Attachment 4-70Z03822QB2000049 REDACTED J and A.pdf

Attachment 4- 70Z03822QB2000049 Redacted J & A

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

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), Short Range Recovery (SRR) 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

(a) Nature of the action: The USCG, ALC, SRR division intends to procure on a sole source basis the test, evaluation, repair or recore of Oil Coolers housed on the USCG MH-65 aircraft. The Original Equipment Manufacturer (OEM) for the Oil Cooler is Mahle Industrial Thermal Systems GMBH & Co. KB (Cage Code: D8093). Drake, Air, Inc. (Cage Code: 0GDJ0) in Tulsa, OK is the only authorized repair facility that has a Federal Aviation Administration (FAA), Designated Engineering Representative (DER) repair plan that is approved by USCG Engineering. Furthermore, two major parts required for the recore service are proprietary to Drake Air, Inc. (See Attachment 1)

(b) Name and address of the contractor:

Drake Air, Inc.

4085 Southwest Blvd.

Tulsa, OK 74107 Cage Code: 0GDJ0

(c) Type of action: The USCG intends to award a Firm Fixed-Price Indefinite Delivery Requirements type contract consisting of a one-year Base Period and four (4) one-year Option Periods if exercised. The oil coolers will be repaired or recored using individually funded firm fixed price task orders.

(d) Estimated total value (including options): $1,186,580 broken down as follows:

Period Length of Period Total Base 12 Months $223,500 Option One 12 Months $230,240 Option Two 12 Months $237,150 Option Three 12 Months $244,200 Option Four 12 Months $251,490

Note: These services were previously awarded under contract HSCG38-11-D-202048, which expired on May 9, 2019. The USCG is currently issuing Purchase Orders to ensure that there is no laps in service providing the repair of the oil coolers for the MH65 Aircraft Fleet.

(e) Type of funding: Operations and Support funds

(f) Year of funding: Fiscal Year 2022 through 2027 funds will be used, as appropriate.

(g) Solicitation number: 70Z03822QB20000049

(h) Background information about the requirement: Solicitation

70Z03821QB2000149 was posted at the Government Point of Entry Sam.gov as a small business set-aside. No acceptable offers were received from responsible small business concerns and the set-aside was withdrawn. As indicated in section 2(a), after further market research it was determined that Drake Air Inc. is the only repair/recore facility that has an approved DER repair plan approved by the USCG. Furthermore, the parts utilized to recore the oil coolers are propriety to Drake Air, Inc.

This requirement is still valid and will be solicited on a sole source basis See Attachment 1.

3. Description of Supplies/Services.

This requirement is for services to repair or recore the Oil Coolers that are housed on the MH65 Aircraft. The contractor shall provide all necessary parts, materials, labor, tooling, test equipment, and facilities to evaluate and repair the components listed in the Schedule. The contractor shall provide technical support services, support product improvement efforts, and provide updates to the FAA DER repair plan and Technical Orders. Work shall be performed in accordance with (IAW) the approved FAA DER repair plan and the USCG Statement of Work (SOW). As indicated in section 2(h), the two parts required to recore the Oil Coolers are proprietary to Drake Air, Inc. The recore repair plan was implemented to improve operating conditions by eliminating leaking and corrosion of the Core Matrix. The two parts required to complete the recore repair include core matrix (part number DRK-3139-1) and fitting (part number DRK3139-P).

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 the FAR Subpart 13.501(a) “Sole Source (including brand name) acquisitions.” Responsible sources are limited to the Original Equipment Manufacturer (OEM) and their authorized distributors.

5. Identification of Exception to the Buy American Act.

This requirement is for repair services; however, separately priced replacement parts may need to be procured throughout the life of the resulting contract. Due to this requirement and the exception of “Other acquisitions not using full and open competition, if authorized by subpart 6.2 or 6.3, when limitation of competition would preclude use of the procedures of this subpart” FAR clause 52.225-1, Buy American Act-Supplies, is applicable to this requirement and no exception exists.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Require Use of the Authority Cited.

(a) The use of 41 U.S.C. 1901 is necessary due to major parts required for this service are proprietary to Drake Air, Inc. Drake Air, Inc. is the only USCG authorized repair facility that is able to provide a FAA DER repair plan approved by USCG Engineering.

(b) As indicated in section 2(h), attempts were made to promote competition through extensive market research including an RFI and Solicitation posted on the Government Point of Entry. Other potential repair facilities were identified, however they could not provide the required parts (Core Matrix (part number DRK-3139-1) and Fitting (part number DRK3139-P)), or the required FAA DER repair plan to complete the recore repair process. Parts required to complete the recore process are proprietary to Drake Air, Inc.

(c) The evaluation team discussed the possibility of utilizing an alternative source, however, as indicated in section 2(h) extensive market research was conducted including a RFI and Solicitation posted on Sam.gov, and all potential sources identified uncovered during market research could not provide the required parts necessary for this requirement as they are proprietary to Drake Air, Inc.

(d) This requirement includes a highly specialized service that necessitates approval from

USCG Engineering due to the flight criticality of the parts being repaired. If the USCG sanctioned these repairs by a facility that is not certified by USCG Engineering then risk of loss of government property, and worse, loss of life is a real potential.

(e) The exemption at FAR 25.103(b)(2) is not applicable to this requirement.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable.

(a) This procurement forecast is posted on the DHS-Acquisition Planning Forecast System

(APFS) Number F2022057091 at http://apfs.dhs.gov, published 03 January 2022 and included in the DHS Forecast of Small Business Opportunities. There were no inquiries received in response to the published APFS.

