JA Repair - FBO.doc

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (J & A)

SOLICITATION NO. HSCG38-09-Q-200005

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by FAR Subpart 6.3 and in accordance with 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 U. S. Coast Guard Aviation Logistics Center (ALC) Short Range Recovery (SRR) Division, Elizabeth City, North Carolina, proposes to enter into a contract on the basis of other than full and open competition and presents this Justification and Approval for Other Than Full and Open Competition (J&A) for review and approval.

(2) Nature and/or description of the action being approved -- Approval is requested to solicit, on a sole-source basis, support for the repair/overhaul of various avionic components, listed in paragraph three (3) of this J&A used on the short range recovery (SRR) aircraft. Due to technical complexity and flight critical nature of this requirement, the repair facilities must be certified by Honeywell International Inc., the Original Equipment Manufacturer (OEM). The repair/overhaul procedures are considered commercial in nature and will be procured utilizing the procedures listed in FAR part 12 & FAR 13.501(a)(1)(ii).

(3) Description of the Supplies/Services -- As the Aviation Inventory Control Point (AICP), ALC must provide effective supply support for all Coast Guard aviation units and for the Programmed Depot Maintenance Program. USCG requires contractors provide labor, material, tooling, parts, test equipment and facilities to perform repair/overhaul for the following avionic components in support of the SRR aircraft fleet.

Nomenclature

NSN

Part Number

SYNC. IND. CONTROL

5826-01-HS1-2564

2586047-903-NVG

RECEIVER-TRANSMITTER

5841-01-134-8907

HG7502AJ02

INDICATOR, HEIGHT

5841-01-HS1-2272

JG1072A702-NVG

APN-209R/T

1560-01-HS1-9683

HG7210CA01

RADAR ALTIMETER, RT

5840-01-HS2-0373

HG7210CB01

The repair/overhaul, material and estimated quantities to be procured are based on current and past usage data. Stocking level projections were based on: experienced mean time between failure (MTBG) rate; failure and corrosion trends; experienced and projected scrap rates and procurement lead times for the various components. This requirement is anticipated to be awarded to the Original Equipment Manufacturer (OEM) or any responsible vendor that can provide traceability to the OEM. Failure to procure these services may cause aircraft to be grounded. The period of performance is five years which includes one-year base period and four one-year option periods.

(4) Identification of Statutory Authority Permitting Other Than Full and Open Competition 10 U.S.C. 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. This acquisition is limited to the Original Equipment Manufacturer (OEM) or OEM approved source. Honeywell International, Inc. is the OEM for these items and the only known source of supply. Any other potential offeror would have to provide necessary certifications including traceability to the OEM to ensure parts are in airworthy condition, suitable for installation on an U.S. Coast Guard aircraft.

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

The vendor must possess the necessary data, tools, test equipment, facilities, skills, labor, repair manuals, and quality control systems peculiar to the repair, overhaul, management and improvement of avionic components listed under paragraph three (3) of this J&A. In order to maintain integrity of the system, ensure compatibility of the replacement parts and safe operation of the aircraft, these services must be obtained from the OEM or an OEM approved source. Each component is considered to be a flight critical component. These components are defined as any part, assemble, or installation containing a critical characteristic whose failure, malfunction, or absence could cause an un-commanded engine shutdown, a catastrophic failure resulting in loss or serious damage to the aircraft, or an unsafe condition. Therefore, it is critical that only traceable, approved parts be procured. Unapproved parts are costly due to the fact they require repeated shipments, increase the downtime of operational aircraft, require extra man-hours for the repair process or cannibalization of aircraft parts, can compromise aircraft safety, and could result in loss serious damage to a life or the aircraft.

Honeywell International, Inc. is the sole designer and OEM for the avionics equipment to be covered under this proposed contract. There are currently no OEM approved sources that can meet this requirement. Honeywell International, Inc. is the sole design authority and possesses the proprietary rights to the drawings and specifications needed to perform. Honeywell International, Inc. has declined to provide the proprietary rights to the Government. Honeywell International, Inc. has maintained their status as the only source qualified to fulfill this requirement, in that they are the only contractor with the proprietary data required to perform the work, the technical expertise to interpret the data, and the ability to solve technical problems, all of which are vital for the continued operational readiness of the aircraft.

(6) Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. In an effort to ensure offers are solicited from as many potential sources practical, a Sources Sought Notice was posted via the Federal Business Opportunity website on December 18, 2008. See paragraph 10 for a description of the sources who identified an interest in this acquisition. Additionally, upon approval of this J&A, the solicitation will be released. If any additional viable sources are identified through response to the solicitation, ALC will make a determination to solicit the services based on limited competition.

(7) Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable. This acquisition is limited to the Original Equipment Manufacturer (OEM) or OEM approved source. Honeywell International, Inc. is the OEM for these components and the only known source of supply. Any other potential offeror would have to provide necessary certifications including traceability to the OEM to ensure parts are in airworthy condition, suitable for installation on an U.S. Coast Guard aircraft. It is the Contracting Officer's opinion that prices ultimately negotiated for this procurement will be fair and reasonable based on a comparison to commercial prices, a comparison to historical pricing information on similar items, and an analysis of other than cost and pricing data.

