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Justification for Other than Full and Open Competition Under l0 U.S.C. 230a (c) (1) Only One Responsible Source (Limited) and No Other Services Witl Satisfy Agency Requirements

Overhaul of Hydraulic Pumps, Tail Rotor Servos, and Repair of Servo Cylinders Solicitation Number: HSCG38-16-R-J0001 1

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, located in Elizabeth City, North Carolina, proposes to enter into a contract with firm fixed pricing 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 solicit and award, on a limited sources basis, an Indefinite Delivery Requirements Type contract to the Original Equipment Manufacturers (OEM), Parker Hannifin Incorporated (Parker) or Sikorsky Aircraft Corporation (SAC), for overhaul of Hydraulic Pumps, Tail Rotor Servos, and repair of Servo Cylinders, hereafter referred to as Parts. Firm Fixed Price (FFP) task orders will be issued off the base contract as Part overhaul and repair services are required. The overhaul and repair of these Parts are essential to avoid grounding of the aircraft. The specifications, manufacturing drawings, data, test equipment, and tooling required for the overhaul and repair of the Parts are proprietary to Parker and SAC. 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 ,

13.5 Simplified Procedures for Certain Commercial Items. ihe estimated dollar value is I which includes a one (1) year base ordering period and four (4) one (1) year optional ordering periods.

Part overhaul and repair services are currently performed under HSCG38-11-D-J00003, an Indefinite Delivery Indefinite Quantity (IDIQ) type contrict with FFP task orders valued at I The contract includes a one (1) year base ordering period and four (4) one (1) year optional ordering periods. The ::

current contract was erroneously solicited and awarded on a Full and Open Competition basis to Parker, alarge business. The current contract expired March 17,2016. The United States Naval Supply

Weapons Systems Support OIAVSUP WSS) is the Primary Inventory Control Agency and has sole authority and responsibility for certifying sources of support for H-60T Parts. Certification of sources of support was executed in accordance with Public Law 108-136 Section 802 of the Defense

Appropriations Act of 2004 and Naval Air Systems Command Instruction Q'{AVAIRINST) 4200.56.

Contractors and subcontractors are required to be NAVSUP WSS certified. Parker and SAC are the only known NAVSUP WSS certified sources. Parker and SAC's contact information is as follows:

Parker Hannifin Incorporated 14300 Alton Parkway Irvine, CA926l8 Cage Code 59211

Sikorsky Aircraft Corporation 6900 Main Street Stratford, CT 06614 Cage Code 78286

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Justification for Other than Full and Open Competition Under 10 U.S.C. 23Oa (c) (1) Only One Responsible Source (Limited) and No Other Services Will Satisfy Agency Requirements

Overhaul of Hydraulic Pumps, Tail Rotor Servos, and Repair of Servo Cylinders i

Solicitation Number: HSCG3E-16-R-J0001 I

(3) Description of Services.

The USCG currently operates a fleet of forty-four @$ 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 tail rotor servo and servo cylinder were purchased as part of the original provisioning of the H60 aircraft in 1989. The servos specified herein are currently used on all USCG MH-60T model aircraft and are interchangeable throughout the fleet. There are two (2) hydraulic pumps, one (1) tail rotor servo, and three (3) servo cylinders per aircraft. These parts are inspected during scheduled maintenance, during all programmed depot maintenance, and are replaced due to corrosion, damage, and failures. The Parts are considered flight Critical Safety Items (CSD and are interchangeable throughout the MH-60T fleet. The basic service objective of this requirement is to preserve service life, reduce life cycle cost, and increase mission capabilities through the performance of comprehensive Parts overhaul and repair. Delivery time is sixty (60) calendar days after induction.

Induction shall take place no later than twenty (20) calendar days after receipt of the Parts at the contractor's facility. * i'

Note* Rounded to the nearest lK

(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-t entitled "Only One Responsible Source and No Other Services will Satisfy Agency Requirements." This is further expounded in FAR 6.302-l(bxl)(ii) to include a limited number of sources. Responsible sources are limited to NAVSUP WSS approved'sources. Parker and

SAC are the only known NAVSUP WSS approved sources for the overhaul and repair of the Parts.

