J&A_70Z04018Q55205B00__Signed_Redacted.pdf

ITEM DESCRIPTION PART NUMBER ESTIMATED UNIT PRICE

(4) Identification of the justification and the rationale.

The statutory authority permitting other than full and open competition is 41 U.S.C. 1901 implemented under FAR 13.5, Simplified Procedures for Certain Commercial Items.

(5) Demonstration that the nature of the acquisition requires use of the authority cited.

The SFLC requires the use of brand name OEM parts. Limitation to the use of brand name parts is as follows:

The Cummins Diesel Engines are critical to the operation of the vessels, and the vessels are critical to search and rescue operations in extreme weather conditions, law enforcement, marine safety and security, and environmental protection missions. These vessels were specifically designed to include the use of Cummins Diesel Engines; however, the reproduction manufacturing drawings, specifications, and other technical data required to manufacture these parts were not purchased when the vessels were originally procured.

The Coast Guard does not possess the necessary manufacturing data necessary to obtain full and open competition for Cummins Diesel Engine parts. The technical data required is proprietary to the OEM.

Furthermore, the scope of manufacturing, special tools, and equipment required to manufacture various parts are unknown. Although other engine system parts are commercially available, the use of parts that are not manufactured in accordance with original configuration, OEM specifications, materials, tolerances, etc., could cause equipment failure rendering these boats unable to complete critical mission requirements.

The use of only OEM parts will ensure processes and components are sufficient to enable physical and functional interchangeability, as well as ensuring source, size, configuration, and performance requirements that are essential in the planning and execution of small boat missions.

(6) A description of the efforts made to ensure that the offers are solictited from as many potential sources as is practicable.

In an effort to solicit as many potential sources as practical, a sources sought notice was posted on the Federal Business Opportunities (FBO) Website on February 8, 2017. This notice informed the industry of the USCG intent to purchase the brand name parts manufactured by the OEM, Cummins Inc. Other organizations having the expertise and required capabilities to provide equivalent parts were invited to submit information discussing such capabilities within fifteen calendar days after the posting date. Upon discovery of an error in the original sources sought, a second notice was posted on July 26, 2017 correcting the OEM, type of parts, and the part numbers, for ten calendar days. In addition, the new notice was emailed to each of the four vendors who responded to the original February posting.

(7) Determination by the Contracting Officer that the anticipated cost to the government will be fair and reasonable.

The Contracting Officer determines that the anticipated prices will be fair and reasonable based on techniques to include market research, price comparison utilizing available purchase history, the Independent Government Estimate (IGE), and price competition among authorized distributors.

(8) Description of market research.

Extensive market research, as prescribed in FAR Part 10, was concluded on August 4, 2017. The market research, which included internet searches, searches of Government databases, and two sources sought notices, has concluded that OEM parts can only be procured from the OEM or their authorized distributors.

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

While other engine parts exist within the commercial marketplace, the Government does not possess the necessary technical and engineering data and drawings necessary to be able to determine if these alternate sources can manufacture the parts to OEM specifications and standards. This information is proprietary to Cummins Inc. Therefore, the Government does not have any data to compare other manufacturer’s parts to ensure the same fit, form and function, nor does the Government possess the independent expertise to evaluate other manufacturer’s parts. Using inferior non-tested or non-approved parts will put the crews and mission of the boats in harm’s way possibly causing injury or death. The use of only OEM parts will ensure the components and processes are sufficient to enable physical and functional interchangeability, as well as ensuring source, size, configuration, mating and attachment characteristics, functional characteristics, and performance requirements that are essential in the planning and execution of small boat missions.

(10) A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

The following vendors responded to the sources sought notice published on FBO on February 8, 2017, all verifying that they are authorized OEM distributers:

S.I.T. Corporation Monmouth Marine Engines, Inc.

536 Union Lane 13200 SW 128th St. Building H Brielle, NJ 08730 Miami, FL 33186

Dion International Trucks, LLC Cummins Sales and Service 5255 Federal Blvd. 8051 Allentown Blvd.

San Diego, CA 92105 Harrisburg, PA 17112

For the corrected sources sought posted to FBO on July 26, 2017, the Government received only two (2) responses. Monmouth Marine Engines, Inc. and S.I.T. Corporation confirmed their capability to provide the brand name parts on the revised list.

(11) A statement of actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for required supplies or services.

These engine parts will continue to be an on-going need for the Coast Guard. The effort involved with re-engineering the various engines used within all the boat classes, and establishing a new logistics footprint for all classes, is cost prohibitive and cannot be considered at this time. On June 29, 2017 attempts were made to obtain data rights from Cummins, Inc. On July 27, 2017, a response from Cummins, Inc. stated that they would not provide unrestricted rights to the specifications and drawings, as the parts were developed exclusively at Cummins expense. The parts are commercial products and sold commercially (FAR Part 12) to the US Government.

The Government will continue to contact the OEM to make all attempts to obtain this data for future acquisitions.

-------------- Katherine K. Timberlake

WYATT.KELLY.A.101

5132341

Digitally signed by WYATT KELLY A 1015132341 DN: c=US o=U S Government ou=DoD ou=PKI ou=USCG cn=WYATT KELLY A 1015132341 Date: 2018 03 07 12:59:31 05'00'

KRAEMER.THOMAS.J.

1044087649

Digitally signed by KRAEMER.THOMAS.J.1044087649 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USCG, cn=KRAEMER.THOMAS.J.1044087649 Date: 2018.03.07 13:40:27 -05'00'

WALSH.CARLIN

.R.1274087184

Digitally signed by

WALSH.CARLIN.R.1274087184

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USCG, cn=WALSH.CARLIN.R.1274087184 Date: 2018.03.08 13:24:17 -05'00'

MACK.WALTER.AUS

TIN.JR.1134228608

Digitally signed by MACK.WALTER.AUSTIN.JR.1134228608 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USCG, cn=MACK.WALTER.AUSTIN.JR.1134228608 Date: 2018.03.16 13:30 56 -04'00'

FIGUEREO.MILDR

ED.A.1014919585

Digitally signed by

FIGUEREO.MILDRED.A.1014919585

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USCG, cn=FIGUEREO.MILDRED.A.1014919585 Date: 2018.04.04 13:36:11 -04'00'

TIMBERLAKE.KATHERINE.KAY.1137

248170

Digitally signed by TIMBERLAKE.KATHERINE.KAY.1137248170 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USCG, cn=TIMBERLAKE.KATHERINE.KAY.1137248170 Date: 2018.04.05 14:55:21 -04'00'