1.2.23 1301088880 JA Brand Name Comp Advocate Sig_Redacted.pdf

Source Selection Information (with content) – See FAR 2.101 and 3.104 For Official Use Only

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS – SOLE SOURCE JUSTIFICATION AND APPROVAL

CONTROL NUMBER: 2023-030

CONTRACT NUMBER: 1301088880

Requiring Activity:

Military Sealift Command

Description of Requirement:

This requirement is to purchase Hull sea valves for a dry dock refueling and overhaul (ROH) of the to support required five (5) year maintenance of valves presently installed aboard the T-AKE vessel. These direct replacement parts must be compatible in terms of form, fit, and function with the already existing equipment. Proper refurbishment and maintenance of these systems are critical to safe operation of MSC T-AKE class vessels. The valves installed into the MSC T-AKE vessels must be able to maintain proper operation until the next dry dock ROH, which occurs every five (5) and/or ten (10) years. Historically, non-OEM valves have degraded sooner than the next dry dock ROH, leading to expensive urgent repairs and extended downtime. Any non-OEM valves would be required to undergo a thorough technical evaluation by the Government, where the valves would be compared against the salient characteristics of the OEM valves described within the Technical Manual.

Authority: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1903 as implemented by FAR Subpart 13.5.

Amount: The estimated dollar value of this procurement is

1. Agency Contracting Activity:

N00406 – Naval Supply Fleet Logistics Puget Sound

2. Description of Action:

This action is for the purchase of Original Equipment Manufacturer (OEM) Crane Chempharma & Energy Corp lug butterfly valves. OEM Crane Chempharma & Energy Corp, CAGE: 59309, does not maintain an active SAM.gov registration, as it expired on 25 Sep 2018, indicating that they do not sell directly to the Government. Email contact for more information regarding authorized distributors, resellers, and/or small business partnerships was established 13 July 2023 and OEM Crane Chempharma & Energy Corp recommended Valve Automation & Control, a large business, as a potential supplier. Market Research of the MSC contract file identified four

(4) potential small business suppliers. Email contact was attempted with each potential supplier and only two (2) responded, with only one (1) indicating that they could potentially provide valves with the required salient characteristics requested. Previous Government purchases of similar requirements were solicited directly to Valve Automation & Control, as only they were capable of providing the valves with the required salient characteristics. So long as the authorized distributors and/or resellers are capable of providing parts that meet the salient physical, functional, or performance characteristics of the OEM parts, it is in the Government’s best

(b) (6)

(b) (5) interest to solicit this requirement as a Brand Name or Equal Unrestricted purchase. A previous historical purchase for non-OEM parts of a similar valve via contract number N3220523P2035 was terminated for convenience by the Government as the non-OEM parts, which met the solicitations salient characteristics, were deemed incompatible with the system upon receipt of the valves by the Government technical team during the maintenance period. This termination cost the Government both funding, as the contractor received a cancellation fee, and time, as the Government will need to resolicit the requirement, leading to maintenance delays and increased vessel downtime. Therefore, any “or Equal” non-OEM valve presented to the Government will undergo a thorough technical evaluation prior to award to ensure that the valve meets all of the specifications of the technical manual. During the solicitation phase, potential non-OEM offerors will be capable of requesting the Technical Manual prior to providing their quote.

The following is the point of contact (POC) information for the manufacturer:

OEM: Crane Chempharma & Energy Corp POC: Beth Ainsworth, 936-271-6555 Email: BAinsworth@CraneCPE.com Address: 4526 Research Forest Drive, Suite 400, The Woodlands, TX 77381

The following is a list of potential suppliers found via Market Research:

Vendor Name Location Point of Contact Capability Assessment

17 Machinery, LLC

3FEG7

Small Business

Hayes, VA Marie Knapp

804-642-9400 mknapp@17m2.com

Has successfully performed many Government contracts in the past, as shown via SPRS assessment run 13 July 2023.

B & H International, LLC

768R4

Small Business

Bakersfield, CA

Tasneem Katabji

661-735-8591 tasneem@bhinternational.biz

Has successfully performed many Government contracts in the past, as shown via SPRS assessment run 13 July 2023.

Rust Automation & Control Inc

09RN9

Small Business

Jordan, UT Steve Raleigh

801-566-7878

Steve.raleigh@rustco.com

Has successfully performed many Government contracts in the past, as shown via SPRS assessment run 13 July 2023.

Tork Systems

6VBX1

Small Business

Alameda, CA

Brian Peterson

510-891-9675 bp@torksystems.com

Has successfully performed many Government contracts in the past, as shown via SPRS assessment run 13 July 2023.

Valve Automation & Control

0YRW0

Large Business

Chula Vista, CA

Jim Henderson

619-656-7420 jim.henderson@valveauto.com

Has successfully performed many Government contracts in the past, as shown via SPRS assessment run 13 July 2023.

It is anticipated that a Firm Fixed Price supply type contract be awarded in September 2023 using Fiscal Year 2023 Navy Working Capital Funds. This contract must be awarded prior to 01 October 2023, as the funds are expiring.

