JA_IEDS_FBO.docx

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. HSCG38-15-Q-010110

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 software required to upgrade the Integrated Engine Display System (IEDS). Approval of this firm-fixed price purchase order is requested to procure software on a sole source basis from the aircraft Original Equipment Manufacturer (OEM), Rogerson Kratos Corporation. (34830), 403 S. Raymond Dive, Pasadena, CA 91105. The estimated total price for this requirement is .

(3) Description of supplies/services.

This requirement is to procure a software upgrade for the Integrated Engine Display System (IEDS) display, P/N 160M042, for the HC-144A and HC-144B MRS Maritime Patrol Aircraft. Market research has shown that Rogerson Kratos is the only known source that has access to the source code to make software changes. This software upgrade supports the HC-144A and HC-144B aircraft and is needed to allow in-flight viewing of engine exceedances to allow aircrew to make appropriate safety of flight decisions.

(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 upgrade the IEDS software for this requirement. The USCG did not purchase the software source code as part of the initial system acquisition for the aircraft; as a result, it would not be possible to foster a competitive procurement effort. The cost to procure the source code is not easily quantifiable.

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

Rogerson Kratos, the OEM, owns exclusive data rights as noted in Rogerson Kratos’ 9921-0042 System Specification dated September 13, 2007. Using software other than the OEM’s would compromise the integrity of the aircraft’s airworthiness and would void any existing warranties.

(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 pricing provided for similar software upgrades, where available, and previously negotiated historical data.

(8) Description of market research.

Market research was conducted, to include a review of acquisition history, commercial and government databases (Fed Log, Inventory Locator Service research tools and internet research). No other vendor, other than Rogerson Kratos, the OEM, was found to be able to provide this software upgrade.

Market research shows that Rogerson Kratos owns the proprietary software source code and data rights required for this upgrade.

(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 as part of the initial system acquisition for the HC-144A aircraft.

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

N/A

(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 source code is proprietary to the OEM. At this time, there are no plans to purchase the proprietary rights for the IEDS source code.

(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.

MRS Engineering

(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.

Supervisory Contracting Officer

(14) Reviewers:

Legal Review and Concurrence:

I have reviewed this justification and deemed it legally sufficient.