70Z04020Q57900B00 Hypro Marine Solicitation Redacted JOTFOC.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 70Z04020Q57900B00

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 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 Force 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/DESCRIPTION OF THE ACTION

The USCG, SFLC, SBPL has a requirement on a brand name basis for the supply of Hypro Marine steering system parts onboard the 47-Foot Motor Life Boat (47MLB) utilizing only new, genuine Original Equipment Manufacturer (OEM) parts at an estimated total price of $1,023,409.04.

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 firm fixed-price delivery orders utilizing AFC-30 Operating funds. The proposed requirements contract will be awarded to an OEM authorized distributor.

Name and address of the OEM:

Hypro Developments Limited Mount Pleasant Lane Lymington, Hampshire SO41 8LS United Kingdom

3. DESCRIPTION OF SUPPLIES/SERVICES

This requirement is for the procurement of various Hypro Marine steering system parts for the 47MLB. The vendor will provide new, genuine OEM parts that will be preserved, packaged and marked. No aftermarket, gray-market or refurbished parts are permitted.

The IGE estimate cost for this requirement is:

Base Year $181,549.08 1st Option Year $192,442.02 2nd Option Year $203,988.55 3rd Option Year $216,227.86 4th Option Year $229,201.53 Total $1,023,409.04

Parts List:

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 as implemented by FAR 13.5, Simplified Procedures for Certain Commercial Items.

5. DEMONSTRATION THAT THE NATURE OF THE ACQUISITION REQUIRES USE

OF AUTHORITY CITED:

While other types of marine steering parts may exist in the commercial marketplace, there are none that meet the form, fit and function of the OEM steering systems currently installed on the 47MLB fleet. The Coast Guard does not possess the technical data required to evaluate non- OEM parts. Compatibility with current equipment can only be guaranteed if parts are obtained through the OEM or their authorized distributors.

All reproduction manufacturing drawings, specifications, and other technical data required to manufacture these parts were not purchased by the Coast Guard when the 47MLBs were originally procured using the OEM steering system parts. Further, the scope of manufacturing, special tools, and equipment required to manufacture the various steering system parts are unknown. The technical data (manuals, drawings, specifications, etc.) is proprietary to the OEM.

Considering non-OEM manufacturing specifications and parts requires a lengthy and expensive engineering change request process and as the government does not own the data rights it cannot be determined if another firm could build to OEM specifications.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICLE:

In accordance with FAR Subpart 5.2, in an effort to solicit as many potential sources as practical, a sources sought notice, 70Z04020S57900 with amendments, was posted on FedBiz Opps (FBO) on 27 September 2019 advising industry that it is the Government’s belief that only a Hypro Marine authorized distributor could obtain the necessary proprietary marine steering system parts. The notice provided other possible sources eighteen calendar days to respond to the notice and provide their capabilities to provide these parts and components OEM specifications and to obtain new, authentic OEM parts only. No aftermarket or refurbished parts are acceptable. Two

(2) companies responded to the sources sought notice. One of the two companies is an authorized distributor. An email from the OEM dated 16 October, 2019 stated that “in past years we have supplied equipment for these Government contracts through all sorts of middle suppliers.” Based on the responses the Coast Guard determined through market research that there is sufficient competition on a brand name basis.

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 under contract HSCG40-14- D-52006.

8. DESCRIPTION OF MARKET RESEARCH:

Extensive market research as prescribed in FAR Part 10 was conducted from June 2019 to October 2019. The contracting specialist posted a sources sought notice on FBO on 27 September 2019 and closed on 15 October, 2019. There were two responsive responses; both small business under NAICS code 333999. A search conducted on the OEM’s website showed that there are several authorized distributors of the marine steering system parts required for this procurement, however, only two are U.S. distributors and of those two only one is registered in SAM. The OEM stated in a follow-up email dated 16 October 2019, that many middle level suppliers could provide the required OEM marine steering parts. Further internet searches and Government databases concluded that Hypro Marine’s authorized distributors are the only known source that can successfully provide 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. LISTING OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITION:

A sources sought notice 70Z04020S57900 posted on 27 September 2019 and closed on 15 October, 2019 requesting parties to express their interest in writing to the contract specialist. The following responsive companies responded:

Allied Marine Services, Inc.

425 Log Canoe Cir.

Stevensville, MD 21666 POC: Reginald Groce 410-643-6313

Vizocom ICT, LLC.

1506 Constancia Way El Cajon, CA 92019 POC: Dennis Marco Phone: 619-350-6980 x724

11. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE

OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT

ACQUISITIONS FOR SUPPLIES OR SERVICES:

These marine steering system parts will be an on-going need for the Coast Guard. The USCG does not own the required drawings, specifications, etc. to evaluate other than OEM parts at this time. Attempts were made to acquire the data rights from the OEM on 18 October 2019. The OEM responded with follow up questions on 21 October 2019 indicating that they would not want to give up any right to continue producing the marine steering parts should the USCG own the data rights. Answers were provided 22 October 2019 and the OEM further expressed concern regarding the potential effect on their U.S. partner distributors. However, every attempt will continue to be made to obtain the required documentation before any subsequent acquisitions occur.

(Remainder of this page left blank intentionally)

SOLE SOURCE JUSTIFICATION

For Certain Commercial Items for Procurements Exceeding the Simplified Acquisition Threshold pursuant to FAR Subpart 13.5, Including Brand Name

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Drena S. Vining Date Contracting Officer

13. TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION

data, which forms a basis for this justification, is complete and accurate.

Thomas Sparr, COR, Date SFLC Small Boat Product Line

14. Legal Review and Concurrence:

I have reviewed this justification.

Mark J. Wisniewski Date Attorney

APPROVAL:

CPACA Date