Justiciation for Other than Full and Open Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

Purchase of Rescue Hoist Ground Support Equipment (RHGSE)

Solicitation 70Z03822QE0000052

In compliance with Federal Acquisition Regulation (FAR) 13.501(a)(ii), this justification uses the format at FAR 6.303-2 and is modified to state that the procedures in FAR subpart 13.5 are used.

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), United States Coast Guard (USCG), Aviation Logistics Center (ALC), Engineering Services Division (ESD), Engineering

Services Branch (ESB), Aeronautical Ground Support Equipment (AGSE) prepared this justification for other than full and open competition.

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

(a) Nature of the action:

The USCG, ALC, ESD seeks approval to award a contract based on other than full and open competition to procure electric Rescue Hoist Ground Support Equipment

(RHGSE) for all USCG rotary-wing units from the manufacturer identified in (b).

(b) Name and address of the contractor:

Zephyr International, LLC. (herein after referred to as Zephyr)

5015 Enoch Road

Conway, SC 29526

(Cage 3CAT3)

(c) Type of action: One (1) year Firm Fixed-Price Contract

(e) Type of funding: Operations and Support funds (O&S)

(f) Year of funding: Fiscal Year 2022

(g) Solicitation number: 70Z03822QE0000052

(h) Background information about the requirement:

The USCG has a requirement to purchase electric RHGSE to support Search and

Rescue (SAR) operations. The USCG executes approximately 60,000 hoist events per year. During these events, opportunities for improvement to reduce hoist and cable failure through enhanced maintenance actions have been identified during multiple internal studies (2011, 2019 and 2021) to increase reliability and reduce failure of the hoist/cable assemblies. The USCG identified the Zephyr RHGSE to address many of the maintenance shortcomings described in the studies, and examinations of hoist/cable failures. Currently, there are no other RHGSE that will test the USCG hoist while on the cable. By using

RHGSE, the USCG will align with the Department of Defense (DoD) and similar civilian industry hoist operators to ensure the most comprehensive maintenance and inspection equipment is utilized to service the aircraft hoist and cables.

The USCG purchased two (2) RHGSE units in 2020 for extensive Operation

Testing and Evaluation (OT&E) from Zephyr. The two (2) units were operated and tested for a four (4) month period at both rotary-wing (H65 & H60) Prime

Units by USCG Subject Matter Experts (SMEs). Additionally, FORCECOM and the Airworthiness Sustainment Branch (ASB) completed front-end analysis for fleet-wide implementation and testing efficacy of the non-destructive system.

The testing of the two (2) units also allowed the USCG to perform required

Rescue Hoist (RH) maintenance functions on the ground, without the need to fly the aircraft as previously required. The ability to test the RH without having to fly the aircraft will save the USCG a substantial amount of flight hours and money associated with each flight.

3. Description of Supplies/Services.

This requirement is to purchase:

Quantity: 35 (PN: ZGS-11300-3-110-B) Electric RHGSE with Four (4) Groove

Capstans

Quantity: 41 (PN: ZGS-11380-2) RHGSE Protective Covers

Quantity: 28 (PN: ZMT-100-3) RHGSE Maintenance Kits

Sparing for repairs:

Quantity: 10 (PN: ZGS-10328-4) Capstan Cover Assemblies

Quantity: 8 ( P/N: ZGS-10892-1) 4 Groove Compound Capstans, Quantity: 50 (PN: ZGS-10104-10 (Pack of 6 - Lubridryer Pads (600 count))

The electric RHGSE will allow the USCG to meet and maintain the required routine

Original Equipment Manufacturer (OEMs) service requirements of the hoists for periodic conditioning, cleaning, lubricating, drying, tensioning, and loading of new and in-service hoist cables to reduce cable fatigue/failure. The utilization of the RHGSE will further align the USCG with the RH OEM, current industry progression and the DoD;

all of whom have been operating with RHGSE for hoist/cable maintenance cycles. The required electric RHGSE protects, preserves, and lubricates the cable during inspections, and also cleans the cable while it is being inspected to reduce contamination that may damage the cable and/or hoist. The electric RHGSE provides consistent pre-tension as the cable is retracted onto the hoist drum assembly, thus reducing the undesired probability of bird-caging and improper cable lay on the drum without the tension during operational use. Incorrect and inconsistent pre-tension will damage the cable and can result in premature or sudden fatigue/failure of the cable within the hoist. The maintenance kits required are used to perform periodic scheduled and unscheduled maintenance on the RH, and measure the wear of the cable capstans for accurate and consistent operation/tension. Market Research has determined that Zephyr is the only known source for RHGSE that performs the above functions for the USCG RH. Zephyr has been granted a United States (U.S.) patent (Number: US 7,429,031 B1).

