HSCG38-13-R-010001_J A_(FBO).docx

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-R-010001

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 6.302-1 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.

The United States Coast Guard, ALC, MRS Product Line, Elizabeth City, NC, has a requirement on a limited source basis, to obtain propeller assemblies, propeller blades and miscellaneous consumable hardware in support of the U.S. Coast Guard HC-144A MRS Maritime Patrol Aircraft. ALC seeks justification and approval to award a sole source firm-fixed price indefinite delivery requirements type contract to the Original Equipment Manufacturer (OEM) Hamilton Sundstrand Corporation, Windsor Locks, CT 06096.

This Indefinite Delivery Requirements contract will consist of a two (2) year base period with three (3) one year option periods. The delivery orders will be issued on a firm-fixed price basis.

(3) Description of supplies/services.

This requirement is to procure spare parts (see attached list) to support HC-144A flight operations and missions. This requirement is to support HC-144A aircraft and is based on comparison of the Coast Guard V-Metric forecasting model and AMMIS demand data.

(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.

Hamilton Sundstrand, as the OEM, owns exclusive data rights and specifications. The necessary specifications, manufacturing drawings, data, test equipment and tooling required for the manufacturing of these parts are restricted to Hamilton Sundstrand. To ensure compatibility of replacement parts of maintenance, repair and accessories associated with the HC-144A aircraft, only Hamilton Sundstrand will be able to provide these parts. Using parts other than the OEM would compromise the integrity of propeller components and void any existing warranties. Hamilton Sundstrand is the only known source for these spare components listed in this procurement action.

(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. 201203636 on http://apfs.dhs.gov. A sources sought notice, HSCG38-12-S-010027, was posted on Federal Business Opportunities (FBO) on 21 June 2012. An updated sources sought notice, HSCG38-13-S-010018, was posted on 26 March 2013. See paragraph 10 for sources sought results. 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 price(s) 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 aircraft. Market research was conducted on 26 June 2012 and again on 26 February 2013 by researching 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 propeller assemblies and hardware.

This requirement is limited to authorized sources of the OEM who can effectively demonstrate their ability to provide the components and obtain proprietary data required meeting form, fit and function of the units. 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 HC-144A Maritime Patrol Aircraft is powered by two CT7-9C3 turboprop engines which use the model 14RF-37 propeller assembly. The HC-144A aircraft is manufactured by Airbus Military (formerly EADS CASA) in Seville, Spain. This requirement is for components that are manufactured by Hamilton Sundstrand, Windsor Locks, CT.

The Coast Guard does not own and did not purchase the data rights of the initial system acquisition for the HC-144A aircraft. Therefore, 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 is unable to obtain the data rights and/or drawings (see attached refusal letter from Hamilton Sundstrand). 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.

Two sources sought notices were posted, one on 21 June 2012 and an updated one on 26 March 2013. Two companies responded to the first sources sought notice. They were Aircraft Propeller Service, Inc., which is an authorized repair facility for Hamilton Sundstrand and AMD International Technologies, LLC, which specializes in hydro form, extrusion stretch, skin stretch, and roll forming processes. Neither firm is able to provide the necessary items. There were no responses for the second sources sought notice that was posted. 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.

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.

Item Manager

(14) Legal Review and Concurrence:

I have reviewed this justification and deemed it legally sufficient.

APPROVAL:

Deputy, Chief of Contracting Office

HQ Procuring Activity Competition Advocate

Senior Procuring Activity Competition Advocate