J A 6.302-1.pdf

Justification and Approval (J & A) for Other than Full and Open Competition

Under 10 U.S.C. 2304 (c) (1)

Only One Responsible Source and No Other Supplies Will Satisfy Agency Requirement

LIMITED SOURCE JUSTIFICATION

HC-144A Aircraft Initial Sparing

HSCG38-10-Q-011045; HSCG38-10-Q-011046

HSCG38-10-Q-011047; HSCG38-10-Q-011048

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— The Department of Homeland Security, United

States Coast Guard (USCG), Aviation Logistic Center (ALC), Medium Range

Surveillance (MRS) Product Line, Elizabeth City, NC, proposes to enter into multiple contracts on a basis of other than full and open competition with the respective Original

Equipment Manufacturer’s (OEM’s) for the requested spares.

(2) Nature and/or description of the action being approved. – The USCG, Aviation Logistic

Center (ALC), HC-144A Supply Cell, Elizabeth City, NC has a requirement on a limited sources basis to purchase spare parts for the MRS Maritime Patrol Aircraft (MPA) HC-

144A aircraft. ALC seeks approval for a Limited Sources J&A to procure spare parts from four (4) OEM’s identified below and any suppliers that can provide traceability to the OEM.

(3) Description of Supplies/Services—Spare parts are for the HC-144A in the amount of

$10,000,000 as determined by comparison of the Coast Guard V-metric forecasting model and addressed in Acquisition Plan (AP) HSCG-08-0817. It is anticipated that four firm fixed price (FFP) contracts with a 12 months period of performance will be made to the OEM’s in the following amounts: EADS CASA North America, INC.

(aircraft components), 8100 EADS CASA Drive, Mobile, AL 36608-3110 for

$5,000,000; General Electric Company (engine components), 1 Neumann Way, Cincinnati, OH 45215-1915 for $2,800,000; Hamilton Sundstrand Corporation

(propeller components), One Hamilton Road, Windsor Locks, CT 06096-1000 for

$1,000,000 and Rockwell Collins, INC. (avionics components), 400 Collins Road NE, Cedar Rapids, IA 52498-0001 for $1,200,000. A complete list of items being procured is in the Sources Sought Notice HSCG38-10-S-010004. (Attachment 1)

(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‖.

(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

Only One Responsible Source and No Other Supplies Will Satisfy Agency Requirement

LIMITED SOURCE JUSTIFICATION

HC-144A Aircraft Initial Sparing

HSCG38-10-Q-011045; HSCG38-10-Q-011046

HSCG38-10-Q-011047; HSCG38-10-Q-011048

manufacture, test and certify for air worthiness aircraft components and piece parts.

Rights to the necessary technical manuals, publications or data are proprietary to the individual 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 airworthiness and would void any existing warrantees. Procuring non-OEM certified parts also would jeopardize 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. These requirements are listed as DHS-Advanced Acquisition

Plans (AAP) NO’s: 65420, 65421, 65422 and 65423 on www.fido.gov. A Sources

Sought Notice, HSCG38-10-S-010004, was posted on FedBizOps on 4 May 2010.

(Attachment 1) Three 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) for each requirement upon approval by the Coast Guard legal office, on or about, 14 June 2010. 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. The Contracting Officer determines that the anticipated prices(s) will be fair and reasonable based on comparisons of the commercial published price lists by the OEM’s, cost comparison to similar items, historical pricing data from previous buys (HSCG38-08-C-010010, HSCG38-10-C-010001 and HSCG38-10-C-

011005) and comparison of quotes submitted by interested offerors, if applicable.

(8) Description of Market Research. The market surveys consist of utilizing FEDLOG and internet sources. On 05/12/10, all 245 line items were searched on FEDLOG, and

ILSmart for possible sources with negative results. The HC-144A is not logistically supported by other Government agencies. Market research reveals all items are commercial in nature as they are used on a commercial aircraft and are purchased by other commercial customers. At this time the identified OEM’s, in paragraph 3, are the sole sources for their respective spares. The USCG has not been able to identify component OEM part numbers to increase competition. A recent Sources Sought Notice was posted on FedBizOps 05/04/10 and interested suppliers are identified in paragraph

(10). All responsible suppliers will be considered if they can provide traceability back to http://www.fido.gov/

Only One Responsible Source and No Other Supplies Will Satisfy Agency Requirement

LIMITED SOURCE JUSTIFICATION

HC-144A Aircraft Initial Sparing

HSCG38-10-Q-011045; HSCG38-10-Q-011046

HSCG38-10-Q-011047; HSCG38-10-Q-011048

the original aircraft or component OEM. Each OEM owns their respective manuals, publications and data for all items with OEM part numbers. The UCSG purchased only limited use data rights. The aircraft OEM, 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. On 23

June 2009, a similar ―Class‖ J & A was approved to spend $30M for HC-144 Aircraft initial sparing with several aircraft and component OEM’s. That ―Class‖ J& A expires on 30 July 2010. This J & A does not fit the current definition of a ―Class‖ J & A but is considered a ―Limited Sources‖ J & A. The Coast Guard does not own sufficient data rights and does not anticipate purchasing 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-S-010004 for HC-144A spares suppliers, was issued in FedBizOps on 05/04/10 requesting that parties expressing their interest in writing to the Contracting Officer. Only three interested companies responded: Derco Aerospace INC., CAGE 8X044, 8000 W. Tower, Milwaukee, WI

53223; Eurotradia USA INC., CAGE F0521, 4511 Saucon Valley Court, Alexandria, VA 22312 and M.D.F. Technologies, INC., CAGE 1P0H6, 364 Second Street, STE 4, Encinitas, CA 92024-3557. After further research, all three companies have access to a few line items. The above sources have indicated they may quote a ―limited‖ number

(10-15%) of the components listed in the Sources Sought Notices. If these or other

―Limited Sources‖ can provide parts in sufficient quantities with traceability to the

OEM’s, 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 USCG will continue to 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’s. The USCG did not purchase the data as part of the initial

Only One Responsible Source and No Other Supplies Will Satisfy Agency Requirement

LIMITED SOURCE JUSTIFICATION

HC-144A Aircraft Initial Sparing

HSCG38-10-Q-011045; HSCG38-10-Q-011046

HSCG38-10-Q-011047; HSCG38-10-Q-011048

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. The data for manufacturing the items required are proprietary to the OEM’s. 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 business 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. ALC posts all solicitations for HC-

144 spares, with estimated values greater than $25,000, on FEDBIZOPS that has resulted in the identification of new ―Limited‖ sources. If any ―Limited‖ source can provide some or all of the items with traceability to the OEM’s they will receive consideration provided it is cost effective and advantageous to the government.

Only One Responsible Source and No Other Supplies Will Satisfy Agency Requirement

LIMITED SOURCE JUSTIFICATION

HC-144A Aircraft Initial Sparing

HSCG38-10-Q-011045; HSCG38-10-Q-011046

HSCG38-10-Q-011047; HSCG38-10-Q-011048

(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.

Kevin Barrick, CWO, USCG Date

USCG, HC-144A Engineering

(14) Legal Review and Concurrence:

I have reviewed this justification and deem it legally sufficient.

___<SIGNATURE ON FILE>_____ ________________________

LSC Contracts Attorney Date

APPROVERS:

_____<SIGNATURE ON FILE>____ ________________________

David S. Burgess Date

Chief of the Contracting Office

Mr. Keith O’Neill Date

CG-9131, USCG Headquarters

Procurement Activity Competition Advocate (PACA)