Attachment 3 Redacted JA 70Z03824RJ0000005.pdf

ATTACHMENT 3 Redacted J and A – 70Z03824RJ0000005

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3, the following facts and rationale required justify the use of such authority:

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), United States Coast Guard (USCG), Aviation Logistics Center (ALC), Medium Range Recovery (MRR) Procurement Branch

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 USCG, ALC, MRR Product Line Division intends to procure on a sole source basis the Rescue Hoist Assembly (Rescue Hoist) utilized on the USCG MH-60T aircraft. The parts are manufactured and distributed by

Goodrich Corporation (Goodrich) the Original Equipment Manufacturer (OEM) and sole distributor (See Attachment 1). This requirement will be solicited utilizing

FAR Part 12, Acquisition of Commercial Products and Commercial Services and

FAR Part 15, Contracting by Negotiation.

(b) Name and address of the contractor:

Goodrich Corporation

3355 E La Palma Ave

Anaheim, CA 92806-2815

Cage Code: 3HRL4

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

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

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(d) Estimated total value (including options): $7,876,996 broken down as follows:

Period Unit Price Total

Base Year

12 mo.

$955,829

$955,829 Option Year 1 12 mo. $1,605,793 $1,605,793

Option Year 2 12 mo. $1,686,082 $1,686,082

Option Year 3 12 mo. $1,770,386 $1,770,386

Option Year 4 12 mo. $1,858,906 $1,858,906

Total $7,876,996

Note: Component(s) under this justification were previously awarded under contract 70Z03820DJ0000005 with a period of performance end date of 9/15/2023.

(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: 70Z03824RJ0000005

(h) Background information about the requirement: The items in this requirement are 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 items are designated an Acquisition

Method Suffix Code (AMSC) of Q, which states that the Government does not have adequate data, lacks rights to data, or both, needed to purchase this part from additional sources. Goodrich is the OEM and only source capable of providing the

Rescue Hoists.

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 estimated total of the purchase order is $7,876,996. The purchase order will contain one (1) Line Item as shown in the following table:

Nomenclature

Unit of

Issue

(U/I)

Base

Period

Estimated

Quantity

Option

Period 1

Estimated

Quantity

Option

Period 2

Estimated

Quantity

Option

Period 3

Estimated

Quantity

Option

Period 4

Estimated

Quantity

HOIST ASSY, RESCUE

NSN: 3950-01-HS1-2918

P/N: 42315-19; ALT P/N

70850-22111-134

EA 5 8 8 8 8

Note: Sikorsky Aircraft Corporation (SAC) associated with alternate P/N 70850-22111-134 is listed to identify the OEM of the aircraft and confirms Goodrich as the OEM and declines involvement in this effort and recommends going directly to the OEM (See Attachment 2).

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. 3204(a) as implemented by FAR Subpart 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 who is also the sole authorized distributor.

5. Identification of Exception to the Buy American Act. The requirement for the procurement of the Rescue Hoist does not take an exception to the Buy American Statute.

Therefore, the Buy American Statute will be included in both solicitation and terms and conditions of the 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 Rescue Hoist must be acquired directly from the OEM. The specifications, manufacturing drawings, data, test equipment, and tooling for the repair, overhaul, or sale of the Rescue Hoist are proprietary to the OEM, Goodrich (See Attachment 1). 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.

(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 Rescue Hoist is assigned an Acquisition Method Code (AMC) of 3 with an

Acquisition Method Suffix Code (AMSC) of Q, indicating that the part(s) must be acquired directly from the manufacturer as the government does not have adequate data, lacks rights to data or both which is needed to purchase the part(s) from additional sources. Goodrich (P/N 42315-19) and SAC (P/N 70850-22111-134) were identified as manufactures of the Rescue Hoist in the Asset Maintenance

Management Information System (AMMIS). A letter dated June 7, 2023, from

Goodrich Corporation, a part of Collins Aerospace, states that through their Hoist and

Winch business unit, Goodrich is the OEM and the only entity that can authorize the repair, overhaul, or sale of spares of the Rescue Hoist. In addition, Goodrich stated that they are not aware of any other source for the sale of spares. Correspondence with SAC confirmed that Goodrich is the OEM and only source of supply for this requirement and recommends going directly to Goodrich (See Attachment 2).

