JOTFOC__REDACTED.pdf

SOLE SOURCE JUSTIFICATION

Simplified Procedures for Certain Commercial Items for Procurements Exceeding the

Simplified Acquisition Threshold pursuant to FAR Subpart 13.5

Pursuant to the authority of Federal Acquisition Regulation (FAR) Subpart 13.501 Simplified Procedures for Certain Commercial Items, Special documentation requirements for Sole Source (including brand name) acquisitions, the use of the statutory authority under 41 U.S.C. 1901 is justified by the following facts and rationale in accordance with the content requirements of FAR 6.303-2 as follows:

(1) Agency and Contracting Activity.

The Department of Homeland Security, United States Coast Guard (USCG), Surface Forces Logistics Center (SFLC), Small Boat Product Line (SBPL) and Contracting and Procurement Division, located at 2401 Hawkins Point Road, Baltimore, Maryland proposes to enter into a requirements contract on a basis other than through full and open competition with L3 Technologies, Inc, doing business as (dba) L3 Henschel. The NAICS for this requirement is

811310; PSC J020.

(2) Nature and/or description of the action being approved.

The USCG, SFLC, SBPL has a requirement for the repair of failed transponders, L3 Control/Display Units/AIS TPX, national stock number (NSN) 6610-01-536-2446, part numbers (P/Ns) AISA1000094, AISA100090, and AISA300090 for the USCG fleet and stations at an estimated total cost of $611,335.00 for one (1) base year and two (2) optional years. The USCG intends to award a commercial, fixed-price requirements service contract. The original equipment manufacturer (OEM) for this requirement is L3 Henschel. The USCG has a mission critical requirement to repair equipment that is proprietary to L3 Henschel.

L3 Technologies, Inc. dba L3 Henschel 90 Nemco Way Ayer, MA 01432-1542

(a) Type of Funding: AFC-42

(b) Year of Funding: Funding will be provided upon issuance of task order for the respective year of obligation

(3) Description of Supplies/Services.

The requirement is for the repair of the L3 Automatic Identification System (AIS) Transponder found onboard all USCG vessels and stations. The AIS Transponder is essential for the identification of CG vessels to other Government agencies.

The Government’s estimate for this requirement is:

Base Year $195,840.00 Option Year 1 $203,674.00 Option Year 2 $211,821.00

Total $611,335.00

Note: Escalation of 4% was utilized for the option years

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

This requirement is for the repair of transponders, L3 Control/Display Units/AIS TPX, national stock number (NSN) 6610-01-536-2446, part numbers (P/Ns) AISA1000094, AISA100090, and AISA300090 used onboard USCG vessels and at USCG stations. L3 Henschel is the OEM for the transponders used by the USCG and is the only known responsible source that can service these transponders.

The L3 AIS system installed throughout the USCG fleet and accompanying stations is a highly complex system, comprised of hundreds of interrelated parts, designed and manufactured by L3 Henschel. The reliability of the AIS system, which enables USCG Cutters and Stations to be identified by other Government Agencies, is critical to mission and safety and failure could jeopardize operational security. Repair of the transponders involves installation of all applicable field changes, modifications and firmware upgrades. All firmware versions were developed for subject transponders and are proprietary to the OEM such that only the OEM can access or modify the firmware necessary to perform the repairs of the transponders..

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

In an effort to identify alternative sources with the ability to repair OEM transponders, sources sought notice HSG40-17-S-53025 was posted on the Federal Business Opportunity website (www.FBO.gov) on September 7, 2017 advising industry that it is the Government’s belief that repair services are only available from L3 Henschel. The notice provided other possible sources 14 calendar days to respond and provide their capability to repair these transponders. No response was received. Amendment 1 was posted to FBO on August 28, 2018 as a refresh to market research. No response was received.

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

The Contracting Officer has determined that the anticipated cost to the Government will be fair and reasonable based on market research performed, prior repair history of AIS transponders, and price analysis in comparison with the Independent Government Cost Estimate. Additionally, the offeror may be required to submit Data Other Than Certified Cost or Pricing Data to support price negotiations, if deemed necessary by the Contracting Officer.

(8) Description of market research.

Market research, as prescribed in FAR Part 10, was conducted from May 2017 through August 2018, including researching several Internet websites, Government databases, and the issuance of a Sources Sought Notice. Results indicate that L3 Henschel is the only known source that can successfully repair this equipment. Although other electronics repair facilities exist within the commercial market place, they do not possess the technical data necessary to access or modify the firmware necessary to perform the repairs of the transponders. It was determined that only L3 Henschel could do the repairs because the repairs require a firmware update. That firmware is proprietary to L3 Henschel.

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

The reliability of the AIS system, which enables USCG Cutters and Stations to be identified by other Government Agencies, is critical to mission safety and failure could potentially result in loss of life from friendly fire. The reliability of the L3 manufactured certified units is known and acceptable. They have met Coast Guard mission requirements and safety standards through mission use and hundreds of thousands of operational hours.

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

None.

(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.

An attempt was made to acquire the data rights from the OEM on September 11, 2017 and the OEM declined the CG’s requests for proprietary data. A second attempt was made on August 28, 2018. The vendor has not responded. The CG cannot force any OEM to release proprietary information and it is highly unlikely that the CG will have the required funding to purchase such rights if offered by the OEM. However, every attempt will still be made to obtain applicable drawings, technical data, specification, etc., from the OEM before any subsequent acquisitions occur. In addition, SBPL will continue to research the market for comparable transponders.

(12) 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.

Digitally signed by

VINING.DRENA.SHAVOUN.1288644698

DN: c=US, o=U.S. Government, ou=DoD, cn=VINING.DRENA.SHAVOUN.1288644698

09/07/2018

VOUN.1288644698

ou=PKI, ou=USCG, Date: 2018.09.07 08:24:17 -04'00'

Contracting Officer Date

(13) 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 this justification, is complete and accurate.

BLUNT.EDWAR

D.J.III.12003802

Digitally signed by

BLUNT.EDWARD.J.III.12003

80211 Date: 2018.09.07 08:38:27 -04'00'

Contracting Officer’s Representative (COR) Date

(14) LEGAL REVIEW:

WALSH.CARLIN.R.1274087184

DN: c=US, o=U.S. Government, .R.1274087184 ou=DoD, ou=PKI, ou=USCG, cn=WALSH.CARLIN.R.1274087184 Date: 2018.09.07 09:03:21 -04'00'

USCG, Procurement Law Attorney

REVIEWED BY:

One Level Above Contracting Officer

WEISS.IAN.SHAWN.116351

Date: 2018.09.07 09:13:46 -04'00'

VINING.DRENA.SHA

09/07/2018

WALSH.CARLIN