4.d. JA Gilman Fenders - 70Z04022Q58400B00 - Redacted.pdf

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

In compliance with Federal Acquisition Regulation (FAR) 13.501(a)(ii) and 6.303-2, implementing the authority provided at 41 USC § 1901 the following justification is provided.

1. Agency and Contracting Activity.

The Department of Homeland Security, United States Coast Guard (USCG), The 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, prepared this justification for other than full and open competition.

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

(a) Nature of the action: The USCG SFLC SBPL has a requirement, on a sole source basis, for the acquisition of fenders to support Coast Guard boats. The SBPL is responsible for maintaining the fenders on the 45’

Response Boat Medium (RB-M) and 47’ Motor Life Boat (MLB).

Fenders must be new, genuine Original Equipment Manufacturer

(OEM) parts. The fenders are manufactured by the Gilman Corporation

(Gilman).

(b) Name and address of the contractor:

Gilman Corporation, The

1 Polly Lane

Gilman, CT 06336-0000

(c) Type of action: Firm Fixed-Price Contract

(d) Estimated total value (including options): Provide breakdown as shown below. See enclosure (1) for parts list.

Period Unit Price Total

Base Year

12 mo.

Option Year 1 12 mo.

Option Year 2 12 mo.

Option Year 3 12 mo.

Option Year 4 12 mo.

Total

Products previously supplied under Contract Number

70Z04018D56300B00; Period of Performance end date 09/16/2021.

(e) Type of funding: Surface Operations

(f) Year of funding: Fiscal Year 2022 – Current Year

(g) Solicitation number: _70Z04022Q58400B00_

(h) Background information about the requirement:

The USCG, SFLC, SBPL has an ongoing requirement on a sole source basis for the supply of Original Equipment Manufacturer (OEM), Gilman fenders. The fenders must conform in all respects to the technical requirements for the boats as those currently installed on the 45’ RBM and 47’ MLB. The Coast Guard does not possess the complete technical data package, including material and chemical composition and manufacturing processes to provide for the manufacture of replacement fenders. The required fenders were previously acquired under

Contract Number 70Z04018D56300B00.

The previous Contract 70Z04018D56300B00 was awarded to Gilman. The

Period of Performance was September 17, 2018 – September 16, 2021.

3. Description of Supplies/Services.

The contract will provide fenders and associated parts required for replacement and corrective maintenance and upkeep of Fender Systems installed on the 45’ RBM and 47’

MLB. The vendor will provide new, genuine OEM parts that will be preserved, packaged and marked appropriately. No aftermarket or refurbished parts are permitted.

4. Identification of Statutory Authority Permitting Other Than Full and Open

Competition.

The statutory authority of 41 U.S.C. § 1901 permitting other than full and open competition as implemented by Federal Acquisition Regulation (FAR) Subpart 13.501, Simplified Procedures for Certain Commercial Items.

5. Identification of Exception to the Buy American Act.

No exception to Buy American Act has been identified.

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

The statutory authority in 41 U.S.C. § 1901 is applicable because Gilman, the OEM, is the manufacturer of the proprietary fenders systems. The Fender Systems are an integrated part of the platform, with specific mounting points for the Fender Systems to the design of the hull. Gilman Fender Systems are the proprietary commercial items provided by the

OEM that meet all requirements of the original acquisition, including the function, resiliency and durability of the OEM items. The U. S. Coast Guard (USCG) does not possess the complete technical data package and associated information necessary to support a competitive solicitation for the remanufacture of OEM replacement parts, nor is the USCG aware of any alternative third-party compatible parts. Thus, the only source for procuring the replacement parts for the Fender Systems is Gilman.

Based on market research, the only company that can satisfy this requirement is Gilman

(Gilman does not have any authorized distributors).

(a) Impact - The use of unauthorized parts that are not manufactured in accordance with

OEM specifications, materials, tolerances, etc., could cause safety issues, jeopardizing the safety of the crew and/or vessel, leading to major mission degradation.

(b) The Gilman fender system is integral to the platform. Competitive replacement of fender system on each class of boats would require a significant engineering effort.

