Attachment 4 - Redacted J and A 70Z03821QJ00000001.doc.pdf

Justification for Other Than Full and Open Competition Under 41 U.S.C. 1901

Only One Responsible Source and No Other Supplies or Services Will Satisfy

Repair of the APX-119 Identification Friend or Foe (IFF) Transponder

Solicitation Number: 70Z03821QJ0000001

ATTACHMENT 4

Pursuant to the requirements of the Competition in Contracting Act and in accordance with the requirements of Federal Acquisition Regulation (FAR) 13.5, this justification is prepared under the authority of FAR 13.501. Use of FAR 13.501 is justified by the following facts and rationale using the format at FAR 6.303-2, modified to reflect an acquisition under the authority of Simplified Acquisition

Procedures at 41 U.S.C. 1901.

(1) Agency and Contracting Activity.

The Department of Homeland Security (DHS), U.S. Coast Guard (USCG), Aviation Logistics Center

(ALC), Medium Range Recovery (MRR) Product Line Division (MH-60T), Elizabeth City, NC, proposes to enter into a contract on a basis of Other Than Full and Open Competition.

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

(a) Nature of the action: The MRR Procurement Branch request approval to solicit and award, on a sole source basis, a Requirements contract for the services specified herein, under solicitation number 70Z03821QJ0000001.

(b) Name and Address of the Contractor:

Raytheon Company (Hereafter referred to as Raytheon)

7884 Bryan Dairy Rd., Suite 110

Largo, FL 33777-1444

Cage Code: 1LZU1

(c) Type of Action: Firm Fixed-Price Contract

(d) Estimate total value (including options): $6.9M, broken down as follows:

Period Unit Price Total*______

Base Period 12 months $99,914 $1,198,968

Option Period 1 12 months $102,712 $1,232,544

Option Period 2 12 months $105,587 $1,267,044

Option Period 3 12 months $132,665 $1,591,980

Option Period 4 12 months $136,377 $1,636.524

Total $6,927,060

The procurement of the APX-119 IFF Transponder repair services under this J&A were previously awarded through individually funded purchase orders.

(e) Type of funding: The APX-119 IFF Transponder will be purchased with Operations and Support

(OS) funds.

(f) Year of funding: Fiscal Year 21 – 26 funds will be used, as applicable to the period of performance of each individually funded task order.

(g) Solicitation number: 70Z03821QJ0000001.

(h) Background information about the requirement: As the Aviation Inventory Control Point, ALC is required to provide effective repair services for the APX-119 IFF Transponders in order to support the MRR Product Line, Short Range Recovery (SRR) Product Line, Long Range

Surveillance (LRS) Product Line, Medium Range Surveillance (MRS) Product Line and the

USCG Air Stations. A firm fixed price contract will be awarded to procure the repair of the

APX-119 IFF Transponder. The Original Equipment Manufacturer (OEM) is Raytheon. All specifications, manufacturing drawings, data, test equipment, and tooling required to repair these components are proprietary to Raytheon. This has been verified via correspondence with the

OEM and is provided in the attached documentation labeled “Attachment 1.” This requirement will be solicited utilizing FAR Part 12 Acquisition of Commercial Items and FAR Part 13.5

Simplified Procedures for Certain Commercial Items. The total estimated price for this requirement is $6.9M.

The United States Naval Supply Weapons Systems Support (NAVSUP WSS) is the Primary

Inventory Control Agency and has sole authority and responsibility for certifying sources of support for MH-60T components. Certification of sources of support was executed in accordance with Public Law 108-136 Section 802 of the Defense Appropriations Act of 2004 and Naval Air Systems Command Instruction (NAVAIRINST) 4200.56. Responsible

Contractors are limited to NAVSUP WSS approved sources. However, component is managed solely by the USCG are limited to ALC MRR Engineering approved sources. Raytheon is the only approved source for this requirement. The contract will be solicited on a sole source basis.

