(42)JA148(P).doc

JUSTIFICATION AND APPROVAL (J & A)

FOR OTHER THAN FULL AND OPEN COMPETITION

“SOLE SOURCE”

SOLICITATION NO. HSCG38-09-Q-200148

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 service of a repair and/or modification of the NR2NTL Indicator, Tech Rotor Indicator, VEMD (vehicle and multi engine display), and three VSI (Vertical Speed Indicator) used on the SRR, HH65C aircraft. The service of a repair and/or modification of these parts is considered commercial in nature and will be procured utilizing the procedures listed in FAR part 12 & and FAR part 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 and/or modification on the following avionic components in support of the SRR aircraft fleet.

The service for the repair and/or modification, material and estimated quantities to be repaired and/or modified are based on current and past usage data. Stocking level projections were based on: experienced mean time between failure (MTBF) rates; 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 Thales Avionics Inc or any responsible vendor. 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.

Total Government estimate is as follows:

Base Year $0.00

Option Yr 1 $0.00

Option Yr 2 $0.00

Option Yr 3 $0.00

Option Yr 4 $0.00 Estimated Total $0.00

(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 and 13.501(a)(1)(ii). Only one responsible source and no other supplies or services will satisfy agency requirements.

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

The indicators were originally manufactured by Thales Avionics SA (F9111) and used by the USCG. Thales Avionics, Inc (3J0E6) is an authorized repair station for Thales Avionics SA. Thales Avionics, Inc has been repairing some of these items since 2005. Another company, L-3 Communications provided very limited repair services to a few parts in 1999 and 2003; however, they are not qualified to provide the full range of repair services and did not bid on the original 2005 contract. Thales Avionics, Inc the capability to obtain the parts from the OEM Thales Avionics SA. Since 2005, Thales Avionics Inc, has repaired and/or modified the equipment to the new standards USCG Engineering team established were required for safe operation. IAW FAR 6.302-1(a)(2)(iii)(B), ongoing improvements and proprietary requirements of the internal parts, it would be in the best interest of the USCG to award the contract to Thales Avionics, Inc which would eliminate any unacceptable delays in awarding this contract. The USCG does not have the proprietary rights to these parts which have been developed by Thales Avionics, Inc.

(6) Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

The following sources were used to repair one or more of the items within the solicitation based on the items procurement history: Thales Avionics, Inc and L-3 Communications. The file has been documented accordingly and proposals from these sources will be considered provided OEM traceability can be guaranteed.

(7) Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The Contracting Officer anticipates that the prices ultimately negotiated for the procurement will be will be fair and reasonable based on historical pricing with Thales Avionics, Inc and the Government estimate. The IGE for repair and new purchase price for these parts are listed below.

Part Number IGE for Repair /Modify New Purchase Price

C16159AB $0.00 $0.00

C16287AA $0.00 $0.00

B19030YA02 $0.00 $0.00

457400ZB1502 $0.00 $0.00

457400ZA1502 $0.00 $0.00

457400ZA1501 $0.00 $0.00

(8) Description of Market Research.

Market Research included a search of the internet via NIIN for any other vendors. Thales Avionics Inc and L-3 Communications were the only discovered company. This market research has found that there are no other responsible sources that can provide the support necessary to repair and/or modify the indicators to meet the operational requirements/needs of the Coast Guard.

New contacts for additional sources of supplies and services are routinely searched for by our Engineering Equipment Specialist Team, at the Helicopter Association International (HAI) Expo and other trade group meetings held in various U.S. locations, the last one held March 2009 in Anaheim, CA, however, no additional sources have been found at this time to repair the USCG indicators.

The Federal Logistics (FEDLOG) which is updated monthly is a federally supported program which lists all manufacturers/suppliers by cage code. This program provides a valuable tool for supplier information and is utilized by requirements personnel to determine if alternate sources of supply exist. Information is accessed by National Stock Number, Nomenclature, item name, supplier name and cage code. Another source is Inventory Locator Mart (ILS). This website is used to locate difficult to find parts. Previous or current contracts reveal that the source listed in paragraph 10 is the only vendor capable of obtaining these parts. In addition to the above we searched GSA Advantage, DOD-Emall, and other Internet sites (ThomasNet.com, Google search engine) and could not find any additional information regarding the repair of the indicators.

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

The United States Coast Guard did not purchase the technical data rights as part of the original acquisition for the HH65 aircraft. These units must have traceability to the OEM. Since Thales Avionics is the only repairer of these parts it would be difficult to take steps to foster competition as the manufacturing, performance and acceptance data are proprietary and the USCG does not have adequate technical descriptions.

(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 these items is expected to be posted in FedBizOps. After posting, a courtesy email of the combined synopsis/solicitation will be sent to Thales Avionics, Inc and L-3 Communications. If any responses are received as a result of this combined synopsis/solicitation, the file will be documented accordingly and the requirement competed among all eligible offers.

(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 HH-65 aircraft are not available to the Coast Guard. The Coast Guard does not possess technical expertise nor were the data rights for the indicators or its components purchased as part of the initial system acquisition for the SRR aircraft. Thales Avionics, Inc being an authorized repair station obtained required documentation in order to make modifications to the units. As a result 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. Additionally, in the future, the USCG will issue a sources sought and/or Request for Information (RFI) notices to continually survey the market.

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. In FY-07, 524 items were located from alternate sources and in FY-08 alternate sources from 51 items located. NPD was responsible for reverse engineering some parts because they were hard to find obsolete items. This process is lengthy, costly and very labor intensive. Reverse engineering any of these units is not considered a feasible technical and economic alternative.

Finding vendors that could have the capacity or be qualified to manufacture any of these units is extremely difficult and cost prohibitive because each part has been designed to meet USCG specifications. They all must be repaired according to FAA Flight Standards and Certifications. Even if vendors are found, the rigorous testing that would have to be completed would be unduly burdensome and costly.

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.

Gail Payne 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.

Patricia Rozanski

HH65 Supply Cell Leader

APPROVAL:

Mr. David S. Burgess

Chief of Contracting Office

Mr. Keith O'Neill

Procurement Activity Competition Advocate, (PACA)

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