JOTFOC-08Q200105.doc

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION HSCG38-08-Q-200105

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) Agency and the contracting activity. U.S. Coast Guard, 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 and hereby presents this Justification for Other Than Full and Open Competition (JOTFOC) for review and approval.

(2) Nature and/or description of the action being approved. Approval is requested to solicit, on a sole source basis a firm fixed-price purchase order for the acquisition of commercial items utilizing the simplified acquisition test program.

(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. This requirement is to be awarded to the OEM or responsible source that has access to original OEM parts and can provide traceability. Failure to purchase these parts may cause aircraft to be grounded. The material and estimated quantities to be procured are based on current and past usage data. Projected stocking levels are based on experienced mean time between failure rates, failure and corrosion trends experienced/projected scrap rates and procurement lead times. The original equipment manufacturer cage code is F0210.

(4) Identification of the statutory authority permitting other than full and open competition.10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2), 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 requires use of the authority cited. The spares to be procured are manufactured for the HH65 aircraft by the original equipment manufacturer (OEM), Eurocopter France, who owns all rights to proprietary data, specifications and drawings. American Eurocopter LLC, an affiliate of ECF, is the only U.S. firm that can provide these parts. There are no domestic manufacturers for these parts. The part number listed in the requirement is the only one approved for use on the HH65 aircraft. This would prohibit consideration of a part number manufactured by other companies; therefore, limiting the number of firms who can submit an offer for the parts listed in the requirement.

(6) Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. This action will be solicited utilizing the streamlined synopsis/solicitation procedures for commercial items authorized in FAR 12.603; therefore, a pre-solicitation synopsis will not be issued. All proposals received in response to this synopsis/solicitation will be considered.

(7) Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable. The Contracting Officer determines that the anticipated prices will be fair and reasonable based on a comparison to market prices for similar items, published price list and the government estimate.

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION HSCG38-08-Q-200105

(8) Description of the market research. Market research is continually conducted to identify new sources of supply for the HH65 components and spare parts. The first and most comprehensive is the Coast Guard’s Aviation Maintenance Management Information System (AMMIS) which a database that provides historical data for all parts purchased by the Aircraft Repair and Supply Center (ARSC). This database includes, but is not limited to, part number, nomenclature, purchase/delivery order number and historical pricing data. As part of the requirements package, a copy of all AMMIS data is included to support the independent Government estimate. Federal Logistics (FEDLOG) is a federally supported program which lists all manufacturers by cage codes. This program provides a valuable tool for supplier information and is utilized by requirements personnel to determine the existence of alternate sources of supply. Information is accessed by National Stock Number, Nomenclature, item name, supplier name and cage code. Another source of information is Inventory Locator mart (ILS). This website is used to locate hard-to-find parts.

The item to be procured meets the commercial item definition. This part is considered Flight Critical and can only be procured through sources approved by the original equipment manufacturer (OEM) or a vendor acceptable to ARSC’s aircraft product line engineering cells. Additionally, any alternate source of supply must be able to manufacture spare and/or repair parts that satisfy all form, fit and function requirements.

(9) Any other facts supporting the use of other than full and open competition, i.e, proprietary data packages, etc. The USCG did not purchase data rights as part of the initial system acquisition for the HH-65 aircraft. The necessary manufacturing drawings, data, and special tooling are proprietary and available only to the foreign original equipment manufacturer. The performance and acceptance data are also proprietary. The USCG does not have adequate technical descriptions to enhance competition. The parts are only available from the Original Equipment Manufacturer (OEM) which is Eurocopter France. American Eurocopter LLC is the approved foreign manufacturer distributor for Eurocopter. The parts listed can be found in the American Eurocopter LLC’s 2007 commercial catalog.

To further support the limitations placed on the competition for spare parts used on the HH65 aircraft, the Coast Guard inquiries, on an annual basis, as to the availability of domestic vendors. AE LLC provided in their 30 April 2008 letter the following: “American Eurocopter LLC is the only approved source of supply for Eurocopter products for the HH65 aircraft. We are the only authorized source to sell these parts in North America……Eurocopter will not release their drawings or data rights to anyone for the purpose of reverse engineering and will not copy the drawings for someone to duplicate the Eurocopter design to remanufacture under a different part number.”

(10) Listing of the sources, if any, that expressed in writing, an interest in the acquisition. A combined solicitation/synopsis will be submitted to FedBizOps.

(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, extensive internet database research is conducted and procurements are advertised in FedBizOps. 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 HH65 Product Line. This representative has the responsibility to locate alternate sources of supply/services and alternate acceptable products.

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION HSCG38-08-Q-200105

Since distributors within the U.S. are limited, NPD is exploring avenues of reverse engineering hard to find items. However, this process is lengthy, costly and a labor intensive effort. Engineering, contracting and New Product Development representatives continuously conduct market research through sources sought notices, posting RFQs and RFPs in FedBizOps, attendance of trade shows and networking to ensure that companies interested in doing business with the USCG are given every opportunity to compete for our requirements. Each year, NPD attends the annual Helicopter Association Int’l, a major industry trade show – in 3/08 Houston, 3/07 Anaheim, CA, 3/06 Orlando, FL. NPD identifies and visits those companies that offer similar parts to the ones used on the aircraft or have manufacturing capabilities of similar items.

(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.

__________________________ Date: _____________________

CYNTHIA D. SOULES

Contracting Officer

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.

__________________________ Date: _____________________

PATRICIA ROZANSKI

H65 SUPPLY CELL LEADER

APPROVAL:

__________________________ Date: _____________________

CYNTHIA D. SOULES

Contracting Officer