J-and-A for Air Data Computers (Public Release Copy).pdf

Commandant, US Coast Guard (CG-9127)

2703 Martin Luther King Jr. Ave SE, Stop 7828 Washington, DC 20593-7828

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

IN ACCORDANCE WITH 10 U.S.C 2304(c)(l) Only One Responsible Source and No Other Supplies or Services will Satisfy Agency

Requirements

SOLICITATION NUMBER: 70Z02320QAHH00200

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 6.3 is supported 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) Headquarters, Office of Contract Operations – Formal Contracts Division VII (CG-9127), Washington, D.C., proposes to enter into a contract on the basis other than full and open competition.

(2) Nature and/or Description of the Action being Approved.

The USCG intends to procure up to one-hundred and fifty-two (152) new air data computers (ADCs) from Penny & Giles Aerospace Limited (P&G) on a sole source basis.

P&G’s full name and address are provided as follows:

PENNY & GILES AEROSPACE LTD

1 AIRFIELD WAY

CHRISTCHURCH, GB

UNITED KINGDOM BH23 3TH

USCG will acquire the ADCs via a commercial, firm-fixed-price, single-award, indefinite-delivery, indefinite-quantity (IDIQ) contract with a ceiling of $2.5 million. The IDIQ contract will have an ordering period of 01 April 2020 to 31 March 2024.

The contract’s guaranteed minimum will be obligated at the time of contract award utilizing Fiscal Year 2020 USCG Procurement, Construction, and Improvement (PC&I) funding available for obligation for up to five (5) years after appropriation.

If additional PC&I funding becomes available, USCG will execute additional orders up to the contract’s ceiling of $2.5 million.

The solicitation number will be 70Z02320QAHH00200. This justification and approval applies to the initial contract award and to all orders placed thereunder.

(3) Description of Supplies/Services.

The ADC translates raw aircraft sensor data on air temperature, air pressure, and air speed, to a digital format for the MH-65 helicopter’s common avionics architecture system (CAAS), which then communicates with the aircraft’s automatic flight control system (AFCS). USCG pilots and crews rely on the ADC in conjunction with the CAAS on board each MH-65E helicopter to ensure the safe and successful operation of the helicopter.

(4) Identification of Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304 (c)(1), as implemented by the FAR Subpart 6.302-1 – Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

(5) Identification of Exception to the Buy American Statute.

This section does not apply. Since the ADCs are an end product manufactured by P&G in the United Kingdom and the United Kingdom is a World Trade Organization Government Procurement Agreement (WTO GPA) country in accordance with FAR Subpart 25.003, “Definitions”, the contract will include FAR clause 52.225-5, “Trade Agreements (OCT 2019),” which waives the requirements of the Buy American statute for WTO GPA country end products.

(6) Demonstration that the proposed contractor’s unique qualification or the nature of the acquisition requires use of the authority cited.

P&G is the original equipment manufacturer of the ADC and holds proprietary rights to its design and fabrication process. The ADC is integrated via software into the CAAS. CAAS is a government-owned system that was acquired through full and open competition by the US Army. USCG selected CAAS for the MH-65 to capitalize on the US Army’s CAAS integration effort. The US Army does not have contract capacity to support the USCG’s hardware purchases, nor has market research identified any other available Government contracting vehicles through which USCG can otherwise obtain the ADC, thereby necessitating the USCG’s initiation of a new contract for this critical component.

It is noted that this action is for the purchase of hardware only. Software integration and developmental sub-system testing is complete. Therefore, the use of any ADC other than P&G’s would result in significant program schedule delays, increased/duplicative costs and unnecessary technical risk as detailed below:

Schedule: The P&G ADC has been a component of CAAS since its initial fielding by the U.S. Army and it is the only ADC guaranteed to work with the system. Use of a non-P&G ADC would require a comprehensive software integration effort including engagement with the avionics integrator for software development, subsystem testing and additional developmental testing and evaluation on prototype aircraft.

Given the time required to complete this effort and the time needed to conduct a new competitive source selection and to execute additional contracting modification(s) with the current avionics integrator to accept other ADCs before the integration effort could even begin, the schedule delay for flight testing an ADC other than P&G’s is estimated to exceed eighteen (18) months, which would cause an unacceptable impact on MH-65 program capabilities.

Duplicated Cost: MH-65 Acquisition Plan (# HSCG-13-005, approved in May 2019) cited the need to maintain Department of Defense (DOD)/USCG commonality to reduce non-recurring engineering (NRE) costs. The USCG is already using the P&G ADC in the MH-65E with no resulting NRE costs associated with the air data integration because integration has already been performed by the U.S. Army in conjunction with the CAAS system.

