4.d. DeAngelo Marine Exhaust Parts JOTFOC_REDACTED.docx

70Z04020Q55050B00

SOLE SOURCE JUSTIFICATION

For Certain Commercial Items for Procurements Exceeding the Simplified Acquisition Threshold pursuant to FAR Subpart 13.5 Solicitation Number 70Z04020Q55050B00

Pursuant to the authority of 41 U.S.C. 1901 as implemented by Federal Acquisition Regulation (FAR) Subpart 13.501 and consistent with the content requirements of FAR 6.303-2, the following facts and rationale support this justification:

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), U.S. Coast Guard (USCG), Surface Forces Logistics Center (SFLC), Small Boat Product Line (SBPL), and Contract & Procurement Division 3 (C&P3), located at 2401 Hawkins Point Road, Baltimore, MD 21226.

2. Nature and/or Description of the Action requiring Approval.

The USCG, SFLC, SBPL has a requirement on a sole source basis for the supply of Deangelo Marine Exhaust parts onboard the 47-Foot Motor Life Boat (47MLB) exhaust system utilizing only new, genuine Original Equipment Manufacturer (OEM) parts at an estimated total price of $736,936.28. The Solicitation number for this requirement will be 70Z04020Q55050B00.

The USCG, SFLC anticipates that a requirements contract will be awarded in accordance with FAR Part 12, Acquisition of Commercial Items, using the procedures of FAR Part 13.5, Simplified Procedures for Certain Commercial Items. The period of performance will include one (1) base year with four (4) one-year options. It is anticipated that funding will be provided through individual firm fixed-price delivery orders. The proposed requirements contract will be awarded to the OEM.

Name and address of the OEM:

DeAngelo Marine Exhaust, Inc.

(hereafter referred to as “DeAngelo Marine”) 3330 S.W. 2nd Avenue Fort Lauderdale, FL 33315

The IGE estimate cost for this requirement is:

3. Description of supplies/services.

This requirement is for the procurement of various Deangelo Marine exhaust system parts for the 47MLB. The vendor will provide only new, genuine OEM parts that will be preserved, packaged and marked.

Required Parts List reflected below:

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 implemented by FAR 13.5, Simplified Procedures for Certain Commercial Items.

5. Identification of Exception to the Buy American Act. Not applicable.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Require Use of the Authority Cited.

The assets within the 47MLB boat class were originally procured with DeAngelo Marine exhaust system parts. At the time of procurement, the Coast Guard was unable to purchase the technical data (manuals, drawings, specifications, etc.) needed to manufacture these parts; that data remains proprietary to DeAngelo Marine. On November 11, 2019, an attempt was made to obtain the data rights from the OEM but they firmly declined our request. A second attempt was made on February 13, 2020, but a response was never received. A third attempt was made on June 9, 2020; the OEM again declined our request via email reply on June 11, 2020.

Compatibility with current equipment can only be guaranteed if parts are authentic, OEM parts. DeAngelo Marine has confirmed they do not have authorized distributors or resellers for the required parts. Since they only sell these parts directly to the Coast Guard, as they were slightly altered to meet the needs of our 47MLB assets, there are no third-party sources capable of providing authentic, OEM parts. Considering non-OEM manufacturing specifications and parts requires a lengthy and expensive engineering change request process, and as the government does not own the data rights, it cannot be determined if another firm could build to OEM specifications. Therefore, the OEM is the sole source capable of fulfilling the needs of this requirement.

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

In accordance with FAR Subpart 5.2, in an effort to solicit as many potential sources as practical, a sources sought notice, 70Z04020S55050B00, was posted under Contract Opportunities on the beta.SAM.gov website from January 28, 2020 through February 11, 2020 seeking other possible sources. The notice advised industry that it is the Government’s belief that the parts are manufactured specifically for the above listed boat classes and that the proprietary rights are held only by DeAngelo Marine. The notice provided other possible sources seven calendar days to respond and provide their capabilities to provide these OEM parts. The notice only yielded a response from the OEM.

The DeAngelo Marine exhaust parts requirement was published in the Acquisition Planning Forecast System (hereafter APFS) on December 12, 2019. The APFS number is F2020048804. No inquiries were received from industry.

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

The Contracting Officer (KO) has determined that the anticipated prices will be fair and reasonable based on market research performed, price analysis utilizing a combination of techniques to include comparison to the Independent Government Estimate (IGE), and available previous agency history under contract HSCG40-14-D-52003.

9. Description of Market Research:

Extensive market research, as prescribed in FAR Part 10, was conducted between June 2019 and June 2020. Internet searches and Government databases concluded only OEM parts can satisfy this purchase requirement. All technical data is proprietary to the OEM and is unavailable to allow the Government to evaluate alternate parts. A Sources Sought Notice was posted on beta.SAM.gov on January 28, 2020 with a responses due date of February 11, 2020. The OEM was the only response received. On November 11, 2019, an attempt was made to obtain data rights from the OEM but they firmly declined our request. On February 12, 2020, USCG inquired via email to the OEM if any authorized distributors or resellers existed; the OEM replied the same date that they were the sole source capable of providing the required exhaust parts. A follow-up e-mail was sent to the OEM on February 13, 2020 to request data rights, but a response was never received. A third attempt at procuring the proprietary data was declined on June 11, 2020.

10. Any Other Facts Supporting the Use of Other Than Full and Open Competition: None.

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

Only one company responded to the sources sought notice published on beta.SAM.gov.

DeAngelo Marine (Large Business) 3330 S.W. 2nd Avenue Fort Lauderdale, FL 33315

DUNS: 174474734

12. A Statement of the Actions, if Any, the Agency May Take to Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisitions for Supplies or Services Required:

The exhaust system parts will continue to be an on-going need for the Coast Guard. Although the Coast Guard does not currently own the required drawings, specifications etc., the Government will continue to make attempts at obtaining this data for future procurements.

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