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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: HSCG38-15-Q-500027

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), Engineering Services (ESD), Elizabeth City, North Carolina proposes to enter into a purchase order on the basis of other than full and open competition.

(2) Nature and/or Description of the action being approved:

The USCG, ALC, ESD 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) of these parts is Airbus Helicopters, France (AHF). 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 $454,152.92.

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 the Airbus Helicopter spare parts utilized on the USCG H-65 aircraft on a firm-fixed price purchase order. The estimated purchase order is $454,152.92.

Table 1 lists the 21 parts that will be purchased as part of this acquisition.

Table 1. List of Parts

Line NSN/LSN Part Number Nomenclature QTY

1 4920-143097422 341A91-3305-00 TAIL R.H. SUPPORT 1

2 5840-143853105 360A93-3208-00 WRENCH,M.G.B./T.R. 16

3 1730-01HS25403 365A91-0040-02 SLING,A/C HOIST 4

4 3940-145628668 365A91-3105-02 HOISTING TOOL 2

5 5315-143715514 365A91-4141-00 PIN,QUICK RELEASE 24

6 5120-01HS16409 365A92-1148-02 PLIER ASSY 3

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

7 1730-143918109 365A92-1152-01 ROTOR BRAKE 4

8 5180-145249466 365A92-1158-01 EXTRACTOR PIN 4

9 5140-144786419 365A92-1159-00 BAG 1

10 1730-143970769 365A92-1160-01 M.R.B. SOCKS ASSY 15

11 1730-145255285 365A92-1175-03 BLADE FOLDING ASSY. 6

12 5120-143853351 365A93-3240-21 WRENCH 1

13 5120-144243788 365A93-3242-02 PULLER,SHURLOC NU 24

14 1730-143691888 365A94-2742-00 SHIM,COMBINATOR 3

15 5180-143853386 365A94-2747-00 SWASHPLATE ADJ TOOL 4

16 1730-143853391 365A94-2751-00 SHIM,COMB,PITCH 3

17 4920-01HS16407 365A94-2752-00 FIXTURE,IMMOBILIZAT 1

18 1730-144492088 366A92-7201-01 BLANK,INTAKE 6

19 4710-143865374 366A95-5500-00 HOSE FUEL SAMPLING 2

21 5120-012346463 366-TL-004-01 ADAPTER,SPANNER WRE 16

21 1730-143708894 703A92-0201-00 CAP,BLANKING,TOTAL 71

(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 provided written notification on June 17, 2015 stating 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.

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.

F2015027707 at www.apfs.dhs.gov.

In accordance with FAR 5.201, the intent to purchase 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 May 22, 2015 through June 24, 2015. FEDLOG1, GSA Advantage, DOD-Emall, and NATO 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:

The USCG did not purchase data rights as part of the initial system acquisition of the MH65 aircraft and therefore; manufacturing, performance, and acceptance data is proprietary to the

OEM.

Procurement history indicates that no other source has manufactured these items with the same or similar characteristics in the past. Any other source would require access to the most current revisions of OEM manufacturing data.

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.

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

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

In addition, the USCG does not possess adequate technical descriptions for release to new sources. Due to the maturity of the MH65 aircraft, the cost to procure data rights, presuming they would be made available, would be cost prohibitive.

(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 AHI 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.

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.

Conrad Mollenkopf Date Technical Representative

(14) Legal Review and Concurrence:

I have reviewed this justification and deem it legally sufficient.

Procurement Law Division (LSC-9E), USCG Date

(15) Approval:

Crystal G. Taber Date Contracting Officer, USCG, ALC, ESD