Attachment_3_Sole_Source_JnA-_Redacted.pdf

SOLE SOURCE JUSTIFICATION

For Certain Commercial Items for Procurements Exceeding the Simplified

Acquisition Threshold pursuant to FAR Subpart 13.5 Solicitation No.: 70Z04019Q58750B00

Pursuant to the 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 Forces Logistics Center (SFLC), Small Boat Product Line (SBPL), located at 2401 Hawkins Point Road, Baltimore, MD 21226.

2. Nature and/or Description of the Action requiring Approval.

The USCG, SFLC, SBPL has a requirement for the acquisition of Original Equipment Manufacturer (OEM) remanufactured Mobile Electric Power Solutions (MEPS) 8kW generators and ACU’s, to include procurement of associated parts. The Government intends to award a commercial, requirements-type contract for supplies, with firm fixed-price delivery orders, consisting of one base and four (4) option years. The period of performance will be from FY2019 to FY2024.

The name and address of the OEM:

Mobile Electronics power Solutions Inc.

2623 National Circle Garland, TX 75041

3. Description of supplies/services.

This requirement is for the supply of remanufactured MEPS 8kW generators, ACUs and purchase of related parts to support USCG 45’ RB-M and 42’ NLB. The MEPS 8kW generator and ACU function together as a unit to provide all electrical power to the RB-M vessel. Specifically the propulsion system, propulsion controls, radios and navigation systems all depend on electrical power from the MEPS 8kW Generator and ACU.

The estimated total value for this requirement is $ .

FY Base/Option Total 2019-2020 Base Year 2020-2021 First Option Year 2021-2022 Second Option Year 2022-2023 Third Option Year 2023-2024 Fourth Option Year

Total

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

Competition.

The statutory authority permitting other than full and open competition including brand name 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 Require Use of Authority Cited.

The 45’ RB-M’s are critical to the Coast Guard mission of search and rescue and multi-mission operations. Without these components the boat cannot operate or get underway to perform any missions.

All reproduction manufacturing drawings, specifications, and other technical data required to overhaul these generators and ACU’s were not purchased. Furthermore, the scope of manufacturing, special tools, and equipment required to manufacture various parts are unknown. The technical data required is proprietary to the OEM, Mobile Electronics power Solutions Inc. Without the adequate data, the Coast Guard is not capable of evaluating equal or alternate parts manufactured by other than the OEM. The use of OEM parts and identified OEM warranties, will ensure components and processes are sufficient to enable physical and functional interchangeability, as well as identifying source, size, configuration, and performance requirements.

Based on the market research, only Mobile Electric Power Solutions, Inc. has the capability of overhauling these generators and ACU’s with these tools. The OEM has a distributor network, however, the OEM has confirmed that the distributors do not possess the capabilities to repair the components. Mobile Electric Power Solutions, Inc. distributors or dealers will be required to have technicians trained in the overhaul of these MEPS generators or ACUs as well as troubleshooting with MEPS System Certification, of which they currently do not possess.

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

Sources as is Practicable.

In an effort to solicit as many potential sources as practical, sources sought notice 70Z04019SS578500 was posted in Federal Business Opportunity (FBO) on 2 June 2019 and closed on 14 June 2019. This notice advised the industry that it is the Government’s belief that only Mobile Electric Power Solutions could provide the necessary proprietary data and genuine OEM parts required to successfully overhaul the MEPS 8kW Generators and the ACU. The notice provided other possible sources the option to respond to the notice and provide their capabilities to overhaul these generators and ACU’s to OEM specifications and to obtain genuine OEM parts. The notice yielded one response from an OEM distributor as listed below in section 10 of this document. The OEM confirmed that their distributor network does not possess the capabilities to repair subject generators or ACUs.

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

Determination that the anticipated cost to the Government will be fair and reasonable shall be based on the market research performed, prior repair history of MEPS generators and ACUs, and price analysis in comparison to the USCG’s Independent Government Cost Estimate (IGCE). 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:

Extensive market research as prescribed in FAR Part 10 was conducted by the Contracting Officer’s Representative (COR) and the Contracting Officer (KO) continuously from 2018- 2019. While Greentech Fuel Management stated they have the ability to perform the refurbishment, but half of the refurbishment process will be required to be finish by the OEM directly. Greentech Fuel Management support may increase the overall cost to refurbish the Generators and ACU’s. Sources Sought (70Z04019SS578500), Internet searches and Government databases was used to conduct marker research. It is concluded that only Mobile Electric Power Solutions, Inc. can satisfy the full purchase requirement in the best interest of the government.

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

No other supporting factors.

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

Acquisition.

The only responses received as a result of this notice came from Mobile Electric Power Solutions Inc. and Greentech Fuel Management, Inc. responded to sources sought notice stating that they are an OEM authorized distributor. However, the OEM has confirmed that the distributor network does not possess the capability to overhaul the MEPS 8kW Generator and the MEPS 8kW and 10kW Alternating Current Unit.

The following sources expressed interest in an overhaul contract for the MEPS 8kW Generator and the MEPS 8kW and 10kW Alternating Current Unit:

Mobile Electric Power Solutions, Inc.

2623 National Circle Garland, TX 75041

DUNS# 019914659

POC: Billy Chambers (P): 972-864-1015 MEPS Distributor: Yes OEM Veteran Owned Small Business

Greentech Fuel Management, Inc.

1675 Hosfeld Drive Westminster, MD 21157-3438

DUNS# 030817648

POC: Jet Nordhausen (P): 443-956-6781 MEPS Distributor: Yes Small Business

11. A Statement of the Actions, if Any, the Agency May Take to Remove or Overcome Any

Barriers to Competition Before Any Subsequent Acquisitions for Supplies or Services Required:

The USCG does not own the rights to MEPS technical data. The overhaul of these MEPS generators and the ACUs will continue to be an on-going need for the Coast Guard.

Replacement of these generators and ACUs has not been considered. Due to the fact that the Coast Guard does not own the required drawings, specifications, etc., to evaluate other than OEM parts, it is not anticipated that any future requirements can be competed to the maximum extent practicable on a full and open competition basis. Only the OEM and or authorized OEM distributor can overhaul these generators and ACUs. However, every attempt will still be made to obtain applicable drawings, specifications, etc., from the OEM before any subsequent acquisitions occur.