Brand_Name_J&A_HSCG38-16-R-200008.pdf

Justification for Other Than Full and Open Competition Brand Name for Separately Price Replacement Parts For Repairs of Flight Critical Aircraft Components

Under 10 U.S.C. 2304 (c) (l) Solicitation Number: HSCG38-J6-R-200008

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), Short Range Recovery (SRR) Division, Elizabeth City, North Carolina 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, SRR Division seeks approval to award a contract based on other than full and open competition, brand name basis, for the procurement of Separately Price Replacement Parts (SPRP) that are required to complete the repair services for Pump, Self Regulating, Servo Control, Servo Tail Rotor, Landing Gear Hydraulic Unit, and Hydraulic Reb'\llator used on the USCG H-65 aircraft. The parts are manufactured by Messier-Bougatti Dowty, France (Cage Code F6103), Goodrich Actuation Systems, France (Cage Code Fl688), and Lucas France SA (Cage Code F6 I 03), the Original Equipment Manufacturers (OEM's).

The total estimated cost for this Justification and Authority (J&A) approval is-for the required SPRP listed on the schedule (attachment l ). The contract will be funded using Allotment Fund Control 4 I, Aeronautical Engineering Operating Expenses FY 2017. The requirements type contract will be finn-fixed priced (FFP), consisting of one ( l) one-year base period and (4) one-year option periods.

The proposed contractors are:

OEM/FAA Authorized Mainlengnce and Reoair Overhaul Facility:

Goodrich Corporation 4115 Corporate Center Drive Monroe, NC 28 J J 0

OEM/FAA Authorized Maintenance and Repair Overhaul Facility:

Lufthansa Technik Component Services (L TCS) 7244 E. 301 h St. N Tulsa, OK 74115

(3) Description of Supplies/Services.

This requirement is to provide OEM's brand name parts, for the repair process (when needed) for the components listed on the requirements schedule. The part numbers listed as SPRP on the schedule must be used in accordance with (IA W) the OEM's Component Maintenance

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For Repairs of Flight Critical Aircraft Components

Under 10 U.S.C. 2304 (c) (I) Solicitation Number: HSCG38-16-R-200008

Manuals (CMM) and the USCG Statement of Work {SOW). The components arc flight critical to aircraft flight performance, safety of flight, and essential to avoid grounding of aircraft.

The estimated total for the SPRP's is I •broken down as follows:

Base year Option 1 Option 2 Option 3 Option 4 Grand Total

The ALC anticipates that a other than full and open competition, brand name basis, requirements contract with FFP task orders will be awarded using the Lowest Price Technically Acceptable (LPT A) process IA W FAR 15.101-2 and under the authority of FAR Subpart 6.3- 0ther than Full and Open Competition.

(4) Identification or the Justification and the Rationale.

The statutory authority permitting other than full and open competition is l 0 U.S.C. 2304(c) ( 1) as implemented by FAR 6.302-1 entitled, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements." Also, JAW with FAR 11 . IOS(a) (I), "Items Peculiar to One Manufacturer", the SPRP, uses a particular brand name that is essential to the Government's requirements and the items arc peculiar to one manufacturer.

(5) Demonstration that the Nature of the Acquisition Requires use of the Authority Cited.

The USCG self certifies its aircraft in accordance with the standards established by the Code of Federal Regulations (CFR) and the Federal Aviation Administration (FAA).

The CFR Title 14, Aeronautics and Space, Part 21, Certification Procedures for Products and Articles, governs the procedural requirements for issuing and changing design approvals, production approvals, airworthiness certificates, and airworthiness approvals. 14 CFR 21 defines airworthiness approval as a document, issued by the FAA for an aircraft, aircraft engine, propeller, or article which certifies that the aircraft, aircraft engine, propeller, or article confonns to its approved design and is in a condition for safe operation. The USCG will only procure parts which have airworthiness approval. In accordance with 14 CFR 21.9, with limited exceptions, only a replacement or modification article produced under a type certificate or produced under a FAA production approval is suitable for installation on a type-certificated product.

Title 14 of the CFR Subpart K covers the procedures for the FAA Parts Manufacturer Approval (PMA). The FAA PMA process is acceptable for an alternate manufacturer for the parts listed in this requirement provided that the vendor submits a complete data package ensuring that the

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Justirlcation for Other Than Full and Open Competition

For Repairs of Flight Critical Aircraft Components

Under 10 U.S.C. 2304 (c) (1) Solicitation Number: HSCGJS-16-R-200008 part meets or exceed OEM specifications and subsequently passes the USCG form, fit, and function requirements. To date, there are no known approved FAA PMA 's for the parts listed in this solicitation.

The FAA issued Advisory Circular (AC) 20-62 to provide information and guidance for use in determining the quality, eligibility and traceability of aeronautical parts and materials intended for installation on US type-certificated products and articles, and to enable compliance with Title 14 of the CFR. The AC states that acceptable replacement articles should be identified using one of the following methods:

t) Airworthiness Approval Tag (FAA Form 8130-3);

2) Foreign manufactured replacement parts when there is a Bilateral Airworthiness Agreement (BAA) between the country of manufacture and the United States. This certification may be verified on a form similar to the FAA Form 8130-3 (i.e.

