Tanks_J A-Redacted_Redacted.pdf

Justification for Other Than Full and Open Competition Under 10 U.S.C. 2304 (c)(1)

Only One Responsible Source (Limited Source) and No Other Supplies Will Satisfy Agency

Requirements

120 Gallon and 80 Gallon External Fuel Tanks Procurement

Solicitation No: HSCG38-15-R-J00006

Pursuant to the requirements of the Competition in Contracting Act (CICA), as implemented by the

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 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 (DHS), United States Coast Guard (USCG), Aviation Logistics

Center (ALC), Medium Range Recovery (MRR) Procurement Branch, proposes to enter into a contract on a basis other than full and open competition.

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

The MRR Procurement Branch requests approval to award, on a limited sources basis, an Indefinite

Delivery Requirements type contract for MH-60T 120 Gallon and 80 Gallon External Fuel Tanks hereafter referred to as Tank(s). Firm Fixed Price (FFP) delivery orders will be issued off the base contract as Tanks are required. The two (2) Original Equipment Manufacturers (OEM) of the Tanks are

Sikorsky Aircraft Corporation (SAC) and Robertson Fuel Systems (Robertson). Although there are some differences in the performance characteristics of the SAC and the Robertson Tanks, both types of Tanks meet the needs of the USCG and are interchangeable throughout the MH-60T fleet. All specifications, manufacturing drawings, data, test equipment, and tooling required to manufacture the Tanks are proprietary to SAC and Robertson. Award of this requirement will provide inventory replacements for

Tanks determined Beyond Economical Repair (BER) and subsequently scrapped.

Responsible sources are limited to Naval Supply Weapons Systems Support (NAVSUP WSS) or USCG

Aviation Engineering approved sources. SAC and Robertson are the only known NAVSUP WSS and

USCG Aviation Engineering certified sources for the 120 Gallon Tanks and are the only known USCG

Aviation Engineering approved sources for the 80 Gallon Tanks. Stakeholders include the MRR Product

Line and supported USCG Air Stations. The basis of award will be Lowest Price Technically Acceptable

(LPTA) using the procedures established in FAR Part 15, Contracting by Negotiation. The estimated contract value is which includes a one (1) year base ordering period with four (4) one (1) year optional ordering periods. Twenty-five (25) Tanks were previously purchased under non-commercial

FFP contract HSCG38-14-C-J00002 from Robertson, a large business. This contract was solicited on a limited sources basis.

(3) Description of Supplies/Services.

The USCG currently operates a fleet of forty-four (44) MH-60T rotary wing aircraft manufactured by

SAC. This specialized, high demand, aircraft currently enables the USCG to perform missions such as search and rescue, law enforcement, international ice patrol, marine environmental protection, and marine resource conservation. With such a demanding operational tempo, aircraft condition and availability are essential to mission success. The majority of the external fuel Tanks currently in use on the MH-60T are the Tanks originally provisioned with the acquisition of the HH-60J in 1989 and have reached their life limits. Since then, a minimal quantity has been purchased to support the USCG’s fleet of MH-60Ts. Due to excessive corrosion, the Tanks are being scrapped at a significant rate, thus depleting available replacement inventory at ALC. When properly outfitted, there are two (2) 120 Gallon Tanks and one (1)

80 Gallon Tank per aircraft.

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SAC and Robertson each manufacture the Tanks. Although there are some differences in the performance characteristics of the SAC and the Robertson Tanks, both types of Tanks meet the needs of the USCG and are interchangeable throughout the MH-60T fleet. The Tanks are defined as a flight critical safety item (CSI). A CSI is a part, assembly, installation, or production system with one or more critical characteristics that, if not conforming to the design data, or quality requirements, would result in an unsafe condition. Unsafe conditions relate to mishap severity I (Catastrophic) and II (Critical), and include conditions which could cause loss or serious damage to the end item or major component, loss of control, serious injury to personnel, or death of personnel. In order to successfully maintain airworthiness of the aircraft and aircraft systems, protect personnel safety, and perform the USCG’s mission, the acquisition of CSI items is restricted to approved sources. Delivery will be requested nine (9) months

After Receipt of Order (ARO) at a maximum rate of five (5) Tanks in any combination per month.

