MRS REPAIR SOLICITATION BASIC INFORMATION PACKET - FY23 - OCT2022.pdf

USCG ALC MRS

Simplified Acquisitions Procedures

FY23 GENERAL SOLICITATION INFORMATION PACKET FOR

AIRCRAFT COMPONENT REPAIR/OVERHAUL SERVICES

This Packet is current as of 25 OCT 2022

THIS GENERAL INFORMATION PACKET FOR SAP COMPONENT

REPAIR/OVERHAUL SERVICE SOLICITATIONS CONTAINS:

Simplified Acquisitions Contracting Officer’s Explanatory Statement regarding the quote evaluation process.

Common Q&A for quoting USCG ALC MRS Repairs or Overhauls.

Simplified Acquisitions Contracting Officer’s Explanation: What makes a vendor Capable?

Notice for Filing Agency Protests / USCG Ombudsman Program

UNITED STATES COAST GUARD AVIATION LOGISTICS CENTER

MEDIUM RANGE SURVEILLANCE CONTRACTING / SIMPLIFIED ACQUISITIONS

IMPORTANT NOTE: The words “Repair” and “Overhaul” are interchangeable for the purpose of this document.

Our quote evaluation process pertains to the use of verbal quotes (to include email) under $25K, an Annual Broad Agency Announcement in lieu of a Special Notice of Intent to Award ($15K to $25K), or an over $25K Combined Synopsis/Solicitation posted on FBO.GOV for firm-fixed-price component repairs/overhauls, or in rare circumstances, when insufficient service history exists, an average repair price estimate subject to firm-fixed-pricing after Teardown, Test, and Evaluation (TT&E). The HC27J Aircraft is considered a military aircraft, not a commercial aircraft. Although the HC-144 Aircraft is considered a commercial aircraft, through militarization, it is not available for sale to the commercial world in its complete U. S. Coast Guard configuration, but a commercial base model is available for commercial sale by the Aircraft OEM. While some systems are not, many systems on the HC-144 are compatible to their comparable commercial counterpart and those components and their repair services would be considered available by the OEM to the commercial world and therefore a commercial procurement at a firm and fixed service price.

1. USCG ALC MRS EVALUATION PROCESS OF A QUOTE RECEIVED PROPOSING A “COMMERCIAL FIRM-FIXED-PRICE” REPAIR.

USCG ALC MRS will first determine that the component repair (service) process can be considered “Commercial” in accordance with the guidelines as defined in the Federal Acquisitions Regulations, by ensuring that the quoted Firm- Fixed-Price is available to the commercial world for the same service, and that such price is not subject to change after the Test, Teardown, and Evaluation (TT&E) of the component. Unexpected increases in market prices of required piece parts in the standard repair as directed by the applicable OEM service data will not be considered an exception for Firm-Fixed-Pricing. Firm-fixed-price quotes must be based on the current OEM, or if included a special statement of work, repair/overhaul data parameters.

USCG ALC MRS must be able to determine a FFP Repair Quote as Fair and Reasonable based on competition, and/or available government repair history and/or service history as provided by the quoting party, and that it is more cost effective to the government to pay an upfront firm-fixed-price for such repair over a post TT&E exact quoted repair price.

2. USCG ALC MRS EVALUATION PROCESS OF A QUOTE RECEIVED PROPOSING A NOT-TO-EXCEED TT&E AND ESTIMATED

REPAIR COST” QUOTE FOLLOWED BY A POST TT&E ACTAUL FIRM-FIXED-PRICE REPAIR QUOTE.

USCG ALC MRS will first determine that the component repair (service) does not reasonably appear to meet the criteria of a upfront firm-fixed-pricing, and that the specific work proposed to be done is unique to that specific component as required by the government, directly or indirectly, and the vendor cannot be expected to reasonably determine the firm-fixed-service price prior to performing TT&E. IMPORTANT NOTE: USCG ALC MRS has determined that the “Commerciality” of the service is determined by the citing the availability of the same process TT&E + Firm-Fixed-Price Quote process to the Commercial World.