European Aviation Safety Agency (EASA) Form One);

3) FAA Technical Standard Order (TSO) markings;

4) FAA PMA symbol;

5) Production Approval Holder's (PAH} documents or markings;

6) Direct ship authority. In order for manufactured parts with direct ship authority to be recognized as being produced under a manufacturer's FAA production approval, the manufacturer must specifically authorize the shipping supplier, in writing, and must establish procedures to ensure that the shipped parts conform to the approved design nnd are in a condition for safe operation;

7) Maintenance release document;

8) Identification of critical components; and

9) Marking of life-limited parts.

The AC also states that aircraft part distributors and aircraft supply companies cannot certify the airworthiness of the parts they advertise and/or sell, unless they are a PAH. Therefore, it is the installer's responsibility to ensure airworthiness and to request documentation establishing traceability to a PAH.

Parts provided that do not meet the CFR and FAA requirements could compromise structural and system integrity of the aircraft putting aircrew personnel and Government property at risk.

The USCG neither compromises nor makes exceptions in matters of human safety and protection of Government property and does not accept lower standards in these matters.

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For Repairs of Flight Critical Aircraft Components

Under 10 U.S.C. 2304 (c) (I) Solicitation Number: HSCG38-16-R-200008

Use of OEM parts will ensure the parts are manufactured in accordance with OEM specifications and standards, confonn to original fonn, fit, and function. and are compatible and interchangeable with existing components.

(6) Description of the Efforts Made to Ensure that Offers arc Solicited from as Many Potential Sources as is Practicable.

This procurement was forecasted in OHS-Acquisition Planning Forecast System (APFS) No.

F2015028290 at http: '• apfs.dhs.gov. The USCG initially issued a Sources Sought Notice, HSCGJB-16-l-200010, to Federal Business Opportunities (FBO) on March 25, 2016.

In accordance with FAR 5.203(a)(2) and FAR 12.603 the proposed contract action will be advertised on the Federal Business Opportunities (FBO) website as a combined synopsis solicitation. Jn accordance with FAR 5.207(c}(l6)(ii) the solicitation will include a statement that all responsible sources may submit a proposal which shall be considered by the agency.

(7) Determination by the Contracting Officer that the Anticipated Cost will be Fair and Reasonable.

It is anticipated prices will be determined fair and reasonable based on competition (if received) and a comparison to the Independent Government Cost Estimate (JGCE) and historical pricing.

(8) Description or the Market Research.

Market research was conducted during June 2015 through March 2016. Sources Sought Notice HSCG38-16-I-200010 was posted on the FBO on March 25, 2016. Two vendors, LTCS and Goodrich Corporation, responded to the notice. The internet and the web based Inventory Seivice Locator Seivice (ILS) were searched for contractors who could repair and/or overhaul the components listed on the schedule as welt as be able to procure the brand name SPRP from the OEM or an OEM authorized distributor. The search produced only the two contractors listed on section two.

(9) Any other Facts Supporting the Use of Other Than Full and Open Competition.

None.

(10) A Listing of Sources, if Any That Expressed, in Writing, an Interest in the Acquisition.

LTCS and Goodrich Corporation expressed in writing an interest in the acquisition by submitting a response to the Sources Sought Notice. L TCS and Goodrich Corporation are identifiable OEM and FAA certified Maintenance Repair Overhaul (MRO) facilities capable of performing the repair and/or overhaul work for all the items in the schedule. These two

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For Repairs or Flight Critical Aircrart Components

Under 10 U.S.C. 2304 (c) (I) Solicitation Number: HSCG38-I6-R-200008 companies have perfonned repair services for the USCG in the past and have satisfactory past perf onnance records.

(J 1) 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.

Complete specifications and drawings for the components are proprietary to the OEM's and therefore not available to the USCG. The USCG does not possess the technical expertise nor the software data rights for the components or its piece parts. It is difficult to take steps to foster competition as the manufacturing, perfonnance, and acceptance data are proprietary to the OEM. As the Aviation Inventory Control Point (AICP), ALC is tasked with supporting systems that have been deployed for use in the aviation community. In an effort to increase competition among manufacturers, affiliates, and distributors, SRR Product Line members attend annual aviation trade shows and host industry days at the ALC. Extensive internet database research is conducted and procurements are advertised on FBO. In support of the Competition in Contracting Act, ALC established the New Product Development Branch (NPD) and n representative of the NPD Branch is assigned to the SRR Product Line. This representative has the responsibility to search for alternate sources of supply/services and alternate acceptable products. Engineering, Contracting and NPD representatives continuously conduct market research to ensure that companies interested in doing business with the USCG arc given every opportunity to compete for requirements. NPD is exploring avenues of reverse engineering for some of the hard to find or expensive to repair items, which should further encourage competition; however, this process is lengthy, costly and labor intensive.

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