J&A09Q200049 .doc

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION NO. HSCG38-09-Q-200049

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) Identification of the agency and the contracting activity, and specific identification of the document as a “Justification for other than full and open competition.” - The United States Coast Guard (USCG) Aviation Logistics Center (ALC), Short Range Recovery (SRR) Contract Section, Elizabeth City, North Carolina, proposes to enter into a contract on a 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, a firm fixed-price requirements contract for the repair and modification of the Generator Control Unit (GCU) Overexcitations on the SRR aircraft fleet utilizing simplified acquisition test program procedures. The contract period will total five years with one-year base and four one-year options (if exercised).

(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 contractors provide labor, material, tooling, parts, test equipment and facilities to perform repair/overhaul of the GCU Overexcitation NSN 6110-01-HS1-4659, P/N 950-298-1 and modification of the Unit Generator, NSN 6110-01-HR1-9578, P/N GC-1010-24-9AREVA of the Unit Generator, GCU, Overexcitation components of the SRR aircraft fleet.

The repair and 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 (MTBF) 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). 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. The estimated value of the acquisition for each period is:

Base Year

$50,580.00

Option Year One $51,380.00

Option Year Two $52,180.00

Option Year Three $52,980.00

Option Year Four $53,780.00

Estimated Total $260,900.00

(4) Identification of statutory authority permitting other than full and open competition. – The statutory authority permitting other than full and open competition is 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. Phoenix Aerospace Inc. is the OEM for these items and the only known source of repair. 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 items to be repaired/modified under this solicitation are obtainable only from the OEM. The OEM owns the proprietary rights to the drawings and specifications. The Generator Control Unit, overexcitation are manufactured by Phoenix Aerospace, Inc. in which the repair and overhauls of these various avionic components require Phoenix’s proprietary design data and engineering expertise. Each component is considered to be a flight critical component. These components are defined as any part, assembly, 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.

(6) Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. – A Sources Sought notice requesting any interested, qualified vendor reply to SRR Contracting with their pertinent information was posted on www.FBO.gov April 16, 2009 and expired May 3, 2009. No responses were received from this notification.

(7) Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable. - 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 the market research. – Market research was conducted at international trade shows and through information made available by the helicopter manufacturer. This market research has found that there is no other responsible source that can provide the support necessary to repair and/or modify the listed avionic components of this acquisition to meet the operational requirements/needs of the Coast Guard. The New Product Development (NPD) Branch continues to attend fairs and seminars to try to locate new vendors. Completed a Sources Sought posting on FedBizOps to locate potential vendors. Posting ran April 16 through May 3, 2009. No responses were received from this effort. Coordinated with the ALC New Product Development (NPD) division to see if what sources are available for this work. NPD indicates that no additional sources have been identified as a result of their efforts.

Reviewed https://www.contractdirectory.gov to check for any existing contracts for this type work to identify possible vendors. A review of the site on 4/23/2009 produced no contracts that could/may satisfy the requirements of this solicitation and resulting contract.

(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 SRR aircraft. The manufacturing drawings, data and special tooling necessary for full and open competition are proprietary and available only to the OEM. The performance and acceptance data are also proprietary. The USCG does not have adequate technical descriptions to enhance competition.

(10) Listing of the sources, if any that expressed in writing, an interest in the acquisition.

At this time no companies have responded to the Sources Sought posting, previously mentioned in this document. Upon approval of this J&A, the combined synopsis / solicitation will be posted via the Federal Business Opportunity website (www.FBO.gov ). 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.

(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 SRR are not available to the Coast Guard. The Coast Guard does not possess technical expertise nor were the data rights for the Generator Control Unit or its components 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. 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 is 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. 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 contacting knowledgeable 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.

NPD supports ALC SRR engineering and SRR contracting.

(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.

Claudette Y. Surrento

DATE

Contracting Officer

(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.

AETC Michael Harpe

Technical Representative

APPROVAL:

Claudette Y. Surrento

Contracting Officer

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