Attachment 4 - Redacted J and A.pdf

ATTACHMENT 4: JUSTIFICATION FOR OTHER THAN FULL AND OPEN

COMPETITION 41 U.S.C. § 1901

SOLICITATION 70Z03824QW0000001

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 Department of Homeland Security, United States Coast Guard (USCG), Aviation

Logistics Center (ALC), Medium Range Surveillance (MRS) prepared this justification for other than full and open competition.

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

(a) Nature of the action: The USCG, ALC, MRS Division requests approval to award, on a sole source basis, a Firm Fixed-Price contract for the procurement of the overhaul and repair services for the HC-27J Nose

Landing Gear (NLG) assembly, in support of the Programmed Depot

Maintenance (PDM) of USCG aircraft.

(b) Name and address of the contractor: Leonardo SpA, Piazza Monte

Grappa 4, Roma, Italy, 00195

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

Contract

(d) Estimated total value (including options):

Period Total

Base Year

12 mo.

$986,956

Option Year 1 12 mo. $1,105,342

Option Year 2 12 mo. $1,168,335

Option Year 3 12 mo. $1,365,447

Option Year 4 12 mo. $1,406,411

Total Value $6,032,491

Services are currently awarded under Contract 70Z03819DW0000001 with a period of performance end date of 1/31/2024.

(e) Type of funding: Operations and Support funds

(f) Year of funding: Fiscal Year 2024

(g) Solicitation number: 70Z03824QW0000001

(h) Background information about the requirement: The USCG received fourteen

(14) HC-27J aircraft from the Department of Defense in July 2014, and the MRS

Division of ALC became responsible for the logistical system development, which includes but not limited to the supply, maintenance, and repair support of the HC-27J aircraft. The USCG is forecasting to have all fourteen (14) aircraft operational by 2024 to support Air Station (A/S) Sacramento and A/S

Clearwater. This requirement is crucial to having all fourteen (14) aircraft operational and continuing their operational capability.

3. Description of Supplies/Services. The USCG ALC is seeking approval to procure the

NLG assembly overhaul/repair in support of the HC-27J aircraft. The anticipated contract action will have an estimated total value of $6,032,491 to be funded with FY 2024 OS funds. This requirement will be awarded as a contract in accordance with FAR part 12

Acquisition of Commercial Items and FAR Part 13.5 Simplified Procedures for Certain

Commercial items. Services will be procured through individually issued task orders. The items which comprise this requirement are listed below:

Part Number Nomenclature National Stock Number

(NSN)

Original Equipment

Manufacturer

101-G1003-05 Leg, Retractable

NLG Assembly

1620-15-201-5945 Microtecnica SRL

101-G1003-06 Leg, Retractable

NLG Assembly

1620-15-206-2211 Microtecnica SRL

100-D1000-03 NLG Drag Brace 1620-15-199-1868 Microtecnica SRL

100-D1000-04 NLG Drag Brace 1620-15-202-4731 Microtecnica SRL

100-A10003-01 Actuator Cylinder 1620-15-199-1866 Magnaghi Aeronautica

SPA

100-H1000-04 Hook NLG 1620-15-201-5938 Magnaghi Aeronautica

SPA

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 implemented by FAR Subpart 13.501(a) sole source (including brand name) acquisitions as defined in FAR 2.101.

5. Identification of Exception to the Buy American Act.

Not applicable.

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 use of 41 U.S.C. 1901 is necessary because Leonardo SpA is the only OEM authorized overhaul/repair facility for the Nose Landing Gear Assembly and components used on the HC-27J aircraft. The data required to perform the repair and overhaul services identified in this requirement is proprietary to Microtecnica SRL, Magnaghi Aeronautica SPA, which are the OEMs, and Leonardo SpA who is the only OEM authorized vendor. The proprietary information is not available from another source. The USCG does not have adequate technical data to provide to potential offerors to promote competition.

(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.

The overhaul and repair services to be procured through this requirement are highly specialized services provided by a non-Governmental activity and the technical data required for acquisition by other than the OEM(s) or authorized facility is not available. In addition, the NLG assembly and components identified in this requirement are considered a Flight Critical Safety Item (CSI) and as such, MRS

Engineering personnel have determined that in order to ensure safety of flight, overhaul and repair services must be accomplished in accordance with OEM

Component Maintenance Manuals (CMM) which are maintained and proprietary to the OEM(s) and Leonardo SpA. The technical data for the NLG assembly and components used on the HC-27J aircraft have not been released or sold to any

Government agency.

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

This requirement is restricted to the only OEM(s) authorized facility and must maintain airworthy condition. There are no alternatives to acquire these services from other than the OEM(s) authorized facility due to the critical safety, proprietary data, and maintaining airworthy condition of the aircraft.

