AdvanTec_Solicitation_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.: 70Z04019Q57400B00

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, proposes to enter into a contract on a brand name basis with an Original Equipment Manufacturer (OEM) approved dealer.

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

The USCG, SFLC, SBPL has a requirement on a brand name basis for the acquisition of new, Original Equipment Manufacturer (OEM) windows, hatches, doors, and parts that conform to the form, fit and function of the windows, hatches, and doors currently in use on the 45’ Response

Boat Medium (RB-M) and the 47’ Motor Life Boat (MLB). The Government intends to award a requirements type contract for parts, with firm fixed price delivery orders, consisting of one base and four option years at an estimated cost of . Individual orders issued under this contract will be funded with Operating Expenses (OE) 30 and 45 funds with the year of funding to be determined based upon the time of order placement.

Name and Address of the Original Equipment Manufacturer (OEM):

AdvanTec Manufacturing USA, Inc. (hereafter referred to as AdvanTec)

28336 Hunter Creek Rd

Gold Beach, OR 97444

Phone: 1-(800) 770-0455 Ext. 3155

DUNS No.: 091290817

3. Description of Supplies/Services.

The supplies to be acquired under this procurement are OEM windows, hatches, doors, and parts for the 45’ RB-M and the 47’ MLB. The specific parts are identified in the attached Parts List, which is included to this document as Attachment (1).

The estimated total value of the procurement is as follows:

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 the statutory authority 41 U.S.C. 1901 implemented by FAR 13.5 procedures due to the limitations in data rights ownership for the windows, hatches, doors, and parts for the 45’ RB-M and the 47’ MLB. The USCG does not own the blueprints, technical drawings, and other data rights that are necessary to allow for full and open competition while also ensuring proper form, fit, and function of the windows, hatches, doors, and parts. These data rights were not acquired when these vessels were first designed and built. Due to this limitation, the

USCG must procure OEM windows, hatches, doors, and parts because the necessary data rights cannot be provided to industry in order to allow for non-OEM windows, hatches, doors, and parts to satisfy the USCG’s requirement. Moreover, the USCG cannot evaluate alternative solutions due to the lack of the necessary data rights; the USCG cannot verify the compatibility of alternative solutions to the windows, hatches, and doors that are currently installed on the 45’ RB-M and the

47’ MLB. During previous acquisitions, the USCG has offered to purchase the data rights necessary in order to promote full and open competition, however AdvanTec has declined at each instance.

These items are shelf-ware for replacement on any of the 45’ RB-M and 47’ MLB. Using non-

OEM windows, hatches, doors, and parts would compromise the water-tight integrity that is necessary during a roll-over incident while in operation. Such an incident could lead to loss of life, property damage, and/or mission failure. Because of this, the USCG’s requirement cannot be satisfied with non-OEM windows, hatches, doors, and parts. The use of OEM windows, hatches, doors, 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 70Z04018S57400B00 was posted on FedBizOpps (FBO) on 30 April 2018 advising industry that it is the Government’s belief that only Advantec and/or an authorized distributor could obtain the necessary proprietary data to manufacture these parts. The notice allowed sixteen (16) calendar days for potential sources to demonstrate their capability to manufacture these parts to OEM specifications. One response was received. Sources sought notice

70Z04019S57400B00 was posted to FBO on 24 April 2019 in order to ensure that the market research was current and up to date. No other responses were received.

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

Government will be Fair and Reasonable.

The Contracting Officer has determined that the anticipated cost to the Government will be fair and reasonable based on the market research performed, comparison to similar previously awarded contracts, competition among the various OEM dealers, price analysis in comparison to the

USCG’s Intendent Government Cost Estimate (IGCE) and history of parts demand through a catalog of parts researched for this contract. These parts were previously procured under Contract

HSCG40-13-D-51004.

8. Description of Market Research.

Market research as prescribed in FAR Part 10 was conducted from April 2018 to June 2018 as well as from September 2018 to October 2018. Market Research included researching several internet websites, Government databases, and the issuance of a Sources Sought Notice. Results indicate that only the OEM or an authorized dealer. 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.

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 windows, hatches, doors, 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 windows, hatches, doors, 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 two (2) companies responded to the sources sought notice published in FBO on 30 April

2018. Delphinus submitted an alternate solution to the USCG’s requirement, AdvanTec submitted a solution to the USCG’s requirement with OEM windows, hatches, doors, and parts. Delphinus’ product was reviewed by the COR. The COR was unable to determine the technical viability of the product. We have no OEM proprietary data to confirm Delphinus’ products match or exceed

OEM specification.

AdvanTec

28336 Hunter Creek Rd

Gold Beach, OR 97444

Phone: 1-(800) 770-0455 Ext. 3155

DUNS No.: 091290817

Delphinus Engineering, Inc. (hereafter referred to as Delphinus)

7437 Central Business Park Dr

Norfolk, VA 22513

Phone: (757) 588-8364

DUNS No.: 884473398

In addition, AdvanTec has a distribution network for the windows, hatches, doors, and parts for the 45’ RB-M and 47’ MLB. None of those vendors expressed written interest in regards to the

Government’s requirement.

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 the windows, hatches, doors, and parts for the 45’ RB-M and 47’ MLB 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. It is not anticipated that any future requirements will be competed on a full and open competition basis. An attempt was made to acquire the data rights from the OEM on 25 April 2019 and the request was denied. Historically, the OEM has declined the USCG’s request. The USCG cannot force any OEM to release proprietary information and it is highly unlikely that the USCG will have the required funding to purchase such rights if offered by the OEM. However, every attempt will continue to be made to obtain the required documentation before any subsequent acquisitions occur.