Redacted JA 70Z03821DB2000185.pdf

Justification for Other Than Full and Open Competition Under 41 U.S.C. § 1901

Solicitation No: 70Z03821QB2000185

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, United States Coast Guard (USCG), Aviation

Logistics Center (ALC), Short Range Recovery (SRR) Procurement Division proposes to enter into a contract on the basis of other than full and open competition.

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

(a) The USCG, ALC, SRR Procurement Division intends to procure on a sole source basis various spare parts used on the USCG MH-65 aircraft. The parts are manufactured by Airbus Helicopters, France

(AHF), the Original Equipment Manufacturer (OEM). The only authorized distributor in North America is Airbus Helicopters, Inc.

(AHI) who handles the parts and products on behalf of the manufacturer as indicated in attachment 1.

(b) Airbus Helicopters, Inc.

2701 Forum Drive

Grand Prairie, TX 75052

Cage Code: 3GSZ1

(c) Type of action: Firm Fixed-Price (FFP) Purchase Order utilizing FAR

13.5 to procure spare parts to ensure adequate spare parts for the MH65 aircraft fleet.

(d) Estimated total value (including options): $325,428.00

Nomenclature National Stock

Number

Part Number Original

Quantity

Unit Price Amount

Gear Rear Bevel 3040-01-HS2-1884 360A32-1218-09 11 EA $25,000.00 $275,000.00

Rotor Brake Disk 1630-14-374-1761 360A32-1093-20 14 EA $3,602.00 $50,428.00

Estimated Total Value of Original Order $325,428.00

(e) Type of funding: Allotment Fund Control, 41, Aeronautical Engineering

Operations and Support (O&S) funds.

(f) Year of funding: Fiscal Year 2021.

(g) Solicitation number: 70Z03821QB2000185

(h) Background information about the requirement: The items in this requirement are assigned an Acquisition Method Code (AMC) of five

(5) which designates “Acquire from Sole Source Contractor which is not the Original Manufacturer” and/or an AMC of three (3) which designates “Acquire directly from the actual manufacturer, whether or not the prime contractor is the actual manufacturer”. In addition, all the items are designated an Acquisition Method Suffix Code (AMCS) of R or Q, both of which state the Government does not have adequate data needed to purchase the items from additional sources.

3. Description of Supplies/Services. As the Aviation Inventory Control Point (AICP), ALC must provide effective supply support for all USCG aviation units and for the

Programmed Depot Maintenance (PDM) program. This requirement is to be awarded to the OEM, or a responsible source that has access to the original OEM parts and can provide traceability. These parts are based on current and past usage data. Projected stocking levels are based on failure and corrosion trends, current upgrades, and modifications in process, experience, projected scrap rates, and procurement lead times.

Stock level recommendations are also obtained from the USCG’s forecasting tool to help ensure we can support all mission requirements. The part numbers included in this J&A are identified in paragraph 2.

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 the FAR Subpart 13.501(a) “Sole Source (including brand name) acquisitions.” Responsible sources are limited to the Original Equipment

Manufacturer (OEM) and their authorized distributors.

5. Identification of Exception to the Buy American Act. The exception to the Buy

American FAR 25.104 Non-available Articles – Spare and replacement parts for equipment of foreign manufacture, and for which domestic parts are not available applies to this acquisition.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Require Use of the Authority Cited. ALC has a requirement to purchase on a recurring basis, spare parts manufactured by the OEM, AHF. The OEM has one (1) authorized distributor for North American customers, their affiliate, AHI, located in Grand

Prairie, TX.

The USCG self certifies its aircraft in accordance with the standards established by the Code of Federal Regulations (CFR) and the Federal Aviation Administration (FAA).

The CFR Title 14, Aeronautics and Space, Part 21, Certification Procedures for Products and Articles, governs the procedural requirements for issuing and changing design approvals, production approvals, airworthiness certificates, and airworthiness approvals. 14

CFR 21 defines airworthiness approval as a document, issued by the FAA for an aircraft, aircraft engine, propeller, or article which certifies that the aircraft, aircraft engine, propeller, or article conforms to its approved design and is in a condition for safe operation.

The USCG will only procure parts which have airworthiness approval. In accordance with

14 CFR 21.9, with limited exceptions, only a replacement or modification article produced under a type certificate or produced under a FAA production approval is suitable for installation on a type-certificated product.

Title 14 of the CFR Subpart K covers the procedures for the FAA Parts Manufacturer

Approval (PMA). The FAA PMA process is acceptable for an alternate manufacturer for the parts listed in this requirement provided that the vendor submits a complete data package ensuring that the part meets or exceed OEM specifications and subsequently passes the

USCG form, fit, and function requirements. To date, there are no known approved FAA

PMA’s for the parts listed in this solicitation.

