Attachment 4 - Redacted J and A 70Z03823RB2000009.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

10 U.S.C. § 3204

Repair and/or Overhaul of the Trim/Feel and Series Actuators Solicitation No. 70Z03823RB2000009

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 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.

(a) Nature of the action: The SRR Procurement Branch requests approval to solicit and award, on a sole source basis, a contract for the repair and/or overhaul of the Trim/Feel and Series Actuators used on the USCG MH-65 aircraft. The Original Equipment Manufacturer (OEM) of the parts is Safran (Cage Code F6151). The only authorized maintenance repair/overhaul (MRO) facility in North American for the repair and/or overhaul of the parts is Safran Electronics & Defense, Avionics USA, LLC (See Attachment 1).

(b) Name and address of the contractor:

Safran Electronics & Defense, Avionics USA, LLC.

2802 Safran Drive Grand Prairie, TX 75052 (Cage Code: 003T0)

(c) Type of action: Firm Fixed-Price Indefinite Delivery Requirements type contract consisting of a one (1) One-year base period and up to four (4) one-year option periods, if exercised. The items to be repaired and/or overhauled will be procured using individually funded firm fixed-price task orders.

(d) Estimated total value (including options): $9,627,804 broken down as follows:

Period Length of Period Total Base 12 Months $1,792,685 Option One 12 Months $1,817,840 Option Two 12 Months $1,908,732 Option Three 12 Months $2,004,169 Option Four 12 Months $2,104,377

Total $9,627,804

Note: This requirement was previously awarded under 70Z03818DB2000013. The period of performance for this contract ends on June 26, 2023.

(e) Type of funding: Operations and Support funds

(f) Year of funding: Fiscal Year 2023

(g) Solicitation number: 70Z03823RB2000009

(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 the Program Depot Maintenance (PDM) support.

The Trim/Feel and Series Actuators are required for outfitting the USCG MH-65 aircraft with the latest designed/drawing revision authorized on the MH-65 model and are essential to avoid grounding of an aircraft. The vendor will provide all specifications, manufacturing drawings, data, test equipment, and tooling required to perform the repair and/or overhaul of these components, which are proprietary to Safran, the OEM. Extensive market research has determined that Safran Electronics & Defense, Avionics USA, LLC is the only North American vendor capable of providing the required repairs and/or overhaul of the Trim/Feel and Series Actuators. 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-65 aircraft utilizes an Automated Flight

Control System (AFCS) for automatic control of the helicopter in all four axes (pitch, roll, yaw and collective.) The system also provides automatic trim for trimming of pitch and roll axes. The AFCS uses series actuators to drive flight control rods, and the trim/feel units provide cyclic stick repositioning and holding

The USCG currently operates a fleet of ninety-eight (98) MH-65 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 Feel/Trim and Series Actuators to be completed by the OEM approved North American MRO facility for use on the MH-65 aircraft. This requirement will provide replacement ready for issue spares for the fleet and programmed depot maintenance program. The assemblies are specified in the table below:

Nomenclature Part Number(s) (PN) Applicable Aircraft

Trim/Feel and Series Actuators

270-0750-020 and

270-0751-020 MH-65

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 repair and/or overhaul of the Trim/Feel and Series Actuators 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 Electronics & Defense, Avionics USA, LLC 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 10 U.S.C. 3204(a)(1) is necessary because Safran Electronics & Defense, Avionics USA, LLC 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 the OEM on October 21, 2022 to determine whether authorized distributors were available. In response, Safran provided a statement letter dated December 12, 2022 (Attachment 1) state that Safran Electronics & Defense Avionics USA, LLC 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 F2022060441 on October 20, 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 at SAM.Gov as a combined sole source synopsis/solicitation. The estimated date of publication is January 12, 2023.

(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)(88)), comparison with the Independent 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: In accordance with FAR Part 10, various methods of market research were launched for this requirement.

(a) Market research was conducted between August 2022 and December 2022 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. A sources sought notice was posted on SAM.Gov on October 20, 2022 with only one timely response received from Safran Electronics & Defense Avionics, USA.

(b) This J&A requirement does 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: No other sources have expressed interest in this requirement. The Contracting Officer will evaluate any inquiries or responses received prior to the award of the contract. The proposed contract action will be advertised on 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 hose 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.

**Remainder of this page left intentionally blank**

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.

Luis Mojica 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.

Kristin R. Pelton Date Item Manager

RECOMMENDED FOR APPROVAL:

Kristen R. Copeland Date Level Above Supervisory Contracting Officer

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

APPROVAL:

Frederick Steward - ALC, CG-914, SILC-CON Date Command Procuring Activity Competition Advocate (CPACA)