Tab_4_J A_Spare_Parts.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-010139

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 contract based on other than full and open competition to acquire spare parts required to support the HC-144A MRS Maritime Patrol Aircraft fleet. Approval of this firm-fixed price purchase order is requested to procure spare parts on a sole source basis from the aircraft Original Equipment Manufacturer (OEM), EADS CASA North America, Inc. (0DAF1), 1616 North Ft. Meyer drive, Suite 1600 Arlington, VA 22209- 3110. The estimated total price for this requirement is $293,187.00.

(3) Description of supplies/services.

This requirement is to procure spare parts for the HC-144A MRS Marine Patrol Aircraft. Market research has shown that EADS CASA is the only known source for these spare parts. These spare parts support the HC-144A aircraft and their need is based on comparison of the USCG V-metric forecasting model and Asset Maintenance Management Information System (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 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 purpose of soliciting vendors to manufacture and certify airworthy aircraft spare parts for 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. Complete drawings and data rights are not available and the cost to procure them is not easily quantifiable. In reference to FAR 6.302-1(b)(2), EADS CASA, the OEM, owns exclusive data rights and proprietary drawings, as noted in EADS CASA letter dated November 19, 2013. 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 is posted as DHS – Acquisition Planning Forecast System (APFS) No.

2014022788 at http://apfs.dhs.gov. 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. Any responsible offers will be considered.

(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, where available, and previously negotiated historical data.

(8) Description of market research.

Market research was conducted from July 11, 2014 through July 23, 2014. Market research included a review of acquisition history, commercial and government databases (Fed Log, Inventory Locator Service research tools and internet research). No other vendor, other than EADS CASA, the OEM, was found to be able to provide the required spare parts.

Market research shows that EADS CASA owns the rights to the proprietary drawings and data rights required for this procurement. Any other source would have to provide the necessary certification including traceability to the OEM to ensure these spare parts are suitable for HC- 144A aircraft.

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

The USCG does not own and did not purchase the data rights of the initial system acquisition for the HC-144A aircraft. EADS CASA does not sell or provide proprietary drawings or data rights to any other entity for the purpose of reverse engineering or to duplicate the design to remanufacture parts under different part numbers. 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 USCG does not have adequate technical data to provide to potential offerors at this time.

EADS CASA offers a 12 month component warranty from the delivery date to the USCG.

http://apfs.dhs.gov/

(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 spare parts, 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 data for these spare parts is proprietary to the OEM. However, in an effort to seek competition, the MRS Division conducts 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.

(12) 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.

Mark Wice Date Supply Branch Chief

(13) 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 E. Tanner Date Supervisory Contracting Officer

(14) Reviewers:

Legal Review and Concurrence

I have reviewed this justification and deemed it legally sufficient.

Attorney Date

APPROVAL:

David E. Tanner Date Supervisory Contracting Officer