HSCG38-15-R-J00007_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 and No Other Services Will Satisfy Agency Requirements

Repair of Stabilator Actuators

Solicitation Number: HSCG38-15-R-J00007

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 a sole source Indefinite Delivery Requirements Type contract to the Original Equipment Manufacturer (OEM), Simmonds Precision Products, Inc (Simmonds), for the repair of MH-60T Stabilator Actuators hereafter referred to as Actuators. Firm Fixed Price (FFP) task orders will be issued off the base contract as repair services are required. These repairs are essential to avoid grounding of the aircraft. The specifications, manufacturing drawings, data, test equipment, and tooling required for the

Actuator repairs are proprietary to Simmonds. The USCG did not purchase rights to the proprietary data required to foster a competitive environment as part of any original provisioning for use on the MH-60T aircraft.

Stakeholders include the MRR Product Line and supported USCG Air Stations. This requirement will be solicited utilizing FAR Part 12 Acquisition of Commercial Items and FAR Part 15 Contracting by Negotiation.

The estimated dollar value includes a one (1) year base ordering period and four (4) one (1) year optional ordering periods. Actuator repairs are currently performed under HSCG38-10-D-J00006, an Indefinite

Delivery Requirements type contract with FFP task orders valued The contract includes a one (1) year base ordering period and four (4) one (1) year optional ordering periods. The current contract was awarded on a sole source basis to Simmonds, a large business. The current contract expires August 18, 2015.

The United States Naval Supply Weapons Systems Support (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 was 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. Contractors and subcontractors are required to be NAVSUP WSS certified. Simmonds is the only known NAVSUP WSS certified source. Simmonds’s contact information is as follows:

Simmonds Precision Products

100 Panton Road

Vergennes, VT 05491

(3) Description of Services.

The USCG currently operates a fleet of forty-four (44) MH-60T rotary wing aircraft. 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 Actuators are used to control the tail stabilator pitch of the MH-60T while in flight. The Actuators are considered flight

Critical Safety Items (CSI) and are interchangeable throughout the MH-60T fleet. When properly outfitted, there are two (2) Actuators per aircraft.

Actuators that are beyond MRR’s repair capabilities are shipped to the OEM for repair. The basic service objective of this requirement is to preserve service life, reduce life cycle cost, and increase mission capabilities through the performance of Actuator repairs as required. Delivery time is sixty (60) days after induction.

Nomenclature Ordering Period Estimated Contract Value

Stabilator Actuators

NSN: 1680-01-470-5073

P/N: D12155M29

August 19, 2015 – August 18, 2016

August 19, 2016 – August 18, 2017

August 19, 2017 – August 18, 2018

August 19, 2018 – August 18, 2019

August 19, 2019 – August 18, 2020

Total Estimated Contract Value

(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 the FAR 6.302-1 entitled “Only One Responsible Source and No Other Services will Satisfy Agency

Requirements.” Simmonds is the OEM and only NAVSUP WSS approved source to repair the Actuators, a CSI.

All specifications, manufacturing drawings, data, test equipment, and tooling required for the repair of these

Actuators are proprietary to Simmonds.

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

The specifications, manufacturing drawings, data, test equipment, and tooling required to repair the Actuators are proprietary to Simmonds. The USCG did not purchase rights to the proprietary data required to foster a competitive environment as part of any original provisioning for use on the MH-60T rotary wing aircraft and the costs to procure this data would be cost prohibitive. The Actuators are CSI. 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 is restricted to approved sources. 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 addition, the 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 was conducted in accordance with Public Law 108-136 Section

802 of the Defense Appropriations Act of 2004 and NAVAIRINST 4200.56. Contractors and subcontractors are required to be NAVSUP WSS certified. Simmonds is the only known NAVSUP WSS certified source.

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

This procurement forecast is posted as DHS – Acquisition Planning Forecast System (APFS) No: F2014024637 on http://apfs.dhs.gov and was included in the DHS Forecast of Small Business Opportunities. A Sources Sought

Notice was posted to the Governmentwide Point of Entry (GPE) via http://www.fedbizopps.gov on October 17, 2014 with a response date of October 31, 2014. No capability statements were received in response. Market research confirmed Simmonds is the only approved repair source for the Actuators specified herein. Prior to award, a Notice of Intent to award a sole source contract fulfilling the notice requirement of FAR 5.201 will be posted to the GPE via http://www.fedbizopps.gov. A copy of the approved Justification for Other Than Full and

Open Competition (J&A) will be uploaded with the notice. Any capability statement, proposal, or quotation received in response to the notice will be considered prior to award.

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

(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

Independent Government Cost Estimate (IGCE) for this requirement. The average repair prices were multiplied by the quantity estimated for each Actuator 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 anticipates comparison of prices proposed with historical pricing and the IGCE will establish price reasonableness.

(8) Description of market research.

Market research was conducted in accordance with FAR Part 10 from June 2014 through October 2015. Sources

Sought Notice HSCG38-15-S-J00010 was released to the GPE on October 17, 2014 and closed October 31, 2014.

No capability statements were received in response. Market research confirmed Simmonds is the only approved repair source for the Actuators specified herein. Simmonds will be required to submit a subcontracting plan for

Contracting Officer approval. Actuator repair services are commercial in nature and prevalent in private aviation, commercial aviation, and military aviation world-wide. All terms and conditions 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 services were identified during market research and Buy American/Trade Agreements Acts/Section

508 regulations/Safety Act are not applicable to this requirement.

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

Simmonds was contacted to inquire about the release of any proprietary data to the USCG or any other distributors. Simmonds responded that their data is proprietary and resale of their proprietary data is prohibited.

NAVSUP confirmed Simmonds is the only approved source to repair the Actuators. Failure to approve this

Justification For Other Than Full and Open Competition 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)

Actuators.

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

To date, no other sources have expressed interest in this requirement.

(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.

Every reasonable effort will be made to remove barriers to competition for future requirements. The NAVAIR

Research and Engineering Group (AIR-4.0) and NAVSUP WSS are responsible for providing the engineering policies, processes, and support necessary to ensure design integrity and airworthiness throughout the life cycle of the H-60 aircraft. The USCG will continue to work with NAVAIR and NAVSUP WSS in order to learn of any alternate approved sources. If alternate sources are approved by NAVSUP WSS, future repair requirements will be competed among all approved sources. It is in the best interest of the Government to proceed with a sole source award to Simmonds for the repair of the Actuators used on the MH-60T rotary wing aircraft.

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