Attachment C Redacted JA.pdf

Justification for Other Than Full and Open Competition Under 41 U.S.C 1901

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

Procurement of HC-27J Aircraft Spare Parts Solicitation No. 70Z03820QW0000016

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by Federal Acquisition Regulation (FAR) Subpart 13.5 and in accordance with the requirements of FAR 13.501, the justification for the use of the statutory authority under FAR Subpart 13.5 is justified 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), Medium Range Surveillance (MRS) Division, Elizabeth City, NC proposes to award a purchase order on the basis of other than full and open competition for the HC-27J aircraft.

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

The USCG, ALC, MRS Division seeks approval to award a firm fixed price (FFP) purchase order on a sole source basis to Leonardo, the Original Equipment Manufacturer (OEM), for the HC-27J aircraft.

The average lead time for these spare parts is 300 days. Leonardo, Cage Code: A1512, is the OEM of the aforementioned parts. Requirements for the parts included in this procurement are based on comparison of the Coast Guard V-Metric forecasting model and Asset Maintenance Management Information System (AMMIS) demand data and are immediately available from Leonardo inventory.

Any responsible source must be able to provide full traceability to the OEM.

(a) Nature of the action: The USCG intends to procure various spare parts and components.

(b) Name and address of the contractor:

Leonardo Piazza Monte Grappa 4 Roma, Italy 00195 Attn: Luca Nuzzo Phone: 390818871539 Email: lucaelio.nuzzo@leonardocompany.com

(c) Contract Type: Firm Fixed Priced Purchase Order

(d) Estimated Total Value: $1,639,440

(e) Type of Funding: Procurement, Construction, and Improvements (PC&I)

(f) Year of funding: 2020 Execution

(g) Background: The C-27J is a medium range surveillance aircraft used in maritime patrol, disaster response, and search and rescue missions. The procurement of spare parts and components are needed to support the USCG mission.

The requirement is considered commercial in nature and will be procured utilizing the procedures established under FAR Part 12, Acquisition of Commercial Items in conjunction with FAR 13.5, Simplified Acquisition Procedures for certain Commercial Items.

(3) Description of Supplies/Service.

The USCG is seeking approval to procure spare parts required to support HC-27J aircraft flight operations and missions, Air Station Sacramento operations, and depot maintenance of the aircraft.

Requirements for the parts included in this procurement are based on comparison of the Coast Guard V-Metric forecasting model and AMMIS demand data. Parts listing below includes specific part numbers, descriptions and quantities of the parts being procured. Due to unavailability of part number 697960-7, Mission Computer, MRS Engineering is willing to accept repaired parts for serial numbers 0735 and 0245. This requirement will be awarded as a purchase order in accordance with FAR Part 12 Acquisition of Commercial Items and FAR Part 13.5 Simplified Procedures for Certain Commercial items. See parts listing below:

NSN Part Number Nomenclature QTY

5930-01-475-6195 896-4115 SWITCH, PUSH 2

5985-15-202-9369 987-3013-001 FEEDLINE, FHANT COUP 3

1560-01-HS2-8560 C123272 STOP UNIT, FLAP ARRE 1

1620-15-198-0935 100-7425-00 VALVE, REG, FLOW 1

1680-15-198-0899 727-0310/02MOD01 ICE PROT CNTL PANEL 2

5831-01-HS2-8628 713055-9 ICS CONTROL PANEL 3

6350-01-553-0009 8550-10 SMOKE DECTOR 4

1650-99-490-4335 4252B000-001 BLD RAM VALVE AIR 1

1650-99-997-5751 4227B000-003 REGULATOR, AIR FLOW 3

4730-14-539-6384 90006310 CLAMP 2

1620-15-198-0920 AIR141806 SIDESTAY AFT 1

6115-14-566-8422 A3478-002 GENERATOR ALTERNAT 3

1680-01-HS3-0082 CP-3200-1 PENDENT, REMOTE CON 1

5895-01-HS2-8715 7516118-24130 SATCOM SDU 1

5895-01-HS2-9440 K9321051A000 MCDU 1

6610-01-497-1438 697960-7 MISSION COMPUTER 2

1680-01-661-2888 120-96026-101 MOUNTING TRAY 1

5999-01-483-0657 12-190-6/1P15 BLADE ANTENNA 14

(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(c), as implemented in FAR 13.501 (a), “Sole source acquisition”.

(5) Demonstration that the Nature of the Acquisition Require Use of the Authority Cited.

