J A_14-Q-200024.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 Procurement of Various Spare Parts

Solicitation Number: HSCG38-14-Q-200024

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 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) Short Range Recovery (SRR) Division, Elizabeth City, North Carolina 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.

Approval is requested to solicit, on an other than competitive basis, a contract to procure various spare parts. These spare parts will be used on the USCG SRR aircraft. These spare parts are considered commercial in nature and will be procured utilizing the procedures list in FAR Part 12 and 13.5. The estimated cost for this procurement is $537,593.43.

The proposed contractor is:

American Eurocopter Corporation 2701 Forum Drive Grand Prairie, TX 75052-7099

(3) Description of the Supplies/Services

The USCG must maintain an inventory of spare parts (Enclosure 1) for maintenance and repair of the SRR aircraft and associated components. A situation involving a shortage of spare parts would adversely affect the delivery of aircraft undergoing programmed depot level maintenance.

Not only would this delay delivery and escalate depot maintenance costs, but would also impact aircraft readiness rates in the field resulting in a decreased effectiveness of the USCG’s ability to execute missions.

It is anticipated that one (1) Purchase Order may be awarded without discussions. The estimated total is $537,593.43.

The requirement is to provide spare parts in support of the SRR aircraft. This requirement is anticipated to be awarded to American Eurocopter Corporation (AEC). All spare parts on this requirement must have clear traceability to the Original Equipment Manufacturer (OEM), Eurocopter France, and Normalisation Generale EADS (Enclosure 1). Award will be made to AEC or any responsible vendor that can provide traceability to the OEM. Failure to procure these parts may cause aircraft to be grounded.

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

Agency Requirements

(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.”

(5) Demonstration That the Nature of the Acquisition Requires Use of the Authority Cited.

The OEM’s for these parts own exclusive data rights (Enclosure 1). All spare parts on this requirement have been previously procured from AEC, the only known source of supply that can provide OEM traceability for the parts on this requirement (Enclosure 1).

The necessary specifications, manufacturing drawings, data, test equipment and tooling required for the manufacturer of this part must be restricted to the part manufactured by the OEM to ensure compatibility of replacement parts and safe operation of the aircraft. The data and manufacturing rights were not available or procured as part of the initial acquisition of this aircraft. The OEM’s have been requested repeatedly to release drawings and specifications for the purpose of reverse engineering and have been denied. The spare parts procured from this requirement must be compatible with the current inventory of the Coast Guard.

Not having these spare parts will negatively impact flight operations of the SRR aircraft and progress of Programmed Depot Maintenance by increasing the risk of grounded aircraft.

Ensuring the right parts are available is crucial to not only the USCG’s mission readiness, but also the safety of the flight crews. In a fiscal and stockage environment requiring minimal investment in inventory, it is critically important to secure a reliable supplier that can satisfy the contractual requirements needed to react to ever changing mission requirements.

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

This procurement is forecasted in DHS-Acquisition Planning Forecast System (APFS) No.

201400473 at www.apfs.dhs.gov. All spare parts on this requirement have only been procured from AEC.

In accordance with FAR 5.201, the intent to contract for these spare parts will be advertised on FBO as a combined synopsis solicitation under streamlined acquisition procedures for commercial items utilizing FAR Part 12.6 and 13.5. Any eligible vendor may submit a proposal;

all responsible offers will be considered. If any responses are received as a result of this solicitation, the file will be documented accordingly and the requirement competed among all eligible offerors. Award will be based on lowest price technically acceptable.

http://www.apfs.dhs.gov/

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

Agency Requirements

(7) Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

It is the Contracting Officer's opinion that prices ultimately negotiated for this procurement will be fair and reasonable based on a comparison to commercial catalog prices, a comparison to similar items, historical pricing data from previous buys and if necessary, an analysis of other than cost and pricing data.

(8) Description of Market Research.

AEC is the only known OEM approved distributor for these parts used on the SRR aircraft.

Market research completed on October 2013 and November 2013 indicated that the procurement of these parts is commercial in nature. According to AEC website, their parts are approved for use in the commercial industry and have since been approved for use by the USCG and other military components.

The following programs/tools were also used during the market research phase to find other possible sources of supply and/or approved alternate parts for this requirement (Enclosure 1).

FEDLOG

GSA Advantage DOD Emall Inventory Locator Mart (ILS)

NATO

Google

This market research was conducted on November 22, 2013 and no additional information was obtained regarding the parts on this requirement (Enclosure 1).

(9) Any Other Facts Supporting the Use of Other Than Full and Open Competition.

