Justification and Approval for Other Than Full and Open Competition.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

Aircraft Electrical Component Test Stand (AECTS) Upgrades

Solicitation Number: 70Z03822QK0000007

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), Industrial Operations Division (IOD), Elizabeth City, North Carolina 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: USCG intends to procure on a sole source basis the hardware, software, and support services necessary to: upgrade its existing Aircraft Electrical Component Test Stand (AECTS) to add HC-

130 aircraft generator testing capability; modernize its dedicated computer hardware; and install updated

TestEx software.

(b) Name and address of the contractor:

Testek, LLC

28320 Lakeview Drive

Wixon, MI 48393-3157

CAGE Code: 06659

(c) Type of action: The USCG intends to award a firm fixed-price Purchase Order (PO). This requirement is considered commercial in nature and will be procured utilizing the procedures listed in Federal Acquisition

Regulation (FAR) Part 12 – Acquisition of Commercial Products and Commercial Services, in conjunction with FAR Subpart 13.5 – Simplified Acquisition Procedures for Certain Commercial Products and

Commercial Services.

(d) Estimated total value (including options): $359,900

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

(f) Year of funding: Fiscal Year 2022

(g) Solicitation number: 70Z03822QK0000007

(h) Background information about the requirement: The USCG currently uses an AECTS (Model Number:

101990-P31, Serial Number: 2880) to perform functional and diagnostics testing on a variety of alternating generators and auxiliary power unit (APU) generators used on the USCG’s MH-60 and MH-65 helicopters.

The AECTS was manufactured by Testek and is maintained and calibrated by Testek on an annual basis.

The AECTS as originally purchased was only capable of testing generator for MH-65 aircraft. The AECTS was upgraded to add MH-60 aircraft generator testing ability under PO 70Z03819PE0000002.

3. Description of Supplies/Services.

The AECTS is used for carrying out tests and maintenance procedures on aircraft generators and electrical starters for MH-60 and MH-65 aircraft. The USCG seeks to upgrade the AECTS and purchase an Adapter

Kit to begin testing HC-130J starter generators here at ALC, rather than contracting out the work to a commercial vendor. As part of this upgrade, the USCG intends to purchase the goods and services necessary to replace the AECTS’s dedicated computer hardware and accessories with equipment sufficient to run the latest version of the TestEx software. The computer hardware is to be modified to meet the

USCG’s cyber security requirements, the latest version of the TestEx software will be installed, and the legacy test data provided by the USCG will be transferred. This will allow the USCG to consolidate all the information automatically without compromising the existing software. These upgrades will ensure the continued testing of aircraft generators to maintain programmed depot maintenance (PDM) schedules and improve aircraft availability.

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) entitled “Sole source (including brand name) acquisitions”.

5. Identification of Exception to the Buy American Act.

In accordance with (IAW) FAR 25.100(b)(2), the Buy American statute applies to the supply portion of services contracts that included the furnishing of supplies over the micro-purchase threshold. While this is largely a procurement for services, it will include of supply portion estimated at $86,000. Despite that dollar value exceeding $25,000, Trade Agreements are not applicable to this acquisition due to the exception at

FAR 25.401(a)(5). Therefore, the supply portion of this acquisition is subject to the Buy American Act.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition

Require Use of the Authority Cited.

(a) Rationale for using the authority cited in section 4 of the J&A:

Testek is the sole design authority and OEM of the AECTS, including all software, hardware, and adapters. As such, Testek holds proprietary rights to the equipment’s design and data and is the only source in possession of the technical information required to program, modify, troubleshoot, and calibrate the AECTS. Testek does not license or sell this data to any other entities.

(b) Details covering what events lead to the situation requiring use of other than full and open competition procedures including whether any portion of the work can be segregated to allow for competition;

As the owner of all proprietary rights to the AECTS, Testek is the only source in possession of the technical data related to the system's design and function. This information is required to service the hardware and make any changes to software code. In order to maintain the integrity of the AECTS and its ability to accurately test aircraft power distribution components, all services and/or modifications to the AECTS must be obtained from the OEM.

(c) Summarize alternatives considered and why they will not work;

This acquisition is to upgrade the AECTS installed in and operated by IOD’s Avionics/Electrical

Shop to test MH-60 and MH-65 aircraft generators. These upgrades will add the ability to test HC-

130 aircraft generators as well as modernize the AECTS’s computer hardware and update the TestEx software. If the USCG competed and awarded a contract to another vendor it would require the purchase of a new generator test stand system at a cost of not less than $1.5M.

This acquisition is limited to the goods and services provided by the OEM. Testek has no authorized distributors or service providers. If an alternate test stand was purchased, the current equipment would require removal before the new test stand could be installed and calibrated. A new test stand would require training for shop personnel on its operation and maintenance. This transition would result in lost time and may negatively impact PDM schedules. At this time, the USCG does not have the funding or the need to replace the AECTS and therefore there are no other alternatives for this acquisition as Testek is the sole support provider for the installed test stand system.

(d) Impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided.

If this Justification and Approval (J&A) is not approved, not only will the USCG not gain the ability to test HC-130 generators, the current ability to test MH-60 and MH-65 generators will be severely degraded by the need to modernize the AECTS’s dedicated computer hardware and underlying software. Loss of these capabilities would negatively affect ALC’s capacity to meet PDM schedules and ultimately will severely diminish the USCGs ability to perform successful SAR or law enforcement missions.

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

Practicable.

This acquisition was forecasted in the Department of Homeland Security (DHS) Acquisition Planning Forecast

System (APFS), number F2022058405 was published 24 June 2022.

After approval of the Justification for Other than Full and Open Competition, a combined synopsis/solicitation will be advertised on the Contract Opportunities website and IAW FAR 5.207(c)(16)(ii) the solicitation will include a statement that all responsible sources may submit a capability statement, proposal, or quotation, which shall 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 determines that the anticipated price will be fair and reasonable based on a price analysis utilizing a combination of price analysis techniques to include comparison of proposed prices to historical prices paid (FAR 13.106-3(a)(2)(ii)) and current published catalog prices (FAR 13.106- 3(a)(2)(iii)).

9. Description of Market Research.

This acquisition is for the goods and services necessary to upgrade the AECTS currently in use at ALC. The

Original Equipment Manufacturer (OEM) and only authorized service provider for repairs and annual calibrations is Testek, LLC. As this is an upgrade to an existing, proprietary system, Testek was the only source identified capable of providing the goods and services required by this acquisition.

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

(a) An explanation why technical data packages, specifications, statement of work, or purchase descriptions are not suitable for full and open competition.

As the OEM of the AECTS including all software and hardware, Testek holds all proprietary rights to the equipment’s design and data and does not license its use to any other companies. Testek is the only company that possesses the technical information, software code, and service parameters required to provide and install the needed software and hardware. The USCG did not procure the data rights and does not have adequate technical data to provide to potential offerors to promote competition.

The Government does not own or possess any rights to the technical data, specifications, and drawings required to upgraded the AECTS as the USCG did not purchase data rights as part of the original acquisition as it was determined uneconomical to purchase them. This has limited the USCG’s ability to provide adequate technical descriptions to potential new sources in order to foster full and open competition.

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

To date there have been no other inquiries regarding this requirement. 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.

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.

Testek maintains all proprietary rights to the AECTS and does not grant these rights to any business, organization, person or commercial interest. As a result, it is not possible to foster a competitive procurement effort. 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 access Testek, LLC drawings and software specifications. However, granting access to the technical data needed to authorize other firms to support their test stands is solely a Testek business decision.