Tab 9 - 6.302.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. HSCG38-12-R-010018

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, U.S. Coast Guard, Aviation Logistics Center (ALC), Medium Range Surveillance Product Line, Elizabeth City, NC, 27909, proposes to enter into a contract on a basis 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), Medium Range Surveillance Product Line, Elizabeth City, NC has a requirement on a sole source basis to obtain aircraft components for the CT7 Engine and miscellaneous consumable hardware required to support thirteen (13) HC-144A Medium Range Surveillance Maritime Patrol Aircraft. ALC seeks justification and approval of a firm-fixed price contract from the Original Equipment Manufacturer (OEM) General Electric Company or from approved distributors. The USCG intends to negotiate with General Electric Company (GE), 1000 Western Avenue, Lynn, MA 01910 (USA) or any responsible vendor that can provide traceability to the aircraft or component OEM for the requested equipment. The estimated cost for this requirement is $4,061,800.32.

(3) Description of Supplies/Services.

This requirement is to procure spare parts (see Attachment A) to support HC-144A flight operations and missions. This procurement is based on comparison of the Coast Guard V-Metric forecasting model and Asset Maintenance Management Information System (AMMIS) demand data. ALC must provide effective supply and logistics support for all the HC-144A aircraft and the Programmed Depot Maintenance (PDM) program.

General Electric Company or an authorized distributor, are the only known sources for these spare parts.

(4) Identification of the statutory authority permitting other than full and open competition.

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1) as 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 manufacturer and certify airworthiness aircraft components and piece parts. 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 data for these components are proprietary to the OEM. Only parts that are certified by the Federal Aviation Administration (FAA), the European Aviation Safety Agency (EASA), or the Naval Air Systems Command (NAVAIR) are considered airworthy and only the OEM has this certification for these components. Using parts other than the OEM’s would compromise the integrity of the aircraft’s airworthiness and would void any existing warranties.

(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. 201202794 at http://apfs.dhs.gov. A Sources Sought Notice, HSCG38-12-S-010025, for HC-144A spares, was posted to FEDBIZOPS (FBO) on 21 June 2012 requesting that any parties interested in the acquisition express their interest in writing to the Contracting Officer. The results of the sources sought notice are provided in Paragraph 8, Market Research. In accordance with FAR 12.603 Streamlined Solicitations for Commercial Items, a combined synopsis solicitation will be posted on FBO.

(7) Determination by the Contracting Officer that the anticipated cost to the government will be fair and reasonable.

The contracting officer will determine that the anticipated prices will be fair and reasonable based on procurement history of previously negotiated procurements, comparison with GE commercial catalog pricing and comparison with similar items in the commercial marketplace.

(8) Description of Market Research.

The HC-144A aircraft is not logistically supported by other Government agencies. The contract will be solicited and awarded using acquisition procedures for commercial items. Market research consisted of utilizing the industry based system called Inventory Locator System (ILS) conducted on 7 May 2012, which provided no results. Internet searches were also conducted on 7 May 2012 for market research with no results. In an effort to foster competition, a Sources Sought Notice was posted on FBO on 21 June 2012 to ascertain whether private firms would express interest in competing for this requirement. No responses were received.

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

The HC-144A aircraft was procured and provisioned for by Coast Guard Headquarters, however that procurement did not include specifications necessary to obtain competition. Due to the small fleet size, it would not be economically feasible to procure the required data rights at this time. There is no indication that the OEM would be willing to sell their proprietary rights. This was confirmed in an email that was sent to Steve Manton, GE Manager, on 6 August 2012. The email stated that it is not GE’s practice to sell the data rights or proprietary data for spare parts. This procurement effort is to prevent search and rescue aircraft from being in a non mission capable (NMC) status, due to lack of Ready for Issue (RFI) supply.

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

A Sources Sought Notice was posted on 21 June 2012. No responses were received.

(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.

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 Logistics Center is responsible for providing logistic support to all Coast Guard aviation assets. 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 competition, the HC-144A Product Line will continue to 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 ________________________

DAVID E. TANNER Date Supervisory 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.

Technical Representative Date

(14) Legal Review and Concurrence:

I have reviewed this justification and deemed it legally sufficient.

Attorney Date

APPROVAL:

DAVID S. BURGESS Date Chief of the Contracting Office

Keith O’Neill Date CG-9131, USCG Headquarters Procurement Activity Competition Advocate (PACA)