HDU-43 JA_Redacted.pdf

J&A # 21-0217

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 2304(c)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

The market research shows that the Original Equipment Manufacturer (OEM), Polartherm Oy, a company located in Finland, and at least one (1) authorized US distributor, NGH Retail, LLC, a small business located in Valparaiso, IN, are able to provide the required unit. The US Air Force, Navy and Marine Corps are currently using this HDU-43 heater. This compatibility of the HDU-43 heater will allow the US armed forces to meet Organizational and Intermediate levels of maintenance requirements. No other compatible heater has been identified that can perform the same functions to meet all aircraft requirements. The OEM and its authorized distributors are the only sources that manufacture this exact unit; however, since the OEM is located in Finland they have an agreement in place with their US distributors. As a result, Polartherm Oy will not submit a proposal for this procurement in the US. The heater is required by the Support Equipment Management System and is not available in the supply system. The procurement of the heater will enable aircraft platforms adoption of the system without having to research, re-write and update all of the aircraft platform manuals as well as develop separate operational procedures.

Procurement of the HDU-43 heater will allow for additional speed to the Fleet and cost-wise readiness, while mitigating risks to operational readiness, requiring 12 to 18 months for research and updates for each aircraft platform if an alternate solution was procured.

Delaying the procurement to find another compatible heater would significantly impact the US Navy/Marine’s operating capabilities. In order to identify a compatible heater, the Government would incur additional costs and a longer schedule to meet the requirements. The savings would be attributed to both Government and Contractor cost avoidance, as this unit has already been tested for functionality in meeting inspection requirement and approved with associated procedures and manuals in place. Based on historical data, it would cost approximately $3.5M in non-recurring engineering (NRE) costs and take roughly two (2) years in front-end investment to develop, test and deliver a unit that would meet all of the aircraft requirements. This estimate, developed by the PMA260 Integrated Product Team, is based upon significant NRE costs to develop, test and deliver production units. Therefore, award of a contract for any other heater would result in substantial duplication of costs that are not expected to be recovered through competition.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Market Research was conducted through web searches and through a Request for Information

(RFI).

A RFI was posted on 09 February 2021 to the Beta.SAM.gov website for contracting opportunities and closed 26 February 2021. This RFI yielded only one response, NGH Retail, LLC. NGH Retail, LLC stated that they can supply the required HDU-43 heater, P/N 2212, and

J&A # 21-0217 can build as many heaters as the Navy requires. Furthermore, as required by FAR 5.201, a synopsis was posted for this procurement in the Beta.SAM.gov website on 20 April 2021. The synopsis closed on 05 May 2021 and one (1) response was received from NGH Retail, LLC showing their interest in this requirement.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

The Government has no plan at this time to procure a unit other than the HDU-43 heater, P/N 2212. PMA260 will continually monitor the marketplace to assess emerging technology or market competition, as well as the availability of alternate products and sources that would meet all or part of the capabilities should additional requirements arise.