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

August 2020

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SIMPLIFIED ACQUISITION PROCEDURES (SAP) FAR 13.106-1(b)

SOLICITATIONS MAY BE LIMITED TO ONE SOURCE ONLY IF THE CONTRACTING OFFICER DETERMINES THAT ONLY ONE SOURCE IS REASONABLY AVAILABLE. THIS DETERMINATION MUST BE SUPPORTED WITH FULL JUSTIFICATION FOR SOLE SOURCE FROM THE CUSTOMER. WHEN THE CUSTOMER DESCRIBES AN ITEM WITH A PURCHASE DESCRIPTION WHICH LIMITS THE AVAILABILITY TO ONE SOURCE, THE JUSTIFICATION MUST EXPLAIN WHY THE ITEM IS THE ONLY ONE THAT WILL MEET THE GOVERNMENT’S REQUIREMENT. STATEMENTS SUCH AS "ONLY KNOWN SOURCE" OR "ONLY SOURCE WHICH CAN MEET THE REQUIRED DELIVERY DATE" ARE INADEQUATE TO SUPPORT A SOLE SOURCE PURCHASE. Do not use marketing language in this document. Language such as “This company has made its mark,” “This company is recognized as industry’s best,” and “This company is the leader in…” is unacceptable.

PURCHASE REQUEST OR REQUISITION

NUMBER

2020342-GN01

PROJECT/TASK

NUMBER

ESTIMATED AMOUNT (Over Micro- Purchase Threshold, but up to the SAT)

$158,100.00

IDENTIFICATION OF THE AGENCY AND THE CONTRACTING OFFICE, AND SPECIFIC IDENTIFICATION OF THE DOCUMENT AS A “JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION.” PLEASE CITE THE

AUTHORITY AND TYPE OF JUSTIFICATION.

The United States Coast Guard (USCG), Aviation Logistics Center (ALC), Engineering Services Division (ESD) anticipates the award of a firm-fixed price purchase order on a sole source basis. This justification for other than full and open competition is submitted for approval in accordance with (IAW) Federal Acquisition Regulation

(FAR) 6.303-1(a) using the authority in FAR 6.302-1(b) – only one responsible source and no other supplies or services will satisfy agency requirements.

BRIEF DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED, AND THE INTENDED USE.

ESD requires the evaluation possibly leading to the repair and upgrade of the aircraft ground support equipment listed in the following table. Any resultant order will include an addenda to FAR clause 52.212-4 allowing an option to send up to an additional four (4) units for evaluation and upgrade at the same price, terms, and conditions as the original order. Repair pricing for any additional units will be negotiated according to the results of each individual unit’s evaluation.

Line # Nomenclature/Description Part Number (PN) Serial Number (SN) Quantity Optional Quantity

1 Jet-Mac Hydraulic Power Unit (HPU) 1006-SA-1-15010SP 7886-7 1 each up to four (4) each

The Jet-Mac HPU provides pressurized hydraulic fluid to the MH-65 aircraft’s hydraulic systems and components while performing ground maintenance and testing. The units requiring evaluation, repair, and upgrade are older units which were manufactured according to the original design. The Jet-Mac HPUs, as originally designed, tends to overheat when operating in hot weather due to an inadequately sized heat exchanger.

Depending on the results of evaluation and required repair costs, the USCG will determine whether to have the unit repaired and upgraded to the newer design that includes a larger heat exchanger or to scrap the unit, paying only the cost of the evaluation.

UNIQUE CHARACTERISTICS THAT LIMIT AVAILABILITY TO ONLY ONE SOURCE, WITH THE REASON NO OTHER

SUPPLIES OR SERVICES CAN BE USED.

The Jet-Mac HPU was originally designed and manufactured by McDermott Associates, Inc. (CAGE Code

30188) specifically for use on MH-65 aircraft. McDermott Associates, including all of its patents and intellectual property, was purchased by Solair Group, LLC (CAGE Code 3YWZ8) in December 2017. Solair subsequently improved the design of the Jet-Mac HPU by using a larger heat exchanger to reduce the chance of the unit overheating. Solair is the only source with legal rights to the technical information required for the evaluation and repair of Jet-Mac HPUs of either design and for their modification from the old design to the new.

