J A FOR FBO.doc

JUSTIFICATION 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 Requirements

HSCG38-10-Q-200179

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 Aircraft Logistics Center (ALC) SRR Product Line, Elizabeth City, North Carolina, proposes to enter into a contract on the basis of other than full and open competition and 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 -- Approval is requested to issue a firm fixed priced purchase order on a sole source basis for the procurement of Various Spares for the SRR aircraft. These are commercial items that will be procured utilizing the procedures in FAR 12 and 13.5(a)(1)(ii).

(3) Description of the Supplies/Services - This document seeks to justify the procurement of Various Spares for the Coast Guard’s SSR-H65 from American Eurocopter Corporation (3GSZ1), 2701 Forum Drive, Grand Prairie, TX 75052. A firm-fixed priced purchase order will be used to procure these items. The required quantity and price is listed below:

(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(a)(2). 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 items to procure under this solicitation are available only from the Original Equipment Manufacturer (OEM) or an OEM approved source. The OEM owns the proprietary rights to the drawings and specifications needed to manufacture these items and will not release this data. This prevents the Government from knowing the salient physical, functional, or performance characteristics needed to promote additional competition. A similar part from another manufacturer would not suffice. A different part would require numerous costly changes to the aircraft. Only the OEM has all the data to determine the loading on the part, the required stiffness, attachment requirements, etc.

(6) Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. Upon approval of this J&A, the combined synopsis / solicitation will be posted via the Federal Business Opportunity website. If any responses are received as a result of this synopsis/solicitation, the file will be documented accordingly and the requirement competed among all eligible offerors.

(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 catalog prices and a comparison to historical pricing information on similar items.

(8) Description of Market Research. Market research is continually conducted to identify new sources of supply for the SRR components and spare parts. The items to be procured meet the commercial item definition. Market surveys, such as researching the Internet, making inquiries to other governmental agencies, and utilizing internal research methods (FEDLOG), etc. are continuously conducted to identify new sources of supply and services necessary to maintain the aircraft fleet; however, these efforts have been unsuccessful. Efforts to gain new contacts also include the Helicopter Association International and other trade group meetings held in various U.S. locations, with the last one being February 2010, which did not produce any alternate sources for the services in this requirement.

(9) Any Other Facts Supporting the Use of Other Than Full and Open Competition. 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 to spares and components purchased as part of the initial system acquisition for the SRR aircraft. As stated above in paragraph five, 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.

(10) A Listing of the Sources, if Any, That Expressed, in Writing, an Interest in the Acquisition. Upon approval of this J&A, the combined synopsis / solicitation will be posted via the Federal Business Opportunity website. If any responses are received as a result of this synopsis/solicitation, the file will be documented accordingly and the requirement competed among all eligible offerors.

(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 SRR are not available to the Coast Guard. The Coast Guard does not possess technical expertise nor were the data rights to spares and components purchased as part of the initial system acquisition for the SRR aircraft. 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, SRR product line members annually attend aviation trade shows and aggressively seek new vendors that might have the capability of supplying parts and services to the Coast Guard. In addition, 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. In FY-07, 524 items were located from alternate sources and FY-08 alternate sources from 51 items were located. NPD was responsible for reverse engineering hard to find items. This process is lengthy, costly, and a labor intensive effort. Engineering, contracting, and New Product Development representatives continuously conduct market research through sources sought notices, positing RFQ’s and RFP’s in FedBizOps, attendance of trade shows and networking to ensure that companies interested in doing business with the USCG are given every opportunity to compete for our requirements.

(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.

Debora Plymel

Date Purchasing Agent

(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.

TRISH ROZANSKI

Technical Representative

APPROVAL:

Danny R. Sawyer

Contracting Officer

PAGE