Helitune JOTFOC over 500k FINAL.doc

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

HSCG38-08-R-500033

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by FAR Subpart 6.3 and in accordance with 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 Department of Homeland Security, U.S. Coast Guard, Aircraft Repair and Supply Center, Engineering Support Division, Contracting 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 acquire contractor services and material on a “Limited Source Basis” to support a variety of maintenance tasks and analysis of rotor track and balance (RTB), vibration, and engine monitoring on HH60, HH65 helicopters, HC130, HU25 and the HC144 fixed-wing aircraft. These are commercial maintenance tasks and will be procured utilizing the procedures in FAR Part 12 combined with FAR Part 13.5. The proposed contract type is a Firm-Fixed Price contract.

(3) Description of Supplies/Services - The requirement is to acquire contractor supplies and services to effectively support the calibration, maintenance, materials and engineering services needed to support the RT5JS+Rotortuner Kits and RT-JEMS Jet Engine Monitoring System. As the Aviation Logistics Center and Inventory Control Point (AICP), ARSC must provide effective supply and maintenance support for all Coast Guard aviation units and the Programmed Depot Maintenance Program. This requirement is to be awarded to Helitune Inc. a subsidiary of the Original Equipment Manufacturer (OEM) Helitune Ltd of Devon, England or a responsible source that has access to OEM parts and can provide documented traceability back to the OEM. The OEM equipment is comprised of hardware, firmware and software performing algorithms to capture, present and record for analysis vibration profiles of critical aircraft systems and components. The material and estimated quantities to be procured are based on current and past usage data. Stocking levels projected are based on experienced mean time between failure rate, failure and corrosion trends, experienced and projected scrap rates, and procurement lead times.

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

HSCG38-08-R-500033

(4) Identification of Statutory Authority Permitting Other Than Full and Open Competition

The statutory authority permitting other than full and open competition is cited in 10 U.S.C. 2304(c) (1) implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”.

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

These items are unique to the U.S. Coast Guard Aircraft. At this time, Helitune, Inc.’s parent company Helitune, Ltd, Devon England is responsible for all U.S. sales and service of the Rotortuner Vibration analyzer equipment suite and the associated RT-Genesis programming software and RT-Vision Ground station. Helitune Ltd maintains proprietary data rights for its product line of RTB, engine monitoring, vibration and ground station software’s. Due to the specialized nature and complexity of this equipment, research was limited to those entities providing RTB, engine monitoring and/or vibration analysis products and product support. This would follow industry standards. Procurement history indicates only OEM or OEM authorized service centers as potential sources. Helitune, Inc.’s parent company Helitune, Ltd, Devon England is the only company with the technical data and exclusive proprietary rights of the data necessary to provide service, calibration and material support the RTB equipment currently in use for RTB analysis of Coast Guard aircraft.

(6) Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. – A combined synopsis/solicitation for this requirement will be submitted to FedBizOpps for potential offerors. If any responses are received as a result of the solicitation, the file will be documented accordingly and the requirement competed among all eligible offerors.

(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 comparison with historical pricing, comparison to market prices for similar items, commercial catalog prices and the Government estimate.

(8) Description of Market Research. – Market surveys are continually conducted to identify new sources of supply for the Rotortuner Vibration Equipment Suite and the associated RT-Genesis programming software and RT-Vision Ground station. In addition to Helitune Inc. (the approved foreign manufacturer's distributor) Swangate International (1FXV9), provided calibration and repair services for Helitune Rotortuner equipment until Helitune established a USA subsidiary, Helitune USA (3KKA6) in 2003. Swangate was contacted but replied they could not meet the Coast Guard requirements for repair parts or support since it would conflict with Helitune USA business goals and the proprietary nature of the requirement suite.

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

HSCG38-08-R-500033

(9) Any Other Facts Supporting the Use of Other Than Full and Open Competition. - Since the U.S. Coast Guard did not purchase the technical rights as part of the original acquisition for the RT5JS+Rotortuner Kit, RT-JEMS, and the necessary manufacturing drawings, the data and special tooling information is proprietary and available only to the foreign OEM, Helitune Ltd of Devon, England and its subsidiary Helitune Inc. Helitune Ltd of Devon, England will not release or provide copies drawings for the purpose of reverse engineering or to permit another manufacturer to duplicate the design(s) and remanufacture. Helitune Inc is the only U.S. Company with access to configuration data, date card, application notes, proprietary piece-parts, and specific data storage media, calibration equipment and OEM repair specifications to effect repairs to Helitune Rototuner system and software.

(10) A 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 required items will be advertised in FedBizOpps.

(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. Completed specifications and technical drawings for the Helitune Rotortuner and its equipment suite are not available to the Coast Guard. However, the Coast Guard is looking into ways of transition to another technology (Advanced Predictive Maintenance Systems) and/or product.

In an effort to increase competition HH65 Product Line members annually attend aviation trade shows and performs extensive research to identify other potential sources of supply. Procurements for Helitune Rotortuner and its equipment suite are advertised in FedBizOpps. In support of the Competition in Contracting Act, the Aircraft Repair and Supply Center established the New Product Development Branch (NPD) of which a representative is assigned to the HH65 Product Line for the purpose of identifying potential sources in the effort to remove barriers to competition. The NPD representative has the responsibility to identify and locate alternate sources of supply/services and suitable substitute parts.

(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.

Debra D. Mitchell, Contracting Officer Date

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

HSCG38-08-R-500033

(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.

Conrad Mollenkopf, Technical Representative Date Inventory Manager, ESD

AMTC Edwin Ramirez, Technical Representative

Date

Engineering Vibration Laboratory

APPROVAL:

Keith O’Neill

Date Assistant Competition Advocate

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