USCG ALC MRS must be able to determine that the proposed quote encompasses a post evaluation TT&E + REPAIR price and is determined to be “Fair and Reasonable in comparison to historical data and factoring the cost of buying new.

3. Capable Vendors may submit a Firm-Fixed-Price Repair Quote, a Not-To-Exceed (Average) Repair Price Quote, or both. Firm-Fixed-Price Repair Quotes are preferred. Additional options under Not-To-Exceed (i.e. with certain stipulations) may also be submitted. However, firm-fixed-price quotes must be based on the current OEM, or if included a special statement of work, repair/overhaul data parameters. While Low Price Technically Acceptable is the preferred selection method, the USCG ALC MRS Simplified Acquisitions Team will weigh all quotes received and will award based on mission requirements and what quote they believe offers the best overall value to the government.

REPAIRS: HELPFUL INFORMATION THROUGH Q&A

(A USCG ALC MRS GUIDE TO QUOTING AIRCRAFT COMPONENT REPAIRS UNDER THE SIMPLIFIED ACQUISITION THRESHOLD)

Vendors often have questions regarding aircraft component repairs and overhauls. With frequent changes to the Federal Acquisition Regulations (FAR) it’s not surprising. Rather than writing a comprehensive guide that would only serve to reiterate what is already written in the FAR and other agency instructions, below are answers to commonly asked questions that will help you to navigate through these sometimes murky waters.

Q: What is Simplified Acquisition Procedures (SAP) or Simplified Acquisitions?

A: Simplified Acquisitions is the procurement of supplies or services which fall below the FAR’s established threshold (i.e. Simplified Acquisition Threshold or SAT). The current SAT is $250K (higher under very special specific circumstances). The key word to remember is “simplified” although it may not seem so at times.

Many of the FAR Clauses required in formal government contracting (procurements over the SAT) are not required in SAP and in some cases are considered unlawful to apply. The government views the exclusion of such formal clauses as a means of reducing the administrative burden associated with processing, and to provide, a means for expeditious processing. The government has determined that the administrative cost savings associated with doing business under Simplified Acquisitions far outweigh any benefit gained from the more formal contract method. Philosophically: The more detailed a Simplified Acquisition becomes, the farther we move away from the key philosophy of being good stewards of taxpayer money.

Q: Officially, what is the difference between a Repair and an Overhaul?

A: The best explanation can be found in FAR Part 22.1003-6 (repair distinguished from remanufacturing of equipment). However, it can be explained relatively simply through two key points as follows: IAW current Original Equipment Manufacturer (OEM) data, the government, not the vendor, determines if it is a repair or overhaul. The FAR dictates a very thorough list of requirements be met before a component repair can actually be deemed an overhaul. Therefore, the majority of component servicing will be considered repairs.

22.1003-6 Repair distinguished from remanufacturing of equipment.

(a) Contracts principally for remanufacturing of equipment which is so extensive as to be equivalent to manufacturing are subject to 41 U.S.C. chapter 65, rather than to the Service Contract Labor Standards statute. Remanufacturing shall be deemed to be manufacturing when the criteria in either paragraphs (a)(1) or (a)(2) of this section are met.

(1) Major overhaul of an item, piece of equipment, or material which is degraded or inoperable, and under which all of the following conditions exist:

(i) The item or equipment is required to be completely or substantially torn down into individual component parts.

(ii) Substantially all of the parts are reworked, rehabilitated, altered and/or replaced.

(iii) The parts are reassembled so as to furnish a totally rebuilt item or piece of equipment.

(iv) Manufacturing processes similar to those which were used in the manufacturing of the item or piece of equipment are utilized.

(v) The disassembled components, if usable (except for situations where the number of items or pieces of equipment involved are too few to make it practicable) are commingled with existing inventory and, as such, lose their identification with respect to a particular piece of equipment.

