamilton Sundstrand authorized vendors. Given this information, no portion of the work can be segregated to allow for competition as Hamilton Sundstrand is the OEM and there are no OEM authorized vendors.

(c) Summarize alternatives considered and why they will not work. There are no alternatives that may be considered as the OEM has communicated that there are no authorized distributors, and their proprietary technology is not for release or sale (See

Attachment 1).

(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 J&A will jeopardize performance of the USCG’s mission due to grounding of the aircraft as a result of no stock being available as AP Controllers are required.

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. This procurement forecast is posted as DHS – Acquisition Planning

Forecast System (APFS) No: F2023060560 and published on January 03, 2024 at http://apfs.dhs.gov and was included in the DHS Forecast of Small Business

Opportunities.

(b) If an announcement is being planned for posting in Contract Opportunities, provide the estimated date of publication. A Request for Quote Notice 70Z03824QJ0000133 will be posted on the Government-wide Point of Entry (GPE) via SAM.Gov on or before 01

March 2024 with an estimated response date of 15 March 2024. A copy of the approved

J&A on a sole source basis will be uploaded with the notice. Market research confirmed

Hamilton Sundstrand is the OEM and the only approved source of supply for the AP

Controllers. Any capability statement proposal, or quotation received in response to the notice 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. There are no applicable exceptions, and an announcement will be published after award.

http://apfs.dhs.gov/

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

Government will be Fair and Reasonable. The Contracting Officer determines that the anticipated pricing will be fair and reasonable based on pricing information collected from market research and previously paid contracted prices which were used in the development of the Independent Government Cost Estimate (IGCE) for this requirement. The

Contracting Officer anticipates that the prices for this procurement will be fair and reasonable. This is based on comparison of quoted prices with prices found reasonable on previous purchases (FAR 13,106-3 (a)(2)(ii)), comparison with similar items in a related industry (FAR 13.106-3(a)(2)(iv)), and comparison to 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. Market research was conducted in accordance with FAR Part 10 from

March 2022 through January 2024. A review of the Asset Maintenance Management

Information System (AMMIS) database history was conducted. Government databases such as General Services Administration (GSA) Advantage, Defense Logistics Agency

Logistics Information Services, WebFLIS, and FedMall were all reviewed as part of market research. Existing DHS-wide and multi-component contract vehicles with DHS

Strategic Sourcing Program Office and/or DHS Enterprise-wide Contract Vehicle Portal were reviewed and were determined out of scope for this procurement. Contact was made with the United States Navy (USN) to verify NAVSUP WSS approved sources.

Commercial databases such as, Inventory Locator Services (ILSMart) were reviewed, and no results were found. The OEM was contacted, and market research confirmed

Hamilton Sundstrand is the only approved source for AP Controllers. The AP

Controllers are commercial in nature and prevalent in private aviation and commercial aviation and is used on other military aviation aircraft. All terms and conditions are not expected to differ from customary terms and conditions in the marketplace or stand

Government practices. Contract financing is not applicable to this requirement. The Buy

American Act is applicable to this order. This is a sole source acquisition justified in accordance with FAR 13.501, therefore, in accordance with FAR 25.401(a)(5), the Trade

Agreement Act is not applicable to this requirement. Market research results support the determination that the AP Controllers are available in the commercial marketplace.

(b) Describe the market research results that support the determination that the items are nonavailable. The J&A 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 in accordance with FAR Part 10 from March 2022 through January 2024.

(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.

Patents, copyrights, and/or intellectual property are not applicable to this acquisition.

10. Any Other Facts Supporting the Use of Other Than Full and Open Competition.

(a) Hamilton Sundstrand is the only approved source for the supply of the AP Controllers;

therefore, the acquisition is not suitable for full and open competition. Inquiries were made on January 18, 2024, to determine if Hamilton Sundstrand would sell the intellectual property data rights for the AP Controllers. Hamilton Sundstrand stated they do not have any approved vendors other than through their company, as the OEM, and that their proprietary data is not currently for sale. (See Attachment 1).

(b) This requirement cannot be modified to enhance competition because the component and the subsequent technological data are not available from any vendor other than the OEM.

Discuss why your requirement cannot be modified to enhance competition.

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

(d) 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 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.

(a) Will the Government revise overly technical specifications, acquire data rights, etc.?

There is only one (1) responsible source approved to supply the required AP Controllers, which is Hamilton Sundstrand. 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. The proprietary technology and data rights are not for sale, per correspondence with Hamilton Sundstrand. Every reasonable effort will be made to remove barriers to competition for future requirements. These efforts will include continuing to identify additional sources to provide the required AP Controllers.

(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.

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.

Terrie L. Pickard Date

Contracting Officer, USCG, ALC, SRR

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.

Terrence Greene Date

Inventory Management Specialist, USCG, ALC, MRR

15. RECOMMENDED FOR APPROVAL:

Veronica D. Holley Date

Level Above Contracting Officer

Supervisory Contracting Officer, USCG, ALC, MRR

David S. Burgess Date

Chief of Contracting Office, USCG, ALC

16. APPROVAL:

Frederick Steward Date

Command Procuring Activity Advocate for Competition (CPAAC)