Redacted J and A - 70Z03824QB0000176.pdf

March 8, 2023 Version

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.

PURCHASE REQUEST OR REQUISITION

NUMBER

4176-DF01

PROJECT/TASK

NUMBER

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

$114,457.90

CITE AUTHORITY & JUSTIFICATION TYPE – READ FAR 6.302 TO DETERMINE APPROPRIATE TYPE

10 U.S.C. § 3204(a)(1)

ONLY ONE RESPONSIBLE SOURCE AND NO OTHER SUPPLIES OR SERVICES WILL SATISFY

AGENCY REQUIREMENTS.

☐ 10 U.S.C. § 3204(a)(2) UNUSUAL AND COMPELLING URGENCY

10 U.S.C. § 3204(a)(3)

INDUSTRIAL MOBILIZATION; ENGINEERING, DEVELOPMENTAL, OR RESEARCH CAPABILITY; OR

EXPERT SERVICES

☐ 10 U.S.C. § 3204(a)(4) INTERNATIONAL AGREEMENT

☐ 10 U.S.C. § 3204(a)(5) AUTHORIZED OR REQUIRED BY STATUTE – MUST PROVIDE IT

☐ 10 U.S.C. § 3204(a)(6) NATIONAL SECURITY

☐ 10 U.S.C. § 3204(a)(7) PUBLIC INTEREST [SECRETARY OF HOMELAND SECURITY NEEDS TO APPROVE THIS DOC]

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

This procurement order is for the following parts to be utilized on the MH-65 helicopter: Three (3) Valve

(P/N: 861C010102, NSN: 4820-14-464-2750). With a request to repair an optional quantity of Seven (07).

within one year, 365 calendar days from date of award.

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

SUPPLIES OR SERVICES CAN BE USED.

The repair to be performed under this acquisition involves highly specialized electronic piece parts, designed, and manufactured by a non - Government activity. Technical data required for acquisition by other than the OEM or an OEM authorized repair facility is not available. Because of limited available sources the Coast Guard had previously conducted a sources sought capability completing a fit, form, and function authorizing a sole source repair to Coastal Mechanics LLC. (Cage: 5N111). The solicitation and resulting repair order will require all materials delivered to have clear, documented traceability to the

OEM and a completed Certificate of Conformance, certifying compliance with this contract condition, in accordance with FAR clause 52.246-15, Certificate of Conformance, which will incorporated on the resulting purchase order.

https://www.acquisition.gov/far/part-6#FAR_6_302 https://www.govinfo.gov/link/uscode/10/3204 https://www.govinfo.gov/link/uscode/10/3204 https://www.govinfo.gov/link/uscode/10/3204 https://www.govinfo.gov/link/uscode/10/3204 https://www.govinfo.gov/link/uscode/10/3204 https://www.govinfo.gov/link/uscode/10/3204 https://www.govinfo.gov/link/uscode/10/3204

March 8, 2023 Version

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).

Liebherr-Aerospace Toulouse SAS (CAGE F1958) is the OEM for the component identified in this requirement and no longer provides repair services and no OEM authorized repair facilities have been identified. To date the only USCG approved source for repair of the identified component in this requirement is Coastal Mechanics Company, Inc. (5N111), whose repair procedures and data are protected under proprietary data rights. Coastal Mechanics Company, Inc. is the only USCG authorized facility with the technical expertise to interpret the data and ability to solve technical problems, all of which are vital for the continued operational readiness of the identified component. However, the USCG will review acceptable quotes for these components from any OEM approved authorized repair facilities, should any be identified. The solicitation and resulting purchase order will require all materials delivered to have clear, documented traceability to the OEM and a completed Certificate of Conformance, certifying compliance with this contract condition, in accordance with FAR clause 52.246-15, Certificate of

Conformance, which will be incorporated.

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

Due to the age of the components in this requirement, they are no longer procurable or repairable through the OEM. Therefore, the USCG approved the following proprietary engineering change with Coastal

Mechanics (16001-861C01010X-ML-ECP rev 2) authorizing the vendor to test, repair and make modification criteria for the services listed in the schedule. The referenced ECP is proprietary to Coastal

Mechanics Company, Inc. Based upon the technical certification on file, technical data is not available and cannot be developed to permit full and open competition.

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 USCG did not purchase data rights as part of the initial system acquisition of the MH-65 aircraft and did not purchase data rights to the approved ECP. The required specifications of suitable alternate parts would not be sufficient for selection. After receiving responses from the solicitation, an initial test and evaluation would have to be completed on the aircraft to ensure compatibility. It would not be cost or time effective to test multiple repair procedures from multiple sources due to time restraints of Coast Guard

Air Stations testing procedures.

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

BARRIERS TO COMPETITION BEFORE FUTURE ACQUISITIONS ARE REQUIRED.

Coastal Mechanics Company, Inc. owns the proprietary data rights, specifications, and drawings to repair these components back to OEM specifications, which has limited the USCG’s ability to provide adequate technical descriptions to potential new manufacturers. Therefore, it is difficult to take steps to foster competition as the repair data is proprietary to the Coastal Mechanics Company, Inc.

SIGNATURE AND TITLE OF CUSTOMER

Vernon Clark

CODE

DF

TELEPHONE

NUMBER

252-335-6641

DATE

06/26/24

SIGNATURE OF CONTRACTING OFFICER

CODE TELEPHONE

NUMBER

DATE