Attachment 4 - 70Z03825RB0000002 Redacted J and A.pdf

Justification for Other Than Full and Open Competition

10 U.S.C. § 3204

Repair and Major Repair of Nose, Left-Hand, and Right-Hand Main Landing Gear

Solicitation No. 70Z03825RB0000002

Attachment 4

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 justify the use of such authority.

1. Agency and Contracting Activity. The United States Coast Guard (USCG), Aviation

Logistics Center (ALC), Short Range Recovery (SRR) Division, Elizabeth City, North

Carolina.

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

(a) Nature of the action: The USCG, ALC, SRR Division intends to procure minor and major repair services on a sole source basis, for the

Nose, Left-Hand, and Right-Hand Main Landing Gear utilized on the

USCG MH-65E aircraft. The parts are manufactured by Safran Landing

Systems (Cage Code F0189), the Original Equipment Manufacturer (OEM).

The only approved maintenance repair/overhaul (MRO) facility in North

America is Aero Precision Repair & Overhaul Co., Inc. (Hereby referred to as Aero Precision) (See Attachment 1).

(b) Name and address of the contractor:

Aero Precision Repair & Overhaul Co., Inc. (Aero Precision)

580 South Military Trail

Deerfield Beach, FL 33442-3011

(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 up to four (4) one-year Option Periods, if exercised.

The items to be repaired will be procured using individually funded firm fixed-price task orders.

(d) Estimated total value (including options): $27,510,468 broken down as follows:

Period Length of Period Total

Base 12 Months $4,686,030

Option One 12 Months $5,075,619

Option Two 12 Months $5,467,234

Option three 12 Months $5,904,613

Option Four 12 Months $6,376,982

Total $27,510,468

Repair and Major Repair of Nose, Left-Hand, and Right-Hand Main Landing Gear

(e) Type of funding: Operations and Support funds

(f) Year of funding: Fiscal Year 2025 through 2030 will be used as appropriate.

(g) Solicitation number: 70Z03825RB0000002

(h) Background information about the requirement: This is a follow-on contract to an active contract 70Z03820DB2000014 with a period of performance of February 26, 2020, through February 25, 2025. When the current contract was solicited, it was thought to be competitive requirement. The OEM later sent a-letter to the USCG advising that the repair and/or major repair of the landing gear could only be accomplished by their OEM approved source. This has been verified via correspondence with the OEM and is provided in the attached documentation labeled “Attachment 1.”

3. Description of Supplies/Services.

The MH-65E employs an electrically controlled, hydraulically actuated landing gear system consisting of two (Left-Hand and Right-Hand) Main Landing Gear assemblies, and a dual-wheel Nose Main Landing Gear assembly, and an actuating system. Each gear retracts aft into the fuselage. The main landing gear assemblies consist of an upper strut housing and a lower oleo shock strut integral to the upper housing. These two components are connected by torque link scissors. The main landing gear actuating cylinder is hydraulically actuated to provide gear extension, retraction and gear locking in both up and down positions. The

Nose Main Landing Gear is a dual-wheel, 360 degree swiveling-type gear with auto-centering when the strut is fully extended.

The USCG currently operates a fleet ninety-eight (98) MH-65E aircraft. This specialized, high demand 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 for the minor and major repair services of Nose, Left-Hand, and Right-

Hand Main Landing Gear completed by the OEM approved North American MRO facility, Aero Precision, for use on the MH-65E aircraft. This requirement will provide replacement ready for issue spares for the fleet and programmed depot maintenance program. Safran

Landing Systems is the OEM of this components and Aero Precision is the only OEM approved MRO facility in North America.

Repair and Major Repair of Nose, Left-Hand, and Right-Hand Main Landing Gear

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

Nomenclature Part Number (PN)

Left-Hand Main Landing Gear 18785-300C

Right-Hand Main Landing Gear 18786-300C

Nose Main Landing Gear 18740-110

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)(1) implemented by FAR Subpart 6.302-1 entitled Only One

Responsible Source and No Other Supplies or Services Will Satisfy Agency

Requirements.

5. Identification of Exception to the Buy American Act: This requirement is for the minor and major repair services for the Nose, Left-Hand, and Right-Hand Main Landing gear where the Buy American Act is not applicable.

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

(a) Aero Precision is the only known vendor that can provide the Federal Aviation

Administration (FAA) Form 8130-3 and traceability to the OEM required by Code of Federal Regulations (CFR) and FAA. The use of 10 U.S.C. 3204 (a) (1) is necessary because Aero Precision is the OEM’s only approved distributor in North

America.

(b) In an attempt to promote competition, extensive market research was conducted.

The USCG contacted the OEM on February 1, 2024, to determine whether approved distributors were available. In response, Safran Landing Systems provided a statement letter dated 07 February 2024 (Attachment 1) stating that Aero Precision is the only approved MRO for the services in this requirement.

