HSCG38-10-Q-011039 J A 6302-1.pdf

Justification for Other Than Full and Open Competition Under 10 U.S.C. 2304(c)(1)

Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

SOLICITATION NO. HSCG38-10-Q-011039

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by

FAR Subpart 6.3 and in accordance with the 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— U.S. Coast Guard, Aviation Logistic Center (ALC), Medium Range Surveillance (MRS) Product Line, Elizabeth City, NC hereby presents this Justification for Other Than Full and Open Competition (J & A) for review and approval.

(2) Nature and/or description of the action being approved. – This activity seeks approval for a ―Limited Sources‖ Other Than Full and Open Competition for the acquisition of aircraft Salvage Gear Equipment for the HC144A aircraft. This firm-fixed price and firm fixed quantity acquisition is on a sole source/limited source basis from the Original

Equipment Manufacturer (OEM) of the MRS Maritime Patrol Aircraft (MPA) HC-144A aircraft. The USCG intends to negotiate with the HC144A manufacturer, EADS CASA

North America, INC. (0DAF1), 1616 North FT Myer Dr. STE 1600, Arlington, VA

22209-3110, and/or any responsible vendor that can provide traceability to the aircraft or component OEM’s for the requested Salvage Gear Equipment.

(3) Description of Supplies/Services— This requirement is to procure aircraft Salvage Gear

Equipment in support of the CASA HC144 aircraft. The Salvage Gear Equipment that is being procured is identified with EADS CASA only part numbers that were manufactured for EADS CASA North America, INC. (0DAF1), 1616 North FT Myer

Dr. STE 1600, Arlington, VA 22209-3110. The items include: Outboard Wing Hoist

Sling, P/N: 35-92089-0003, Qty 2 ea; Center Wing Hoist Sling, P/N: 35-93034-0001, Qty 2 ea; Horizontal Stabilizer Sling, P/N: 35-93032-0001, Qty 2 ea; Vertical Stabilizer

Hoist Sling, P/N: 35-93156-0003 Qty 2 ea; Fuselage Lifting Sling, P/N: 95-93017-0001, Qty 2 ea; and Fuselage Storage & Transport Carrier, P/N: SPFG01-35-20000-00, Qty 2

ea. The tools and equipment are required to provide adequate support of aircraft salvage operations and missions. The estimated cost for this procurement is $294,978.64.

(4) Identification of Statutory Authority Permitting Other Than Full and Open Competition

The statutory authority permitting other than full and open competition is 10 USC

2304(c) (1) implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-1 entitled ―Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements‖.

Only One Responsible Source and No Other Supplies or Services Will Satisfy

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

The Government data rights are insufficient for the purposes of soliciting vendors to manufacture, test and certify safe for HC144A aircraft use. Rights to the necessary technical manuals, publications or data are proprietary to the aircraft OEM’s. Only parts that are certified by the Federal Aviation Administration (FAA) or the European

Aviation Safety Agency (EASA) are considered air worthy and only the OEM’s have this certification. Using parts from other than the OEM’s would compromise the integrity of the aircraft’s safety and would void any existing warrantees. Procuring non-

OEM certified tools and support equipment would jeopardize maintenance and flight crew safety and risk bodily harm.

(6) Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. This procurement forecast is posted as DHS- Advanced

Acquisition Plan (AAP) NO. 64517 on www.fido.gov . A Sources Sought for very similar items, HSCG38-10-Q-011016-SS, was posted on FedBizOps on 8 February

2010. (Attachment 1) Two sources identified in paragraph 10 expressed an interest and may be able to provide a ―Limited number‖ of the items. In accordance with FAR

12.603 Streamlined Solicitation for Commercial Items, a combined synopsis/solicitation will be posted on Federal Business Opportunities (FedBizOps). All responsible offers will be considered and multiple awards may be made if cost effective and advantageous to the government. Awards will be based on price, delivery, technical capability, and past performance.

(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 offered will be determined fair and reasonable prior to contract award based on comparisons of the commercial published price lists by the OEM, cost comparison to similar items, historical pricing data from previous buys and comparison of quotes submitted by interested offerors, if applicable. In addition, the USCG will compare the CASA quoted prices with invoiced cost to other commercial customers.