According to Systems for Award Management (SAM), Raytheon is a large business.

(3) Description of Supplies/Services.

The APX-119 IFF Transponder is a radar based identification system designed for command and control. It enables military air traffic control interrogation systems to identify aircraft, vehicles or forces as friendly or foe, and to determine their bearing and range from the interrogator. This transponder enables aircraft to operate seamlessly throughout international, civil, and military airspace, meeting all

Air Traffic Control (ATC) requirements.

The USCG currently operates a fleet of aircraft that is used to perform missions such as search and rescue, law enforcement, international ice patrol, marine environmental protection, and marine resource conversation. With such a demanding operational tempo, aircraft condition and availability are essential to mission success. The repair services will enable the USCG to complete its mission by providing serviceable APX-119 IFF Transponders to the Fleet. Raytheon is the OEM of these components.

Raytheon is the only MRR Engineering approved source. Delivery of all associated contract line number items (CLINS) will be within one hundred twenty (120) calendar days. The basic objective of this requirement is to provide necessary repair services to the following components:

Nomenclature National Stock Number

(NSN)

Part Number (PN)

Applicable Aircraft

APX-119 IFF

Transponder 5841-01-580-4005 4079100-0515

MF-60T

MH-65D/E

HC-144

APX-119 IFF

Transponder 5841-01-656-1177 4079100-0530

HC-130H/J

C-27

APX-119 IFF

Transponder 5841-01-645-6210 4079100-0531

MH-60T

MH-65D/E

HC-144

(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 (c) as implemented by FAR 13.501 (a), “Sole Source Acquisition.” Responsible sources are limited to

NAVSUP WSS or ALC MRR Engineering approved sources.

(5) Identification of Exception to the Buy American Statute.

The requirement for the repair of the APX-119 IFF Transponder is neither a requirement for supply or the performance of the services outside the domestic United States, therefore, the Buy American Act is not applicable 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 specifications, manufacturing drawings, data, test equipment, and tooling required for the repair of the APX-119 IFF Transponder are proprietary to the OEM, Raytheon. The USCG did not purchase rights to the proprietary data required to foster a competitive environment as part of any original provisioning for use on the MH-

60T rotary wing aircraft and the costs to procure this data would be cost prohibitive. No acceptable alternate vendors have been identified.

(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: As cited in 6a, the OEM was contacted regarding the release or sale of their proprietary technology as well as potential authorized distributors. Per correspondence with Raytheon, they do not approve the release or sale of their proprietary technology and there are no other authorized repair facilities. Given this information, no portion of the work can be segregated to allow for competition as Raytheon is the OEM and there are no other authorized repair facilities.

(c) Summarize alternatives considered and why they will not work: There are no alternatives that may be considered as the OEM has communicated that there are no other authorized repair facilities and their proprietary technology is not for release or sale.

(d) Impact to the mission that would result if the J&A is not approved and, consequently, the product or 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 as a result of no stock being available as components are required.

(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 Beta SAM, provide the date of publication: An announcement has not been made in Beta SAM. This procurement forecast is posted as DHS –

Acquisition Planning Forecast System (APFS) No: F2020052315 on http://apfs.dhs.gov and was included in the DHS Forecast of Small Business Opportunities.

(b) If an announcement is being planned for posting in Beta SAM, provide the estimated date of publication: A Request for Quote Notice 70Z03821QJ0000001 will be posted to the

Government-wide Point of Entry (GPE) via https://beta.sam.gov/ on or before December 04, 2020 with an estimated response date of December 14, 2020. A copy of the approved J&A on a sole source basis will be uploaded with the notice. Market research confirmed Raytheon is the only approved source of repairs for the components specified herein. Any capability statement, proposal, or quotation received in response to the notice will be considered prior to award.

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

There are no applicable exceptions and an announcement will be published.

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

6.305: There are no applicable exceptions and an announcement will not be published after award.

