TCAS J A redacted.doc

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

SOLICITATION HSCG38-09-R-H00007

Pursuant to the requirements of the Competition in Contracting Act (CICA), as implemented by FAR Subpart 6.3 and in accordance with the requirements under FAR 6.303-1, this 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. U.S. Coast Guard, Air Logistics Centers, (ALC), Long Range Surveillance Product Line Division, Elizabeth City, North Carolina, proposes to enter into multiple contracts on a basis other than full and open competition and hereby presents this Justification and Approval (J & A) for Other Than Full and Open Competition (JOTFOC) for review and approval.

(2) Nature and/or description of the action being approved. U.S. Coast Guard has a requirement to procure, on a sole source basis with a partial set aside for small businesses, repair services for the Traffic Collision Avoidance System (TCAS) components utilized on the HC-130H aircraft fleet. The original manufacturer (OEM) of the replacement parts and suggested source is Honeywell International, Olathe, KS. The requirement will be procured utilizing commercial acquisition procedures defined by FAR Part 12 as a negotiated procurement defined by FAR Part 15. The proposed contract type is a firm-fixed price contract.

(3) Description of 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. The TCAS VSI components (Part no. 066-01171-0904) are proprietary to Honeywell International. Extensive market research was conducted for this requirement. After the synopsis was posted on Fedbizopps, two small businesses indicated that they have access to OEM manuals to repair the other components listed on the solicitation. There is no indication that any other sources exist for repair services for the TCAS VSI components, and many of the VSI components will be under Honeywell’s warranty. The original contract, HSCG38-04-D-H00006 was awarded to Honeywell and the current requirement is the follow-on. Honeywell International is the original manufacturer of the TCAS components and owns the data, specifications and drawings. Total contract period consists of a base year and four additional option years.

(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(a)(2), when services are deemed to be available only from one responsible source, or for the Coast Guard, from only one or a limited number of responsible sources, and no other type of services will satisfy agency requirements, full and open competition need not be provided for.

(5) Demonstration that the nature of the acquisition requires use of the authority cited. The components/parts to be repaired are manufactured and maintained by Honeywell International who owns all rights to proprietary data, specifications and drawings, and by Honeywell’s authorized repair facilities. The replacement parts have specific part numbers assigned by Honeywell which are essential to the Government’s requirements, thereby, precluding consideration of a product manufactured by another company. Aircraft replacement parts must be held to stringent standards because failure could cause catastrophic results such as loss of life and property. The interrelationship of the components and compatibility requirements with the existing system and the OEM’s reluctance to share proper drawings and specifications needed for overhaul preclude other companies from being able to perform the necessary repairs for this specific component.

(6) Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. This action was advertised on 13 February 2009 advising all interested parties of the government’s intent to solicit and award to the OEM for these services. Two responses from small

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

SOLICITATION HSCG38-09-R-H00007

businesses were received as a result of this pre-solicitation notice. The two vendors have access to repair manuals and experience in repairing all the components listed in the pre-solicitation notice except the one TCAS VSI component indicated in paragraph three. The file will be documented accordingly and the requirement competed among all eligible offerors. It is not expected that there will be any other competitors to repair the TCAS VSI component since it is covered under proprietary manuals and specifications.

(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 a comparison to market prices for similar items, published price lists and the government estimate.

(8) Description of the market research. Market research is continually conducted by the Inventory Manager and HC-130H Technical Services to identify new sources of supply for the HC-130H components and spare parts. ALC HC-130H Technical Services and Inventory Manager attend the annual Hercules Operators Conference every year. The main focus in attending this conference is to identify new vendors for services and supplies that meet the needs of the Coast Guard. The parts to be repaired meet the commercial item definition. Because of the specifications outlined in paragraph (3), Honeywell International is the only contractor in possession of the data required for the TCAS VSI component (Part no. 066-01171-0904) to meet the needs of the Coast Guard.

(9) Any other facts supporting the use of other than full and open competition, i.e, proprietary data packages, etc. Honeywell International is the original equipment manufacturer of the TCAS components and replacement parts used on this system onboard the HC-130H aircraft. They own all the data, specifications and drawings. The Coast Guard did not purchase data rights as part of the initial system acquisition for the HC-130H aircraft, and Honeywell declines to license the rights to the USCG as indicated by an email letter from Honeywell’s Project Manager, John Kukowski, dated 23 April 2009. Therefore 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) 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 was submitted to FedBizOps on 13 February 2009. Two companies besides the OEM expressed interest in this acquisition in writing: Optical Display Engineering of Tustin, CA and Avcom Avionics of Miami, FL. The companies proved that they have access to the OEM repair manuals for all but the VSI component listed on the pre-solicitation notice. This particular component remains sole sourced to the OEM.

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

SOLICITATION HSCG38-09-R-H00007

(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 TCAS system components 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 TCAS system. 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, HC-130H Product Line members annually attend aviation trade shows where they look for new vendors that might be able to supply or repair same/similar parts. Once these vendors are identified, the HC-130H Product Line discusses the parts they supply. If they fit the criteria, these vendors are asked to provide additional information such as their clients, traceability to the Original Equipment Manufacturer (OEM), etc. In addition, extensive internet data base research is conducted and procurements are advertised in FedBizOps. Responses to the latter are dependent upon the procurement itself. 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 each product line.

This representative has the responsibility to locate alternate sources of supply/services and alternate acceptable products. Engineering, contracting and New Product Development 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. NPD is exploring avenues of reverse engineering some of the hard to find or expensive parts. However, this is process is lengthy, costly and a labor intensive effort.

(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: _____________________

NANCY DEBERRY

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.

__________________________ Date: _____________________

JOHN TURMELLE

LRS Supply Division Chief (Acting)

REVIEWERS:

___________________________ Date: _____________________

DAVID S. BURGESS

Chief of the ALC Contracting Office

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

SOLICITATION HSCG38-09-R-H00007

__________________________ Date: _____________________

KEITH O’NEIL

PROCUREMENT ACTIVITY

COMPETITION ADVOCATE (PACA)

ER

______________________________ Date: __________________ Mr. MICHAEL TANGORA

Competition Advocate (CG-9D)

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