The hydraulic systems on the MH-65 are peculiar in that they are comprised of a low-pressure/low-volume, 1,000 pound-force per square inch (psi) primary hydraulic system and a high-pressure/high-volume 3,000 psi secondary hydraulic system. The Jet-Mac HPU is the only HPU capable of providing both high and low hydraulic pressure simultaneously. The Jet-Mac HPU provides a singular source of hydraulic power to the aircraft during maintenance, repairs, and testing, efficiently operating hydraulics such as the critical low-pressure flight control system and the high pressure landing gear system. As the OEM, Solair owns all rights to the technical data, specifications, and drawings necessary for the evaluation, repair, and modification of these units. The rights to the technical data necessary in order to have these units services by sources other than the OEM are not owned by the Government and it has been determined that it is uneconomical to purchase these rights.

August 2020

A DESCRIPTION OF EFFORTS MADE TO ENSURE THAT QUOTATIONS OR OFFERS ARE SOLICITED FROM AS MANY

POTENTIAL SOURCES AS PRACTICABLE (INCLUDE YOUR MARKET RESEARCH EFFORTS HERE).

Thorough 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 (FLIS); Department of Defense Electronic Mall (DoD EMall); the General Services

Administration’s (GSA) on-line purchasing service – GSA Advantage!®; Inventory Locator Service e-marketplace (ILSmart); internet search engines; and the OEM’s web site. These services are not available from any mandatory Government source IAW FAR 8.002 or from any non-mandatory sources IAW 8.004. Solair does not use authorized repair stations. IAW FAR 5.101(a)(1), a combined synopsis/solicitation will be posted to the

Governmentwide Point of Entry (GPE), the Contract Opportunities section of the web site at www.sam.gov. All responsible sources may submit a capability statement, proposal, or quotation which shall be considered by the agency.

REASON THAT SUGGESTED SOURCE IS THE ONLY SOURCE WHICH CAN PROVIDE THE SUPPLIES OR SERVICES.

As the OEM of the Jet-Mac HPU, Solair owns all rights to the service manuals, technical data, performance specifications, and drawings required for its evaluation and repair. The proprietary rights to the technical data necessary in order to have this equipment serviced by other than the OEM are not owned by the Government nor are they licensed to any commercial sources.

EXPLAIN WHY AN ADEQUATE PURCHASE DESCRIPTION OR OTHER INFORMATION SUITABLE TO SOLICIT BY FULL

AND OPEN COMPETITION HAS NOT BEEN DEVELOPED OR ARE NOT AVAILABLE.

The Government does not own or possess any rights to the service manuals, technical data, performance specifications, or drawings required to service this equipment and it has been determined that it would not be economical to purchase these rights. In addition, the Government has not developed the technical data required to test and recertify the Jet-Mac HPU and has no plans to do so.

PROVIDE A STATEMENT OF ACTIONS, IF ANY, THE GOVERNMENT MAY TAKE TO REMOVE OR OVERCOME ANY

BARRIERS TO COMPETITION BEFORE FUTURE ACQUISITIONS ARE REQUIRED.

As previously stated, the Government does not own or possess any rights to the service manuals, technical data, performance specifications, or drawings required to service the Jet-Mac HPU which has prevented the USCG from being able to provide an adequate technical description to potential new sources. Therefore, it is difficult to take steps to foster competition when the service manuals, calibration, performance and testing data are proprietary to the OEM.

SIGNATURE AND TITLE OF CUSTOMER CODE TELEPHONE NUMBER DATE

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Steve Durhamxxxxxxxxxxxxxxxxxx

Item Manager – ESDxxxxxxxxxxxx

(252) 335-6571 xxxxxxxxxxxx

SIGNATURE OF CONTRACTING OFFICER CODE

TELEPHONE NUMBER

DATE

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Kathrine R. Leachxxxxxxxxxxxxxxx

Contracting Officer – ESD/IODxxx

(252) 335-6834 xxxxxxxxxxxxxx http://www.sam.gov/