(vi) The items or equipment overhauled are restored to original life expectancy, or nearly so.

(vii) Such work is performed in a facility owned or operated by the contractor.

(2) Major modification of an item, piece of equipment, or material which is wholly or partially obsolete, and under which all of the following conditions exist:

http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3

(i) The item or equipment is required to be completely or substantially torn down.

(ii) Outmoded parts are replaced.

(iii) The item or equipment is rebuilt or reassembled.

(iv) The contract work results in the furnishing of a substantially modified item in a usable and serviceable condition.

(v) The work is performed in a facility owned or operated by the contractor.

(b) Remanufacturing does not include the repair of damaged or broken equipment which does not require a complete teardown, overhaul, and rebuild as described in subparagraphs(a)(1) and (a)(2) of this subsection, or the periodic and routine maintenance, preservation, care, adjustment, upkeep, or servicing of equipment to keep it in usable, serviceable, working order. Such contracts typically are billed on an hourly rate (labor plus materials and parts) basis. Any contract principally for this type of work is subject to the Service Contract Labor Standards statute. Examples of such work include the following:

(1) Repair of an automobile, truck, or other vehicle, construction equipment, tractor, crane, aerospace, air conditioning and refrigeration equipment, electric motors, and ground powered industrial or vehicular equipment.

(2) Repair of typewriters and other office equipment (but see 22.1003-4(c)(1) and (d)(1)(iv)).

(3) Repair of appliances, radios, television sets, calculators, and other electronic equipment.

(4) Inspecting, testing, calibration, painting, packaging, lubrication, tune-up, or replacement of internal parts of equipment listed in subparagraphs(b)(1), (b)(2), and (b)(3) of this subsection.

(5) Reupholstering, reconditioning, repair, and refinishing of furniture.

Q: If it is a repair, when are the Service Contract Labor Standards (SCLS); formerly the Service Contract Act or SCA, required to be applied to a service Purchase Order?

A: Under Firm-Fixed-Price Commercial Procurement, the SCLS is applied to all component service orders. The two exceptions are the procurement of the service is less than $2500.00, or, the OEM or their Authorized Repair Facility has formally claimed exemption to the SCLS in SAM.GOV. In such circumstances, they must formally claim the exemption in accordance with FAR 22.1003-4(d)(2)(vii) from compliance with the SCLS. If not claimed in SAM.GOV, simple templates for Certificates of Exemption are available upon request.

Q. What is the difference between a Commercial Repair and an Other-Than-Commercial Repair?

A: Under Simplified Acquisitions Procedures, the FAR allows Contracting Officers a certain amount of latitude when determining whether a service is considered commercial or other-than-commercial. Through common-sense deduction, one must start with the definition of “Commercial Item” as outlined in FAR 2.101 and how such equates to “Commercial Component Repair or Overhaul Services”. USCG ALC MRS determines “commerciality” by the availability of the vendor’s service process to the Commercial World. A common misconception is that an item designated a “Commercial Item” would therefore be a Commercial Repair. Such is not always the case. In actuality, they are two distinctly different designation scenarios. To synopsize, the commerciality of the repair process, not the component or the upfront service price itself, determines whether the repair is considered Commercial. Therefore, in most cases, a repair/overhaul service will be considered commercial, and under rare circumstance where an unpriced order is necessary, the words, if used on the purchase order, “Not-To-Exceed” will not automatically be considered Other-Than-Commercial.

https://www.acquisition.gov/far/22.1003-4#FAR_22_1003_4

REPAIRS: HELPFUL INFORMATION THROUGH Q&A (Continued)

Q: When referred to in the same document as the OEM, what is the meaning of PAH or Production Approval Authority?

