HSCG38-08-Q-200054 JA fedbizopps.doc

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION NO. HSCG38-08-Q-200054

Pursuant to the requirements of the test program for commercial items as implemented by Section 4202 of the Clinger-Cohen Act of 1996 as implemented by FAR 13.501(a)(ii), this justification for other than full and open competition is supported by the following facts and rationale in the format described at FAR 6.303-2:

(1) Identification of the agency and the contracting activity, and specific identification of the document as a “Justification for other than full and open competition.” - The United States Coast Guard (USCG) Aircraft Repair and Supply Center (ARSC), HH-65 Contract Section, Elizabeth City, North Carolina, proposes to enter into a contract on a basis other than full and open competition.

(2) Nature and/or description of the action being approved. - Approval is requested to solicit, on a limited sources basis, the overhaul (repair) of landing gear actuators utilized on the HH-65 aircraft fleet. Due to the technical complexity and flight critical nature of this requirement, the repair facilities must be certified by Messier (France), the Original Equipment Manufacturer (OEM). The proposed contract type is an indefinite-delivery requirements contract with established firm-fixed prices. The suggested source is is an authorized OEM and FAA repair facility. .

(3) Description of the supplies or services required to meet the agency’s needs (including the estimated value) - As the Aviation Inventory Control Point (AICP), ARSC must provide effective supply support for all Coast Guard aviation units and for the Programmed Depot Maintenance Program. USCG requires contractor provided labor, material, tooling, parts, test equipment and facilities to perform rework on the actuating cylinders in support of the HH-65 aircraft fleet. The overhaul (repair), material and estimated quantities to be procured are based on current and past usage data. Stocking level projected were based on: experienced mean time between failure (MTBF) rate; failure and corrosion trends; experienced and projected scrap rates; and procurement lead times for the actuating cylinders P/N number 19570-101 and 19575-101.

(4) Identification of statutory authority permitting other than full and open competition. – The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1) as implemented by the Federal Acquisition Regulation (FAR) 6.302-1 entitled “Only one responsible source or a limited number of responsible sources and no other type of supplies or services will satisfy agency requirements”.

(5) Demonstration that the nature of the acquisition require use of the authority cited. – The data required to overhaul (repair) the actuating cylinders is proprietary to Messier (OEM/France). The vendors competing on this requirement must possess and provide evidence of both OEM and Federal Aviation Administration (FAA) certifications. Also, competition is limited on the basis that the replacement parts to be utilized on this requirement have specific part numbers which are essential to the Government’s requirements, thereby precluding consideration of a product manufactured by another company.

(6) Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. – . The proposed contract action is for the amount not expected to exceed the simplified acquisition test program threshold. A combined synopsis/solicitation for commercial items prepared in accordance with the format in FAR Subpart 12.603 will be issued. This procedure combines the synopsis required by 5.102 (a)(6) and 5.2 and the issuance of the solicitation into a single document.

(7) Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable. - It is the Contracting Officer’s opinion that prices ultimately negotiated for this procurement will be determined fair and reasonable based on competition from the limited authorized OEM and FAA repair vendors , comparison with historical pricing, published price lists and the Government estimate.

(8) Description of the market research. - Market surveys are continually conducted to identify new sources of supply and services for the HH-65 aircraft fleet. For example, contacts made by ARSC's Technical Services and Inventory Management Specialist at the annual Helicopter association International trade group conventions which was held this year in Houston, TX have resulted in identification of alternate sources of supply/services (see paragraph 8)(and ultimately competition) for various spare parts utilized on the aircraft. The same/similar parts to be overhauled (repaired) are used to support commercially owned HH-65 aircraft throughout the world. In addition to those vendors (see paragraph 10) that have previously submitted a proposal for the initial contract, the Inventory Manager has identified Advantage Aviation Technologies, and Texas Air Services as possible additional small business sources.

(9) Any other facts supporting the use of other than full and open competition, i.e., proprietary data packages, etc. - The necessary manufacturing drawings, data, and special tooling are proprietary and available only from the OEM or certified repair facility. The USCG did not purchase the technical data rights as part of the original acquisition for the HH65 aircraft. Presently USCG is not planning to obtain the data rights, and/or drawings because of a variety of financial and technical ramifications. Therefore, it would be difficult to take steps to foster competition as the manufacturing, performance and acceptance data are proprietary and the USCG does not have adequate technical descriptions. This requirement is necessary in order for the USCG to maintain the capability to adequately support their deployed aircraft and carry out their law enforcement mission

(10) Listing of the sources, if any that expressed in writing, an interest in the acquisition. – In accordance with FAR 5.201, the intent to contract for the services will be synopsized via FedBizOpps. A copy of the combined synopsis/solicitation will be sent to Messier Services, Hawker Pacific, Advantage Aviation Technologies, American Eurocopter, Texas Air Services, Sey Tec and Sunvair. Some have expressed interest, orally, in competing for these repairs and the others have been identified through market research.

(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 the supplies or services required. – Complete specifications and drawings for the HH65 are not available to the Coast Guard. The Coast Guard does not possess technical expertise nor were the data rights to spares purchased as part of the initial system acquisition for the HH65 aircraft. As the Aircraft Inventory Control Point (AICP), ARSC is tasked with supporting systems that have been deployed for use in the aviation community. However, in an effort to increase competition among affiliates and distributors, HH65 Product Line members annually attend aviation trade shows wherein they look for new vendors that might be able to repair same/similar parts. Once these vendors are identified , the HH65 PL discusses the parts they repair. If they fit the criteria, these vendors are asked to provide additional information such as their clients., etc. In addition, extensive Internet database research is conducted and procurements are advertised in FedBizOpps . Responses to the latter are dependent upon the procurement itself. In support of the Competition in Contracting Act, ARSC established the New Product Development Branch (NPD) and a representative of the NPD Branch is assigned to the HH-65 Product Line. This representative has the responsibility to locate alternate sources of supply/services and alternate acceptable products. Engineering, contracting and New Product Development representatives continuously conduct market research to ensure that companies interested in doing business with the USCG are given every opportunity to compete for our requirements NPD is exploring avenues of reverse engineering some of the hard to find or expensive to repair items. However, this process is lengthy, costly and a labor intensive effort.

(12) 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; and

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Contracting Officer

(13) Technical/Requirements Personnel Certification. I certify this requirement meets the government's minimum need and that the supporting data, which forms a basis for this justification, is complete and accurate.

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Technical Representative

APPROVAL:

Assistant Competition Advocate

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