The FAA issued Advisory Circular (AC) 20-62 to provide information and guidance for use in determining the quality, eligibility and traceability of aeronautical parts and materials intended for installation on US type-certificated products and articles, and to enable compliance with Title 14 of the CFR. The AC states that acceptable replacement articles should be identified using one of the following methods:

1) Airworthiness Approval Tag (FAA Form 8130-3);

2) Foreign manufactured replacement parts when there is a Bilateral Airworthiness

Agreement (BAA) between the country of manufacture and the United States. This certification may be verified on a form similar to the FAA Form 8130-3 (i.e.

European Aviation Safety Agency (EASA) Form One);

3) FAA Technical Standard Order (TSO) markings;

4) FAA PMA symbol

5) Production Approval Holder’s (PAH) documents or markings;

6) Direct ship authority. In order for manufactured parts with direct ship authority to be recognized as being produced under a manufacturer’s FAA production approval, the manufacturer must specifically authorize the shipping supplier, in writing, and must establish procedures to ensure that the shipped parts conform to the approved design and are in a condition for safe operation;

7) Maintenance release document;

8) Identification of critical components; and

9) Marking of life-limited parts.

The AC also states that aircraft part distributors and aircraft supply companies cannot certify the airworthiness of the parts they advertise and/or sell, unless they are a PAH. Therefore, it is the installer’s responsibility to ensure airworthiness and to request documentation establishing traceability to a PAH.

Parts provided that do not meet the CFR and FAA requirements could compromise structural and system integrity of the aircraft putting aircrew personnel and Government property at risk. The USCG neither compromises nor makes exceptions in matters of human safety and protection of Government property and does not accept lower standards in these matters.

Use of OEM parts will ensure the parts are manufactured in accordance with OEM specifications and standards, conform to original form, fit, and function, and are compatible and interchangeable with existing components. AHF is the OEM of the MH-65 aircraft and has one (1) authorized distributor for North America sales, AHI located in Grand Prairie, TX.

AHF provided written notification on February 5, 2021 stating that AHI is their only approved source of supply in North America for parts and products for the MH-65 aircraft.

They further advised they cannot be held liable, provide part certifications or warranty protection on parts purchased from brokers, vendors or any third parties and will not release drawings or data rights to any outside party for the purpose of reverse engineering or re-manufacturing under different part numbers.

AHI is the only known company that can provide the EASA Form One and traceability to the

OEM as required by the CFR and FAA.

(a) The use of 41 U.S.C. 1901 as implemented by the FAR Subpart 13.501(a) Sole Source

(including brand name) Acquisitions is necessary because AHI is the only OEM authorized distributor in North America.

(b) In attempt to promote competition, extensive market research was conducted.

However, because of the OEM having only one (1) authorized distributor, the probability of any distributors obtaining prices for the part numbers in the requirement are unlikely.

(c) Alternative sources (OEM) could not be considered due to there are no known approved FAA PMA for the parts in the solicitation that meets or exceed OEM specifications and subsequently passes the USCG form, fit, and function requirements.

In addition, there is only one (1) North American OEM authorized distributor.

(d) In order to maintain structural integrity of the aircraft and ensure complete compatibility of replacement parts, the parts listed in this requirement must be obtained from the OEM or an OEM approved source. Parts produced by another manufacturer will compromise structural and system integrity of the aircraft putting aircrew personnel and government property at a safety of flight risk. The USCG neither compromises nor makes exceptions in matters of human safety and protection of

Government property and does not accept lower standards in these matters. Therefore, the mission will be impacted as of a result of this J&A not being approved as stated above and not having these parts will negatively impact flight operations of the SRR aircraft and progress of Programmed Depot Maintenance. In a fiscal and stock age environment requiring minimal investment in inventory, it is critically important to secure a reliable supplier that can satisfy the contractual requirements needed to react to ever changing mission requirements.

(e) This J&A is using the authority other than full and open competition 41 U.S.C. 1901 as implemented by the FAR Subpart 13.501(a) “Sole Source (including brand name)

Acquisitions”. The parts in the requirements are spare parts utilized on the USCG MH-

65/SRR aircraft. These parts must be manufactured by the OEM and procured from

AHI, their only North America authorized distributor capable of fulfilling the requirement. Any other manufacturers/contractors are unable to meet the requirements, because parts produced by another manufacturer/contractor may compromise form, fit, and function, which could comprise the functionality and dependability of the spare parts in the requirement thereby creating a safety of flight risk. A safety of flight risk is never acceptable, therefore, no alternate parts, or deviations from OEM specifications will be considered for this purchase.

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

Potential Sources as is Practicable.