4320-01-207 -7228 53023-06 or

706s2-02300-0s0

6615-01-158-5787 2227000-12 or 70410-26520-042

661 5-01-l 58-5984

Base Ordering Period: June 1, 2016 - May 31,2017 Optional Ordering Period I : June l, 2017 - May 3 I , 201 8

Optional Ordering Period 2: June l, 2018 - 31.2019 I Ordering Period 3: June 1,2019 - I Ordering Period 4: June 1,2020 - May 31,2021

Total Estimated Contract Value

Nonienclature =N=.a.lid- cti .[Iffib :NS]\n

.Fa (PN} iGstira$te$ uartitt

Hydraulic Pump

Tail Rotor Servo r00

Servo Cylinder 274000-1033 or 70410- 22820-043 r50 iH.Esdriffi #6ffiii:H &s{i#{i$,sli$"oq@ lVAlUg ::'::"1'"'-'i'Li;i''

Parts

Justification for Other than Full and Open Competition Under 10 U.S.C. foa (c) (1) Only One Responsible Source (Limited) and No Other Services Will Satisff Agency Requirements

Overhaul of Hydraulic Pumps, Tail Rotor Servos, and Repair of Servo Cylinders I

Solicitation Number: HSCG38-16-R-J0001 I

(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 overhaul and repair the Parts are proprietary to Parker and SAC. The USCG did not purchase rights to the proprietary data required to foster a competitive environment as part of the original provisioning for use on the MH- 60T rotary wing aircraft and the costs to procure this data would be cost prohibitive. 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. The Parts are CSI. 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 ofpersonnel.

(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:

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F2015027976 andF2015027954 on http://apfs.dhs.gov, published October 5,2015 and was included in the DHS Forecast of Small Business Opportunities. Sources Sought Notices were posted to the Government wide Point of Entry (GPE) via http://www.fedbizopps.gov on July 29,2015 with a response date of August 15, 2015. Seven (7) capability statements were received in response from Bainbridge Aerospace LLC, Twin Aviation,Inc., Dangle Aviation, Inc., E.O. Manufacturing Co., Derco Repair

Services, Inc., Air Quality Aviation, Inc. and Aeroworx. All companies fail to meet the NAVSUP WSS certification requirement for the Parts specified herein. Market research confirmed Parker or SAC are the only approved overhaul/repair sources for the Parts. Prior to award, a Notice of Intent to award a limited sources 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.

(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 avera$e overhaul and repair prices were multiplied by the quantity estimated for each type of Part 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.

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

Overhaul of Hydraulic Pumps, TaiI Rotor Servos, and Repair of Servo Cylinders Solicitation Number: HSCG38-16-R-J0001 I

(8) Description of market research.

Market research was conducted in accordance with FAR Part 10 from July 2015 through February 2016.

Sources Sought Notice HSCG38-15-S-J00014 and HSCG38-15-S-J00016 were released to the GPE on July 29,2015 and closed August 15,2015. Seven (7) capability statements were received in response from Bainbridge Aerospace LLC, Twin Aviation, Inc., Dangle Aviation, Inc., E.O. Manufacturing Co., Derco Repair Services, Inc., Air Quality Aviation, Inc. and Aeroworx. All companies fail to meet the NAVSUP WSS certification requirement for Parts overhaul and repair. Market research confirmed Parker and SAC are the only approved overhaul and repair sources for the Parts specified herein. The successful offeror will be required to submit a subcontracting plan for Contracting Officer approval.

Part overhaul and 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 tr requirement.

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

Parker and SAC were contacted to inquire about the release of any proprietary data to the USCG or any ;j other distributors. Parker and SAC responded that their data is proprietary and resale of their proprietary ' data is prohibited. NAVSUP WSS confirmed Parker and SAC are the only approved sources to overhaul and repair the Parts. 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 concems stemming from non-availability of Ready For Issue (RFI) Parts.

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

Sources Sought Notices HSCG38-15-S-J00014 and HSCG38-15-S-J00016 were released to the GPE on July 29,2015 and closed August 15,2015. Seven (7) capability statements were received in response from Bainbridge Aerospace LLC, Twin Aviation, Inc., Dangle Aviation, Inc., E.O. Manufacturing Co., Derco Repair Services, Inc., Air Quality Aviation, Inc. and Aeroworx. All companies fail to meet the NAVSUP WSS certification requirement for the overhaul and repair of these Pans. Market research confirmed Parker and SAC are the only approved overhaul and repair source for the Parts specified herein.

(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. Theo

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 leam of any altemate approved sources. If altemate sources are approved by

Justification for Other than Full and Open Competition Under 10 U.S.C. 230a (c) (1)

Overhaul of Hydraulic Pumps, Tail Rotor Servos, and Repair of Servo Cylinders Soiicitation Number: HSCG38-16-R-J00011

NAVSUP WSS, future overhaul and repair requirements for these Parts will be competed among all approved sources. It is in the best interest of the Government to solicit and award this overhaul and repair requirement on a limited sources basis to Parker or SAC.