Selecting another ADC would require paying for a new integration effort. Specifically, a new ADC would require software modifications to CAAS, its sub-system and system test events, changes in technical drawings, and possibly changes to the airframe mounting racks in order to meet standard USCG airworthiness procedures. Based on the current software contract, historical contracts for testing with the Naval Air Systems Command and operational aircraft costs for test flights, these duplicative costs are conservatively estimated to exceed $900,000 for all of the previously mentioned tasks, not including the costs for the actual ADCs. As such, the NRE costs to integrate a new ADC into the aircraft and software modifications to the already mature CAAS architecture would significantly exceed any savings that might be gained by competition. Additionally, all necessary P&G software is preloaded into the ADCs for the MH-60 and the MH-65 helicopters. Such commonality reduces supply and logistics costs for the USCG’s Aviation Logistics Center by ensuring that P&G ADCs may be used on either platform when mission requirements necessitate interoperability.

Technical Risk: The P&G ADC’s function and software integration are proven in USCG airframes, its operating environment, and in the CAAS architecture. Use of a new, unproven system, increases the risk of technical failure since other ADCs have not been fully integrated into the CAAS. Failure to properly integrate the ADC into the existing CAAS could cause an inability to read the air data and an unacceptable risk in the safe operation of the aircraft. Use of an ADC other than the P&G’s would also result in delays due to software re-work and repeated test events necessary to ensure safe operation, thereby further delaying the delivery of mission-essential capabilities to the MH-65 fleet.

Based on these factors, the P&G ADC is considered to be the only ADC capable of meeting USCG requirements.

(7) Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable.

USCG published an Acquisition Planning Forecast System (APFS) notice #F2019047859 on 20 November 2019, detailing this procurement. To date, USCG has not received any inquiries from industry as a result of this notice.

USCG also issued a beta.SAM.gov notice #70Z02320SSNAHH002 on 20 November 2019 detailing the particulars of this requirement and only P&G responded.

As such, USCG has concluded that the only company interested in this procurement and capable of providing the ADC is P&G.

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

The USCG Contracting Officer determines that the anticipated price will be fair and reasonable based on P&G commercial catalog pricelists and the independent government cost estimate, which was developed utilizing information from USCG’s prior contract, #HSCG23-15-C-AHH007, which was also awarded to P&G on a sole source basis.

(9) Description of Market Research.

Aside from the market outreach detailed elsewhere herein, the USCG Integrated Product Team (IPT) has thoroughly researched USCG’s acquisition history, the DHS Strategic Sourcing Vehicles (SSVs), the Defense Logistics Agency (DLA) Logistics Information Services (FEDLOG), and the Federal Logistics Information System Web Search (WEBFLIS) and has been unable to identify any other company besides P&G that sells the required ADCs, or any other contract vehicle besides the new contract contemplated herein that is available to procure the ADCs.

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

The data rights to this component were not purchased with the aircraft and complete specifications and drawings for this component are also not available to the USCG. The USCG does not possess the technical expertise to recreate the drawings, or to manufacture the parts. As such, it is not feasible to foster a competitive procurement effort for the manufacture of components modelled on the P&G ADC.

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

As indicated elsewhere herein, only P&G has expressed an interest in this acquisition.

(12) A Statement of the Actions, if Any, the Agency May Take to Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisition for Supplies or Services Required.

In an effort to increase competition among affiliates and distributors, the USCG IPT will continue to look for other distributors of the required part as an additional source and to discuss the potential of P&G selling their parts to small businesses. Presumably, the selling price for these parts to a potential competitor will be prohibitively expensive and USCG believes that the mark-up associated with such an arrangement would be disadvantageous to the USCG. However, USCG will attempt to remove this barrier as much as is practicable for any future contracting action relative to future ADC procurements.

(13) Contracting Officer’s Certification.

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

XXXXXXXXXXXXXXXXX Date Contracting Officer (CG-9127-2)

(14) Technical/Requirements Personnel Certification.

I certify that this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for the justification, is accurate and complete.

XXXXXXXXXXXXXXXXXX Date Technical Representative Deputy Program Manager (CG-9315)

(15) Legal Review and Concurrence:

I have reviewed this Justification and Approval for Other Than Full and Open Competition in accordance with HSAM 3006.304-70 and find it legally sufficient

XXXXXXXXXXXXXXXXXXX Date Attorney

APPROVAL:

XXXXXXXXXXXXXXXXXXX Date Command Procuring Activity Competition Advocate (CPACA)