Tab_9_-_JA_Redacted_Copy_EGPWS_Software.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 or Services will Satisfy

Agency Requirements

SOLICITATION NO. HSCG38-13-Q-010167

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 supported by the following facts and rationale required under FAR 6.302-1 as follows:

(1) Agency and Contracting Activity.

The Department of Homeland Security, United States Coast Guard, Aviation Logistics Center (ALC), Medium Range Surveillance (MRS) Product Line, Elizabeth City, NC, 27909 proposes to enter into a contract on the basis of other than full and open competition.

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

This activity seeks approval to award a single contract based on Other Than Full and Open Competition to acquire an upgrade to the current Enhanced Ground Proximity Warning System (EGPWS) MK VII software to support the HC-144A and HC-130H aircraft fleet. Approval of this firm-fixed price acquisition is requested to procure brand name software on a sole source basis from the software Original Equipment Manufacturer (OEM), Honeywell International Inc., Redmond, WA 98073. The Coast Guard intends to negotiate with Honeywell for the requested software. The estimated total price for this requirement is $480,000. This upgrade is required to effectively inspect, test, troubleshoot, and modify EGPWS MK VII warning curves for the HC-144A and HC-130H while maintaining any Coast Guard specific requirements for return to service in a Ready-For-Issue (RFI) condition. While other entities fly the HC-144 A and the HC-130H, the Coast Guard is the only branch in need of a tactical mode for the EGPWS MK VII to enable them to fly low altitude mission profiles without the nuisance warnings of the standard EGPWS MK VII.

(3) Description of supplies/services.

This requirement is to procure software upgrades to effectively inspect, test, troubleshoot, and modify EGPWS MK VII warning curves for the HC-144A and HC-130H while maintaining any Coast Guard specific requirements for return to service in a Ready-For-Issue (RFI) condition. This requirement is to support HC-144A and HC-130H aircraft and their missions.

(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(b)(1)(ii) 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.

Honeywell International Inc., as the OEM of the EGPWS MK VII, owns exclusive data rights and specifications. The necessary specifications and data required for these upgrades are restricted to Honeywell International Inc. To ensure compatibility of the EGPWS MK VII systems and the software required for these systems associated with the HC-144A and the HC-130H aircraft, only Honeywell International Inc. will be able to provide these software upgrades. Using software other than the OEM would compromise the integrity of the EGPWS system as well as be an endangerment to lives and aircraft.

(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 - Acquisition Planning Forecast System (APFS) No. 201303051 on http://apfs.dhs.gov. 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 anticipates that the prices will be fair and reasonable based on comparisons to commercial prices, comparison to similar commercial items previously purchased and an analysis of other than cost and pricing data (i.e., established catalog or market prices, or previous contract prices) that will be requested in the solicitation.

(8) Description of market research.

Market surveys are continually conducted to identify new sources of supply for the HC-144A and the HC-130H aircraft. Market research was conducted on 8 May 2012 through 1 December 2012 to locate suitable replacements for the EGPWS MK VII that would meet the needs of the Coast Guard. The market research indicated that the cost associated with acquiring, plus integrating a new hardware solution is prohibitive. Therefore the only viable solution is the upgrade of the current Honeywell hardware with a software solution to meet the needs of the Coast Guard. Market research was then conducted on 17 June 2013 for available sources for the software upgrades to the EGPWS MKVII system by researching Fedlog, Inventory Locator Service (ILS) research tools, Google internet search and AMMIS. As a result of this market research, no other sources were found that were capable of providing the EGPWS MK VII software upgrades.

This requirement is limited to authorized sources of the OEM who can effectively demonstrate their ability to provide the EGPWS MK VII software upgrades and obtain proprietary data required meeting form, fit and function of the EGPWS MK VII. The Coast Guard requires the distributors or other potential sources to be Aviation Suppliers Association, ASA-100 certified or in compliance with other quality systems listed in FAA Advisory Circular 00-56A.

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

The EGPWS MK VII was procured and provisioned for by Coast Guard Headquarters, however that procurement did not include the data rights nor is there any indication that the OEM would be willing to sell the data rights to the Coast Guard. Therefore, it would be difficult to take steps to foster competition without the EGPWS MK VII data rights (see attached refusal letter from Honeywell International Inc.). The Coast Guard does not possess adequate technical descriptions to provide to potential new sources.

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

During the process of performing market research on 17 June 2012 Honeywell expressed their interest in working with the Coast Guard to create the required software upgrades needed for the EGPWS MK VII systems. This requirement will be posted on FBO as a combined synopsis/solicitation.

(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 required supplies or services.

The Coast Guard did not purchase the data as part of the initial system acquisition for the aircraft. Complete specifications and drawings are not available and the cost to procure them is not easily quantifiable. The Coast Guard ALC is responsible for providing logistic support to all Coast Guard aviation assets. The data for these components are proprietary to the OEM. In an effort to increase competition among distributors, 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 that this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for this justification, is accurate and complete.

DORSEY JOHR

Item Manager

(14) Legal Review and Concurrence.

I have reviewed this justification and deemed it legally sufficient.

Attorney

(15) Approval.

DAVID E. TANNER

Supervisory Contracting Officer

PAGE