J&A_HSCG38-17-Q-200059.docx

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 MH65 Spare Parts Solicitation Number: HSCG38-17-Q-200059

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 purchase order based on other than full and open competition for the procurement of spare parts as identified in paragraph three (3). The Original Equipment Manufacturer (OEM) of these parts is Airbus Helicopter Incorporated (Cage Code: 3GSZ1). Airbus Helicopter, Inc. (AHI) is the only known source identified that may be able to provide these items.

It is anticipated that a firm-fixed price Purchase Order will be awarded. The estimated Purchase Order value is $---------.

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 spare parts utilized on the USCG MH-65 aircraft on a firm fixed price purchase order. The estimated purchase order is $172,396. These spare parts are critical to aircraft flight performance and safety of flight.

The Independent Government Cost Estimate (IGCE) is as follows:

(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:

Airbus Helicopters Senior Director of Contracts Administration and Legal Services provided written notification on December 1, 2016 that AHI is the only source authorized by the MH65 aircraft OEM, Airbus Helicopter to sell their products in North America. Additionally, AHI 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 (Attachment 1).

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 OEM authorized parts.

(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. F2016035637 at www.apfs.dhs.gov.

In accordance with FAR 5.201, the intent to contract for this spare part 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 quote; 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:

It is anticipated that the prices will be determined fair and reasonable based on comparison of prices proposed with historical pricing, comparison with the Government Cost Estimate, and comparison with AHI 2016 commercial catalog prices.

If determined necessary other than cost and pricing data will be required from the contractor to assist in the fair and reasonable determination.

(8) Description of the Market Research:

Market research was completed between November 2016 and December 2016. GSA Advantage, NATO, and other Internet sites (Google search engine) 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 part available. No inventory was found to be available at the time of the search to indicate that other distributors are able to provide these parts.

(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:

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.

(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.

Contracting Officer, USCG, ALC, SRR Procurement Branch

(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.

Item Manager, USCG, ALC, SRR Product Line

(14) Legal Review and Concurrence:

I have reviewed this justification and deem it legally sufficient.

(15) Approval:

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.

Contracting Officer, USCG, ALC, SRR Procurement Branch