(8) Description of Market Research. Market research was conducted for this acquisition by posting a Sources Sought Solicitation on Federal Business Opportunity website on December 18, 2008. Two responses were received, one from Honeywell International, Inc. and the other U.S. Dynamics Corporation. Honeywell International, Inc. is the Original Equipment manufacturer for the components listed in paragraph three (3) of this J&A, and is the only known source of supply that would be able to support this repair and overhaul requirement. US Dynamics Corporation did not offer support to repair or overhaul the avionic components. The corporation did, however, inquire whether or not alternate part numbers could be provided. After consulting the technical staff, it was determined alternate part numbers could not be provided as the avionic components listed in this solicitation are required to be night vision goggle capable. This night vision goggle capability is exclusive to the configuration operated by the Coast Guard and therefore alternate part numbers would not meet the requirements for Coast Guard operations.

This market research has found that there is no other responsible source that can provide the support necessary to repair and/or overhaul the listed avionic components (paragraph 3 of this J&A) to meet the operational requirements/needs of the Coast Guard.

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

Since the United States Coast Guard did not purchase the technical data rights as part of the original acquisition for the short range recovery aircraft (formerly referred to as H-65), as well as, not having accessibility to the complete specifications and drawings for the components listed in paragraph three (3) of this J&A it has been difficult to promote competition. As stated in paragraph five (5) of this J&A, any other potential offeror would have to provide necessary certifications including traceability to the OEM to ensure parts are in airworthy condition, suitable for installation on an U.S. Coast Guard aircraft. There are no authorized OEM distributors for the avionic components listed in this J&A based on the response to the sources sought received from Honeywell International Inc. All repairs of the components listed in paragraph three (3) of this J&A are repaired solely by Honeywell International, Inc., which owns the proprietary rights. Honeywell International, Inc. will not release this data which prevents the Government from having adequate technical descriptions needed to promote any competition.

(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 the components listed in paragraph three (3) of this J&A, will be posted via the Federal Business Opportunity website upon approval of this J&A. Two responders expressed interests to the Sources Sought posted via the Federal Business Opportunity website on December 19, 2008, Honeywell International, Inc. (OEM) and U.S. Dynamics Corporation.

(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.

Complete specifications and drawings for the short range recovery aircraft are not available to the Coast Guard. The Coast Guard does not possess technical expertise nor were the data rights for the RADALT or the avionic components listed in paragraph three (3) of this J&A purchased as part of the initial system acquisition for the SRR aircraft. As a result of the above, it would be difficult to foster a competitive procurement effort. As the Aircraft Inventory Control Point (AICP), the Aviation Logistics Center (ALC) 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, SRR 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, ALC established the New Product Development Branch (NPD) and a representative of the NPD Branch are assigned to the SRR Product Line. This representative has the responsibility to locate alternate sources of supply/services and alternate acceptable products. Reference the Aviation Logistics Center Instruction 4200.2B for further information on the NPD Branch. NPD supports ALC SRR engineering and SRR contracting. NPD participated in the development of the RFI posting on FedBizOps and in the review of the response received.

The NPD has attended the HAI-Helicopter Association International annual trade shows held in the following locations, Anaheim, CA (02/27/08 – 02/28/06), Orlando, FL (03/02/07 – 03/05/07), Houston, TX, and (02/25/09 – 02/27/08), and Anaheim, CA (02/24/09 – 02/26/09). During the shows, the NPD personnel searched for vendors who were capable of providing specific parts and services for the Coast Guard. As of the date of this J&A, they have been unable to locate additional sources of supply for the avionic components listed in paragraph three (3). Engineering, contracting, and NPD Branch 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.

Market research techniques that have been utilized include knowledgeable contacting individuals in the Government and the industry to seek additional information and sources of supply; searching the Internet; and, attempting to obtain source lists from other contracting activities. Searches via the Internet on websites, such as ILS, Haystack, and wBparts, as well as, accessing the FedLog database has not been successful in finding other sources. The sources sought notice posted via the Federal Business Opportunity website was used as an additional effort in the attempt to remove or overcome the barriers of competition. Nevertheless, as the Coast Guard strives for open and competitive acquisition processes, certain exigent circumstances have not allowed the flexibility to tailor contracts to carry out the Coast Guard mission as efficiently as desired.

The Coast Guard’s use of sole-source contracts (or contracts with a limited number of sources), is due to the initial procurement of the aircraft and its components/spare parts without obtaining the data rights.

Upon approval of this J&A, the combined synopsis / solicitation will be posted via the Federal Business Opportunity website. If any company shows interest in performing this requirement, a validation of their capabilities will be performed and a determination of allowing them to propose will be made.

(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

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.

Technical Representative

APPROVAL:

Chief of Contracting Office

HQ Procuring Activity Competition Advocate, PACA

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