Redacted_MPA_Spares_J A.pdf

PROCUREMENT SENSITIVE

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

Solicitation #HSCG23-14-R-2DA034

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

(1) Agency and Contracting Activity.

The Office of Contract Operations (CG-9127), Formal Contracts Division VII, the United States Coast Guard (USCG) Headquarters, Department of Homeland Security, Washington, DC, proposes to enter into a contract on the basis of other than full and open competition.

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

The Coast Guard has a requirement for the production and delivery of the HC-144A Maritime Patrol Aircraft (MPA) initial spare and sustainment parts from the Original Equipment Manufacturer (OEM) European Aeronautic Defense and Space Company (EADS)/Airbus Military that can provide traceability to the aircraft or component OEM for the requested equipment. The aircraft components will be purchased from EADS/Airbus Military under an Indefinite-Delivery Indefinite-Quantity Firm-Fixed-Price (FFP) commercial contract.

(3) Description of Supplies/Services.

The HC-144A MPA is a European Aeronautic Defense and Space Company (EADS)/Airbus Military CN235-300M type. This requirement is to procure initial spare and sustainment parts to support HC-144A MPA flight operations and missions.

Period Initial

Spares (AC&I) Sustainment Spares (OE)

ALC

Spares (OE)

Total

Base Year $ 7,031,940 $665,535 $ 6,100,000 $13,797,475 Option Year 1 - $712,292 $ 6,470,000 $ 7,182,292 Option Year 2 $13,311,438 $740,008 $ 6,850,000 $20,901,446 Option Year 3 - $762,209 $ 7,270,000 $ 8,032,209 Option Year 4 - $784,115 $ 7,706,200 $ 8,490,315 Total $58,403,737

(4) Identification of statutory authority permitting other than full and open competition.

The statutory authority permitting other than full and open competition is Title 10, United States Code §2304(c)(1) (10 USC § 2304 (c)(1)) as implemented by the Federal Acquisition Regulation (FAR) §6.302-1 “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

(5) Demonstration That the Nature of the Acquisition Requires Use of the Authority Cited.

Through a competitive acquisition, the USCG selected the HC-144A Medium Range Surveillance (MRS) MPA aircraft to meet mission needs. In order to reduce USCG’s degree of technical, schedule and cost risk, a Standardization Determination and Findings (D&F) was issued 20 October 2009. The standardization allowed for USCG to retain a single MPA and mission system. This provided significant cost savings in the areas of: design costs including non-recurring engineering; provisioning costs including unit level consumption; inventory costs;

and repair costs including infrastructure maintenance. Without the standardization, additional redundant design and development costs would have been incurred. USCG estimated that through the use of the standardization, they were able to avoid over $682M in costs and at least $5.1B in overall life cycle costs.

In order to maintain operational capabilities and sustain the HC-144A, spare parts and logistics are needed. These spare parts have to be certified by the Federal Aviation Administration (FAA), the European Aviation System Agency (EASA), the National Institute for Aerospace Technology (INTA) or the Naval Air System Command (NAVAIR). Only the OEM has an acceptable certification for these components. EADS/Airbus Military submitted a letter dated 07 November 2013 explaining that as the OEM, EADS is the only authorized seller of spare parts for the HC- 144A aircraft in the United States. Additionally, EADS will not release the drawings or data rights to anyone. Since USCG did not purchase the original data rights for these spare parts with the HC-144A procurements and considering the Government data rights are insufficient, USCG must procure these spare parts from the OEM on a sole source basis. The costs for USCG to now purchase the data rights are not quantifiable.

Spare parts have already been purchased for aircrafts one (1) through eleven (11). In order to maintain the availability of the aircraft fleet and compatibility with specific systems without a disruption in service, the additional spare parts needed for aircrafts twelve (12) through nineteen

(19) must be identical to meet airworthiness certification requirements. Therefore, in accordance with FAR 6.302-1, the spare parts must be purchased on a sole source basis from EADS/Airbus Military.

(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 Coast Guard synopsized the proposed contract action in the Government Point of Entry (GPE), https://www.fbo.gov. The results of the sources sought synopsis are detailed in paragraph 10 below. Additionally, in accordance with FAR 5.102(a) (6) and 6.302-1(c)(ii)(C), this justification will be made available in https://www.fbo.gov. This requirement has also been posted to the Acquisition Planning Forecast System (APFS) under AAP No. 201301395.

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

The Contracting Officer anticipates that prices negotiated for this procurement will be fair and reasonable based on proposal analysis in accordance with FAR 15.404-1(b)(2)(iv) - competitive https://www.fbo.gov/ https://www.fbo.gov/ published prices and FAR 15.404-1(b)(2)(ii) - historical price information. The Contracting Officer will utilize this information to negotiate a fair and reasonable price.

(8) Description of Market Research.

Market Research was conducted from February 2013 to September 2013 to determine a list of potential sources for HC-144A MPA spare parts from original equipment manufacturers (OEM) that are located domestically and outside the United States. This market research included interviewing knowledgeable individuals in industry (Airbus Military and EADS-NA); reviewing Government databases (ALMIS, GSA, Federal Logistics and Information Systems); reviewing commercial databases (Airbus Military catalog); participating in industry conferences (OEM Maritime Patrol Aircraft Operator’s Conferences); reviewing catalog literature (OEM catalogs and websites); and, issuing a Sources Sought Notice. Detailed information can be found in the Market Research Report included in Procurement Request package dated 17 October 2013.

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

In accordance with FAR 5.201, the Coast Guard posted a synopsis on 13 June 2013, detailing the Coast Guard’s intent to award a sole source contract to EADS/Airbus Military, for HC-144A initial spare and sustainment parts. The synopsis required submission of a capability statement from any company that believed it could provide the Coast Guard with the requirements for the HC-144A spare parts. No capability statements, other than the OEM, were received by 27 June 2013 closing date for the synopsis. In addition, the Contracting Officer did not receive any phone calls or emails from any companies with questions, with requests for additional information regarding the proposed contract action, or to request a copy of the solicitation.

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

Only the OEM responded to the Sources Sought Notice.

In accordance with FAR 6.302-1(c)(ii)(C), the approved Justification & Approval (J&A) will be posted with the solicitation on Fed Biz Opps (FBO).

(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.

Per Aviation Logistics Center (ALC) instruction 4200.3A and the Spare Parts Breakout (SPBO) Program COMDTINST M4408.8, all flight critical items may only be procured through an OEM approved source or a vendor acceptable to ALC’s aircraft product line engineering cells. The SPBO Manager, located at the ALC, is the primary contact for companies that want to qualify to manufacture and/or repair parts for CG aircrafts. The SPBO manager will continue to monitor the sustainment parts and identify if alternate sources of supply can satisfy all form, fit, and functional requirements.