The USCG did not purchase data rights as part of the initial system acquisition of the SRR aircraft. Therefore, it would be difficult to take steps to foster competition as the manufacturing, performance, and acceptance data are proprietary to the OEM.

The USCG does not possess adequate technical descriptions to provide to potential new sources.

Due to the maturity of the SRR aircraft, the cost to procure data rights, presuming they would be made available, would be cost prohibitive.

At this time the OEM’s are not willing to release or sell at a cost effective price the data rights for the parts on this requirement (Enclosure 1) to other possible manufactures or the USCG.

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

Agency Requirements

(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 will be posted via the FBO website upon approval of this J&A. If any responses are received as a result of the synopsis/solicitation, 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 rights to these components were not purchased with the aircraft. The USCG does not have access to the specifications and drawings to provide to potential new sources. As the Aircraft Inventory Control Point (AIC), ALC is tasked with supporting systems that have been deployed in the aviation community. Ensuring that precise parts are available is crucial to the USCG's mission and for the safety of the flight crews. Only parts that have traceability to the OEM can satisfy this procurement.

As a result of the above, it has been difficult to foster a competitive procurement effort. In an effort to increase competition among affiliated and distributors, extensive data base researches are conducted (i.e. FEDLOG research, ILS, Haystack).

If any other vendor becomes either an OEM approved manufacture or distributors in the future the USCG will evaluate that information before proceeding with an award. In addition, ALC posts all solicitations for SRR spare parts with an estimated value greater than $25,000 on the FBO website.

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

Agency Requirements

(12) Contracting Officer’s Certification I certify that the data supporting the recommended use of other than full and open competition accurate and complete to the best of my knowledge and belief.

____________________________________ _11/25/13___________________ Tabitha L. Callon Date Contracting Officer

(13) Technical / Requirements Personnel Certification I certify this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for this justification, is accurate and complete.

____________________________________ _11/22/13___________________ Robert Bass Date Technical Representative

(14) Legal Review and Concurrence:

I have reviewed this justification and deem it legally sufficient.

____________________________________ _11/26/2013__________________ CGLSC-9E Date

(15) Approval:

____________________________________ _11/26/13____________________ Tabitha L. Callon Date Contracting Officer

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

Agency Requirements

Enclosure 1

HSCG38‐14‐Q‐200024 REQUIREMENTS

ITEM DESCRIPTION PART NUMBER NSN QTY UNIT

OEM

CAGE

CODE

RDD

1 RIGID PIPE ASSY 366A55-0020-13

4710-14-383-

6604 8 EA F0210 4/15/2014

2 LEFT GUSSET 365A58-1102-24

1560-01-HS2-

0791 14 EA F0210 6/15/2014

3 FITTING 365A21-3105-00

1560-14-380-

2818 7 EA F0210 5/15/2014

4 SUPPORT, BRAKE 366A32-1106-23

1630-14-383-

5894 12 EA F0210 1/1/2014

5 O'RING 2,46X19,18-23B7

5330-14-465-

6316 550 EA F5442 1/1/2014

6 LEVER 366A32-1109-00

1680-14-479-

6171 9 EA F0210 1/1/2014

7 PIN 365A81-0177-20

5315-14-389-

5358 30 EA F0210 2/14/2014

8 SUPPORT, FWD LH 365A24-1012-14

5340-14-380-

2861 25 EA F0210 2/14/2014

9 SUPPORT, REAR 365A24-1187-20

1560-14-388-

8912 20 EA F0210 2/14/2014

10 JOINT 365A81-1934-20

5330-01-HS1-

7434 10 EA F0210 5/30/2014

11 RH HINGE 365A81-0173-0001

1560-01-HS1-

9917 5 EA F0210 5/30/2014

12 PLATE, STRUCT, A/C 365A21-3230-21

1560-14-488-

1647 5 EA F0210 2/2/2014

13 HINGE, FWD, R/H 365A24-1176-01

1560-14-386-

1457 10 EA F0210 2/2/2014

14 BEAM, LONG REAR RH 366A21-1124-0915

1560-14-488-

1628 21 EA F0210 11/20/2015

15 BELLOWS PLATE 365A27-3230-21

5365-14-387-

9449 20 EA F0210 2/2/2014

16 DOOR, HALF, LWR 366A21-1153-6101

1560-14-389-

1088 5 EA F0210 3/25/2014

17 SHIM 365A81-1159-20

5365-14-464-

9847 70 EA F0210 4/15/2014

18 LH HINGE 365A81-0173-0101

5340-14-464-

9845 5 EA F0210 6/30/2014

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