A: PAH is the holder of a Production Certificate (PC), approved Production Inspection System (APIS), a Part Manufacturer Approval (PAH), or a Technical Standard Order (TS) authorization. This entity controls the design and quality of the product or part. The holder or a production certificate must meet specifics certain requirements IAW 14 CFR 21.146.

Q: With regard to Shipping Charges, from a contracting perspective, what is the difference between FOB (Free On Board) Origin, and FOB Destination?

A: If the quote is FOB Origin, the vendor has not incorporated the cost of return shipping to the Coast Guard in the individual repair price of the item, and you will be showing the shipping charge as a separate line item on your final invoice. If you quote FOB Destination, you have already incorporated the price of the return shipping in the price of the repair, and no separate shipping and handling charges will be on the final invoice.

Q: With regard to repairs/overhauls, what is meant by the statement “vendor must be deemed capable”?

A: When dealing with aircraft components, installation of a wrong or defective component or part can result in a loss of mission readiness, an expensive asset, and more importantly, it’s Aircrew. Any vendor (except the OEM or PAH) repairing Coast Guard Aircraft Components must have their own facility, be FAA 145 certified, and perform at least 50% of the work at their company’s FAA certified facility. Therefore, due to Airworthiness and Chain of Custody requirements, Coast Guard Aircraft Components cannot be “farmed out” to other facilities by a non-facility entity. Unless otherwise directed by the Contracting Officer, awards for repairs or overhauls will only be awarded to service vendors that Coast Guard Engineers or Equipment Specialists have fully vetted (desk audits, site visits, etc…) and have determined them “capable” to perform the required work on site at that contractor’s own facility.

*IMPORTANT NOTE: Factoring budget forecast requirements, when in receipt of evaluation (TT&E Only) or baseline price quotes only, the government reserves the right to award a purchase order based on the government’s estimate of the repair or overhaul as applicable based on the government’s historical pricing data.

ON USING, OR BEING PROVIDED, THE U.S. COAST GUARD AS A BUSINESS REFERENCE: Many vendors cite the government in their business references. While they are entitled to do so, we are not permitted to directly comment, nor provide a professional or personal opinion, regarding another vendor’s Work Quality, Delivery Time, Past Performance, etc… For such information, the Coast Guard will only report contract performance factors into the Contractor Performance Assessment Reporting

System (cpars.gov).

https://cpars.gov/ https://cpars.gov/

Aircraft Component Repairs: Determining a Service Vendor’s Capability to perform these services for the USCG ALC MRS HC-144 or HC27J Aircraft.

If you have never been determined “capable of performing repairs or overhauls” for us, and would like the U. S. Coast Guard Aviation Logistics Center Medium Range Surveillance Division (USCG ALC MRS) to consider your company for future aircraft component repairs or overhauls, the following information is required.

IMPORTANT NOTE: With exception of the Aircraft OEM or Component Production Approval Holder (PAH), a capable service vendor must be deemed capable by USCG ALC MRS Division’s Engineering Department and therefore must be an FAA Part 145 Certified Service Facility, and/or an OEM Approved Service Facility, be in legal possession of all current OEM data required to complete the servicing (repair/overhaul), and be able to certify that final assembly and testing will be conducted at their facility (NOT a sub-contractor’s facility). Our Equipment Specialists and/or Engineers evaluate a company’s capability to perform repairs on government owned components or provide replacement parts IAW current U. S. Government regulations. NOTE: In this process, the USCG does not “approve” nor “determine the eligibility of” any vendor. The USCG only evaluates vendor capabilities to perform the services required to meet the USCG’s mission.

