Attachment 3 Redacted JA 70Z03825QJ0000015.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

SOLICITATION 70Z03825QJ0000015

In compliance with Federal Acquisition Regulation (FAR) 13.501(a)(1)(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 (DHS), United States Coast Guard (USCG), Aviation Logistics Center (ALC), Medium Range Recovery (MRR) Product Line Division.

2. Nature and/or Description of the Action being Approved.

(a) Nature of the action: The USCG intends to solicit and award on a sole source basis, a contract for the procurement of the Automatic Flight Control System (AFCS) Control Panel, hereafter referred to as “Control Panel,” utilized on the MH-60T aircraft. Sources must be Naval Supply Systems Command Weapons Systems Support (NAVSUP WSS) approved providing traceability to the Original Equipment Manufacturer (OEM). This requirement will be solicited utilizing FAR Part 12, Acquisition of Commercial Products and Commercial Services and FAR Part 13.5, Simplified Procedures for Certain Commercial Products and Commercial Services.

(b) Name and address of the contractor:

Sikorsky Aircraft Corporation Cage Code: 78286

6900 Main Street Stratford, Connecticut

(c) Type of action: The USCG intends to award a Firm-Fixed Price (FFP) Indefinite Delivery Requirements type contract consisting of a one (1) year base period and two (2) one (1) year option periods. The components will be purchased through individually funded FFP delivery orders.

(d) Estimated total value (including options): $6,794,596 broken down as follows:

Period Length of Period Total Base 12 Months $2,155,304 Option One 12 Months $2,263,069 Option Two 12 Months $2,376,223 Total $6,794,596

(e) Type of funding: Operations and Support (O&S) funds.

(f) Year of funding: Fiscal Year 2025-2028 funds will be used, as applicable to the period of performance of each individually funded delivery order.

(g) Solicitation number: 70Z03825QJ0000015

(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 H, which states that the Government physically does not have in its possession sufficient, accurate, or legible data to purchase this part form other than current sources. Sikorsky is the OEM and only source capable of providing the Control Panel.

3. Description of Supplies/Services. The AFCS Control Panel is located in the center console between the pilot and copilot CDU. The panel has switches to electronically engage Stability Augmentation System (SAS) 1 and SAS 2 and has a SAS/BOOST HYD switch that controls hydraulic pressure application to SAS actuators and pitch boost servos. FAIL ADVISORY legends on the bottom of the panel warn the pilot when a mode has been lost due to a sensor or system fault.

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 part and can provide traceability. This part is 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 part number is included in this J&A:

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 as implemented by FAR 13.501(a), “sole source (including brand name) acquisitions.” Responsible sources are limited to the OEM, Sikorsky, the only NAVSUP WSS approved source for this requirement.

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 United States NAVSUP WSS is the Primary Inventory Control Agency and has sole authority and responsibility for certifying sources of supply and support for the Control Panel

Nomenclature National Stock Number

(NSN)

Part Number

(PN)

Unit of Issue (U/I)

Estimated Quantity Per Ordering

Period

Panel, Control, Elect

1680-01-528-9926 71902-21000-041 EA 4

utilized on the MH-60T aircraft. Purchasing the component from another vendor may result in dangerous conditions and compromise the integrity of the aircraft thereby creating a safety flight risk. A safety flight risk is never acceptable, therefore, no alternate vendors other than NAVSUP WSS approved sources will be considered for this requirement. Sikorsky is the only NAVSUP WSS approved source for this procurement, and is also the OEM for the Control Panel.

(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.

Contact efforts were made to the Navy liaison in which one (1) approved source of supply, Sikorsky, was identified (see Attachment 1). Sikorsky confirmed that they are the OEM, that all technical data to manufacture these components are proprietary to them, and there are no authorized distributors for this component (see Attachment 2). Therefore, Sikorsky is the only source capable of providing the required components.

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

Sources must be NAVSUP WSS approved sources. Therefore, alternatives cannot be considered.

(d) Impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided.

If this justification is not approved, the lack of this part would cause a severe degradation in the USCG’s ability to conduct search and rescue, law enforcement, international ice patrol, marine environmental, international ICE patrol, marine environmental protection, and marine resource conservation, and various other missions.

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 was posted as DHS – Acquisition Planning Forecast System (APFS) No. F2024067992 on http://apfs.dhs.gov, published on September 13, 2024 at 07:42 a.m. 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.

The proposed contract action will be advertised on the Contract Opportunities website www.SAM.gov as a sole source solicitation. Any capability statement, proposal, or quotation received in response will be considered prior to award. The estimated date of publication is October 15, 2025.

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

Not applicable.

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

Not applicable.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The Contracting Officer anticipates that prices will be determined fair and reasonable based on comparison of proposed prices with prices found reasonable on previous purchases in accordance with (IAW) FAR 13.106-3(a)(2)(ii), comparison with similar items in a related industry IAW FAR 13.106-3(a)(2)(iv), and comparison to the IGCE IAW 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 from April 2024 through October 2024 IAW FAR Part 10.

Sources Sought Notice, 70Z03824IJ0000037, was issued on April 22, 2024, to identify potential sources. No responses were received. Government databases such as Federal Logistics Information System Web Search (WebFLIS), SAM.gov, and USASpending.gov 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 on DHS Enterprise-wide Contract Vehicle Portal were reviewed and were determined out of scope of this procurement. Contact efforts were conducted with the Navy and Sikorsky, and concluded that Sikorsky is the sole source for the procurement of the Control Panel. 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 Sikorsky products to customers.

(b) Describe the market research that support the determination that the items are nonavailable.

Not applicable as the nonavailability exception does not apply to this requirement.

(c) If market research was not conducted, state why.

Not applicable; market research was conducted from April 2024 through October 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.

Sikorsky owns all specifications, manufacturing drawings, data, test equipment, and tooling required to procure the Control Panel. Sikorsky is the only approved source for the supply of the Control Panel; therefore, the acquisition is not suitable for full and open competition. Sikorksy remains the owner of the proprietary information and is currently not selling or licensing the IP on the product and as stated in 6(b) 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.

As cited in 6c, sources must be NAVSUP WSS approved and the Navy has not provided additional sources other than the original sources provided during market research. Therefore, this requirement cannot be modified to enhance competition.

(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 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.

There were no responses as a result of the posted Sources Sought Notice for this requirement. However, through communication with identified sources provided by the Navy, Sikorsky is the only source that has responded with capabilities of providing the Control Panels.

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 component covered under this justification and approval. All technological data is proprietary to the OEM, Sikorsky, and is the only NAVSUP WSS approved source for this procurement. The USCG will continuously conduct market research to ensure 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.

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

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.

Barry S. Durham Date Technical Representative/COR

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 Procuring Activity Advocate for Competition (PAAC)