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

Competition.

The statutory authority permitting other than full and open competition is 41 U.S.C. §

1901 as implemented by FAR 13.501(a) Sole Source (including brand name) acquisitions.

5. Identification of Exception to the Buy American Act.

Not applicable. The RHGSE is manufactured and sold in the US.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Require Use of the Authority Cited.

The electric RHGSE, protective covers, and maintenance kits to be purchased under this acquisition are the only known equipment compatible with the current USCG rescue hoists. The Zephyr RHGSE is the only rescue hoist/cable equipment capable of protecting, tensioning, cleaning, drying, and lubricating the rescue hoist cable after each mission and at scheduled hoist/cable maintenance intervals. Additionally, the RHGSE is the only known equipment that allows OEM Maintenance requirements to be accomplished without having to fly the aircraft.

As the OEM of the RHGSE, and other RHGSE accessories, Zephyr owns all the rights to the technical data, specifications, and drawings required for the RHGSE manufacture, to include a U.S. patent. Zephyr has also stated there are no authorized distributors for this equipment, and there are no plans to sell their proprietary data.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many

Potential Sources as is Practicable.

In August 2020, RHGSE units, maintenance kits and protective covers were solicited through the Contract Opportunities website. Only one (1) response from Zephyr was received in response to the solicitation. The USCG awarded an order to Zephyr and performed extensive OT&E on the equipment. From August 2020 through May 2022; the

USCG has participated in the HAI Industry Conference/tradeshow, performed various internet searches for RHGSE and researched mandatory sources of supply; all of which did not result in any other source of supply.

On May 4, 2022, this acquisition was forecasted in the Department of Homeland Security

(DHS) Acquisition Planning Forecast System (APFS), number F2022058092 to advertise the intent to purchase electric RHGSE for USCG Air Stations. No inquiries from any other vendor have been received.

This requirement will be posted to the Contract Opportunities website, and all responsible sources may submit a capability statement, or quotation which will be considered by the agency.

8. Determination by the Contracting Officer that the Anticipated Cost to the

Government will be Fair and Reasonable.

The Contracting Officer anticipates that the prices for this procurement will be fair and reasonable IAW FAR 13.106-3 utilizing a combination of price analysis techniques to include: (a) (2) (ii) comparison of proposed prices to historical prices paid, (a) (2) (iv) similar items and (a) (2) (vi) to the Independent Government Cost Estimate (IGCE).

9. Description of Market Research.

Extensive market research was conducted using both Government and commercial sources.

This included querying the following information systems and web sites: Defense Logistics

Agency (DLA) Federal Logistics Information Service (WebFLIS); Department of Defense

Electronic Mall (DoD EMall); General Services Administration (GSA) Advantage online purchasing service; Inventory Locator Service e-marketplace (ILSmart); internet search engines; and the OEM’s web site. This equipment is not available from any required or optional sources of supply IAW FAR 8.002. Additionally, numerous other agencies that perform helicopter SAR hoist operations were queried to determine any other sources other than Zephyr in which none were identified.

On May 4, 2022, this acquisition was forecasted in the DHS Acquisition Planning Forecast

System (APFS), number F2022058092 to advertise the intent to purchase electric RHGSE for USCG Air Stations. No inquiries from any other vendor have been received.

Based on the above market research, there is no other equipment that performs the required functions, other than the equipment from Zephyr.

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

The USCG does not own, nor have data rights for the RHGSE manufactured by Zephyr.

Zephyr has also confirmed to the USCG they have no distributors, or any intent to release their proprietary technical data. Therefore, the USCG cannot provide drawings, or technical data requirements for the electric RHGSE to other vendors. Zephyr has not licensed the rights to the technical data required to manufacture this equipment to any other commercial vendors, nor has any competitors for electric RHGSE.

11. A Listing of the Sources, if Any, that Expressed, in Writing, an Interest in the

Acquisition.

None

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.

As stated above, the USCG does not own or possess any rights to the technical data, specifications, and drawings required to manufacture RHGSE equipment. This policy has limited the USCG’s ability to provide technical descriptions to potential new sources. The USCG will maintain communications with the OEM and will continually conduct market research to identify possible additional sources that may eventually receive authorization to provide the RHGSE. However, granting access to technical packages or authorizing other firms to manufacture is solely a Zephyr business decision.