Servo J-and-A (Public Release Version).pdf

Commandant, US Coast Guard (CG-9127) 2703 Martin Luther King Jr. Ave SE, Stop 7828

Washington, DC 20593-7828

Source Selection Information - See FAR 2.101 and FAR 3.104

Justification for Other Than Full and Open Competition Under 10 U.S.C. 2304 (c)(1)

Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3 and in accordance with the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 is justified by the following facts and rationale required under FAR 6.303-2 as follows:

(1) Agency and Contracting Activity.

The Department of Homeland Security (DHS), United States Coast Guard (USCG) Headquarters, Office of Contract Operations – Formal Contracts Division VII (CG-9127), Washington, D.C., 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.

This Justification and Approval (J&A) authorizes and approves, on a sole source basis, the procurement, production, and delivery, of Automatic Flight Control System (AFCS) components, specifically the yaw servos and collective servos. The AFCS components are Original Equipment Manufacturer (OEM) products from Rockwell Collins, whose address is below:

Rockwell Collins, Incorporated 440 Collins Road NE Cedar Rapids IA 52498-0505 Data Universal Numbering System (DUNS): 081306302

Historically, USCG procured these supplies from Rockwell Collins via orders such as HSCG38-09-J- B31102, under contract DTCG38-03-D-200011. That contract expired on 30 November 2010.

USCG intends to execute these requirements under a two-year Firm-Fixed-Price (FFP) commercial contract with Rockwell Collins. The contract will consist of one (1) twelve-month base period and one

(1) twelve-month option period.

The solicitation number will be # 70Z02320QAHH00500.

The type of funding used will be Fiscal Year 2019 USCG Procurement, Construction, and Improvement (PC&I) funds, which is available for obligation up to five (5) years after appropriation.

The expected period of performance details are in Table 1 below.

Table 1 – Period of Performance and Estimated Total

Period Dates Estimated Total Base Period 15 May 2020 to 14 May 2021 $3,000,000.00 Option Period # 1 15 May 2021 to 14 May 2022 $3,100,000.00

Total Estimated Contract Value $6,100,000.00

Justification and Approval (J&A) New H-65 AFCS Yaw and Collective Servos APFS Record # F2020049521

Source Selection Information – See FAR 2.101 and FAR 3.104

(3) Description of Supplies/Services.

Under this proposed contract action, Rockwell Collins will deliver the components, which will be installed into the USCG MH-65E helicopter as they undergo Programmed Depot Maintenance (PDM) and airframe service life extension activities or dispatched to operational units as legacy AFCS components beyond economic repair. These activities will take place at the USCG Aviation Logistics Center (ALC) in Elizabeth City, North Carolina.

Specifically, the proposed contract will include the components listed in Table 2.

Table 2 – List of Components Covered by This J&A

Item Description Part Number / National Stock Number

Total Estimated Quantity for the Entire Period of Performance

AFCS Yaw Parallel Servo

622-4585-003 / 6615-01-HS3-4157

AFCS Collective Parallel Servo

622-4586-003 / 6615-01-HS3-4155

The AFCS parallel servos and collective servos are in use currently on the MH-65. They provide stabilization to flight control inputs. Additional inventory levels are required for these components due to the USCG decision to extend the useful mission life of the USCG MH-65E from 2030 to 2039.

(4) Identification of Statutory Authority Permitting Other than Full and Open Competition.

The statutory authority permitting other than full and open competition is 10 U.S.C 2304(c) (1) as implemented by FAR Subpart 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

(5) Identification of Exception to the Buy American Statute.

This section is not applicable, as USCG does not anticipate an applicable exception to the Buy American statute. The Buy American statute will apply to this acquisition.

(6) Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

USCG does not possess the data rights for the required servos. Rockwell Collins is the OEM and owns all data rights for production of the various components requested under the proposed contract action.

The MH-65E aircraft design is at a physically mature state that has completed rigorous developmental and operational testing. MH-65E aircraft production started in November 2019 and nine (9) aircraft are in various stages of the production cycle as of April 2020.

Deviation from the Rockwell Collins AFCS component suite would be detrimental to the H-65’s program cost and schedule, and introduce an element of risk that would affect planned delivery of the MH-65E aircraft. The additional cost to integrate non-OEM AFCS architecture (to include hardware and software design and all required testing) into a redesigned MH-65E Common Avionics Architecture System (CAAS), also developed by Rockwell Collins, and tying it into the Operational

APFS Record # F2020049521

Flight Program software would be cost prohibitive. Its order of magnitude would exceed $200 million once the required redesign of the entire MH-65E CAAS is fully considered. This would also cause production stoppage estimated at eighteen (18) to twenty-four (24) months. This would also cause the program to breach its Acquisition Program baseline schedule that the USCG reports to both DHS and the U.S. Congress. Given the maturity of the MH-65E aircraft design, the USCG does not expect to recover the aforementioned costs via a competition, and the delay in filling the requirement would lead to decreased aircraft reliability, increased maintenance costs, and mission failures.

