Attachment 4 -Redacted J and A.docx

Attachment 4

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901 Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements R391 System Level Propeller Training Solicitation No. 70Z03824QL0000050

In compliance with Federal Acquisition Regulation (FAR) 13.501(a)(1)(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 Department of Homeland Security, United States Coast Guard (USCG), Aviation Logistics Center (ALC), proposes to enter into a contract on a basis other than full and open competition.

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

(a) Nature of the action: USCG intends to procure R391 System Level Propeller training on a sole source basis for the HC-27J and HC-130J aircraft. GE Aviation LLC (CAGE: 93366) located in Sterling, Virgina is the only source available that has access to the Dowty R391 Propeller (OEM), proprietary data, licenses and manuals which are critical in leading and instructing R391 System Level Propeller training. Therefore, GE is the only vendor capable of performing Propeller Maintenance Training.

(b) Name and address of the contractor:

GE Aviation Systems LLC 114 Powers CT #7 Sterling, VA, 20166-9321 CAGE Code: 93366

(c) Type of action: Firm Fixed Price Indefinite Delivery Requirements Contract

(d) Estimated total value (including options): $868,342

Total $868,342

Services were previously provided under USCG contract 70Z023C93120002 with a period of performance ending 1 September 2023.

(e) Type of funding: Operations and Support (O&S) funds

(f) Year of funding: Fiscal Year’s 2025-2029

(g) Solicitation number: 70Z03824QL0000050

(h) Background information about the requirement: The HC-27J is a medium-size military transport aircraft. General Aviation Systems LLC (GE), is the OEM of the propellers used on the HC-27J and the HC-130J.

3. Description of Supplies/Services.

This requirement is to procure four (4) training courses per year for the R391 System Propeller. The R391 System Level Propeller training is to be conducted by GE due to the proprietary nature of the R391 Propeller that is installed on the HC-27J and HC-130J aircraft. This requirement will be awarded in accordance with FAR Part 12, Acquisition of Commercial Items and FAR Part 13.5, Simplified Procedures for Certain Commercial Products and Commercial Services. Services will be provided through individually funded task orders.

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 in Federal Acquisition Regulation (FAR) 13.501 (a) sole source (including brand name) acquisitions as defined in FAR 2.101.

5. Identification of Exception to the Buy American Act.

The Buy American Act does not apply.

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 OEM of the aircraft propellers Dowty, is not a potential source for the training. GE is a subsidiary of Dowty and has access to license, manuals and data and is solely authorized as an approved source to perform system level training. Both companies have a relationship as they fall under the umbrella of GE Aerospace LLC.

(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.

To ensure complete airworthy and structural integrity of the aircraft the required training cannot be taught by any other sources other than the OEM and OEM approved sources. The only OEM approved vendor for that can provide R391 System Level training services is GE. Therefore, services to satisfy this requirement can only be completed by GE.

(c) Summarize alternatives considered and why they will not work;

This requirement is for R391 System Level Propeller Training in support of the HC-27J aircraft. This requirement is restricted to the OEM or OEM approved sources. There are no alternatives to acquire these services from other than the OEM due to the proprietary data and maintaining airworthy condition of aircraft.

(d) Impact to the mission that would result in the J&A is not approved and, consequently, the product or service not provided.

There are no other sources that obtain the data and information needed to instruct the R391 Propeller training other than the OEM approved source GE. By using another source, the USCG would not be able to efficiently and accurately maintain the structural integrity, working condition and functionality of the R391 propellers. Failure to do so could compromise the aircrew personnel and government property, resulting in a safety and a 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, the mission will be impacted because of this J&A not being approved as stated above and not having this training will negatively impact the repair and maintenance of the R391 propeller.

(e) Section is required to be completed when the J&A includes the exception listed under FAR 25.103(b)(2) or FAR 25.202(a)(2)).

