Attachment 4- Redacted J_A 70Z03824QB0000083.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

ATTACHMENT 4

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 United States Coast Guard (USCG) Aviation Logistics Center (ALC) Short Range Recovery (SRR) Product Line, Elizabeth City, North Carolina, 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 SRR Procurement Branch requests approval to solicit and award on a sole source basis, a contract for service/supplies of floatation assemblies, cylinders and related spare parts used on the USCG MH-65E aircraft. The parts are manufactured by Safran Aerosystems France (SAF); however, all support for the floatation assemblies, cylinders, and related spare parts will be provided by Safran Aerosystems Services Americas, LLC (Safran USA) (Cage Code 567V9). Safran USA is the only authorized Maintenance Repair and Overhaul (MRO) source in North America capable of providing the required repair/overhaul services for the components in the Schedule.

(a) Nature of this action: This is a sole source acquisition.

(b) Name and address of the contractor:

Safran Aerosystems Services Americas, LLC 4900 St. Joe Blvd, Bldg #200 Atlanta, Ga. 30337-6314

(c) Type of action: The USCG intends to award a Firm Fixed-Price Indefinite Delivery Requirements type contract consisting of a one (1) twelve-month Base Period and up to four (4) twelve-month Option Periods, if exercised. The service will be purchased using individually funded firm fixed-price task orders.

(d) Estimated total value (including options): $3,787,684 broken down as follows:

Period Length of Period Total

Base 12 Months $645,668 Option One 12 Months $697,315 Option Two 12 Months $753,093 Option Three 12 Months $813,332 Option Four 12 Months $878,276

Total $3,787,684

Note: This requirement was previously awarded under contract 70Z03819DB200009. The period of performance for this contract will expire on July 15, 2024.

(e) Type of funding: Operations and Support funds

(f) Year of funding: Fiscal Years 2024 through 2029 funds will be used as appropriate.

(g) Solicitation number: 70Z03824QB0000083

(h) Background information about the requirement: As the Aviation Inventory Control Point (AICP), ALC is required to provide effective supply support for all USCG Aviation Units and for Program Depot Maintenance (PDM) support. The Floatation Assemblies and Cylinders are critical to aircraft flight performance and safety of flight. This support will continue to ensure the availability of floatation assemblies, cylinders, and related spare parts required to support MH-65E operations.

Extensive market research has determined that Safran USA is the only North American vendor capable of providing the required repairs and/or overhaul of the Floatation Assemblies and Cylinders. This has been verified via correspondence with the OEM authorized entity Safran USA and is provided in the attached documentation labeled “Attachment 1”.

3. Description of Supplies/Services. The MH-65E aircraft utilizes a Floatation Assembly and Cylinder assemblies designed to help the aircrew egress from the aircraft, should the aircraft have to make an emergency water landing. The USCG currently operates 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 repair and/or overhaul of the Floatation Assemblies, Cylinders, and related spare parts to be completed by the OEM approved North American MRO facility for use on the MH-65E aircraft. This requirement will provide replacement ready for issue spares for the fleet and programmed depot maintenance program.

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

223045-0 223044-0 159128-2 223042-0 223043-0 204038-3 204038-2 158991-2 158991-3 204623-2 365A84-3151-02 365A84-3151-03 218148-0 215221-0 204037-3 204037-2 216064-0 216167-0 217068-0 217070-0

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(e)(2) as implemented by the FAR 13.501(a) “Sole Source (including brand name) acquisition.” Responsible sources are limited to the OEM approved North American Maintenance Repair and Overhaul (MRO) facility.

5. Identification of Exception to the Buy American Act. This requirement is for the repair and/or overhaul of the Floatation Assemblies and Cylinders 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: Safran USA is the only known vendor that can provide the Federal Aviation Administration (FAA) Form 8130-3 or the European Aviation Safety Agency (EASA) form 1 and traceability to the OEM required by Code of Federal Regulations (CFR) and the FAA.

(a) The use of 41 U.S.C. 1901 (e)(2) is necessary because Safran USA is the OEM’s only authorized MRO in North America.

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

The USCG contacted Safran USA on January 8, 2024, to determine whether Safran USA is still the OEM authorized MRO facility in North America. In response, Safran USA provided a statement letter dated January 11, 2024, stating that Safran USA was the only authorized MRO for the parts in this requirement.

(c) Alternate sources could not be considered due to known approved FAA Parts

Manufacturer Approval (PMA) for the parts in the solicitation that meets or exceeds OEM specifications and subsequently passes the USCG form, fit, and function requirements. In addition, there is only one (1) North American OEM authorized MRO facility.

(d) 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 and/or overhauled by the OEM or an OEM approved source. Components repaired and/or overhauled by an unauthorized 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. Therefore, 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 components are required. Additionally, in a fiscal and stock age environment requiring minimal investment in inventory, it is critically important to secure sources that can satisfy the contractual requirements needed to react to ever-changing mission requirements.

(e) The exemption to FAR 25.103(b)(2) is not taken.

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

Potential Sources as is Practicable.

(a) This requirement was forecasted in the Department of Homeland Security (DHS) Acquisition Planning Forecast System (APFS) No F2024065227 on January 29, 2024 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 at SAM.Gov as a combined sole source synopsis/solicitation. The estimated date of publication is March 20, 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 Part 13-106- 3(a)(2)(ii), comparison with similar items in a related industry (FAR Part 13.106- 3(a)(2)(iv)), and comparison to the Independent Government Cost Estimate (IGCE) (FAR Part 13.106-3(a)(2)(vi)).

9. Description of Market Research. In accordance with FAR Part 10, various methods of market research were launched for this requirement.

(a) Market research was conducted on July16, 2023 through January 23, 2024 and consisted of internet searches utilizing 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 Office and on the DHS Enterprise-Wide Contract Vehicle Portal were reviewed and were determined out of scope for this requirement.

(b) This J&A requirement does not include the exceptions at FAR Subpart 25.103(b)(2) or FAR Subpart 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 repair and/or overhaul of the required services. The drawings and technical data are proprietary and available only from the OEM. The USCG did not purchase the rights as part 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 overhaul of existing parts.

In order to maintain structural integrity of the aircraft and ensure complete compatibility of the repaired and/or overhauled parts, the parts listed in this requirement must be repaired and/or overhauled 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).

(d) Not applicable to FAR Subpart 6.302-2(d) or HSAR 3006.3020270. This is not considered unusual and compelling 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. The Contracting Officer will evaluate any inquires or responses received prior to the award of contract. The proposed contract action will be advertised on the 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.

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) Complete specification and drawings for components are proprietary to the OEM, therefore, not available to the USCG. The USCG does not possess the technical expertise, nor the software data rights for the components in this requirement. 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 ALC.

(b) Extensive internet database research was conducted and requirements will be advertised on Contract Opportunities website, SAM.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 vendors 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 and/or overhaul parts, which should further encourage competition, however, this process is lengthy, costly, and labor intensive.

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.

Terrie L. Pickard 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.

Vernon L. Clark Date Item Manager, USCG, ALC, SRR

Reviews:

Kristen R. Copeland Date Supervisory Contracting Officer

David S. Burgess Date Chief of Contracting Office

APPROVAL:

Frederick Steward Date Command Procuring Activity Advocate for Competition

(CPAAC)