(a) This procurement forecast is posted on the DHS-Acquisition Planning Forecast System

(APFS) Number F2021054503 at http://apfs.dhs.gov, published 18 May 2021 and included in the DHS Forecast of Small Business Opportunities. There were no inquiries received in response to the published APFS. .

(b) The proposed contract action will be advertised on the Contract Opportunities website www.beta.sam.gov as a combined sole source synopsis solicitation. IAW FAR

5.207(c)(16)(ii), the synopsis will include a statement that all responsible sources may submit a proposal with a capability statement, which shall be considered by the agency.

(c) An announcement shall be published, therefore an exception under FAR 5.202 is not applicable.

(d) An announcement shall be published prior to award, therefore an exception under FAR

6.305 is not applicable.

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. This is based on comparison of proposed prices found reasonable on previous purchases, comparison with similar items in a related industry, discount pricing offered from AHI catalog pricing, and comparison to the Independent Government Cost Estimate (IGCE).

9. Description of Market Research. Market research is required by FAR Part 10, and the results of the market research should be summarized here. Including the following information:

(a) Market research was conducted during April 2021 and revealed the commercial marketplace consists of only one source capable of satisfying this requirement. Based on the extensive procurement history of the aircraft parts listed in this requirement in conjunction with the statement provided by the OEM a Sources Sought Notice was not issued because the procurement situation would not change. The USCG will maintain open communications with the OEM and will continually conduct market surveys to http://apfs.dhs.gov/ identify possible additional sources that may eventually receive OEM authorization to sell AHF products to North American customers.

(b) This J&A requirement does not include the exceptions at FAR 25.103(b)(2) or FAR

25.202(a)(2) for the Buy American Act.

(c) Market research was conducted; therefore, this section does not apply.

(d) This requirement does not have or required patents, copyrights and/or intellectual property.

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

(a) The USCG does not own the necessary technical data required to support the manufacture of the required parts. The drawings and technical data are proprietary and available only from the OEM. The USCG did not purchase the rights as parts of the original acquisition. Due to the proprietary rights, it will be difficult to take steps to foster competition.

(b) The parts in the schedule cannot be reversed engineer and/or modified by other sources, because in order to maintain structural integrity of the aircraft and ensure complete compatibility of replacement parts the parts listed in this requirement must be obtained from the OEM or an OEM approved source.

(c) The proposed contract shall not be subject to restrictions of FAR 6.302-1 for follow-on acquisitions as described in 6.302(a)(2)(iii).

(d) The proposed contract shall not be subject to the restrictions of FAR 6.302-2(d) or

HSAR 3006.302-270.

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

Acquisition. No other sources have expressed interest in this acquisition. The

Contracting Officer will evaluate any inquires or responses received prior to the award of contract. AHI is the only North American distributor authorized by the

OEM to sell the parts identified in this requirement. The proposed contract action will be advertised on the beta.sam.gov website and will include a statement that all responsible sources may submit a proposal with a capability statement, which shall be considered by the agency.

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.

(a) Complete specifications and drawings for the components are proprietary to the

OEM and therefore not available to the USCG. The USCG does not possess the technical expertise nor the software data rights for the components. It is difficult to take steps to foster competition as the manufacturing, performance, and acceptance data are proprietary to the OEM. As the Aviation Inventory Control

Point (AICP), ALC is tasked with supporting systems that have been deployed for use in the aviation community. In an effort to increase competition among manufacturers, affiliates, and distributors, SRR Product Line members attend annual aviation trade shows and host industry days at the ALC.

(b) Extensive internet database research is conducted and requirements are advertised on Contract Opportunities (beta.sam.gov). In support of the Competition in

Contracting Act, ALC established the New Product Development Branch (NPD) and a representative of the NPD Branch is assigned to the SRR Product Line. This representative has the responsibility to search for alternate sources of supply/services and alternate acceptable products. Engineering, Contracting and

NPD representatives continuously conduct market research to ensure that companies interested in doing business with the USCG are given every opportunity to compete for requirements. NPD is exploring avenues of reverse engineering for some of the hard to find or expensive to repair items, which should further encourage competition; however, this process is lengthy, costly and labor intensive.

The remainder of this page intentionally left blank

13. Contracting Officer’s Certification.

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Date

Contracting Officer

14. Technical/Requirements Personnel Certification.

I certify that this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for the justification, is accurate and complete.

J’lkskajf’kasf

Fa’;lfk’akf’_______________________________ ___________

Melissa Hardwick Date

Technical Representative/COR

APPROVAL:

Final approver if total estimated value does not exceed $750K and

Signature still required here if total estimated value exceeds $750K:

Kjflaksflkasj’flalfka

Date

Contracting Officer