Attachment 4 - Redacted Justification and Approval.pdf

Justification for Other than Full and Open Competition Under 10 U.S.C. 2304 (c) (1)

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

Electro-Optical/Infra-Red (EO/IR) Sensor System (ESS) & 380HD/SAFIRE Support Services

Solicitation Number: 70Z03821RE0000002

Pursuant to the requirements of the Competition in Contracting Act, as implemented by Federal Acquisition Regulation (FAR) 6.3 and in accordance with (IAW) the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR 6.3 is supported by the following facts and rationale required under FAR 6.303-2 as follows:

1. Agency and Contracting Activity:

The United States Coast Guard (USCG), Aviation Logistics Center (ALC), Engineering Services Division (ESD), Elizabeth City, North Carolina.

2. Nature and/or description of the action being approved:

(a) The USCG, ALC, ESD seeks approval to award a contract based on other than full and open competition to procure comprehensive support services for the Electro- Optical/Infra-Red (EO/IR) sensor system (ESS), associated hardware installed on USCG aircraft and repairs of 380HD and SAFIRE systems/subassemblies.

(b) The proposed contractor is:

FLIR Systems, Inc. (FLIR) 25 Esquire Road North Billerica, MA 01862-2501 (Cage 3UVR3)

(c) The USCG intends to award a Requirements contract consisting of one (1) one-year base period and four (4) one-year option periods.

(d) Estimated total value (including options):

(e) Type of Funding: Operation and Support (OS) Funds

(f) Year of funding: Fiscal Year 2022

(g) Solicitation Number: 70Z03821RE0000002

Period Period of Performance Total Base 4/26/2022 - 4/25/2023 $7,157,783 Option Period One 4/26/2023 - 4/25/2024 $7,202,544 Option Period Two 4/26/2024 - 4/25/2025 $7,459,032 Option Period Three 4/26/2025 - 4/25/2026 $7,723,527 Option Period Four 4/26/2026 - 4/25/2027 $7,996,267

TOTAL ESTIMATED VALUE $37,539,153

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

Electro-Optical/Infra-Red (EO/IR) Sensor System (ESS)

(h) Background information about the requirement: The initial purchase of the ESS was under contract HSCG38-07-D-500034 with a ten (10) year period of performance. At time of award, the USCG did not purchase any of the technical data rights to the systems.

FLIR maintains all proprietary data and has no authorized distributors to perform the required support. The current contract HSCG38-17-D-500002 provides comprehensive support for 147 installed ESS, spare systems, and repair services for the 380HD and SAFIRE systems/subassemblies.

3. Description of the Supplies/Services:

The ESS provides enhanced search capabilities to locate, identify and track surface targets day or night; a critical capability for both search and rescue, and law enforcement missions. This requirement provides for the comprehensive support of the ESS at firm fixed prices. This support includes management, logistical support, asset accountability, tooling, test equipment, depot repair, overhaul, modification and sparing support for the ESS resulting in ready for issue systems and components to the USCG field units. In addition, this effort will also provide technical data, engineering support, and field service representative services. This support will continue to ensure the availability of the ESS required to support USCG operations. Additionally, this effort includes repair services for the 380HD and SAFIRE systems/subassemblies.

4. Identification of the justification and the rationale:

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304 (c)(1) as implemented by FAR 6.302-1 (b)(1)(ii) entitled “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Identification of Exception to the Buy American Act

Not applicable as this effort is for support services.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or nature of the Acquisition require Use of the Authority Cited:

FLIR is the sole design authority and the OEM of the ESS, 380HD and SAFIRE systems currently installed on USCG aircraft. In order to maintain integrity of the system and ensure compatibility of the replacement for USCG aircraft, these services must be obtained from the OEM or an OEM approved source. FLIR maintains all proprietary rights, as stated on letterhead dated 19 February 2021 (attached).

The FLIR systems are integrated on USCG aircraft and if the USCG competed and awarded a contract to another vendor it would require a complete recapitalization of the fleet to allow any

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

Electro-Optical/Infra-Red (EO/IR) Sensor System (ESS) other system to interface cohesively. A recapitalization effort would cost an estimated $103M over a five (5) year period.

