Attachment 4 - REDACTED JA - 70Z03824QJ0000307.pdf

ATTACHMENT 4 Redacted J and A – 70Z03824QJ0000307

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), Medium Range Recovery (MRR) Procurement Branch Product Line Division.

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

(a) Nature of the action: The USCG, ALC, MRR Product Line Division intends to procure on a sole source basis a contract for repairs of the Interface Control Units (ICUs) and Low Profile Control Audio Panels (LPCAPs), hereafter referred to as “components,” utilized on the MH- 60T and MH-65 aircraft communication systems. The components are manufactured by Telephonics Corporation (Telephonics), the Original Equipment Manufacturer (OEM), and is the only approved source for the repair of these parts.

(b) Name and address of the contractor:

Telephonics Corporation Cage Code: 78711 815 Broad Hollow Rd Farmingdale, New York 11735-3904

(c) Type of action: The USCG intends to award an Indefinite Delivery Firm Fixed- Price (FFP) Requirements type contract consisting of one (1) one-year base period plus two (2) one-year option periods. The repairs will be procured using individually funded firm fixed-price task orders.

(d) Estimated total value (including options): $3,897,268 broken down as follows:

Period Length of Period Total Base 12 Months $1,236,247 Option One 12 Months $1,298,059 Option Two 12 Months $1,362,962 Total $3,897,268

Note: The repair services for the components under this J&A are currently under contract 70Z03819DJ0000002 with a period of performance end date of 9/23/2024.

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

(f) Year of funding: Fiscal Year 2024-2027 funds will be used, as applicable to the period of performance of each individually funded task orders.

(g) Solicitation number: 70Z03824QJ0000307

(h) Background information about the requirement: Repair of components for this requirement are currently procured through individually funded firm-fixed price task orders under contract 70Z03819DJ0000002 with a period of performance beginning 09/24/2019 with a scheduled end date of 09/23/2024. In order to maintain integrity of the system, ensure compatibility of the parts, and safe operation of the aircraft, these services must be obtained from the OEM. The Government does not physically have in its possession sufficient, accurate, or legible data to outsource these services from other than the OEM.

3. Description of Supplies/Services. This requirement is for the repair of the components to the latest configuration and OEM specifications for the use on the MH-60T and MH-65 aircraft. The communication systems consist of the Internal Communication System (ICS) along with various radio systems. The ICS is comprised of the ICU and five (5) LPCAPS. They provide the means of establishing internal and external communication and distribution of audio signals and warning information. The components are interchangeable throughout the MH-60T fleet. This requirement will provide replacement ready-for-issue spares for the fleet and programmed depot maintenance.

Telephonics is the OEM of this component, and the only MRR Engineering approved repair facility. The vendor will provide all specifications, manufacturing drawings, data, test equipment, and tooling required to repair the components which are proprietary to Telephonics.

Service Nomenclature Part Number

(P/N) Unit of Issue

Base Period Qty

Option Period 1 Qty

Option Period 2 Qty

Repair ICS Control Audio Panel

(ICS LPCAP)

599-1200-003 EA 90 90 90

Repair DU/ ICU 599-3100-017 EA 20 20 20

Repair Low Profile Control Audio Panel (LPCAP)

899-1200-003 EA 120 120 120

Repair Interface Control Unit

(ICU)

899-3100-117 EA 20 20 20

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 as implemented by FAR Subpart 13.501(a) “Sole Source (including brand name) Acquisitions.”

5. Identification of Exception to the Buy American Act. The required repair services of this acquisition are neither a requirement for supply nor 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.

Telephonics Corporation (Telephonics, Cage Code: 78711) is the OEM of the components. In order to maintain integrity of the system, ensure compatibility of the parts, and safe operation of the aircraft, these services must be obtained from the OEM. The Government does not physically have in its possession sufficient, accurate or legible data to outsource these services from other than the OEM. Telephonics maintains all data as proprietary as stated in a letter provided on January 26, 2024 (See Attachment 1). 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. Due to the lack of proprietary data, contact efforts were made to the manufacturer listed in AMMIS. Communication with the OEM confirmed Telephonics as the OEM and the only source capable of performing the required services of this acquisition (See Attachments 1-2).

(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.

(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.

(e) Rationale for use of the nonavailability exception to the Buy American statute, including detailed information explaining why the particular articles, materials, or supplies of the class or kind to be acquired, either as end items or components, are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality. Not applicable; this requirement is for repair services.

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.

This procurement forecast is posted as DHS – Acquisition Planning Forecast System (APFS) No:

F2024065241 on May 9, 2024 at 1:23 p.m. EDT on the http://apfs.dhs.gov website and was included in the DHS Forecast of Small Business Opportunities.

(b) If an announcement is being planned for posting in Contract Opportunities, provide the estimated date of publication.

This Justification for Other Than Full and Open Competition (J&A) will be posted to the GPE website, SAM.gov on 07/12/2024. Any capability statement, proposal or quotation received in response 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 after award.

(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 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 anticipates the prices for this procurement will be fair and reasonable. This will be based on comparison of the proposed prices found reasonable on previous procurements in accordance with (IAW) FAR 13.106-3(a)(2)(ii), comparison with similar items in a related industry IAW FAR 13.106-3(a)(2)(iv), and comparison to the IGCE IAW 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 November 2023 through May 2024. Telephonics confirmed by letter provided that they are the only source able to perform the required services of this acquisition (See Attachment 1).

Government databases such as General Services Administration (GSA), Federal Logistics Information System Web Search (WEBFLIS), and FedMall were all reviewed as part of market research. Commercial databases were reviewed, such as the Inventory Locator Service (ILS) website. 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 requirement.

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

Not applicable.

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

Not applicable; market research was conducted from November 2023 – January 2024.

(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 requirement.

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.

All technological data to perform the required repair services for the components are proprietary to the OEM Telephonics and they have not authorized any other facilities to perform the repairs.

Therefore, the technical data packages, specifications, statement of work or purchase descriptions are not suitable for full and open competition.

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

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 repair source.

(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 subject to the restrictions of FAR 6.302-1 as described in 6.302(a)(2)(iii).

(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.

This requirement is not subject to the restrictions of FAR 6.302-2(d) or Homeland Security Acquisition Regulation (HSAR) 3006.302-270.

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

Acquisition.

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.?

The USCG does not possess the technical data required to foster full and open competition for the components covered under this justification and approval. The USCG will continuously conduct market research to ensure that companies interested in doing business with the USCG are given every opportunity to compete for future USCG requirements. To increase competition, MH-60T program members conduct internet database research and ensure procurements are advertised in SAM.gov. If another potential source emerges, and the USCG can obtain the required technical data, the USCG will assess whether competition for any future requirements is feasible.

(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 Page 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.

Veronica D. Holley Date Supervisory Contracting Officer, USCG, ALC, MRR

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.

Kristine S. Holt Date Inventory Management Specialist, USCG, ALC, MRR

15. RECOMMENDED FOR APPROVAL:

Tabitha L. Callon Date Level Above, ALC, USCG

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

16. APPROVAL:

Frederick Steward Date Procuring Activity Advocate for Competition (PAAC)