3. Description of Supplies/Services:

The following list of supplies will be solicited for procurement:

DESCRIPTION P/N QTY

30" SERIES 200 LUG

BUTTERFLY VALVE

30BG67731X 28

24" SERIES 200 LUG

BUTTERFLY VALVE

24BG67731X 21

4" SERIES 225 LUG

BUTTERFLY VALVE

04KG57731X 14

4" SERIES 225 LUG

BUTTERFLY VALVE

04BG07731X 7

6" SERIES 225 LUG

BUTTERFLY VALVE

06BG07731X 7

8" SERIES 225 LUG

BUTTERFLY VALVE

08BG07731X 14

12" SERIES 225 LUG

BUTTERFLY VALVE

12BG06431X 7

16" SERIES 225 LUG

BUTTERFLY VALVE

16BG66431X 7

2" SERIES 225 LUG

BUTTERFLY VALVE

02BG07731X 7

The Required Delivery Date for all of the above supplies is 30 September 2024.

4. Basis for Sole Source

a. Authority Cited: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 (or 41 U.S.C. 1903 for Special Emergency Procurement) as implemented by FAR Subpart 13.5:

Unusual and compelling urgency Exclusive licensing agreements Industrial mobilization

Brand Name (Note approval level requirements are applicable only to this portion

FAR 13.501(2)

Other:

b. Reason for Authority Cited:

This requirement is for direct replacement and rebuild parts of hull sea valves presently installed on a MSC T-AKE vessel that is undergoing a dry dock refueling and overhaul (ROH) required five (5) year maintenance. The dry dock ROH maintenance occurs every five (5) and/or ten (10) years. The maintenance is vital for the safe operation of the MSC T-AKE vessel.

OEM Crane Chempharma and Energy Corp is the OEM of the lug butterfly valves presently installed on the T-AKE vessel. MSC requires that some of the valves are Certified Shock Rated.

The OEM does not provide this certification as the Shock Rated testing was conducted by the National Steel and Shipbuilding Company (NASSCO). The American Bureau of Shipping (ABS) will require copies of the Certified Shock Rated certification. Further, ABS and MSC require that certified distributors provide official stamped valve drawing, hydrostatic testing data, valve specification sheets, and Regulatory Body Approval documentation from ABS or other recognized Regulatory Body Class Societies for each model valve in the solicitation.

Procurement under a Brand Name or Equal solicitation would be in the best interest of the Government. The Government not only needs OEM lug butterfly valves, but also requires additional Shock Rated testing performed by NASSCO and all of the certifications noted above to ensure that the parts received will properly interface with the existing system and last for the required extended timeframes. Additionally, while at least one (1) potential small business supplier is available, all of the Government’s past purchase history has shown that only one (1) large business is capable of providing the requirements with all of the applicable certifications.

Past procurements were solicited openly on SAM.gov and suppliers were given ample opportunity to provide quotes. It is within the Government’s best interest to solicit an unrestricted Brand Name or Equal solicitation and provide opportunity for additional potential quotes, while leaving the door open for the known large business supplier. Further, potential non-OEM suppliers will be given the opportunity to request the Technical Manual during the solicitation phase and the Government’s technical team will conduct a thorough evaluation of any potential non-OEM valves to determine if the valves are capable of meeting the salient characteristics of the OEM valves identified in the Technical Manual.

5. Efforts to Obtain Competition:

The Contracting Officer shall publish the notices required by FAR 5.201.

6. Actions to Increase Competition:

Market research indicates that the OEM Crane Chem-Pharma and Energy Corp lug butterfly valves are available from several sources. However, only one (1) supplier has been capable of providing the OEM lug butterfly valves with the required additional certifications in previous Government purchases. In an attempt to increase competition, email communication was attempted with four (4) known small business suppliers. Only one (1) supplier responded that they could potentially provide the OEM lug butterfly valves with the additional certifications required.

There are no additional steps taken at this time to increase competition beyond posting the Brand Name or Equal solicitation to the Government point of entry (GPE), SAM.gov, to receive any quotes from potential suppliers. Further, the solicitation will be directly sent to the potential small business supplier and the known large business supplier. Any non-OEM suppliers will be allowed to request the Technical Manual prior to providing their potential solution.

7. Market Research:

Market research has been conducted in accordance with FAR Part 8 and FAR Part 10 and it has been determined that the current requirement cannot be fulfilled via any required and/or recommended sources of supply. Further, in accordance with DFARS 208.70, the Integrated Material Management system was reviewed and the supplies were unavailable. In accordance with DFARS 208.7003-2(j) Items directly related to a major system and which are design controlled by and acquired from either the system manufacturer or a manufacturer of a major subsystem; this acquisition is not an assignment under Coordinated Acquisition.

Market research was conducted through reviewing historical NAVSUP purchases. Previous requirements for the OEM Crane Chempharma and Energy Corp lug butterfly valves were solicited as an unrestricted competitive simplified acquisition procedure buys and received competitive proposals from small and large businesses. However, only a large business was capable of fulfilling all of the Government requirements for the materials to be procured.

Based on the market research conducted, the requirements are commercial in nature and a demand for the supplies is available in the commercial marketplace. However, as stated in Section 4 above, the authorized distributors will be required to supply Shock Rated certification for some of the OEM lug butterfly valves and official stamped valve drawing, hydrostatic testing data, valve specification sheets, and Regulatory Body Approval documentation from ABS or other recognized Regulatory Body Class Societies for each model valve in the solicitation.

8. Actions to Remove Barriers to Future Competition

For the reasons set forth in Paragraph 5, FLC Puget Sound has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, FLC Puget Sound will assess whether competition for future requirements is feasible.

9. Any Other facts supporting the use of other than full and open competition.