4.d. JA_Kongsberg Jet Drive_Final_Redacted.pdf

Products previously supplied under Contract Number 70Z04018D53020B00; Period of Performance end date 09/17/2022.

(e) Type of funding: Anticipated that Surface Operation funds will be applied at the delivery order level.

(f) Year of funding: Intend to use current years funds when individual delivery orders are issued

(g) Solicitation number: 70Z04022Q57100B00

(h) Background information about the requirement:

The required FF375S jet drive parts were previously acquired under Contract Number 70Z04018D53020B00.

The previous Contract 70Z04018D53020B00 was awarded to Rolls Royce Marine America, Inc. The Period of Performance of the previous contract was September 18, 2018 – September 17, 2022. 70Z04018D53020B00 was solicited on a sole source basis to the OEM at the time, Rolls Royce Marine America, Inc.

Effective February 6, 2020, a Novation Agreement was executed with Kongsberg Maritime Inc. in which all proprietary ownership of the jet drive parts and equipment was purchased by Kongsberg of Norway; Kongsberg also assumed all manufacturing of the FF375S jet drive parts. These parts are sold in the United States solely through Kongsberg’s North American distributor in Houston, TX: Kongsberg Maritime, Inc.

3. Description of Supplies/Services.

The contract will provide FF375S jet drive parts listed on Enclosure 1. These parts are required for replacement and corrective maintenance and upkeep of the FF375S jet drive systems installed on the 45’ RB-M. The vendor will provide new, genuine OEM parts that will be preserved, packaged and marked. No aftermarket or refurbished parts are permitted.

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.

3204(a)(1) implemented by FAR Subpart 6.302-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Identification of Exception to the Buy American Act.

An exception to the Buy American statute permitting the purchase of articles that are not domestic end products is FAR 25.103(b)(1) Nonavailability.

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 10 U.S.C. 3204 is applicable because Kongsberg Maritime Inc., the OEM, is the manufacturer of the proprietary FF375S jet drive systems. The RB-M was designed to utilize the FF375S jet drive system, which is an integrated part of the platform, with specific mounting points and performance parameters for the jet drive systems to the design of the propulsion engines and hull. Kongsberg Maritime Inc. is the OEM for the FF375S jet drive system, which is a proprietary commercial product. The USCG does not possess the full data rights package necessary to support a competitive solicitation for non- OEM manufactured replacement parts, nor is the USCG aware of any alternative third-party compatible parts. Thus, the only competitive alternative to procuring the replacement parts would be to replace the Kongsberg Maritime Inc. FF375S jet drives, which would require a redesign of the operational platform. Based on market research, the only company that can satisfy this requirement is Kongsberg Maritime Inc.

(a) Impact - The use of unauthorized brand parts that are not manufactured in accordance with OEM specifications, materials, tolerances, etc., could cause safety issues, jeopardizing the crew and/or vessel, leading to major mission degradation.

(b) Kongsberg Maritime Inc.’s FF375S jet drive system is integral to the platform, competitive replacement of each jet drive system due to a defective part would require design and engineering changes to the 45’ RB-M, creating repetitive cost for new jet drives systems that would not be recovered as a result of the competition, as well as generating significant delay to test the redesign, approve any such changes, and implement those changes on each platform. Such delays would render any affected platforms non-mission capable during redesign and install, resulting in decreased mission capability, due to defective jet drive systems. Replacement and maintenance of jet drive systems with OEM replacement jet drive systems and parts is necessary to ensure continuous mission support.

(c) No alternative items will be acceptable in support of the current 45RB-M FF375S

Jet Drive system. There are no alternative distributers of these OEM parts and the USCG does not possess the full data rights package necessary to reproduce the OEM parts.

(d) The current 45RB-M FF375S Jet Drive system is critical system to the design and operation of this USCG platform.

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 (SSN) 70Z04022S57100B00 was posted to SAM.gov on April 14, 2022 and closed April 28, 2022. The notice provided industry (14) days to demonstrate capability in providing the

Kongsberg Maritime, Inc. FF375S jet drive parts required for the USCG 45’ RB-M small boat platforms. No responses were received. The SSN due date was extended to May 18, 2022, providing industry an additional (14) days to respond. Again, no responses were received. As part of market research, an email was provided to the OEM on June 16, 2022 requesting if authorized distributors exist for the parts required, and if Kongsberg intends on providing a quote for a future solicitation. Kongsberg responded via email on June 30, 2022 confirming that Kongsberg Maritime, Inc., the OEM’s branch in Houston, TX, is the sole North American distributor for the required parts of this requirement. They also confirmed that they intend on quoting on a future solicitation.

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 to the Government will be fair and reasonable based on prior acquisition history of jet drive system parts and price analysis in comparison with the Independent Government Cost Estimate. Previous history includes a contract with similar work items within the last two years. This contract, listed below, has adequate data for evaluating the reasonableness of the prices by comparing the proposed prices to historical prices paid by the USCG for the same or similar items.

Previous Contract: 70Z04018D53020B00

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 October 29, 2021 through June 14, 2022 in an effort to identify alternative sources that can provide replacement parts to fulfill the USCG’s requirement. Specifically, an extensive Internet search was conducted in order to locate price and availability of parts, industry was contacted for estimates and availability of parts and several Government databases were reviewed for availability. The FF375S jet drive systems are not available on GSA. While other jet drives exist within the commercial market place, the USCG does not possess the requisite data rights to compare and test any non-OEM parts. According to market research, the OEM is the sole source available to provide the required FF375S jet drive parts.

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.

Kongsberg Maritime, Inc.

10777 Westheimer Rd.

Suite 1200 Houston, TX 77042-3590

UEI: CDJRMWDDJFJ5

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 FF375S jet drive systems will continue to be an on-going need for the USCG.

Replacement using non-OEM FF375S jet drive systems cannot be considered for reasons stated earlier in this justification. A request was sent to the vendor on 06/08/2022 to inquire if the data rights to these parts were available for sale and at what price. In an e-mail dated 7/11/2022, Kongsberg Maritime declined the government’s request. Although the USCG does not currently possess the data rights necessary to evaluate other than OEM parts, the Government will make all attempts to obtain the data rights for future acquisitions.