JOTFOC-08R200006.doc

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION HSCG38-08-R-200006

Pursuant to the requirements of the Competition in Contracting ACT (CICA) as implemented by FAR Subpart 6.3, HSAM 3006.3, CGAP 1206.3 and in accordance with requirements of FAR 6.303-1 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.

(2) Nature and/or description of the action being approved. Approval is requested to purchase, on a limited sources basis, spare parts used on the HH65 aircraft. The original equipment manufacturer is Eurocopter France. The proposed contract type is a firm-fixed price requirements.

(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 anticipated to be awarded to responsible sources with traceability to the Original Equipment Manufacturer (OEM) of the items solicited. 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. Projected stocking levels are based on: experienced mean time between failure rates; failure and corrosion trends; experienced and projected scrap rates and procurement lead times. The period of performance is three years which includes a base year and two renewable options.

(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, 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 requires use of the authority cited. The components/parts to be procured are manufactured by Eurocopter France, who owns all rights to proprietary data, specifications and drawings. There are no domestic manufacturers for these parts. There are, however, U.S. affiliates and distributors who may be able to propose on one or more of the parts to be procured. 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. In accordance with FAR 5.201, the proposed a presolicitation notice will be published in FedBizOps.

(7) Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable. The Contracting Officer determines that the prices ultimately negotiated for this procurement will be fair and reasonable based on competition from the limited OEM vendors, a comparison with historical pricing, published price lists and the Government estimate.

(8) Description of the market research. Market research is continually conducted to identify new sources of supply for the services and spare parts 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 (and ultimately competition) for various spare parts utilized on the aircraft. The same/similar parts are used to support commercially owned HH-65 aircraft through the world. Market research reveals that the following vendors are capable of providing these parts to the U.S. Coast Guard: Sey Tec, Hurst, TX; Boone Air Parts, Valencia, CA; American Eurocopter, Grand Prairie, Ranger Air, Carrollton, TX and Eurotradia USA. Inc., Alexandria, VA. These sources are certified by the OEM and approved by H65 Technical Services.

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION HSCG38-08-R-200006

(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 the technical 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 manufacturers. The performance and acceptance data are also proprietary. The USCG is not planning to obtain the data rights, and/or drawings because of a variety of financial and technical ramifications. Based on this, it would be difficult to take steps to foster competition as the manufacturing, performance and acceptance data are proprietary. The USCG does not have adequate technical descriptions to enhance competition. This requirement is necessary to enable the Coast Guard 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 these items will be publicized via 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 where they look for new vendors that might have the capability of supplying parts and services to Coast Guard. Once potential vendors are identified, the HH65 PL discusses the parts/services they provide. If they meet the criteria, these vendors are asked to provide additional information such as current customers, certification, etc. In addition, extensive internet database research is conducted and procurements are advertised in FedBizOps. Responses the FedBizOps are dependent on the individual procurement. 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. 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.

(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: _____________________

KEITH O’NEILL

Assistant Competition Advocate