JOTFOC-09Q200015.doc

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION HSCG38-09-Q-200015

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) Identification of the agency and the contracting activity, and specific identification of the document as a “Justification for other than full and open competition”. U.S. Coast Guard, Aviation Logistics Center (ALC), HH-65 Contract Section, Elizabeth City, North Carolina, 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 limited sources basis, the overhaul/modification of main landing brake wheels used on the HH65 aircraft. Due to technical complexity and flight critical nature of this requirement, the repair facilities must be certified by Messier Dowty, the Original Equipment Manufacturer (OEM). The overhaul/modification procedures are considered commercial in nature and will be procured utilizing the procedures in FAR Part 12. The proposed contract type is an indefinite-delivery/requirements multi-year contract with firm-fixed prices.

(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), ALC 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 overhaul/modification on the brake wheels in support of the HH65 aircraft fleet. The overhaul/modification, 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 brake wheels. This requirement is anticipated to be awarded to responsible sources with traceability to the Original Equipment Manufacturer (OEM). Failure to procure these services may cause aircraft to be grounded. The period of performance is five years which includes a base year and four renewable options. Total Government estimate is as follows:

Base Year $376,030.00

Option Yr 1 $394,915.50

Option Yr 2 $414,515.28

Option Yr 3 $434,865.64

Option Yr 4 $451,402.92

$2,071,729.34

(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 data required to overhaul/modify the brake wheels is proprietary to Messier Dowty (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.

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION HSCG38-09-Q-200015

(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 authorized OEM and FAA repair vendors, a comparison with historical pricing (the total award for the previous contract was $848,150.00), published price lists and the Government estimate.

The increase in the follow-on requirement is attributable to the addition of two parts, Nose Wheel and Main Wheel.

(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 ALC’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 to be overhauled/modified are used to support commercially owned HH-65 aircraft throughout the world. Market research reveals that the following vendors are capable of providing these overhaul services to the U.S. Coast Guard: AAR Landing Gear Services, Texas Air Services, Ocean Air Inc and Aircraft Braking System. These sources are certified by the OEM and approved by H65 Technical Services.

(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 manufacturer. 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 full and open competition as the manufacturing, performance and acceptance data are proprietary. The USCG does not have adequate technical descriptions to enhance competition. However, competition is still being conducted to the maximum extent practicable. 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 overhaul/modification services 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), 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, HH65 Product Line members annually attend aviation trade shows and aggressively seek 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, ALC 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.

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION HSCG38-09-Q-200015

(12) Certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief 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

(13) Technical/Requirements Personnel Certification. I hereby certify that the supporting data that are the responsibility of the requirements personnel and which form a basis for this justification are complete and accurate.

__________________________ Date: _____________________

PATRICIA ROZANSKI

H65 SUPPLY CELL LEADER

APPROVAL:

__________________________ Date: _____________________

KEITH O’NEILL

USCG HEADQUARTERS

PROCUREMENT ACTIVITY COMPETITION ADVOCATE (PACA)