JA__HSCG38-14-Q-300136.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 SFAR 88 Kits

Solicitation Number: HSCG38-14-Q-300136

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by 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 Department of Homeland Security, United States Coast Guard (USCG), Aviation Logistics Center (ALC), Long Range Surveillance (LRS) procurement branch intends to award the purchase of twenty-four (24) Special Federal Aviation Rule 88 fuel system safety retrofit kits (herein referred to as SFAR 88 kit) on a basis other than full and open competition.

(2) Nature and/or description of the action being approved.

The USCG plans to solicit, negotiate, and award on a sole source basis, a firm fixed price Indefinite Delivery Indefinite-quantity (IDIQ) contract for the procurement of twenty-four (24) SFAR 88 kits. The period of performance is from the date of award until the date of the final delivery, not to exceed four years. This requirement will be solicited utilizing Federal Acquisition Regulation (FAR) 13.5 Test Program for Certain Commercial Items. The Original Equipment Manufacturer (OEM) is Lockheed Martin and is the licensor of the trade secrets and technical data of the SFAR 88 kit. Blue Aerospace LLC is the licensee of the SFAR88 kit (Enclosure1). As the only authorized source, the USCG intends to award to:

Blue Aerospace LLC 6501-B Nob Hill Road, Tamarac, FL 33321

(3) Description of Supplies/Services.

USCG has a requirement on a sole source basis to purchase twenty-four (24) HC-130H SFAR 88 fuel system safety retrofit kits (part number 3359620) utilizing Service Bulletin 82-2772. The contractor will be required to travel to the designated locations listed below to measure the aircraft for configurations for installment of the SFAR 88 fuel system safety retrofit kits.

Travel Locations

• ALC, LRS at DRS-C3A Heavy Maintenance Facility 1060 Consolidated Rd. Elizabeth City, NC 27909

• Air Station Clearwater, FL 15100 Rescue way, Clearwater, FL 33762-1437

• Air Station Kodiak, AK, P.O Box 190033, Kodiak, AK 99619-0033

• Air Station Sacramento, CA, 6037 Price Ave, McClellan AFB, CA 95652-1260

• Air Station Barbers Point, HI, 1 Coral Sea Rd, Kapolei, HI 96707-3693

Once the configurations are complete the contractor will be required to provide the following:

• Dimensional illustrated engineering drawings showing the installation and location of all of the equipment to be installed. All illustrations and engineering drawings shall be included with each kit along with a CD of the drawing;

• Complete maintenance instructions for installation of the kit written in English and technical support required during installation. This includes assisting in the development, technical review and compliance with associated Maintenance Procedure Cards (MPC), Time Compliance Technical Orders (TCTO) as well as incorporation of OEM technical directives into the USCG’s maintenance management information technology systems;

• All aviation certified hardware and parts required to complete the kit;

• Each kit shall have a minimum of 14 Ground Fault Interrupters (P/N 698255-1)

The term of the contract is from the date of award until the date of the final delivery, not to exceed four (4) years. The guaranteed minimum of five (5) kits at contract award is estimated at $625K. The maximum is twenty-four (24) kits over a four year period estimated at $3,278,181.

The lead time is sixty (60) days after receipt of delivery order.

(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) 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 Trans World Airlines (TWA) flight 800 exploded and crashed off Long Island N.Y. on July 17, 1996 killing all 230 people on board. The conclusion of the investigation showed the probable cause of the accident was an explosion of flammable fuel/air vapors in a fuel tank. As a result of the investigation, new requirements were developed for aircraft to prevent future fuel tank explosions. The new requirements include the Special Federal Aviation Regulation (SFAR) 88 and AD 2011-15-02 as well as Lockheed Martin’s five Service Bulletins (82-770, 82-772, 82- 773, 82-774, and 82-795) which should prevent the potential for ignition sources inside fuel tanks that could result in a fuel tank explosion and consequential loss of the aircraft. The SFAR 88 fuel system safety retrofit kits, base part number 3359620 are required to be installed on the aircraft in order to be compliant with Lockheed service bulletin 82-772. The United States Coast Guard (USCG) does not have explosion resistant foam in the integral fuel tanks of the HC-130H;

this necessitates the need for the kit to maintain a level of safety in compliance with the Federal Aviation Administration (FAA) and Lockheed Martin requirements.