While the following may not be all inclusive, at a minimum a Capable Repair/Overhaul Vendor must:

o Perform at least 51% of the repair/overhaul at their company’s facility, not sub-contract it out.

o Be able to provide the following certifications:

o FAA Part 145 with current Capabilities Listing o OEM (If applicable) authorization as a Licensed Repair Facility o ISO registration (If registered) o If OEM or the exclusive OEM Repair Facility, a Service Contract Labor Standards

Exemption entry in SAM.GOV, or a Service Contract Labor Standards Exemption Certificate, if applicable, IAW the Federal Acquisition Regulations (MRS Contracting can provide a pre-approved blank SCA Exemption Certificate if requested).

o Be able to prove Licensed/Authorized use of the applicable OEM Technical Data and/or Component Maintenance Manual reference(s) and revision(s) date for the component requiring repair and/or overhaul.

o Be able to prove they have a secure storage area for government material while at their facility.

o Be able to provide OEM traceability/certifications, and Federal Aviation Administration Air Worthiness Certificate FAA 8130-3 or OEM Certificate of Conformance (COC).

Note: FAA 8130-3 is preferred.

o Be able to prove piece parts are factory new and available, or if PMA piece parts or not factory new, that approval has been granted for use of such parts by the ALC MRS Engineering Officer.

NOTE: For FAA Product Manufacturing Authority (PMA) parts, a complete data package (FAA 8110-3) proving that the part(s) meet or exceed the original part’s Form, Fit, & Function requirements. Data package must be submitted to USCG ALC MRS Engineering Officer for review and approval.

USCG ALC SAP Contracting Officer – 6DEC2017 Reviewed: JAS/13JUL2022

NOTICE FOR FILING AGENCY PROTESTS

United States Coast Guard Ombudsman Program

It is the policy of the United States Coast Guard (USCG) to issue solicitations and make contract awards in a fair and timely manner. The Ombudsman Program for Agency Protests (OPAP) was established to investigate agency protest issues and resolve them without expensive and time- consuming litigation. OPAP is an independent reviewing authority that is empowered to grant a prevailing protester essentially the same relief as the Government Accountability Office (GAO).

Interested parties are encouraged to seek resolution of their concerns within the USCG as an Alternative Dispute Resolution (ADR) forum rather than filing a protest with the GAO or some external forum. Interested parties may seek resolution of their concerns informally or opt to file a formal agency protest with the Contracting Officer or Ombudsman.

Informal Forum with the Ombudsman. Interested parties who believe a specific USCG procurement is unfair or otherwise defective should first direct their concerns to the applicable Contracting Officer. If the Contracting Officer is unable to satisfy their concerns, interested parties are encouraged to contact the U.S. Coast Guard Ombudsman for Agency Protests.

Under this informal process the agency is not required to suspend contract award performance. Use of an informal forum does not suspend any time requirement for filing a protest with the agency or other forum. In order to ensure a timely response, interested parties should provide the following information to the Ombudsman: solicitation/contract number, contracting office, Contracting Officer, and solicitation closing date (if applicable).

Formal Agency Protest with the Ombudsman. Prior to submitting a formal agency protest, protesters must first use their best efforts to resolve their concerns with the Contracting Officer through open and frank discussions. If the protester’s concerns are unresolved, an Independent Review is available by the Ombudsman. The protester may file a formal agency protest to either the Contracting Officer or as an alternative to that, the Ombudsman under the OPAP program.

Contract award or performance will be suspended during the protest period unless contract award or performance is justified, in writing, for urgent and compelling reasons or is determined in writing to be in the best interest of the Government. The agency’s goal is to resolve protests in less than 35 calendar days from the date of filing. Protests shall include the information set forth in FAR 33.103(d) (2). If the protester fails to submit the required information, resolution of the protest may be delayed or the protest may be dismissed. To be timely protests must be filed within the period specified in FAR 33.103(e). Formal protests filed under the OPAP program should be submitted electronically to OPAP@uscg.mil and the Contracting Officer or by hand delivery to the Contracting Officer.

Election of Forum. After an interested party protests a Coast Guard procurement to the Contracting Officer or the Ombudsman, and while the protest is pending, the protester agrees not to file a protest with the GAO or other external forum. If the protest is filed with an external forum, the agency protest will be dismissed.

mailto:OPAP@uscg.mil