This acquisition is limited to the support services provided by the OEM. FLIR has no authorized distributors or other repair stations that can service their equipment. If an alternate system was purchased, the current systems would require removal, re-wire of the aircraft, and a total reintegration effort with the Common Avionics Architecture System (CAAS). At this time, the USCG is not looking for an alternate system and therefore there are no other alternatives for this acquisition as FLIR is the sole support provider for the installed systems.

If this Justification and Approval (J&A) is not approved, the systems will not receive the support services required to maintain them for use in Search and Rescue (SAR) missions. Loss of these capabilities will severely degrade the USCGs ability to perform successful SAR or law enforcement missions.

7. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable:

This acquisition was forecasted in the Department of Homeland Security (DHS) Acquisition Planning Forecast System (APFS), number F2020052565 was published 25 January 2021.

Request for Information (RFI) 70Z03821IE0000004 was posted to the Contract Opportunities website with a closing date of 10 August 2020. Responses were received from FLIR, IAI, GDC Technics, Controp-USA, SHOTOVER Systems, and L3 Harris. The USCG reviewed the capabilities and determined that FLIR was the only repair facility capable of meeting the requirement. The other responses were for complete new systems. The USCG is not searching for a replacement system at this time.

After approval of the Justification for Other than Full and Open Competition, a combined synopsis/solicitation will be advertised on the Contract Opportunities website and IAW FAR 5.207(c)(16)(ii) the solicitation will include a statement that all responsible sources may submit a proposal or capability statement which shall be considered by the agency.

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 based on a price analysis (FAR Subpart 15.404-1 (b)) utilizing a combination of price analysis techniques to include: comparison of proposed prices to historical prices paid, (FAR 15.404-1 (b)(2)(ii)), current published catalog prices (FAR 15.404-1 (b)(2)(iv)), and an analysis of other than certified cost and pricing data (FAR 15.404-1 (b)(2)(vii)) if determined necessary.

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

Electro-Optical/Infra-Red (EO/IR) Sensor System (ESS)

9. Description of market research:

RFI 70Z03821IE0000004, was posted to the Contract Opportunities website on 10 August 2020.

Responses were received from FLIR, IAI, GDC Technics, Controp-USA, SHOTOVER Systems, and L3 Harris, however; FLIR was the only vendor that provides the support services.

Additional market research was conducted between August 2020 and March 2021 by performing internet searches on General Services Administration (GSA) website, viewing the Strategic Sourcing website, and various Google queries to find a repair facility that possess the technical data required to perform the support services. These searches did not produce any other vendors with the ability to provide the comprehensive ESS support and repair services required by this acquisition.

This procurement was also forecasted in APFS on January 25, 2021. No company has contacted the USCG to request information on the APFS entry.

The Contracting Officer contacted FLIR to request names of other authorized service companies.

On 19 February 2021, FLIR responded with a memo that stated FLIR is the only source for the required support and has no other authorized facilities.

As a result of the above market research, FLIR was the only source identified capable of performing the services required by this acquisition.

10. Any other facts supporting the use of other than full and open competition:

None

11. Listing of the sources, if any that expressed in writing, an interest in the acquisition:

The following companies expressed interest: FLIR, IAI, GDC Technics, Controp-USA, SHOTOVER Systems, and L3 Harris, however; with the exception of FLIR, none of the vendors that expressed interest have the capability to provide the support/repair services required.

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 required supplies or services:

FLIR maintains all proprietary rights and does not grant these rights to any business, organization, person or commercial interest. This policy has limited the USCG’s ability to provide adequate technical descriptions to potential new sources. The USCG will maintain communications with the OEM and will continually conduct market research to identify possible

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

Electro-Optical/Infra-Red (EO/IR) Sensor System (ESS) additional sources that may eventually receive authorization to provide comprehensive ESS support/repair services for FLIR systems. However, granting access to technical packages or authorizing other firms to support their systems is solely a FLIR business decision.

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

Electro-Optical/Infra-Red (EO/IR) Sensor System (ESS)

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.

Gary S. Woolard 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.

Kevin Jacot Date Contracting Officers Representative, ESD

Approval:

David S. Burgess Date Chief of the Contracting Office (COCO)

Frederick Steward – ALC, CG-914, SILC-CON Date USCG Procuring Activity Competition Advocate

James Knight Date Coast Guard Procuring Activity Competition Advocate (CG PACA)