J A.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. HSCG38-14-Q-010089

Pursuant to the requirements of the Competition in Contracting Act 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 supported by the following facts and rationale required under FAR 6.302-1.

(1) Agency and Contracting Activity.

The Department of Homeland Security, United States Coast Guard (USCG), Aviation Logistics Center (ALC), Medium Range Surveillance (MRS) Product Line, 1664 Weeksville Road, 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 USCG, ALC, MRS Division seeks approval to award a purchase order based on other than full and open competition to acquire engine shop tools and equipment required to support the HC-144A MRS Maritime Patrol Aircraft fleet. Approval of this firm-fixed price purchase order is requested to procure these engine shop tools and equipment on a sole source basis from the engine Original Equipment Manufacturer (OEM), General Electric (GE) authorized tooling provider, Rhinestahl Corp. (5QE71), 7687 Innovation Way, Mason, OH 45040-9695. The estimated cost for this requirement is $287,864.00.

(3) Description of supplies/services

ALC is seeking approval to procure engine shop tools and equipment for the HC-144A MRS Marine Patrol Aircraft identified in Attachment I. This requirement is based on ALC/MRS/Engineering recommendation to support maintenance requirements for ALC engine shop. Market research has shown that Rhinestahl Corp. (the OEM authorized tooling provider) is the only responsible source with the proprietary data, drawings, manuals, and engineering expertise to provide these engine tools and equipment.

(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.

Government data rights are not available for the purposes of soliciting vendors to manufacture, test, and certify the tools included in this requirement. The USCG did not purchase the data as part of the initial system acquisition for the aircraft; as a result, it would not be possible to foster a competitive procurement effort. In reference to FAR 6.302-1(b)(2), Rhinestahl Corp. is the OEM authorized tooling provider with the necessary specifications, manufacturing drawings and data required for these engine shop tools and equipment. Using tools and equipment manufactured by other than OEM authorized tooling provider would compromise the integrity of the engine and subsequently the aircraft’s airworthiness.

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

(6) A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

This procurement forecast has been posted on Acquisition Planning Forecast System (APFS) No.

2014020570 at www.apfs.dhs.gov. Additionally, a sources sought notice was posted on the Federal Business Opportunities (FBO) website requesting interested vendors to notify the Coast Guard of their interest. The sources sought notice HSCG38-14-S-010012 was posted on April 16, 2014. Two responses were received.

In accordance with FAR 5.203(a)(2) and FAR 12.603 the proposed contract action will be advertised on the FBO website as a combined synopsis and solicitation. 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.

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

The Contracting Officer anticipates that prices offered will be determined fair and reasonable based on comparisons to commercial price lists published by the OEM, price comparison to similar items and comparison of quotes submitted by interested offerors, if applicable.

(8) Description of market research.

Market research was conducted from December 19, 2013 through April 25, 2014. Market research included a review of acquisition history, commercial and government databases (Fed Log, Inventory Locator Service research tools and internet research). In addition, sources sought notice HSCG38-14-S-010012 was posted on April 16, 2014. Two responses were received. One response was received from EADS CASA on April 16, 2014, stating that EADS would have to use the same GE authorized tooling provider, Rhinestahl Corp., for this requirement, therefore EADS will no quote on the solicitation. The other response was received from PCX Inc. on April 18, 2014, indication interest in this acquisition. PCX Inc. will use Rhinestahl Corp. as the only OEM authorized tooling provider as a distributor for this tools and equipment.

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

The USCG does not own the data rights associated with manufacturing these tools and equipment included in this acquisition. Therefore, it would not be possible to take steps to foster competition as the manufacturing performance and acceptance data are proprietary and the USCG 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.

As stated in paragraph 6, only two responses were received as result of the sources sought notice. In accordance with FAR 5.201, the intent to contract for these tools, along with the approved justification for other than full and open competition will be posted on the FBO website. If responses to the combined http://www.apfs.dhs.gov/

Only One Responsible Source and No Other Supplies or Services will Satisfy 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 data for these tools and equipment is proprietary to the OEM’s authorized provider, Rhinestahl Corp.

However, in an effort to seek competition, the MRS Division members conduct extensive internet database research. In addition, ALC issued an instruction, Coast Guard Aviation Logistic Center Instruction 4200.3, titled “Spare Parts Breakout/New Product Development” in order to increase our vendor list of known repair/supply sources. 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.

Signature on File ________________ 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.

MICHAEL SAWYER Date Inventory Manager

(14) Legal review:

Reviewed and determined to be legally sufficient.

Signature on File _________________ Attorney Date

Approval:

DAVID TANNER Date Supervisory Contracting Officer