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

This procurement will provide repair and overhaul services to support the operational missions of the HC-27J aircraft. Without these services, the aircraft would be grounded for extensive periods of time until the failed part(s) could be replaced.

Failure to approve this sole source J&A will jeopardize the performance of USCG’s mission due to grounding of the aircraft as a result of insufficient airworthy, ready for issue stock being available of the components as required.

(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) If an announcement has already been made in Contract Opportunities, provide the date of publication.

The acquisition is forecasted in the Department of Homeland Security (DHS)

Acquisition Planning Forecast System (APFS), number F2023061326 published

09/26/2023 and can be found at 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 Leonardo SPA 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 for this requirement will be determined fair and reasonable in accordance with FAR 13.106-3. The prices will be determined fair and reasonable based on comparison to previously paid pricing, prior Asset Maintenance Management Information System (AMMIS) history, and current published pricing for similar items, if available.

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 indicates that the components are not listed on a General Services

Administration (GSA) contract or available through GSA Advantage. Market research also consisted of querying the Acquisition history, Internet Search, Inventory Locator

System (ILS), Catalog and product literature, DHS-Wide and Multi-Component Contract

Vehicles, Excess from Other Agencies, AbilityOne, Contracting Opportunities, and the

Acquisition Planning Forecast System revealed no alternate supply sources. The OEM(s) authorized facility is the only approved source to provide the required repair and overhaul services. These repair and overhaul services for the HC-27J are commercial in nature and are prevalent in private aviation and commercial aviation. All terms and conditions are not expected to differ from customary terms and conditions in the marketplace or standard Government practices.

http://www.apfs.gov/ https://www.sam.gov/

A sources sought notice was issued for this requirement on 16 November 2023

(70Z03824IL0000001). As a result of this notice three responses were received and they were from Leonardo SpA, Denamita, and Operations, Procurement, and Supply Chain

Services (OPS). The required questions to be answered were to determine what kind of business they were, and whether they have previously done business with the

Government or not. In addition, we asked for all potential vendors to review the

Statement of Work (SOW) and provide a response regarding acceptance of all requirements contained in the SOW. The requirements in the SOW were to provide current lists and status of all the OEM manuals, Component Maintenance Manuals, Revisions, Temporary Revisions, Service Bulletins, Modifications, and Amendments including Contractor specifications and procedures applicable to be used for the inspections, repair, or overhaul of the listed components. Denamita did not provide a response to any of the required questions nor did they provide a response regarding the

SOW. OPS provided answers to all of the questions, but could not provide the required information requested in the SOW. Leonardo SpA provided answers to all of the questions as well as the requested information. In addition, due to the proprietary nature of the NLG Assembly and its components, Leonardo SpA is the only OEM authorized overhaul/repair facility for this requirement. The OEMs will not sell the proprietary data rights that would be needed to fulfill this requirement. Leonardo SpA is the only authorized facility due to them having a Non-Recurring Quota agreement with the OEMs to develop the items and their overhaul/repair procedures. This was provided in email on

13 November 2023. Lastly, MRS Engineering does not have any approved sources for this requirement other than the OEMs authorized facility.

(b) Describe the market research results that support the determination that the items are nonavailable.

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.

Market research has been conducted.

(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.

This requirement does not have nor requires patents, copyrights, and/or intellectual property.

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.

Leonardo SpA, is the only approved source to provide the identified services. Therefore, this requirement is not suitable for full and open competition. The technical data package, including drawings, specifications, manuals, and publications required to develop additional sources to provide the repair and overhaul services were not procured by the

Government and are proprietary to the OEM(s) and Leonardo.

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

The services to be procured cannot be modified to enhance competition because the components and the subsequent technical data are not available from any distributor other than the OEM(s) and Leonardo.

(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.

This requirement is not a follow-on for the continued provision of highly specialized services pursuant to FAR 6.302(a)(2)(ii).

(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 to FAR 6.302(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.

To date, only three responses have been received with regard to an interest in this requirement. Refer to Paragraph 9 for detailed explanation. Any responses that are received prior to the award of the procurement will be evaluated by the Contracting

Officer.

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?

The manufacturing, performance, and acceptance data are proprietary to the aircraft

OEM. The USCG does not possess adequate and appropriate technical 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.

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.

Charles E. Leslie Jr. 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.

Hilliard F. Beasley Date

Technical Representative/COR

15. Level-Above Contracting Officer

Monique H. Swinson Date

Level-Above Contracting Officer

16. Recommended for Approval

David S. Burgess Date

Chief of Contracting Office

17. Approval

Frederick Steward- ALC, CG-914, SILC-CON Date

Command Procuring Activity Advocate for Competition (CPAAC)