J A 6.302.pdf.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. HSCG38-11-Q-011101

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 6.302-1, 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 United States Coast Guard, Aviation Logistics Center (ALC), Medium Range Surveillance (MRS) Product Line, Elizabeth City, North Carolina, proposes to enter into a contract on a basis of other than full and open competition.

(2) Nature and/or description of the action being approved.

The United States Coast Guard, Aviation Logistics Center (ALC), MRS Product Line, Elizabeth City, NC has a requirement on a sole source basis to purchase spares in support of initial installs on a/c deliveries. ALC seeks approval for a J&A to procure aforementioned material on a basis of other than full and open competition from the Original Equipment Manufacturer (OEM), Rockwell Collins (13499), 400 Collins Road, Cedar Rapids, IA 52498-2498.

(3) Description of Supplies/Services.

The CDU-900C is a commercial off-the-shelf (COTS) device with built-in embedded functions that assist the operators with flight planning and mission management. The CDU-900C also has various system interfaces that enable the operators to control aircraft communications and navigation equipment. Three (3) CDU-900Cs are currently installed on a Coast Guard-configured sole source variant of the European Aeronautic Defense and Space Company (EADS) Construcciones Aeronauticas Sociedad Aónima (CASA) CN235 Tactical Airlifter, the CN235-300M CG-01 Configuration Maritime Patrol Aircraft. The CN235-300M CG-01 Configuration MPA, part number 35-00045-0001, is described by CASA Technical Specification T.S.03.3.05 dated 26 July 2005.

Designated the HC-144A MPA, the Coast Guard standardized the HC-144A MPA as the Coast Guard’s Medium Range Surveillance (MRS) MPA. The technical specification lists three CDU-900Cs for the HC-144A MPA. Two CDU-900Cs are located in the cockpit’s center console for the pilot and co-pilot, and the other CDU- 900C is located on the removable Mission System Pallet (MSP) for the Mission Systems Operator (MSO).. The estimated price for this single sole source contract action for six (6) CDU-900Cs is approximately $420K.

(4) Identification of the justification and the rationale.

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 CDU-900C is the only product that will meet the Coast Guard requirements and any other product will result in an unacceptable delay. The HC-144A MPA is replacing the existing fleet of the USCG’s HU-25 Dassault Falcon Aircraft which have reached the end of their economic service life. The existing HU-25s have become costly to maintain and are scheduled to be completely decommissioned by 2014. The Sponsor requires twenty (20) HC-144A MPA with MSPs in service in 2014 to replace the HU-25s. The HC-144A MPA program of record is thirty-six (36) HC-144A MPA with MSPs in service by 2025. Due to funding constraints, the Coast Guard will not be able to replace all retiring HU-25s in kind with twenty (20) HC-144A MPAs by 2014. The Coast Guard anticipates having only seventeen (17) HC-144A MPAs by 2014. The Sponsor has indicated that this is acceptable.

In March 2011, Rockwell Collins notified the Coast Guard that the CDU-900C is being discontinued and that 200 units are available on a first come, first serve basis. The Coast Guard is pursuing a Flight Management System (FMS) Engineering Change Proposal (ECP) that will allow forward-fit and retro-fit efforts to update FMS hardware and software. The FMS hardware update will include replacing the soon to be obsolete CDU- 900C with the fully-upgraded and replacement CDU-7000. Under an existing contract with Rockwell Collins, the Coast Guard intends to order the FMS Engineering Change Request (ECR) in September 2011. Following design, development, prototyping and testing, the FMS improvement ECP is scheduled to be approved by 2014 for forward and retro-fitting.

The Coast Guard has a contract with EADS North American (EADS-NA) with options for six (6) additional aircraft over four (4) years, 2011, 2012, 2013, and 2014. The Coast Guard intends to order aircraft fifteen (15) in 2011. EADS-NA has indicated that they have enough CDU-900Cs on hand to support aircraft fifteen (15).

From 2012 to 2014, the Coast Guard has options to procure aircraft sixteen (16) through twenty (20). Delaying delivery of aircraft until the FMS improvement ECP is approved in 2014 does not meet the Sponsor’s requirement. The Coast Guard intends to purchase six (6) CDU-900Cs and provide them as government furnished property (GFP) to EADS-NA for aircraft sixteen (16) through eighteen (18).

(6) A 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 - Acquisition Planning Forecast System (APFS) No. 201171387 on http://apfs.dhs.gov. A Sources Sought Notice, HSCG38-11-S-010010, for HC-144A Control Display Units (CDU), was issued on FEDBIZOPPS on 08 August 2011 requesting that any parties interested in the acquisition, express their interest in writing to the Contracting Officer. In accordance with FAR 12.603 Streamlined Solicitations for Commercial Items, a combined synopsis solicitation will be posted on

FEDBIZOPPS (FBO).

(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 the prices offered will be determined fair and reasonable prior to contract award based on comparison of commercial published prices lists by the OEM, cost comparison to similar items, previous AMMIS procurement history, and comparison of quotes submitted by interested offerors, if applicable.

(8) Description of market research.

Extensive market research was conducted via the internet, industry publications and industry conferences as part of both the Alternatives of Analysis and the Standardization Study for the aircraft. The results of these in-depth efforts were fully considered in the analysis that led to the decision to standardize on the EADS CASA, CN235-300M or HC-144A MPA. The CDU-900Cs are essential components of this standardize aircraft.

Market survey utilizing the Inventory Locator System, GSA Advantage, and Defense Logistics Agency (DLA) provided no other potential source of supply. The results are documented in the attached procurement package.

Contact with Rockwell Collins indicated the CDU900’s are obsolete and is commercial and assets will be sold on a first come bases.

(9) Any other facts supporting the use of other than full and open competition.

The Coast Guard did not purchase the data as part of the initial system acquisition for the HC-144A aircraft. As a result, it would be difficult to take steps to foster competition as the manufacturing performance and acceptance data are proprietary to the OEM and the Coast Guard does not have adequate technical data to provide to potential offerors at this time. ALC has not been provided funding to support the procurement of proprietary data to support competition of spare parts acquisitions. This type of initiative would be generated by CGHQ during systems acquisition. A sole source is essential to fulfilling the Government’s requirements because the CDU-900C is a tested and certified component of the aircraft and MSP. Additional pipeline spares must provide the form, fit and function to maintain integrity between the aircraft systems. Use of components other than the Rockwell Collins CDU-900C would void support coverage under the ALC Power By Logistic contract currently in effect.

(10) A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

Two companies responded to sources sought HSCG38-11-S-010010 posted on 08 August 2011. They were the Original Equipment Manufacturer (OEM) Rockwell Collins, Inc., 400 Collins Road NE, Cedar Rapids, IA 52498-2498 and Interface Displays & Controls, 4630 North Avenue, Oceanside, CA 92056. This requirement will be posted on FEDBIZOPPS as a combined synopsis/solicitation.

(11) A statement of actions, is any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for required supplies or services.

The Coast Guard did not purchase the data as part of the initial system acquisition for the aircraft; as a result, it would be difficult to foster a competitive procurement effort. Complete specifications and drawings are not available and the cost to procure them is not easily quantifiable. The Coast Guard Aviation Logistic Center is responsible for providing logistic support to all Coast Guard aviation assets. 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 for these systems. The data for these components are proprietary to the OEM and therefore future competition for this effort is not known. In an effort to increase completion the HC-144A Division will continue conduct extensive internet data research and advertise procurements on FBO.

(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 accurate and complete.

Technical Representative Date

(14) APPROVAL:

WADE JOHNSON Date Contracting Officer