(b) In accordance with FAR 5.203(a)(2) and FAR 12.603 the proposed contract action will be advertised on the Contract Opportunities website beta.sam.gov as a combined sole source synopsis solicitation. IAW FAR 5.207(c)(16)(ii) 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 March 15, 2022.

(c) An announcement shall be published, therefore an exception under FAR 5.202 is not applicable.

(d) An announcement shall be published prior to award, therefore an exception under FAR

6.305 is 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 the prices for this procurement will be fair and reasonable. This is based on comparison of proposed prices with prices found reasonable on previous purchases (FAR Subpart 13.106-3 (a)(2)(ii)), comparison with similar items in a related industry (FAR Subpart 13.106-3 (a)(2)(iv)), and comparison to the Independent Government Cost Estimate (IGCE) (FAR Subpart 13.106-3 (a)(2)(vi).

9. Description of Market Research.

IAW FAR Part 10 various methods of market research were conducted for this requirement.

(a) Market research was conducted between January 2020 and December 2021. The internet and the web based Inventory Service Locator Service (ILS) were searched for contractors who could repair the components listed on the schedule. An entry was posted on Acquisition Planning Forecast System along with additional market research conducted on the internet. As indicated in section 2(h), the search produced the only known USCG authorized repair facility, which is Drake Air Inc. The market research showed that Drake Air, Inc. is the OEM for parts required to recore the Oil Coolers, while Drake Air, Inc. is the only USCG authorized repair facility. (See Attachment 1)

(b) This J&A requirement does not include the exceptions at FAR 25.103(b)(2) or FAR

25.202(a)(2) for the Buy American Act.

(c) Market research has been conducted.

(d) Any repair facility that responds to this requirement must have a FAA DER approved repair plan, repair specifications, required parts or test and acceptance criteria and any other required data to ensure all components are tested and repaired or recored. As indicated in section 2(h), two major parts required to complete the recore process is proprietary to Drake Air, Inc.

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

The oil coolers are flight critical components on the aircraft. Having unauthorized repair facilities attempt to repair these units could result in a fatal outcome if the units fail once installed on the aircraft.

(a) The SOW requires the repair facility provide a FAA DER approved repair plan. The

USCG does not have access to these repair plans therefore only an authorized repair facility with full access to the FAA DER approved repair plan is capable of performing this service.

(b) Another supporting fact is that each oil cooler requires two specific parts for the recore process, Core Matrix (Part Number DRK3139-1) and Fitting (Part Number DRK3139- P), these parts are proprietary to Drake Air, Inc. making Drake Air, Inc. the only vendor capable of completing the recores needed on the oil cooler.

(c) The proposed contract shall not be subject to restrictions of FAR 6.302-1 for follow-on acquisitions as described in 6.302(a)(2)(iii).

(d) The proposed contract shall not be subject to the restrictions of FAR 6.302-2(d) or

HSAR 3006.302-270.

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

As stated in section 2(h) and other areas a RFI and solicitation was posted and reveled that there were other interested contractors, however during the evaluation process it was found that the contractors were not technically acceptable as they are unable to provide a FAA DER repair plan and parts required to do the recore repair process.

The Contracting Officer will evaluate any inquires or responses received prior to the award of contract. Drake Air, Inc. is the only authorized repair facility to repair and recore the Oil Cooler housed on the MH65 Aircraft. The proposed contract action will be advertised on the beta.sam.gov website and will include a statement that all responsible sources may submit a proposal with a capability statement, which shall be considered by the agency. In addition, the USCG has not received any inquires or notice of interest in response to the APFS No. F2022057091.

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 is recoring all Oil Coolers housed on each MH65 Aircraft to reduce leaking and corrosion and improve on the rate of repair. Only one source is able to provide the Core Matrix and fittings that are required for the recore process. Complete specifications and drawings for the components are proprietary to the OEM and therefore not available to the USCG. The USCG does not possess the technical expertise nor the software data rights for the components. It is difficult to take steps to foster competition as the manufacturing, performance, parts and acceptance data are proprietary to the OEM. As the Aviation Inventory Control Point (AICP), ALC is tasked with supporting systems that have been deployed for use in the aviation community. In an effort to increase competition among manufacturers, affiliates, and distributors, SRR Product Line members attend annual aviation trade shows and host industry days at the ALC.

(b) Extensive internet database research is conducted and requirements are advertised on

Contract Opportunities (betaSam.gov). In support of the Competition in Contracting Act, ALC established the New Product Development Branch (NPD) and a representative of the NPD Branch is assigned to the SRR Product Line. This representative has the responsibility to search for alternate sources of supply/services and alternate acceptable products. Engineering, Contracting and NPD representatives continuously conduct market research to ensure that companies interested in doing business with the USCG are given every opportunity to compete for requirements.

NPD is exploring avenues of reverse engineering for some of the hard to find or expensive to repair items, which should further encourage competition; however, this process is lengthy, costly and labor intensive.

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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.

Debora J. Plymel 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.

Dawn O’Connor Date Item Manager, USCG, ALC, SRR

15. Concurrence:

Reviews:

Catrina M. McDonald Date Level Above the Contracting Officer Supervisory Contracting Officer, USCG, ALC, SRR

David S. Burgess Date Chief of the Contracting Office, USCG, ALC

Frederick Steward-ALC, CG914,SILC-CON Date Command Procuring Activity Competition Advocate (CPACA)