The USCG would be required to reverse engineer the complete technical data package and develop manufacturing processes to replicate the OEM parts. The inability to exactly replicate the OEM parts may require engineering changes to the

45’ RBM and 47’ MLB, necessitating additional testing and validation for crew safety and mission capability, which was already accomplished as part of the original acquisition process. The exact cost of reverse engineering the OEM Fender systems is unknown but estimated, with assistance from Gilman, ; this cost does not include expense of manufacturing equipment. The process would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. The process of reverse engineering, redesign, testing, approval and implementation of new Fender Systems for each platform would take significant time as well. Such unacceptable delays would render any affected platforms, with defective Fender Systems, non-mission capable during this process and competitive re-procurement of the new Fender Systems. The result would be decreased mission capability. Replacement of defective Fender Systems with OEM Fender Systems is, therefore, necessary to ensure continuous mission support.

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

Potential Sources as is Practicable.

In an effort to identify alternative sources, a Sources Sought notice, 70Z04022S58400B00, was posted on BetaSAM on 08/24/2021 through 09/03/2021. The notice advises industry that it is the Government’s belief that the Fender Systems needed for the 45’ RBM and 47’

MLB platforms, are only available from the Gilman. The notice provided other possible sources ten (10) calendar days to respond and provide their capability to supply OEM specification compliant parts and/or to obtain genuine OEM parts. A response was received, on 09/02/21, from Gilman stating Gilman is the manufacturer for the current 47’

MLB and 45’ RBM Fender systems and that the Fender system installed on these platforms are proprietary to Gilman. A Market Research purpose email was sent to Gilman on

08/19/2021. A response received 09/02/21, confirming its capabilities to provide OEM

Fenders.

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

The Contracting Officer anticipates that the cost of obtaining OEM Fenders to the Government will be fair and reasonable based on prior acquisition history of Fender Systems and price analysis in comparison with the Independent Government Cost Estimate.

9. Description of Market Research.

Market research, as prescribed in FAR Part 10, was conducted by the Contracting Officer’s

Representative (COR), Contracting Specialist and Contracting Officer from April 2021 through September 2021 in an effort to identify alternative sources that can provide replacement parts. Specifically, an extensive Internet search was conducted in order to locate price and availability of parts and several Government databases were viewed. The

Fender Systems are not available on GSA. While other fenders exist within the commercial market place, the USCG does not possess adequate rights in the total technical data package to evaluate the compliance with specifications of any other proposed parts. Presently, no other manufacturer or supplier, other than the OEM, has proposed alternatives. Market research has indicated that these OEM parts can only be procured from the OEM. In an attempt to openly compete replacement Fender Systems, the USCG published an RFI, on

August 24, 2021, listing the salient characteristics of the OEM brand parts to industry. Only

Gilman, the OEM, responded and complained that the drawings attached to the RFI were proprietary data to Gilman. The USCG responded to Gilman’s allegation, explaining that the drawings were form, fit and function data to which the USCG possessed unlimited rights.

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

The Government does not possess the original drawings, specifications, engineering control procedures and proprietary methods for manufacture to ensure the correct design configuration for these fenders and, thereby fully and openly compete their replacement.

Therefore, the Government also does not possess the data necessary to evaluate other manufacturer’s parts to ensure their compliance with the original design and to ensure crew safety and mission capability.

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

Acquisition.

Gilman Corporation, The

1 Polly Lane

Gilman, CT 06336-0000

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.

The Fender Systems will continue to be an on-going need for the Coast Guard.

Replacement using non-OEM Fender Systems cannot be considered for reasons stated earlier in this justification. A request was sent to the vendor on 08/24/2021 to inquire if the data rights to these parts were available for sale and at what price. Gilman Corporation responded on 08/24/2021 that a portion of the data rights would be offered for sale. The portion of the data rights offered for sale does not contain sufficient information for the complete remanufacture of the Fender Systems. Therefore, even meeting Gilman’s would prove insufficient to obtain rights in the total technical data package necessary to compete and evaluate replacement Fender Systems.

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.

Lillian Lamb 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.

James Taylor Date Technical Representative/COR

APPROVAL:

Lillian Lamb Date Contracting Officer

Mildred Escobosa Date Chief of the Contracting Office

Edward S. Frank - CG-912, DOL-9, SFLC Date Command Procuring Activity Competition Advocate (CPACA)

2021-11-24T07:48:25-0500

TAYLOR.JAMES.M.1144594734

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LAMB.LILLIAN.1087273845

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LAMB.LILLIAN.1087273845

2021-11-30T09:32:22-0500

FOUT.THOMAS.F.1042165197

2021-12-17T14:51:02-0500

FRANK.EDWARD.SHANNON.1025167348