Attachment 4 - JA_redacted.docx

70Z03819RL0000004

Justification for Other Than Full and Open Competition Under 10 U.S.C. 2304 (c)(1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements Procurement of HC-144 Component Repairs Solicitation Number: 70Z03819RL0000004

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by Federal Acquisition Regulation (FAR) Subpart 6.3 and in accordance with the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 is supported by the following facts and rationale required under FAR 6.303-2 as follows:

(1) Agency and Contracting Activity:

The United States Coast Guard (USCG), Aviation Logistics Center (ALC), Medium Range Surveillance (MRS) Division, Elizabeth City, NC, proposes to enter into a contract on the basis of other than full and open competition.

(2) Nature and/or description of the action being approved:

The USCG, ALC, MRS Division seeks approval to award a firm fixed price (FFP) Indefinite Delivery Requirements contract on a sole source basis to Airbus DS Military Aircraft, Inc., the Original Equipment Manufacturer (OEM), for the procurement of the HC-144 Component Repair Services as identified on the attached Schedule to support the HC-144 Maritime Patrol Aircraft (MPA). The contract will be awarded on a basis of other than full and open competition and will consist of a one (1) one-year base and four (4) one-year option periods. The anticipated contract action will have an estimated value of $21,264,176 to be funded with Operations and Support (OS) funds.

(a) Nature of the action: The USCG intends to procure on a sole source basis a FFP contract consisting of a one (1) one-year base and four (4) one-year option periods for the purchase of HC-144 Component Repair Services.

(b) Name and Address:

Airbus DS Military Aircraft, Inc.

8100 Airbus Military Drive Mobile, AL 36608 Cage Code: 0DAF1

(c) Type of action: FFP Indefinite Delivery Requirements Contract, one (1) one-year base plus four (4) one year options periods

(d) Estimated total value (including options): $21,264,176

(e) Type of funding: OS

(f) Year of funding: Each order will be funded with funds current at the time the order is issued.

(3) Description of Supplies/Services:

The USCG ALC, Elizabeth City, NC, has a requirement to obtain component repair services to support the HC-144 MPA flight operations and missions. Based on recent ordering and repair history, USCG Engineering has identified 209 line items for the base period and each of the four additional option periods, with estimated quantities needing repair. The repair of the items listed in the attached Schedule are essential for the continuity of safe operation of the aircraft.

(4) Identification of the justification and the rationale:

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304 (c)(1), as implemented by the FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.”

(5) Demonstration that the nature of the acquisition requires use of the authority cited:

The USCG self-certifies its aircraft in accordance with the standards established by the Federal Aviation Administration (FAA) and promulgated in CFR Title 14. The USCG will only procure parts which have airworthiness approval. The CFR Title 14, Aeronautics and Space, Part 21, Certification Procedures for Products and Articles, governs the procedural requirements for issuing and changing design approvals, production approvals, airworthiness certificates, and airworthiness approvals. Title 14 CFR 21 defines airworthiness approval as a document issued by the FAA for an aircraft, aircraft engine, propeller, or article which certifies that the aircraft, aircraft engine, propeller, or article conforms to its approved design and is in a condition for safe operation.

The USCG HC-144 program sustains eighteen (18) aircraft, which include OEM components inherent to the aircraft. In order to maintain structural integrity of the aircraft and ensure complete compatibility, repair of the HC-144 components and associated parts listed in this requirement must be obtained from the OEM or an OEM approved repair facility. This will ensure the HC-144 aircraft, and the components and associated parts are repaired in accordance with OEM specifications and standards, conform to original form, fit, and function, and are compatible and interchangeable with existing components. Airbus DS Military Aircraft, Inc. is the only source in possession of the proprietary repair data, OEM approved spare parts, engineering design change and product improvement capability. For these reasons, it is in the USCG’s best interest and in the interest of the safety of our flight crews to procure the repair services only from the OEM, Airbus DS Military Aircraft, Inc.

(6) A description of the efforts made to ensure that offers are solicited from as many potential sources as is practicable:

As required by FAR 5.201, this J&A will be published via the Federal Business Opportunities website located at https://beta.sam.gov/ and direct solicitation to Airbus DS Military Aircraft, Inc. will ensue. Any contractor may submit an offer in response to the posting; however, interested parties are advised that OEM licensure is a minimum requirement for technical acceptability. Reference Section 8 for the description of market research.

This acquisition is forecasted in the Department of Homeland Security (DHS) Acquisition Planning Forecast System (APFS), number F2019045966 published on July 3, 2019, and can be found at www.apfs.gov.

(7) Determination by the Contracting Officer that the anticipated cost will be fair and reasonable:

The Contracting Officer will determine that the prices will be fair and reasonable based on comparison with historical pricing, repair prices paid by other customers for the same or similar services and the Independent Government Cost Estimate (IGCE).

(8) Description of the market research:

Market research indicates the HC-144 parts and services are not listed on a General Services Administration (GSA) contract or available through GSA Advantage. DHS Strategic Sourcing vehicles were reviewed and the requirements were not within the scope of any of the DHS contracts. Market research also consisted of querying the Industry Base System, Inventory Locator System (ILS) and showed no additional sources.

To locate possible sources, Sources Sought Notice 70Z03819IL0000009 was posted to FBO on February 19, 2019 with a closing date of March 29, 2019. MRS received responses from four (4) companies other than the OEM, however they all lack evidence of possession of an OEM license, the necessary OEM manuals, manufacturing data, specifications and drawings to support this requirement. Furthermore, Airbus DS Military Aircraft, Inc. provided written documentation on July 2, 2019 to state, “Airbus Defense and Space does not sell or provide proprietary repair or overhaul data and subsequent publications, with exception of entities of which they are contracted with to provide that service for them and only them, to any other entity and thereby claims proprietary rights to the actual repairs and/or overhauls of all of their OEM parts and components."

(9) Any other facts supporting the use of other than full and open competition:

The repair of the HC-144 components and associated parts are limited to Airbus DS Military Aircraft, Inc., the OEM, or other license holders, of which none are known. As stated previously, all data, specifications and drawings required to satisfy the USCG’s repair requirement are maintained by Airbus DS Military Aircraft, Inc. as proprietary data, un-releasable to any third party without expressed written permission from the OEM.

(10) A listing of sources, if any that expressed, in writing, an interest in the acquisition:

As stated previously in Section 8, a Sources Sought Notice was posted to the GPE to identify potential repair sources. Ineo Global Support, 1st Choice Aerospace, Inc., Coastal Mechanics Co., Inc., and Aerospace Quality Research and Development 145 LLC responded but are unable to meet the technical requirements of OEM licensure and thus, do not possess a current OEM repair data and OEM replacement parts. Any responses received prior to the award of this procurement, will be evaluated by the Contracting Officer.

(11) A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for required supplies or services:

The services to be procured are complex and must meet critical operational and reliability requirements, the achievement of which require unique production techniques and extensive and/or sophisticated testing, and the Government has not yet acquired or developed the technical data. 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. In an effort to increase competition, HC-144 program members intend to conduct internet database research and ensure procurements are advertised in FBO. In, addition, the USCG will investigate the feasibility of purchasing technical data from the OEM. If another potential source emerges, and the USCG is able to obtain the required technical data, the USCG will assess whether competition for any future requirements are feasible.