J&A_HSCG38-17-Q-200083.pdf

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 H65 Spares

HSCG38-17-Q-200083

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 various spare parts as identified in paragraph three. The Original Equipment Manufacturers (OEMs) of these parts are Airbus Helicopters France (F0210), Airbus Helicopters, Inc. (3GSZ1), and Vibrachoc SA (F6172). The only known source approved by the OEMs to sell their products in North America is Airbus Helicopters, Inc. (AHI).

It is anticipated that a firm-fixed price Purchase Order will be awarded. The estimated Purchase Order value is The purchase order will be funded using Allotment Fund Control 41, Aeronautical Operating Expenses Fiscal Year 2017 funds.

The proposed contractor is:

Airbus Helicopters, Inc.

2701 Forum Drive Grand Prairie, TX 75052 Cage Code: 3GSZ1

(3) Description of Supplies/Services:

This requirement is to purchase various aircraft spare parts utilized on the USCG H-65 aircraft on a firm-fixed price purchase order. Table 1 lists the parts that will be purchased as part of this acquisition.

Table 1. List of Parts

Nomenclature National Stock Number

(NSN)

Part Number Quantity

SUPPORT 1680-14-367-7481 365A23-3036-01 24

SCREW 5305-14-382-6590 365A31-1190-20 300

LOCK ASSEMBLY, LH 5340-14-404-0424 366A25-1201-03 44

Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Procurement of H65 Spares

SHAFT, MIX UNIT R/H 1680-14-389-5574 366A27-3401-01 30

STOP, LAMINATED 5340-14-448-1735 E1T25611-31 70

STRIP, COVER, LATERAL 1560-14-369-1469 365A25-3001-2701 24

INNER MID SEAL HOLD 1560-01-HS2-1888 366A58-1229-35 24

(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:

AHI Senior Director of Contracts Administration and Legal Services provided written notification on December 01, 2016 that AHI is the only source authorized by the H-65 aircraft OEM, Airbus Helicopters to sell their products in North America (Attachment 1). They also advised that they could not be held liable, provide part certifications or provide a warranty for Airbus Helicopter parts purchased from brokers or other vendors. Additionally, Airbus Helicopters 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.

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 the Airbus Helicopter 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.

F2017036023 at www.apfs.dhs.gov.

In accordance with FAR 5.201, the intent to contract for these spare parts 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.

Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Procurement of H65 Spares

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

Reasonable:

The Contracting Officer has determined that the price for this procurement will be fair and reasonable based on price analysis, comparison with similar items, past purchase history, and current published catalog prices.

(8) Description of the Market Research:

AHI is the OEM’s only United States approved distributor for the spare parts being procured.

Market research was completed between December 2016 and January 2017. FEDLOG1, GSA Advantage, DOD-Emall, HAI 20152, and other Internet sites (ThomasNet.com, 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 parts available. No inventory was found to be available at the time of the search, which further supports AHI’s claim that no 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 Airbus Helicopter 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.

1 The Federal Logistics (FEDLOG) is a federally supported program which lists all manufacturers/suppliers by cage code and is updated monthly. This program provides a valuable tool for supplier information and is utilized by requirements personnel to determine if alternate sources of supply exist. Information is accessed by National Stock Number, Nomenclature, item name, supplier name and cage code.

2 A helicopter trade show attended by ALC personnel in 2015.