Attachment_3_Brand_Name_JnA_(redacted)_Cummins_Eng_Reman.pdf

SOLE SOURCE JUSTIFICATION

For Certain Commercial Items for Procurements Exceeding the Simplified Acquisition

Threshold pursuant to FAR Subpart 13.5, Including Brand Name

Solicitation Number: 70Z04019Q55350B00

Pursuant to the of authority of 41 U.S.C. 1901, as implemented by Federal Acquisition

Regulation (FAR) Part 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), U.S. Coast Guard (USCG) Surface Force

Logistics Center (SFLC), located at 2401 Hawkins Point Rd, Baltimore, MD 21226.

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

The USCG/SFLC, has a requirement for the remanufacturing of Cummins engines/Onan generators with attached Twin Disc reduction gears or ZF reduction gears on a brand name basis to support on-going Coast Guard operations. The following types of boats and related operating numbers will benefit from the proposed Cummins diesel engine remanufacturing.

• 49-Foot, Stern Loading Buoy Boat; Estimated 21 Boats in Service.

• 35-Foot, Long Range Interceptor Boat; Estimated 10 Boats in Service.

• 26-Foot, Over the Horizon (OTH4) Boat; Estimated 101 Boats in Service.

This requirement was previously procured under contract, HSCG40-12-D-50130 which expired on 29 May 2017. This Brand Name justification covers the parts necessary for the remanufacture of identified Cummins engines, Cummins Onan generators and attached

Twin Disc reduction gears or ZF reduction gears. All engines specified for this requirement will be shipped with either the Twin Disc reduction gears or the ZF reduction gears as one unit to maintain system integrity and vendors must have the ability and resources to service the Twin Disc and ZF gears. This requirement has an estimated total value of

$1,917,874.25. The USCG/SFLC anticipates that one firm-fixed price Requirements contract will be awarded in accordance with FAR Part 12, Acquisition of Commercial

Items, using the procedures of FAR Part 13.5, Simplified Procedures for Certain

Commercial Items. The proposed Requirements contract will be awarded based on brand name competition among all Original Equipment Manufacturer (OEM) Cummins, Inc., authorized Distributors with Cummins certified technicians. The period of performance will include one (1) base year with four (4) one-year options. It is anticipated that funding will be provided through each individual fixed-price delivery orders, utilizing AFC-30

Operating funds. The period of performance will be from FY19 to FY24.

3. Description of Supplies/Services.

This requirement is for the remanufacture of Cummings diesel engines/generator and attached reduction gears. The name and address of the Original Equipment Manufacturer

(OEM) for this requirement is:

Cummins, Inc.

500 Jackson Street

Columbus, IN 47201

The estimated total value for this requirement is $1,917,874.25; of which $1,576,312.90 is comprised of mandatory and contingent parts considered Brand Name (OEM Parts Only) for the purposes of this justification.

The IGE total estimate aggregated for this requirement is:

Base Year $354,091.59 First Option Year $368,255.25 Second Option Year $382,985.46 Third Option Year $398,304.88 Fourth Option Year $414,237.07 Total $1,917,874.25

The escalation rate is calculated at 4% between option years to adjust for inflation.

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

Competition.

Pursuant to the authority of 41 U.S.C. 1901 as implemented by subpart 13.501 and consistent with the content requirements of FAR 6.303-2.

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

The decision to procure only OEM parts in combination with Cummins certified remanufacturing is mandatory to ensure form, fit and function of existing Government equipment and vessels. The Cummins diesel engines are critical to the operation of the vessels listed above, 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 and generators with attached specified reduction gears; however, the reproduction manufacturing drawings, specifications, and other technical data required to manufacture these parts were not purchased when the vessels were originally procured.

Although other engine system parts are commercially available, technical data, testing and evaluation is currently unavailable due to the lack of industry feedback if the use of parts that are not manufactured in accordance with original configuration, OEM specifications, materials, tolerances, etc., would cause equipment failure rendering these boats unable to complete critical mission requirements and may compromise the safety of the crew.

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

Potential Sources as is Practicable.

Pursuant to FAR Subpart 5.2, in an effort to solicit as many potential sources as practical, a sources sought notice 70Z04019Q55350B00 was posted in FedBizOpps (FBO) on 2

June 2019 and closed on 14 June 2019, advising industry that it was the Government’s belief that only the OEM, Cummins, Inc., possessed the necessary proprietary data to successfully manufacture these parts. The notice provided other possible sources

Thirteen (13) calendar days to respond and provide their capabilities to provide these parts and for remanufacturing. Only one potential source responded to the sources sought notice as noted in Section 10 of this document. This/these vendor/s has been verified that they are an authorized OEM distributor.

7. Determination by the Contracting Officer that the Anticipated Cost to the

Government will be Fair and Reasonable.

The Contracting Officer anticipates the price will be fair and reasonable based on comparisons with the market research performed, price comparison utilizing available previous 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. Market research was conducted during the period of June 2016 through June 2019. Market research includes searching internet websites, government data bases, calling potential Cummins distributors, as well as sources sought notices. At the conclusion of market research performed, a determination was made that only Cummins authorized distributors with certified technicians can perform the work required. While other engine parts exists within the commercial marketplace, the Government has not identified any alternate sources that can manufacture the parts to OEM specifications and standards to ensure form, fit and function to existing equipment, nor has any manufacturer or other entity made such claim known.

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

No other facts have been identified.

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

Acquisition.

As a result of Sources Sought notice HSCG40-19-Q-55350 was posted in FBO on 2

June 2019 with closing date of 14 June 2019 requesting parties to express their interest in writing to the Contract Specialist. The following company responded:

Cummins Sales and Service

1907 Park 100 Drive

Glen Burnie, MD 21061-3219

Business Size: Large Business

DUNS: 149773368

Cage Code: OCTH1

Glen Burnie, MD 21061-3219

Business Size: Large Busine

Glen Burnie, MD 21061-3219

Business Size: Large Busin

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.

The technical data required for manufacturing is proprietary to the Cummins, Inc., which the USCG does not have access to. Several attempts were made to obtain data rights from

Cummins, Inc. The first attempt was made on 27 July 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 Inc. expense. A second and third attempt was made on 11 October 2018 and on 4 November 2018 with no reply from the

OEM as of 10 June 2019.

This requirement will be competed to the maximum extent practical.