Nomenclature Ordering Period Estimated Contract

Value

120 Gallon Tanks

SAC NSN: 1560-01-HS1-0104

SAC P/N: 70307-82000-055

Or

Robertson NSN: 2915-01-HS2-8232

Robertson P/N: HM043-010-31

Total Estimated Quantity 78

80 Gallon Tanks

SAC NSN: 1560-01-HS1-0570

SAC P/N: 70307-82220-042

Or

Robertson NSN: 2915-01-HS2-8231

Robertson P/N: HM043-0610-11

Total Estimated Quantity 38

Base Ordering Period:

September 1, 2015 – August 31, 2016

Optional Ordering Period 1:

September 1, 2016 – August 31, 2017

Optional Ordering Period 2:

September 1, 2017 – August 31, 2018

Optional Ordering Period 3:

September 1, 2018 – August 31, 2019

Optional Ordering Period 4:

September 1, 2019 – August 31, 2020

Total Estimated Contract Value

Note* Rounded to nearest 100K

(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 entitled “Only One Responsible Source and No Other Services will Satisfy

Agency Requirements.” This is further expounded in FAR 6.302-1(b)(1)(ii) to include a limited number of sources. Responsible sources are limited to NAVSUP WSS and USCG Aviation Engineering approved sources. SAC and Robertson are the only known NAVSUP WSS and USCG Aviation

Engineering approved sources for the 120 Gallon Tanks and are the only known USCG Aviation

Engineering approved sources for the 80 Gallon Tanks. There were no other supply sources or alternate part numbers (commercial or non-developmental) available to meet the Government’s requirements.

(5) Demonstration that the nature of the acquisition requires use of the authority cited.

The CSI Tanks are manufactured by SAC and Robertson and all specifications, manufacturing drawings, data, test equipment, and tooling required to manufacture the Tanks is proprietary to SAC and Robertson.

USCG did not purchase rights to the proprietary technology required to foster a competitive environment as part of any original provisioning for use on the MH-60T rotary wing aircraft and the cost to purchase rights to this proprietary technology would be cost prohibitive. SAC and Robertson were contacted to inquire about the release of any proprietary technology to the USCG or any other distributors. SAC and

Robertson responded that their technology is proprietary and resale of their proprietary technology is prohibited. In addition, the Aviation Critical Safety Item Management Handbook, March 16, 2011, 3 | P a g e

Paragraph 7.1 CSI Procurement Restrictions, states “CSIs and services (such as repair, overhaul, etc.) for

CSIs must be procured only from approved sources.” Per ALC Instruction 4200.3A, ALC Spare Parts

Breakout/New Product Development, dated January 27, 2011, CSIs may only be procured through sources approved by USCG Aviation Engineering (CG-41).

Use of the 80 Gallon Tank is unique to the USCG. The 80 Gallon Tank’s smaller size allows an unobstructed area around the MH-60T’s doorway during rescue swimmer operations. Sources of the 120

Gallon and 80 Gallon Tanks are limited to those approved by USCG Aviation Engineering. Both the

SAC and the Robertson 120 Gallon and 80 Gallon Tanks are Aircraft Configuration Control Board

(ACCB) approved by USCG Aviation Engineering. SAC and Robertson are the only known USCG

Aviation Engineering approved sources for the 120 Gallon and 80 Gallon Tanks. In addition, NAVSUP

WSS is the Primary Inventory Control Agency and has sole authority and responsibility for certifying sources of supply and support for H-60 components. Certification of sources of supply is executed in accordance with Public Law 108-136 Section 802 of the Defense Appropriations Act of 2004 and Naval

Air Systems Command Instruction (NAVAIRINST) 4200.56. SAC and Robertson are the only known

NAVSUP WSS approved sources for the 120 Gallon Tanks.

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

This procurement forecast is posted as DHS – Acquisition Planning Forecast System (APFS) No:

F2014024623 on http://apfs.dhs.gov, published January 5, 2015, and was included in the DHS Forecast of

Small Business Opportunities. Sources Sought Notice HSCG38-15-S-J00004 was released to the

Governmentwide Point of Entry (GPE) on October 2, 2014 and closed October 24, 2014. One (1) capability statement was received in response from Robertson. Robertson, a large business, was determined capable of manufacturing the Tanks and is a NAVSUP WSS and USCG Aviation Engineering approved source of supply. SAC did not submit a capability statement. However, SAC is a NAVSUP

WSS and USCG Aviation Engineering approved source of supply. Market research confirmed there are a limited number of responsible sources capable of manufacturing the Tanks specified herein. This

Justification for Other Than Full and Open Competition (J&A) on a limited sources basis will be posted to the GPE via http://www.fedbizopps.gov. Any capability statement, proposal, or quotation received in response will be considered prior to award.

