Tab_9_J A_13-R-010018.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. HSCG38-13-R-010018

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by Federal Acquisition Regulation (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 United States Coast Guard (USCG), 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.

This justification seeks approval for this acquisition, on a sole source basis, to obtain spare parts identified in Attachment I for the Coast Guard HC-144A aircraft. The solicitation HSCG38-13-R- 010018 will be posted on Federal Business Opportunities (FBO) website. It is anticipated that only one award will be made as result of the combined synopsis/solicitation. The Coast Guard intends to negotiate with the Original Equipment Manufacturer (OEM), EADS CASA North America Inc.

(0DAF1), 1616 North Ft. Myer Drive, Suite 1600 Arlington, VA 22209-3110 or any responsible vendor that can provide traceability to the OEM for the requested parts.

(3) Description of supplies/services.

As the Aviation Inventory Control Point (AICP), ALC must provide effective supply support for all Coast Guard aviation units and the Programmed Depot Maintenance (PDM) program. This support includes providing spare parts identified in Attachment I. These parts have been identified as required spares by using the Coast Guard V-Metric forecasting model and Asset Maintenance Management Information System (AMMIS) demand data and are based on ALC/MRS Engineering recommendations to support the HC-144A aircraft. The estimated cost for this requirement is $492,000.01.

(4) Identification of 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 FAR 6.302-1 entitled “Only one responsible source and no other supplies or services will satisfy agency requirements”.

Only One Responsible Source and No Other Supplies or Services will Satisfy

(5) Demonstration that the nature of the acquisition requires use of the authority cited.

EADS CASA NA is the OEM of the spare parts identified in Attachment I, and owns exclusive data and manufacturing rights. Data rights to the necessary technical manuals, publications or specifications are proprietary to the OEM. Using parts other than the OEM would compromise the integrity of the aircraft’s airworthiness and would make void any existing warranties. EADS CASA NA responded to the Coast Guard’s request to purchase data rights in a letter dated August 30, 2012. The letter stated, “EADS CASA NA will not release their drawings or data rights to anyone for the purpose of reverse engineering and will not copy the drawings for someone to duplicate the design to remanufacture under different part numbers”. EADS CASA NA also included, “EADS CASA NA cannot be held liable, provide part certification, or warranty for parts purchased from brokers or other vendors”. See Attachment II.

(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, a combined synopsis/solicitation for this requirement will be posted on the FBO website for any potential offerors. If any responses are received from responsible sources as a result of this combined synopsis/solicitation, the file will be documented accordingly and the requirement will be competed among all eligible offerors. The procurement forecast is posted on the Acquisition Planning Forecast System (APFS), AAP No. 201301055.

(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 price for this procurement will be determined fair and reasonable, prior to contract award, based procurement history, commercial catalog prices published by the OEM, comparison to similar items, and comparison of proposals submitted by interested offerors, if applicable.

8) Description of market research.

Market research was conducted by searching Fed Log and Inventory Locator System (ILS) from December 26, 2012 to January 3, 2013, which provided no results. Internet searches were also conducted from December 27, 2012 to January 3, 2013 for market research with no results. In an effort to foster competition, previous Solicitation HSCG38-13-R-010003 (included HC-144A spare parts), was posted on FBO on November 9, 2012. One proposal was received from EADS CASA NA, which was able to provide the parts. Market research indicates that EADS CASA NA owns the

Only One Responsible Source and No Other Supplies or Services will Satisfy rights to the proprietary manuals, drawings and specifications required for this procurement. Any other feasible source would have to provide the necessary certification including traceability to the OEM to ensure components are in condition suitable for HC-144A aircraft.

(9) Any other facts supporting the use of other than full and open competition, i.e., proprietary data packages, etc.

The Coast Guard did not purchase the data rights and does not anticipate purchasing the data rights.

As a result, it would not be possible 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.

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

In accordance with FAR 5.201, the intent to contract for these items, along with the approved Justification for Other Than Full and Open Competition will be posted on the FBO website. If responses to the combined synopsis/solicitation indicate additional sources are available, 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.

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 not be possible to foster a competitive procurement effort. Complete specifications and drawings are not available and the cost to procure them is not easily quantifiable.

ALC is tasked with supporting systems that have been deployed for use in the aviation community.

The technical data for these items is proprietary to the OEM and therefore future competition for this effort is not known. In an effort to increase competition, HC-144A Product Line members conduct extensive Internet data research and procurements are advertised on the FBO website. In accordance with CG ALCINST 4200.3, ALC has a program called Spare Parts Breakout/New Product Development. The purpose of this program is to identify alternate sources of supply for parts, develop the widest possible range of competition, and to work with small business representatives to ensure that small businesses are given every opportunity to compete.

Only One Responsible Source and No Other Supplies or Services will Satisfy

(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.

DAVID 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.

DAVID ALLEN Date Inventory Manager

(14) Reviewer:

Reviewed and determined to be legally sufficient.

Attorney Date

APPROVAL:

DAVID TANNER Date Supervisory Contracting Officer