(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 is 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

Rescue Hoists 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. Therefore, the Buy American Statute will be included in both the solicitation and terms and conditions of the resultant contract.

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 the Contract Opportunities, provide the date of publication.

This procurement forecast was posted on the DHS-Acquisition Planning Forecast

System (APFS) Number F2023060442 at http://apfs.dhs.gov, published January 18, 2024 and included in the DHS Forecast of Small Business Opportunities. There were no inquiries received in response to the published APFS.

(b) If an announcement is being planned for posting in Contract Opportunities, provide the estimated date of publication.

The proposed contract action will be advertised on the Contract Opportunities website www.SAM.gov as a combined sole source synopsis solicitation. IAW FAR

5.207(c)(16)(ii), the solicitation/synopsis will include a statement that all responsible sources may submit a proposal with a capability statement, which shall be considered by the agency. The estimated date of publication is May 1, 2024.

http://apfs.dhs.gov/

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

5.202.

The exceptions under FAR 5.202 do not apply to this requirement.

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

FAR 6.305.

The exceptions under FAR 6.305 do not apply to this requirement.

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 fair and reasonable. This is based on comparison of proposed prices found reasonable on previous purchases (FAR Part 15.404-1(b)(2)(ii)), comparison with similar items in a related industry (FAR Part 15.404-1(b)(2)(vi)), and comparison to the

Independent Government Cost Estimate (IGCE) (FAR Part 15.404-1(b)(2)(v)).

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 October 2022 –

February 2024. A review of the Asset Maintenance Management Information System

(AMMIS) database history was conducted. Correspondence was conducted with the

OEM via email. Government databases such as General Services Administration (GSA), FEDMALL, and WebFLIS were all reviewed as part of the market research. Commercial databases such as, Inventory Locator Services (ILS) were reviewed. 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 of this procurement. Based on the extensive research in conjunction with the statement provided by the OEM on June 7, 2023, a Sources Sought Notice was not issued because this procurement is a sole source requirement and under $10 million. Goodrich remains the only source for this requirement. The USCG will maintain open communications with the OEM and will continually conduct market surveys to identify possible additional sources that may eventually receive OEM authorization to manufacture and distribute Goodrich products to customers.

(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 October 2022 through February 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) An explanation why technical data packages, specifications, statement of work, or purchase descriptions are not suitable for full and open competition.

Goodrich is the only approved source for the supply of the Rescue Hoist; therefore, the acquisition is not suitable for full and open competition. Inquiries were made to determine if Goodrich would sell the intellectual property data rights for the Rescue

Hoist. Goodrich remains the owner of the proprietary information and is currently not selling or licensing the IP on the product and as stated in 6(a) of this justification, the

USCG did not purchase rights to the proprietary data required to foster a competitive environment.

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

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.

(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 follow-on acquisition is not subject to the restrictions of FAR 6.302-1 as described in 6.302(a)(2)(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.

(a) 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. 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 can obtain the required technical data, the USCG will assess whether competition for any future requirements is feasible.

(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.

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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.

Veronica D. Holley Date

Contracting Officer, USCG, ALC, MRR

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.

Kristine Holt Date

Inventory Management Specialist, USCG, ALC, MRR

15. RECOMMENDED FOR APPROVAL:

Tabitha L. Callon Date

Level Above Contracting Officer, USCG, ALC, David S. Burgess Date

Chief of Contracting Office, USCG, ALC

16. Approval

Frederick Steward Date

Command Procuring Activity Advocate for Competition (CPAAC)