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

Pricing information collected from market research and the current contract was used in the development of the IGCE for this requirement. The average prices were multiplied by the quantity estimated for each

Tank to derive the base and optional ordering period pricing. The current Producer Price Index (PPI) escalation rate based on the Final Demand-Intermediate Demand (FD-ID) aggregation system was applied to the optional ordering periods. The Contracting Officer (KO) anticipates competition between SAC and

Robertson will establish price reasonableness and comparison of the proposed prices will satisfy the requirement to perform a price analysis.

(8) Description of market research.

Market research was conducted from October 2014 through February 2015. Sources Sought Notice

HSCG38-15-S-J00004 was released to the GPE on October 2, 2014 and closed October 24, 2014. One

(1) capability statement was received in response from Robertson. Robertson asserted they are a

NAVSUP WSS and USCG Aviation Engineering approved source of supply for the Tanks described in the Sources Sought Notice. This statement was confirmed by ALC Engineering. SAC did not submit a http://apfs.dhs.gov/ http://www.fedbizopps.gov/

4 | P a g e capability statement. However, SAC is a NAVSUP WSS and USCG Aviation Engineering approved source of supply and will be solicited upon issuance of the Request for Proposal. Market research confirmed there are a limited number of responsible sources capable of manufacturing the Tanks specified herein.

The CSI Tanks are non-commercial and sources are limited to NAVSUP WSS and USCG Aviation

Engineering approved sources. All terms and conditions (including payment, delivery, inspection, acceptance, and warranties) are not expected to differ from customary terms and conditions in the marketplace or standard Government practices. Contract financing is not applicable to this requirement.

There are no laws or regulations unique to this requirement. No environmentally preferable supplies were identified during market research and Section 508 regulations/The Safety Act are not applicable to this requirement. The Buy American Act is applicable to this requirement. The solicitation will require offerors to submit a subcontracting plan for KO consideration.

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

There are a limited number of responsible sources approved by NAVSUP WSS and USCG Aviation

Engineering to manufacture the CSI Tanks. This requirement falls within the guidelines of an “Other

Than Full and Open Competition (Limited Sources)” and is not suitable for “Full and Open Competition.”

Failure to approve this J&A on a limited sources basis will jeopardize performance of MRR’s mission due to grounding of the aircraft as a result of safety concerns stemming from non-availability of Ready

For Issue (RFI) Tanks.

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

Sources Sought Notice HSCG38-15-S-J00004 was released to the GPE on October 2, 2014 and closed

October 24, 2014. One (1) capability statement was received in response from Robertson. The following is a summary of the company that responded and SAC’s information:

Company Information/Description Size Classification Capability Evaluation

Robertson Fuel Systems (1T765)

800 West Carver Road, Suite 101

Tempe, AZ, 85284

POC: Marie Morrell

Email: info@robbietanks.com

Phone Number: 480-337-7050

Large Business Robertson is capable of manufacturing the Tanks and is a

NAVSUP WSS and USCG Aviation

Engineering approved source of supply.

Sikorsky Aircraft Corporation (78286)

6900 Main Street

Stratford, CT 06614

POC: Lindsay Megaro-DeLorenzo

Email: Lindsay.Megaro-DeLorenzo@sikorsky.com

Phone Number: (203) 383-8039

Large Business No capability statement submitted.

However, SAC is a NAVSUP WSS and USCG Aviation Engineering approved source of supply.

(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 services.

There are a limited number of responsible sources approved by NAVSUP WSS and USCG Aviation

Engineering to manufacture the CSI Tanks. The USCG did not purchase rights to the proprietary technology required to foster a competitive environment as part of any original provisioning for use on the MH-60T rotary wing aircraft. Every reasonable effort will be made to remove barriers to competition for future requirements. These efforts will include continuing to identify additional sources that may eventually become approved by NAVSUP WSS and USCG Aviation Engineering to manufacture the

Tanks.