Attachment_2_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 No.: 70Z04019Q57350B00

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 for the acquisition of new, Original Equipment Manufacturer (OEM) steering control systems and parts that conform to the form, fit and function of the steering control systems currently in use on the 45’ Response Boat

Medium (RB-M). The Government intends to award a requirements type contract for systems and parts consisting of one base and four option years at an estimated cost of $REDACTED.

Individual firm fixed-price delivery orders issued under this contract will be awarded with

Operating Expenses (OE) 30 funds respective of the year the need is determined.

Name and Address of the OEM:

Vector Controls Inc. (hereafter referred to as Vector)

3 Bridge St, Suite B100

Newton, MA 02458

Phone: (617) 527-8600, ext. 117

DUNS No.: 050459606

3. Description of Supplies/Services.

The supplies to be acquired under this procurement are OEM steering control systems and parts for the 45’ RB-M, including standard manufacturer’s warranty. The specific parts for this requirement are identified below:

CLIN Nomenclature Part No. National Stock No.

0001 Control Unit, Navigation Set 020702-624 6605 01-612-5245

0002 Joy Stick Control Assy. 030603-404 7025 01-616-6393

0003 Trim Roll Joy Stick 070603-563 7025 01-616-7923

0004 Clutch Panel Assembly, Helm 040706-640 5975 01-616-7908

0005 Clutch Panel Assembly, Navigator 040706-644 7975 01-617-0140

0006 Backup Relay Assembly 020706-622 5945 01-616-6396

0007 Two Station Manifold 120604-602 4730 01-616-6237

0008 Control, Indicator/Alarm 020705-623 6350 01-617-0804

0009 Manifold, Hydraulic System Acc. 110604-593 4730 01-616-6236

0010 Control Unit Engine 100605-590 2990 01-646-6498

0011 Engineers LCD Display 090506-357 5980 01-659-4577

0012 Repeater LCD Display 031319-1482 7025 01-675-9041

0013 Bucket/Interceptor Feedback Assy. 090607-577 6625 01-632-8263

0014 Steering Feedback Assy. 110707-764 5342 01-625-6701

0015 Wiring Harness 040711-665 6150 01-658-1735

The estimated total value of the procurement, which utilizes a 6.00% escalation factor for the out-years, is as follows:

Year Value

Base Year $REDACTED

Option Year 1 $REDACTED

Option Year 2 $REDACTED

Option Year 3 $REDACTED

Option Year 4 $REDACTED

Total $REDACTED

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 Require Use of the Authority Cited.

The USCG must utilize the statutory authority 41 U.S.C. 1901 implemented by FAR 13.5 procedures due to the limitations in data rights ownership of the blueprints, technical drawings, and other data that are necessary to allow for full and open competition while also ensuring proper form, fit, and function of the steering control systems and parts. These data rights were not acquired when these vessels were first designed and built. Moreover, due to inability to obtain data rights, the USCG is unable to evaluate alternative solutions; nor is the government able to verify the compatibility of alternative solutions to the steering control systems that are currently installed on the 45’ RB-M. The use of OEM steering control systems and parts will ensure that the components and processes are sufficient to enable physical and functional interchangeability, as well as identifying and verifying the source, size, and configuration and performance requirements.

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, sources sought notice 70Z04019S57350B00 was posted on FedBizOpps (FBO) on 5 June 2019.

The notice allowed sixteen (16) calendar days for potential sources to demonstrate their capability to manufacture these parts to OEM specifications. Three (3) submissions were received in response to 70Z04019S57350B00 but Vector is the only company that can manufacture parts to OEM specification (Section 10 includes additional details). No additional responses were received.

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, comparison to similar previously awarded contracts, price analysis in comparison to the USCG’s Independent Government Cost Estimate (IGCE) and history of parts demand through a catalog of parts researched for this requirement. These parts were previously procured under Contract HSCG40-13-D-51010.

8. Description of Market Research.

Market research as prescribed in FAR Part 10 was conducted from May 2018 to June 2019.

Market research included researching several internet websites, Government databases, and the issuance of three Sources Sought Notices. While other parts exist within the commercial marketplace, the Government does not possess the necessary technical and engineering data and drawings required to be able to determine if alternate sources can successfully manufacture these parts and maintain form, fit, and function with existing equipment; and no additional vendors provided any information about alternative parts to prove otherwise.

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

In addition to the USCG not owning the data rights or technical drawings for these steering control systems and parts, the USCG does not possess the technical data to fully detail and publish the scope of manufacturing, special processes, special tools and equipment required to manufacture the steering control systems and parts. The use of only OEM parts will ensure that components and processes are sufficient to enable physical and functional interchangeability, as well as identifying source, size, configuration, mating and attachment characteristics, functional characteristics, and performance requirements.

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

Acquisition.

A total of 3 companies Vector Controls Inc. (dba Vector), RG Industries, Inc. (dba RG Group), and Autonav responded to Source Sought Notice 70Z04019S57350B00. RG Group and Autonav both submitted an alternate proposal to the government’s requirement while Vector submitted proposal for OEM steering control systems and parts. At this time, the alternate solutions could not be proven to be compatible with the 45’ RB-M steering control systems because the USCG does not possess OEM data rights or technical information.

Vector

3 Bridge St, Suite B100

Newton, MA 02458

Phone: (617) 527-8600, ext. 117

DUNS No.: 050459606

RG Group, 650 North State Street

York, PA 17403

Phone: (717) 852-9082

DUNS No.: 150748895

Autonav

Newport Drive

Port Moody, BC, V3H-5H1. Canada

Phone: 1-604-526-0113

DUNS: 209666069

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 requirement for steering control systems and parts for the 45’ RB-M will continue to be an ongoing need for the USCG. The USCG does not currently own the necessary data rights in order to evaluate other alternative solutions. An attempt was made to acquire the data rights from the OEM on 13 December 2018 and no response was received; however, historically, the OEM has declined the government’s request. This requirement will be competed to the maximum extent when practicable.