The USCG self certifies its aircraft in accordance with the standards established by the Federal Aviation Administration (FAA) and promulgated in Code of Federal Regulations (CFR) Title 14.

The USCG will only procure parts that have airworthiness approval. The CFR Title 14, Aeronautics and Space, Part 21, Certification Procedures for Products and Articles, governs the procedural requirements for issuing and changing design approvals, production approvals, airworthiness certificates, and airworthiness approvals. 14 CFR 21 defines airworthiness approval as a document, issued by the FAA for an aircraft and all components thereof which certifies that these parts conform to its approved design and is in a condition for safe operation.

(6) Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable.

In accordance with FAR 5.201, the Government’s intent to purchase spares will be posted to the Government Point of entry (GPE), http://beta.sam.gov. Any responsible vendor may submit a quotation; all responsive offers will be considered. If any responses are received as a result of the solicitation, the file will be documented accordingly and the requirement competed among all eligible offerors.

This acquisition is forecasted in the Department of Homeland Security (DHS) Acquisition Planning Forecast System (APFS), number F2019046929 published on July 26, 2019 and can be found at https://www.apfs.gov.

(7) Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

In accordance with FAR 13.106-3, the Contracting Officer is required to purchase all supplies and services from responsible sources at fair and reasonable prices. Pertinent data will include purchase order verification of the proposed prices, as compared to those prices paid by other commercial customers, prior USCG acquisition history, Commercial Parts Price Lists, if available, and the Government estimate. Prior to award, the Contracting Officer will determine fair and reasonable pricing.

(8) Description of Market Research.

Market surveys are continually conducted to identify new sources of supply for HC-27J components, spare parts and GSE/special tools. For this acquisition, Leonardo, the OEM is the only source available to supply these parts. Only the OEM can provide the items to be procured under this J&A, as they are the only source/authorized distributors approved by the USCG.

The market research consisted of contacting Leonardo for documentation to confirm part number, quantity, and material condition, as well as, reviewing the Leonardo Catalog for pricing and lead times.

The following online (WEB) sources were reviewed; Haystack, Inventory Locator Service, and Federal Logistics Data all which supported the initial market research that showed no alternate supply sources identified.

Leonardo is the OEM of the HC-27J aircraft, owns all the design specifications, technical references, engineering data, full repair processes and limits, and any and all rights to that information. In addition, based upon the USCG’s current aircraft safety certification requirements, it has been determined that Leonardo is the only known source with the extensive inventory on hand for immediate delivery for the items being requested. In the event that additional responses are received by the Contracting Officer, prior to the award of this procurement, the offeror will be required to submit documentation to support the aircraft safety certification requirements, which includes the requirement to effectively demonstrate the vendor’s ability to provide the components and obtain the proprietary data required, in order to meet the form, fit, and function of the component. This documentation must be approved by the USCG HC-27J Engineering Officer, prior to offeror being eligible for the award of the parts covered under this J&A.

(9) Any Other Facts Supporting the Use of Other Than Full and Open Competition.

The 2014 National Defense Authorization Act (NDAA) authorized the transfer of fourteen HC-27J aircraft from the United States Air Force (USAF) to the USCG. In accordance with the congressionally mandated requirement associated with the transfer of those aircraft, the USCG must procure the spare parts, components, and supplies required to fully standup and support the HC-27J APO, Air Station Sacramento and ALC’s HC-27J Product Line. The USAF did not purchase, and the USCG was not yet provided the opportunity to purchase, full data usage rights as part of the acquisition of the HC- 27J aircraft. As a result, the USCG cannot foster full and open competition for this effort, as the manufacturing, performance, and acceptance data are proprietary, and the USCG does not possess adequate and appropriate technical data to provide to potential offerors.

(10) A listing of the Sources, if Any That Expressed, in Writing, an Interest in the Acquisition.

To date, Leonardo is the only known source of the inventory covered under this acquisition. No other responses have been received by the Contracting Officer. Any responses received, prior to the award of this procurement, will be evaluated by the Contracting Officer.

(11) 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.

At this time, for the reasons set forth in paragraphs 5, 8, and 9, the USCG does not possess the technical data required to foster full and open competition for the supplies covered under this J&A. 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. In an effort to increase competition, HC-27J program members intend to conduct internet database research and ensure procurements are advertised in http://beta.sam.gov. In, addition, the USCG will investigate the feasibility of purchasing technical data from the OEM. If another potential source emerges, and the USCG is able to obtain the required technical data, the USCG will assess whether competition for any future requirements are feasible.