(8) Description of Market Research. The market survey consists of utilizing DOD, FEDLOG and internet sources. On 03/22/10, all 6 line items were searched on Fedlog, Google and ILSmart for possible sources with negative results. Market research reveals all items are commercial in nature as they are used on a commercial aircraft and are purchased by other commercial customers. The identified aircraft OEM is the sole source for this acquisition; although, some items were procured from component OEM’s and resold to the USCG under the Aircraft OEM part numbers. The USCG has not been able to identify the component OEM’s part numbers to increase competition. A Sources http://www.fido.gov/

Only One Responsible Source and No Other Supplies or Services Will Satisfy

Sought Notice for similar items was posted on FedBizOps 02/08/10 with two interested suppliers identified in paragraph (10). All responsible suppliers will be considered if they can provide traceability back to the original aircraft or component OEM’s. The aircraft OEM owns their respective manuals, publications and data for all items with aircraft part numbers. The Coast Guard purchased only limited use data rights. EADS

CASA North America, INC. responded to the USCG’s request to purchase data rights in a letter dated 10 March 2010. (Attachment 2) The letter stated, ―EADS will not release their drawings or data rights to anyone for the purpose of reverse engineering and will not copy the drawings for someone to duplicate the design to remanufacture under different part numbers.‖ They also included,‖ EADS cannot be held liable, provide part certification, or warranty for parts purchased from brokers or other vendors.‖

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

The Coast Guard does not own sufficient data rights and cannot purchase these data rights. Therefore, it would be difficult to take steps to foster competition as the manufacturing, performance and acceptance data are proprietary and the Coast Guard does not have adequate technical data to provide to potential offerors.

(10) A Listing of the Sources, if Any, That Expressed, in Writing, an Interest in the Acquisition.

A Sources Sought Notice, HSCG38-10-Q-011016-SS, for HC-144A tool and support equipment suppliers was issued in FedBizOps on 02/08/10 requesting that parties express their interest in writing to the Contracting Officer. Only two interested company responded: Aerosphere Aviation Services, INC., (CAGE: 1TLT7), 7619 Boeing DR., Greensboro, NC 27409-9406 and Aerospace Products International, (CAGE: 0VUJ2), 3778 Distriplex Drive North, Memphis, TN 38118. After further research, both companies have access to some line items. If these or other ―Limited Sources‖ can provide some or all, the tools and support equipment with traceability to the OEM, they will receive consideration provided it is cost effective and advantageous to the government.

(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. The Coast Guard will increasingly issue sources sought notices as they have been effective in identifying sources that can provide a limited number of parts with traceability to the OEM. The USCG did not purchase the data as part of the initial system acquisition for the HC-144A aircraft; as a result, complete specifications and drawings are not available and the cost to procure them is not easily quantifiable. As the AICP, ALC is tasked with supporting systems that have been deployed for use in the aviation community. As such, our budget does not include funding to procure data to determine alternate tooling to fill the requirements set forth by the aircraft OEM EADS CASA. The

Only One Responsible Source and No Other Supplies or Services Will Satisfy data for manufacturing this Salvage Gear Equipment are proprietary to the OEM.

However, in an effort to increase competition among the distributors, the CASA Product

Line members conduct extensive Internet database researches. In accordance with CG

ALCINST 4200.3, the ALC has a program for Spare Parts Breakout / New Product

Development. This program is to identify alternate sources of supply for parts; develop the widest possible range of competition; and to work with small business representatives to ensure that small businesses are given every opportunity to compete. This program is very effective in finding alternate parts to replace out of production obsolete parts for our other, older aircraft platforms. Since the HC144A is still in production the program has not been effective to date. ALC posts all solicitations for HC-144 spares, with estimated value greater than $25,000, on FEDBIZOPS that has resulted in the identification of new

―Limited‖ sources. If any ―Limited Sources‖ can provide some or all, the tools and support equipment with traceability to the OEM, they will receive consideration provided it is cost effective and advantageous to the government.

Only One Responsible Source and No Other Supplies or Services Will Satisfy

(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.

_<Signature on File>___________ ________________________

Wade Johnson 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.

__<Signature on File>__________ ________________________

Kevin Barrick, CWO, USCG Date

USCG, HC144A Engineering

APPROVER:

___<Signature on File>_________ ________________________

Wade Johnson Date

Contracting Office