Attachment_2_JOTFOC_(redacted).docx

SOLE SOURCE JUSTIFICATION

For Certain Commercial Items for Procurements Exceeding the Simplified Acquisition Threshold pursuant to FAR Subpart 13.5, Including Brand Name

Solicitation 70Z04019Q55073B00

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), United States 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 being Approved.

The USCG, SFLC, SBPL has a requirement on a sole source basis to purchase Automatic Identification System (AIS) A6 transponders that are proprietary to L3 Technologies in order to support various USCG small boats including, but not limited to, the 26’ Over the Horizon (OTH-IV), Long Range Interceptor (LRI-II) and Response Boat (RB-S II).

L3 TECHNOLOGIES – AIS DIVISION

90 NEMCO WAY

AYER, MA 01432

941.266.9595

3. Description of Supplies/Services.

The requirement is to provide L3’s AIS A6’s to support various USCG small boats including, but not limited to, the 26 OTH-IV, LRI-II and RB-S II at a total estimated cost of $REDACTED through AFC42 funding on PR#: 2119409B4200ZF058-0000.

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

5. Demonstration that the Nature of the Acquisition Require Use of the Authority Cited.

The above listed boats are designed to utilize the AIS transponder by L3 Technologies. Anything other than this transponder will not conform to the vessels’ form, fit, and function, and thus, will not work with the current equipment in place. The boats listed in the description are used for various functions throughout the Coast Guard including law enforcement, aids to navigation, and search and rescue. These boats play a crucial role in day-to-day activities for stations all over the country and require OEM equipment that adheres to the form, fit, and function for each boat.

All USCG transponders must adhere to Federal Information Processing Standards (FIPS) established in FIPS Publication 140-2. FIPS “is applicable to all Federal agencies that use cryptographic-based security systems to protect sensitive information in computer and telecommunications systems (including voice systems) as defined in Section 5131 of the Information Technology Management Reform Act of 1996, Public Law 104-106.” The L3 Protec AIS Encryption Module by L3 Henschel holds FIPS 140-2 Validation Certificate number 1096. The firmware, i.e., software, used on this transponder was developed specifically to meet USCG standards. Only the L3 AIS transponder is compatible with the existing approved navigation system, and no other brand of transponder will work with this system. Attempting to use other than the approved L3 AIS transponder will result in assets remaining in Not Mission Capable (NMC) status due to the vessel not being able to communicate over the secure system. With no AIS encryption, the vessel will not be able to carry out the missions of the U.S. Coast Guard.

6. 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 70Z04019Q55073B00 was posted on FBO.gov on 06/11/2019 seeking other possible sources. The notice also 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 L3 Technologies. The notice provided other possible sources fifteen calendar days to respond to the notice and provide their capabilities to provide these parts and components to OEM specifications and to obtain genuine L3 Technologies brand parts. Besides the OEM, only Geodesicx, Inc. responded to the notice. When asked to verify they could provide genuine OEM transponders, Geodesicx, Inc. instead acknowledged that L3 does not have authorized distributors for their AIS products and that the Coast Guard would have to work with L3 directly, thus leaving L3 Technologies as the sole source for this requirement.

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

Market research as prescribed in FAR Part 10 was conducted by the Contracting Officer’s Representative (COR). The COR researched several Internet website and Government databases. While other parts exist within the commercial market place, they are not compatible with the existing configurations creating a high-risk of failure. After the completion of Market Research, it was found that the anticipated price of $REDACTED will be fair and reasonable.

8. Description of Market Research.

Extensive market research as prescribed in FAR Part 10 was conducted by the Contracting Officer’s Representative (COR). The COR researched several Internet website and Government databases. While other parts exist within the commercial market place, they are not compatible with the existing configurations of the CG small boats. Any non-OEM parts will not conform to form, fit, and function which creates a high-risk which may result in costly repairs, inoperable assets, and/or placing the crews’ safety in jeopardy, especially during foul weather.

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

None.

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

None.

11. 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.

These parts for the listed small boats will continue to be an on-going need for the Coast Guard. Replacement of these parts cannot be considered for reasons stated earlier in this justification. Although the Coast Guard does not currently own the required drawings, specifications, etc., to evaluate other than OEM parts, the Government will make all attempts to obtain this data for future acquisitions. It is not anticipated that any future requirements can be competed on a full and open competition.

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