The OEM is Lockheed Martin and is the Licensor of the SFAR 88 kit. The only approved company to manufacture the H-C130H SFAR 88 kit is Blue Aerospace. Blue Aerospace has been designated as the only licensee of the SFAR 88 kit via Lockheed Martin. Lockheed Martin has granted a non-exclusive license to Blue Aerospace to access and disseminate the production;

refurbishing, supporting and repairing of the SFAR 88 kit (Enclosure 1). A sources sought was posted to the Federal Business Opportunities web site on 11 March 2014 and Blue Aerospace was the only response received (Enclosure 2).

This kit has been tested and approved by the FAA and Lockheed as well as the US Navy for functionality and safety to make the HC-130H SFAR 88 and Lockheed Martin Service Bulletin 82-772 compliant. At this point in time, the USCG, ALC does not have the capabilities nor the knowledge to configure, install, and produce the SFAR88 kit. Due to safety requirements it is imperative to ensure the HC-130H has the SFAR 88 kit.

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

A sources sought was posted to the Federal Business Opportunities web site on 11 March 2014 under number HSCG38-14-I-H00003. The OEM, Lockheed Martin was contacted in April 2014 to find distributors of the SFAR 88 Kit. Lockheed Martin has only issued a license to Blue Aerospace as identified in the Enclosure 1 and Enclosure 3. Once the J&A is approved a solicitation will be posted to the Federal Business Opportunities website. As stated previously, Blue Aerospace is the only known distributor of the SFAR 88 kits, however in the event that an eligible offeror submits a proposal it will be considered by the USCG and the file will be documented. The requirement will then be reviewed considering all sources.

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

The Contracting Officer determines that the anticipated price will be fair and reasonable based upon previous historical prices paid including those by the US Navy and 32 other HC-130 customers from Blue Aerospace and a comparison to the Independent Government Cost Estimate.

(8) Description of market research.

As stated above, a sources sought was posted to the Federal Business Opportunities web site on 11 March 2014 under number HSCG38-14-I-H00003 and Blue Aerospace was the only response received. The sources sought requested prior/current experience assembling the kit, and Blue Aerospace stated “the one direct sale to the US Government was to the US Navy for six (6) HC- 130H aircraft undergoing heavy maintenance prior to provision to the Japan Maritime Self Defense Force (JMSDF). The referenced contract provided the exact same Kit to the US Navy on behalf of the JMSDF that the USCG would be receiving” (Enclosure 2). Internet searches were conducted via www.google.com, and the only source identified for the HC-130H was Blue Aerospace. The US Navy was also contacted to identify other potential sources and the US Navy identified Blue Aerospace as their source. The Lockheed Service bulletin 82-772 identifies Blue Aerospace as the sole provider of the SFAR 88 kit (Enclosure 3 page 3 paragraph f).

Lockheed Martin Resident Service Manager, David Hicks provided an email identifying Blue Aerospace as the only licensed supplier of the SFAR 88 kit (Enclosure 3).

http://www.google.com/

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

The SFAR 88 kit was developed by Lockheed Martin based on the mishap accident of TWA flight 800. Lockheed Martin produced Service Bulletin 82-772 which requires that the HC-130H be compliant with the service bulletin. Lockheed Martin has an agreement with Blue Aerospace to configure, install, and produce the SFAR88 kit, therefore Blue Aerospace is the only H- C130H approved source.

The US Navy has installed this kit and has done the required testing for flight and airworthiness.

Furthermore this kit has an Airworthiness certification from the FAA as well as OEM Data Rights to provide the kit. This SFAR 88 kit was designed and engineered specifically for the HC- 130 and sold by only Blue Aerospace to 32 C-130 operators as well as the US Navy. Any other instance of where the parts of the kit could be procured separately would be at additional cost and time to the USCG due to the engineering and testing required to be accomplished with an unproven source.

Acquiring the SFAR 88 kit allows the USCG to be compliant with Service Bulletin 82-772.

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

The only response received was from Blue Aerospace.

(11) A statement of actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for required supplies or services.

This is a one-time requirement that modifies the HC-130H aircraft. This requirement is for the HC-130H and will not be needed for future HC-130J model aircraft due to these aircraft meeting the SFAR 88 requirements from the factory. No subsequent acquisitions will be required.