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

On 18 March 2020, the USCG contracting staff posted this requirement in the Acquisition Planning Forecast System (APFS) under APFS Record # F2020049521. To date, USCG has not received any responses related to this posting.

In addition, on 12 February 2020, the USCG contracting staff posted a sources sought notice (70Z02320SSNAHH007) that included these servos on beta.SAM.gov. The response deadline was Wednesday, 04 March 2020. To date, USCG has not received any responses related to the posting.

(8) Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The USCG Contracting Officer has determined that the anticipated price to the USCG for the supplies and services covered by this J&A will be fair and reasonable based on a pricing comparison to the USCG’s Independent Government Cost Estimate (IGCE). The MH-65E program office built the IGCE using the historical pricing data from previous orders and pricing information provided by Rockwell Collins in October 2019. Moreover, the USCG Contracting Officer will use the techniques found in FAR Subpart 15.404-1, “Proposal Analysis Techniques”, to help determine a fair and reasonable price, such as by comparing Rockwell Collins’ proposed prices to its commercial prices (15.404-1(b)(2)(iv)).

As a part of this analysis, USCG will also request other than certified cost and pricing data (such as Rockwell Collins’ commercial price list) to be submitted as a part of Rockwell Collins’ proposal.

Additionally, as USCG places more orders, it will use the historical pricing information available on prior orders to help determine the fair and reasonable pricing of later orders.

(9) Description of Market Research.

Aside from the market outreach previously noted in Section (7), the USCG Integrated Procurement Team (IPT) conducted market research from October 2019 through March 2020. The IPT reviewed the DHS Strategic Sourcing Vehicles (SSVs), but could not find any other company who could potentially meet this requirement.

In looking for potential supplies, the IPT also used the Defense Logistics Agency (DLA) Logistics Information Services (FEDLOG), the Federal Logistics Information System Web Search (WEBFLIS), the General Services Administration (GSA) Advantage website, and the North Atlantic Treaty Organization (NATO) Support and Procurement Agency (NSPA). These sources did not provide any additional suppliers who could meet these requirements besides Rockwell Collins.

Additionally, USCG used the Inventory Locator Service (ILS), a website used to locate difficult to find parts, to see if other distributors had the part numbers available and were authorized to distribute said

APFS Record # F2020049521 parts. USCG could not find any available inventory at the time of the search to indicate that other distributors are able to provide the referenced components.

In light of the above information, USCG wishes to proceed with a sole-source award to Rockwell Collins.

(10) Any Other Facts Supporting the Use of Other Than Full and Open Competition:

The USCG has a substantial investment tied to the MH-65 conversion/sustainment program. Ongoing development efforts and other contracts (such as for software integration and avionics rack modification) will be affected unnecessarily in cost and schedule should the USCG not be given approval to purchase the components referenced herein from Rockwell Collins. The MH-65E program’s desire to purchase these Rockwell Collins components is based on system availability, integration with the test aircraft, and for USCG’s decision to keep alignment with the MH-60T components.

Additionally, no other company has ever built these servos and Rockwell Collins no longer produces these servos. While Rockwell Collins sold these servos commercially in the past, the only significant buyer of them was the USCG; essentially, Rockwell Collins is restarting the production line solely to manufacture these servos for the USCG.

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

On 24 April 2020, MELE Associates emailed Mr. Reid Adams, the H-65 Deputy Program Manager; the APFS record for this requirement (# F2020049521) contained Mr. Adams’ name and contact information. In its email, MELE Associates expressed an interest in this acquisition. Mr. Adams responded to MELE Associates on 27 April 2020, asking the company if it could provide the required servos and explain its capability to do so. To date, MELE Associates has not responded.

On 27 April 2020, the USCG Contracting Officer contacted the OEM, Rockwell Collins, who said that it does not have a relationship with MELE Associates and reiterated that Rockwell Collins is “the sole source provider for the servos.”

Given the information noted above, the USCG will continue processing this J&A and procuring the required servos from Rockwell Collins.

(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.

USCG will continue to try to remove competitive barriers. USCG will remain up-to-date on technological innovations and information that may prompt the testing and usage of new materials as the MH-65E program ages. The Aviation Logistics Center’s (ALC’s) Spare Parts Breakout (SPBO) Manager will be involved with any companies who want to quality to manufacture or repair parts for USCG aircraft and the USCG contracting and program staffs will be in close consultation with the SPBO office. The SPBO manager will continue to monitor the sustainment parts and identify if alternate sources of supply can satisfy all form, fit, and functional requirements.

Moreover, USCG will explore its options with Rockwell Collins in procuring the data rights for these components so the work may be competed among different vendors.

APFS Record # F2020049521

(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.

XXXXXXXXXXXXXXX Date Contracting Officer (CG-9127)

(14) Technical / Requirements Personnel Certification. I certify this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for this justification, is complete and accurate.

Deputy Program Manager (CG-9315)

(15) Legal Counsel Review. I have reviewed this Justification and Approval for Other Than Full and Open Competition in accordance with HSAM 3006.304-70 and find it legally sufficient.

Legal Counsel (CG-0949)

APPROVAL:

Component Procuring Activity Competition Advocate (CPACA) (CG-913)