(8) Determination by the Contracting Officer that the Anticipated Cost to the Government will be

Fair and Reasonable.

The Contracting Officer determines that the anticipated price(s) will be fair and reasonable based on pricing information collected from market research and the previous paid contracted prices which were used in the development of the Independent Government Cost Estimate (IGCE) for this requirement.

The current Producer Price Index escalation rate was applied to the IGCE and will be reviewed prior to award. The Contracting Officer anticipates that the prices for this procurement will be fair and http://apfs.dhs.gov/ https://beta.sam.gov/ reasonable based on comparison of proposed prices with prices found reasonable on previous purchases

(FAR 13.106-3 (a)(2)(ii), comparison with similar items in a related industry (FAR 13.106-3(a)(2)(iv), and comparison to the IGCE (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 in accordance with FAR Part 10 from March 19, 2019 through

October 8, 2020. DHS APFS entries were reviewed and there were no previous APFS entries. A review of the Asset Maintenance Management Information System (AMMIS) database history was conducted. Government databases such as General Services Administration (GSA), Federal

Logistics repository (FEDLOG), and FEDMALL were all reviewed as part of market research.

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. The OEM was contacted and market research confirmed Raytheon is the only approved source for APX-119 IFF Transponder Repairs.

(b) Describe the market research results that support the determination that the items are non-available. This J and 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) If market research was not conducted, state why. Market research was conducted in accordance with FAR Part 10 from March 19, 2019 through February 25, 2020. Refresher market research was conducted on September 15, 2020 through October 8, 2020.

(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) Raytheon Space and Airborne Systems is the only approved source for the procurement of the

APX-119 IFF Transponder Repairs, therefore, the acquisition is not suitable for full and open competition. Inquiries were made on February 25, 2020 and again on October 8, 2020 to determine if Raytheon Corporation would sell the intellectual property data rights for the components being repaired. Raytheon stated that they do not have any approved repair facilities other than through their company as the OEM and that their proprietary data is not currently for sale. See Attachment 1.

(b) This requirement cannot be modified to enhance competition because the components and the subsequent technological data are not available from any vendor other than the OEM.

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

A combined synopsis/solicitation will be issued through Contract Opportunities on Beta SAM website upon approval of this document. Once the Justification and Approval for Other than Full and Open

Competition has been posted to Beta SAM, all offerors will be considered. To date, there have been no inquiries regarding this procurement.

(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) Will the Government revise overly technical specifications, acquire data rights, etc.? There is only one (1) responsible source approved by NAVSUP WSS and ALC MRR Engineering to repair the APX-119 IFF Transponders. The USCG did not purchase rights to the proprietary technology required to foster a competitive environment as part of any original provisioning for use on the MH-60T aircraft. The proprietary technology and data rights are not for sale, per correspondence with Raytheon. Every reasonable effort will be made to remove barriers to competition for future requirements. These efforts will include continuing to identify additional sources that may eventually become approved by NAVSUP WSS to provide the required repair services.

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

Contract Opportunities on the beta SAM website. ALC MRR Engineering makes every effort to search for alternate sources of supply/services. Engineering, Contracting, and Supply representatives continuously conduct market research to ensure that companies interested in doing business with the USCG are given every opportunity to compete for requirements. ALC

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

(Remainder of Page Left Intentionally Blank)

(12) 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.

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Luis Mojica, Contracting Officer Date

Short Range Recovery (SRR) Division, ALC, USCG

(13) 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.

Ismael Melendez, Technical Representative Date

Medium Range Recovery (MRR) Division, ALC, USCG

(14) Concurrence:

Review:

Joshua M. Stoddard Date

Supervisor Contracting Officer

Level Above Contracting Officer

David S. Burgess Date

Chief of Contracting Office, USCG, ALC

(15) Approval:

Trena Mills Date

Command Procuring Activity Competition Advocate, CG-91