Attachment_3_-Yanmar_Engine_Remfg_JOTFOC-REDACTED.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 70Z04019Q56300B00

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 brand name basis for the supply of remanufactured Yanmar 4LHA-DTP, 6LPA-STZP/STZP2 marine diesel engines found onboard the 23-Foot Short Range Prosecutor (23’SRP) , 23-Foot Cutter Boat-Over The Horizon- MarkII

(23’ CB-OTH MKII ), 23-Foot Cutter Boat-Over The Horizon- MarkIII (23’ CB-OTH MKIII), and the 17-Foot Cutter Boat- Medium (17’ CB-M) utilizing only new, genuine OEM parts at an estimated price of $REDACTED.

The USCG, SFLC anticipates that a 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 period of performance will include one (1) base year with four (4) one-year options. It is anticipated that funding will be provided through individual fixed-price delivery orders utilizing AFC-30 Operating funds. The proposed

Requirements contract will be awarded to the Original Equipment Manufacturer (OEM) Yanmar

American Corporation, or one of their authorized distributors.

Name and Address of the Original Equipment Manufacturer (OEM)

Yanmar American Corporation

101 International Parkway

Adairsville, GA 30101

(3) Description of Supplies/Services.

This requirement is for the remanufacture of 4LHA-DTP and 6LPA-STZP/STZP2 marine diesel engines. The vendor will reassemble the marine diesel engine with only Yanmar American

Corporation OEM parts. The marine engine with attached hang-on equipment, will be dynamometer tested, preserved, packaged, and marked to like-new condition using only genuine

OEM replacement parts. The contractor shall provide all labor, equipment, special tools, materials, and parts required to clean, inspect, disassemble/reassemble, and test each engine.

The IGE estimate cost for this requirement is:

Base Year $REDACTED

1st Option Year $REDACTED

2nd Option Year $REDACTED

3rd Option Year $REDACTED

4th Option Year $REDACTED

Total $REDACTED

(4) Identification 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 requires use of the authority cited:

The limitation to use only certified remanufacture technicians must be enforced or the

Government may experience negative repercussions. The 23’ CB-OTH MKII, 23’ CB-OTH

MKIII, 17’ CB-M, and 23’ SRP are critical to the Coast Guard mission of search and rescue and multi-mission operations. The Coast Guard does not possess the technical data required to evaluate non-OEM parts. The OEM and authorized distributors are the only source(s) that possess the required capabilities, drawings, specifications, engineering control procedures and proprietary methods to ensure the latest design configuration, manufacturing and quality control required to produce parts to latest engineering specifications and requirements and to successfully remanufacture these engines. The Government does not possess the technical data or drawings pertaining to the manufacturing of these engines. All data is proprietary to the OEM.

Considering non OEM manufacturing specifications and parts requires a lengthy and expensive engineering change request process, and the government does not own the data rights, and therefore cannot determine if another firm can build to OEM specifications. In addition, the only way to get a warranty from the OEM as part of our requirements, is though rebuild of OEM specifications.

(6) A description of the 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, HSCG40-17-I-53006 with amendments, was posted on FedBizOpps

(FBO) on April 23, 2019 advising industry that it is the Government’s belief that only a Yanmar

American Corporation authorized distributor could obtain the necessary proprietary data to remanufacture these marine diesel engines.

Potential sources were given the opportunity to demonstrate their capability to remanufacture the marine diesel engine to OEM specifications. A total of six (6) companies responded to the sources sought notice, all authorized dealers. The Coast Guard determined through market research, that the OEM, Yanmar American Corporation, has several authorized distributors available to meet this requirement.

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

The Contracting Officer (KO) has determined that the anticipated prices will be fair and reasonable based on competition among responsible authorized distributors as well as price analysis utilizing a combination of techniques to include comparison to the Independent

Government Estimate (IGE) and available previous agency history. Additionally, in accordance with DHS policy, the offeror may be required to submit Data Other Than Certified Cost and

Pricing Data (FAR 15.403-3) to support price negotiations.

(8) Description of market research.

Extensive market research as prescribed in FAR Part 10 was conducted by the Contracting

Officer’s Representative (COR) and the KO. The COR sent out a market research questionnaire consisting of 19 questions that were forwarded to potential sources possessing the capabilities and facilities to successfully remanufacture these types of engines. Internet searches and

Government databases including a sources sought notice has concluded that Yanmar American

Corporation and its authorized distributors are the only known source that can successfully remanufacture these engines utilizing genuine OEM parts ensuring proper form, fit and function with existing equipment.

(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.

Through market research the following companies expressed, in writing, an interest in the acquisition:

W.W. Wiliams Southeast, Inc.

14 Westgate Blvd

Savannah, GA 31405

Authorized Distributor

Bay Diesel Corporation

3736 Cook Blvd

Chesapeake, VA 23323

Authorized Distributor

Melton Sales & Services

13 Petticoat Bridge Rd.

Columbus, NJ 08022

Authorized Distributor

Niemiec Marine, Inc.

173 Popes Island

New Bradford, MA 02740

Authorized Distributor

Laborde Products, Inc.

74257 Hwy 25

Covington, LA 70435

Authorized Distributor

Monmouth Marine Engines, Inc.

536 Union Lane

Brielle, NJ 08730

Authorized Distributor

(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 engines will continue to be an on-going need for the Coast Guard.

The U.S. Coast Guard does not own the required drawings, specifications, etc. to evaluate other than OEM parts associated with subject engines at this time. Attempts were made to acquire the data rights from the OEM on October 9, 2018. The USCG did not receive a response; however, historically, the OEM has declined the CG’s request. However, every attempt will continue to be made to obtain the required documentation before any subsequent acquisitions occur.