J A_14-Q-200168.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 H65 Spares Solicitation Number: HSCG38-14-Q-200168

Pursuant to the requirements of the Competition in Contracting Act as implemented by Federal Acquisition Regulation (FAR) 6.3 and in accordance with the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR 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:

The USCG, ALC, SRR Division seeks approval to award a purchase order based on other than full and open competition for the procurement of various spare parts as identified in paragraph three. The Original Equipment Manufacturer (OEM)’s of these parts is Airbus Helicopters France and Leibherr Aerospace Toulouse SAS France. The only known source approved by the OEM to sell their products in North America is Airbus Helicopters, Inc. (AHI).

It is anticipated that a firm-fixed price Purchase Order will be awarded. The estimated Purchase Order value is $____________.

The proposed contractor is:

AHI

2701 Forum Drive Grand Prairie, TX 75052 Cage Code: 3GSZ1

(3) Description of Supplies/Services:

This requirement is to purchase spare parts utilized on the USCG H-65 aircraft on a firm-fixed price purchase order. The estimated purchase order is $__________. Table 1 lists the 18 parts that will be purchased as part of this acquisition.

Table 1. List of Parts

Nomenclature National Stock Number (NSN)

Part Number Quantity Independent Government

Cost Estimate

RADOME 5841-01-HS1-7318 365A61-1675-01 17 $350,690.80

HOSE ASSY, NONMETALL 4720-14-448-7673 789-0021 25 $52,397.30

SPACER 5365-14-410-3025 332A72-0000-65 10 $989.40

PANEL, FRONT, MOBILE 1560-14-390-1661 366A87-1001-5301 10 $2,013.32

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

LINK UPPER 1560-14-394-3985 366A25-1074-01 25 $11,399.70

PIPE ASSY 4710-14-389-4473 365A52-1242-01 100 $738.00

FITTINF, REAR 1560-01-HS2-2342 365A24-1174-01 10 $3,819.75

BAR, LOWER 1560-14-371-5585 366A55-1053-02 12 $800.00

DETECTOR, CHIP 5999-01-HS1-5228 1B7807 6 $144,165.50

BAR ASSY FRONT 1560-14-371-5378 366A55-1051-01 10 $2,450.00

SADDLE 5340-14-395-6430 366A25-1290-20 20 $3,500.00

PLUG 5340-14-373-7073 341A66-1165-23 20 $2,000.00

END-PIECE CAP 4730-14-388-5937 365A75-2035-23 10 $2,481.60

BOLT, CLOSE TOLERANC 5306-14-484-1478 365A23-4110-20 20 $5,616.00

ROD, CONTROL 3040-14-390-1363 366A25-1179-01 30 $11,130.20

BRACKET, STRUCTURAL 1560-14-391-7651 366A55-1008-00 10 $14,875.44

RAIL, LOWER FRONT RH 5340-14-393-2134 365A87-3018-64 10 $755.30

SEAL, NONMET, SPEC SH 5330-14-402-3282 365A21-3296-31 25 $2,199.60

RADOME 5841-01-HS1-7318 365A61-1675-01 15 $350,690.80

(4) Identification of the Justification and the Rationale:

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c) (1) as implemented by FAR 6.302-1 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:

AHI Senior Director of Contracts Administration and Legal Services provided written notification on June 10, 2014 that AHI is the only source authorized by the H-65 aircraft OEM, Airbus Helicopters to sell their products in North America. They also advised that they could not be held liable, provide part certifications or provide a warranty for Airbus Helicopter parts purchased from brokers or other vendors. Additionally, Airbus Helicopters advised that they will not release drawings or data rights to anyone for the purpose of reverse engineering and will not copy the drawings for someone to duplicate their designs to re-manufacture under different part numbers (Attachment 1).

In order to maintain structural integrity of the aircraft and ensure complete compatibility of replacement parts the spare parts listed in this requirement must be obtained from the OEM or an OEM approved source. Use of OEM parts will ensure the parts are manufactured in accordance with OEM specifications and standards, conform to original form, fit, and function, and are compatible and interchangeable with existing components. For these reasons, it is in the USCG’s best interest and in the interest of the safety of our flight crews to procure only the Airbus Helicopter authorized parts.

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

(6) A Description of the 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.

F2014022895 at www.apfs.dhs.gov.

In accordance with FAR 5.201, the intent to contract for these spare parts will be advertised on the Federal Business Opportunities (FBO) website as a combined synopsis solicitation under streamlined acquisition procedures for commercial items utilizing FAR Part 12.6 and 13.5. Any responsible 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.

(7) Determination by the Contracting Officer that the Anticipated Cost will be Fair and

Reasonable:

The Contracting Officer has determined that the price for this procurement will be fair and reasonable based on price analysis, comparison with similar items and current published catalog prices.

(8) Description of the Market Research:

AHI is the OEM’s only United States approved distributor for the spare parts being procured.

Market research was completed between June 2014 and July 2014. FEDLOG1, GSA Advantage, DOD-Emall, NATO, HAI 20142, and other Internet sites (ThomasNet.com, Google search engine) were searched and no additional information was obtained regarding these parts.

Inventory Locator Mart (ILS), a website used to locate difficult to find parts, was also used to see if other distributors had the parts available. No inventory was found to be available at the time of the search, which further supports AHI’s claim that no other distributors are able to provide these parts.

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

None

1 The Federal Logistics (FEDLOG) is a federally supported program which lists all manufacturers/suppliers by cage code and is updated monthly. This program provides a valuable tool for supplier information and is utilized by requirements personnel to determine if alternate sources of supply exist. Information is accessed by National Stock Number, Nomenclature, item name, supplier name and cage code.

2 A helicopter trade show attended by ALC personnel in February 2014.

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

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

(10) A Listing of Sources, if any that expressed, in writing, an Interest in the Acquisition:

A combined synopsis/solicitation will be submitted to FBO upon approval of this document. To date, there have been no inquiries regarding this requirement. Any responsible offer received from an Airbus Helicopter approved source will be considered.

(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:

As stated in paragraph five (5) the OEM has refused to sell the data rights to any of their parts which has limited the USCG’s ability to provide adequate technical descriptions to potential new sources. Therefore, it is difficult to take steps to foster competition as the manufacturing, performance, and acceptance data are proprietary to the OEM. The USCG will continue market research efforts for future procurements.

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.

____________________________________ _7/24/14___________________ Crystal G. Taber 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 complete and accurate.

____________________________________ _7/24/14___________________ John A. Carignan Date SRR Supply Cell Leader

(14) Legal Review and Concurrence:

I have reviewed this justification and deem it legally sufficient.

____________________________________ _8/4/2014__________________ MLCLANT, CG-LSC-9 Legal Office Date

(15) Approval:

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.

____________________________________ 8/29/14_________________ Crystal G. Taber Date Contracting Officer