(c) In order to maintain structural integrity of the aircraft and ensure complete compatibility of replacement parts, the parts listed in this requirement must be repaired by the OEM or an OEM approved source. Components repaired by an unapproved OEM supported facility will compromise structural and system integrity of the aircraft putting aircrew personnel and aircraft at a safety of flight risk. The USCG neither compromises nor makes exceptions in matters of human safety and protection of Government property and does not accept lower standards in these matters.

Repair and Major Repair of Nose, Left-Hand, and Right-Hand Main Landing Gear

(d) Therefore, impact to the mission that would result if the J&A is not approved and consequently, the 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 because of no stock being available as components are required in the maintenance, repair and overhaul of the MH-65 Aircraft. Additionally, in a fiscal and stock environment requiring minimal investment in inventory, it is critically important to secure sources that can satisfy the contractual requirement needed to react to every-changing mission requirements.

(e) This exemption to FAR 25.103(b)(2) is not taken. This requirement is for the repair and/or major repair of the right hand, left hand, and nose main landing gear. As per attachment 1, the OEM for these landing gear has only one authorized repair facility, which is Aero Precision & Repair Overhaul Co., Inc. As stated above, failure to approve this sole source J&A will jeopardize performance of the USCG’s mission due to grounding of the aircraft because of no stock being available.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many

Potential Sources as is Practicable.

(a) This procurement was forecasted in the Department of Homeland Security (DHS)

Acquisition Planning Forecast System (APFS) No. F2024065365 on February 08, 2024, and included in the DHS Forecast of Small Business Opportunities. There were no inquiries received in response to the published APFS.

A Sources Sought Notice 70Z03824BI0000008 was posted on the SAM.Gov website on

February 8, 2024, with a closing date of February 13, 2024. No additional vendors were identified as to being able to provide the services in this requirement.

(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 at SAM.Gov as a combined sole source synopsis solicitation. The estimated date of publication is June 14, 2024.

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

(d) 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 with prices found reasonable on previous purchases (FAR Subpart 15.404-1 (b)(2)(ii)), comparison with the Independent

Repair and Major Repair of Nose, Left-Hand, and Right-Hand Main Landing Gear

Government Cost Estimate (IGCE) (FAR Subpart 15.404-1(b)(2)(v)), and comparison with similar items in a related industry (FAR Subpart 15.404-1 (b)(2)(vi)).

9. Description of Market Research: IAW FAR Part 10, various methods of market research were launched for this requirement.

(a) Market research was conducted between October 2023 to February 2024 and consisted of internet searches utilizing Federal Logistics (FEDLOG), General Services Administration

(GSA) Advantage, Defense Logistics Agency’s Federal Mall (FEDMALL). A review was conducted of the Asset Maintenance Management Information System (AMMIS) database history. Existing DHS-wide and multi-component contract vehicles with DHS

Strategic Sourcing Program Officer and/or on DHS Enterprise-Wide Contract Vehicle

Portal were reviewed and were determined out of scope of this procurement. A Sources

Sought Notice 70Z03824IB0000008 was posted on the SAM.Gov website on February 8, 2024, with a closing date of February 13, 2024. No additional vendors were identified as to being able to provide the services in this requirement.

(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) This requirement does not have or require patents, copyrights and/or intellectual property.

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

(a) The USCG does not own the necessary technical data required to support the major repair of the required parts. The drawings and technical data are proprietary and available only from the OEM. The USCG did not purchase the rights as parts of the original acquisition. Due to the proprietary rights, it will be difficult to take steps to foster competition.

(b) The parts in this requirement cannot be reverse engineered and/or modified by other sources because this requirement is for the repair and/or major repair of existing parts. In order to maintain structural integrity of the aircraft and ensure complete compatibility of the repaired parts, the parts listed in this requirement must be repaired by the OEM approved MRO facility.

(c) This requirement is not a follow-on for a continued provision of highly specialized services pursuant to FAR Subpart 6.302-1(a)(2)(iii).

Repair and Major Repair of Nose, Left-Hand, and Right-Hand Main Landing Gear

(d) Not applicable to FAR 6.302-2(d) or HSAR 3006.3020270. This is not considered unusual and completing urgency.

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

Acquisition: No other sources have expressed interest in this acquisition.

12. 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) 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, 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 was conducted, and requirements are advertised on Contract Opportunities. 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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Repair and Major Repair of Nose, Left-Hand, and Right-Hand Main Landing Gear

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.

Kristen R. Copeland 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.

Vernon L. Clark Date

Item Manger, USCG, ALC, SRR

RECOMMENDED FOR APPROVAL:

Tabitha L. Callon Date

Level Above

Deputy, Chief of Contracting Office, USCG, ALC

David S. Burgess Date

Chief of the Contracting Office, USCG, ALC

Frederick Steward - ALC, CG-914, SILC-CON

Procuring Activity Advocate for Competition (PAAC)

APPROVAL:

Keith O’Neill Date

Head of the Contracting Activity (HCA)