The exemption at 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 Justification for Other Than Full and Open Competition (J&A) will be posted to the Government-wide Point of Entry (GPE), Federal Business Opportunities (FBO) website with the Notice of Intent that the USCG will award this requirement on a sole source basis. This acquisition is forecasted in the Department of Homeland Security (DHS) Acquisition Planning Forecast System (APFS), number: F2024065576 published on March 4, 2024. APFS can be found at https://www.apfs.gov

(b) If an announcement is being planned for posting in Contract Opportunities, provide the estimated date of publication. The Justification for Other than Full and Open Competition (J&A) will be posted to the Government-wide Point of Entry (GPE), via https://www.sam.gov, with the Notice of Intent that USCG intend to award to GE on a sole source basis. Any capability statement, or quotation received will be considered prior to award and the Contracting Officer will make a determination to solicit the requirement based on limited competition, if appropriate.

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

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

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

FAR 6.305

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 prices will be determined fair and reasonable in accordance with FAR 13.106-3. The prices will be determined fair and reasonable based on prior procurement history and the Independent Government Cost Estimate (IGCE).

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.

A Sources Sought Notice 70Z03824IL0000004 was posted on March 4, 2024, to sam.gov. The USCG received two timely responses from GE Aviation, Inc. and Denamita. GE Aviation submitted the required answers needed and also included a link of their capabilities in which are applicable to this requirement. Denamita responded by providing responses required for the Source Sought and a list of capabilities that were not applicable or do not meet the needs of the requirement.

(b) Describe the market research results that support the determination that the items are not available.

This J&A requirement does not include the exceptions at FAR 25.103(b)(2) or FAR 25.002(a)(2) for the Buy American Act.

(c) If market research was not conducted, state why.

Not Applicable.

(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.

Not Applicable

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

(a) An explanation why technical data packages, specifications, statement of work, or purchase descriptions are not suitable for full and open competition.

GE is the only approved source to provide the identified services.

All manuals and publications published by the OEM, Dowty, are proprietary with restricted data rights afforded to the Government. Dowty has a direct relationship with GE Aviation as they are both owned and operated under the GE Aerospace LLC umbrella. GE has sole access to all license, data, manuals, and any information relating to R391 System Level Propeller training.

(b) Discuss why your requirement cannot be modified to enhance competition.

In order to maintain structural integrity of the aircraft and ensure complete airworthy capability the required training cannot be taught by other sources other than the OEM or an OEM approved source. Therefore, services to be procured cannot be modified to enhance competition.

(c) For a proposed contract subject to the restrictions of FAR 6.302-1 for follow-on acquisitions as described in 6.302(a)(2)(iii), provide an estimate of the cost to the Government that would be duplicated and detailed information on how the estimate was derived.

Not Applicable

(d) For a proposed contract subject to the restrictions of FAR 6.302-2(d) or HSAR 3006.302-270 and where FAR 6.302-2 is cited as the authority, describe the exceptional circumstances allowing for an award for a period of performance in excess of the one-year limitation (applicable to all federal agencies) or the DHS-specific statutory 150-day limitation.

Not Applicable

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

The USCG received a timely response from GE. GE submitted the required answers needed and also included a link of their capabilities in which are applicable to this requirement. GE is considered an approved source by both USCG Engineering and OEM. No other sources have expressed an interest in this requirement.

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.?

Complete specifications, drawings, acceptance data are proprietary to the OEM and therefore not available to the USCG. The USCG does not possess the technical expertise nor the rights for the data to provide to potential offerors.

b. When a J&A is issued for the purposes of acquiring goods or services while a competitive procurement is being conducted, the justification should include a detailed timeline for completion of the competitive procurement. The period of performance for the sole source action should fairly balance the time needed to complete the competitive procurement. The focus should be on minimizing the need for additional sole source awards.

Not Applicable

Remainder of this page has been intentionally left 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.

Kia R. Walton 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.

Technical Representative

15. Recommend for Approval

Supervisory Contracting Officer

16. Recommend for Approval

Chief of Contracting Office

17. Approval

Procuring Activity Advocate for Competition (PAAC)