HONDA ENGINES JOTFOC_REDACTED.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN

COMPETITION 10 U.S.C. § 3204

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by Federal Acquisition Regulation (FAR) Subpart 6.3, the following facts and rationale justify the use of such authority:

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), United States Coast Guard (USCG), Surface Forces Logistics Center (SFLC), Contract & Procurement Division 3 (C&P-3), Small Boat Product Line (SBPL), prepared this justification for other than full and open competition.

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

(a) Nature of the action: The USCG has a requirement to procure new Honda outboard engines on a brand name basis to support its small boats. Currently the 29' RBS-II, 26' TANB, 24' SPC-SW and ATON Boat (Small) are all equipped with Honda outboard engines. This is a commercial products acquisition.

(b) Name and address of the manufacturer:

Honda Motor Co., LTD.

2-1-1 Minami-Aoyama, Minato-ku Tokyo, 1078556, Japan

(c) Type of action: Anticipate awarding up to 6 Multi-award Indefinite Delivery/ Indefinite Quantity (IDIQ) with Firm Fixed-Price Delivery Orders.

(d) Estimated total shared value (including options): Estimated total value (including options):

Period Unit Price

Previous Contract was awarded to Atlantic Marine, LLC. (Authorized Distributor), HSCG40-17-D-53010, Period of Performance (July 28, 2017 – July 27, 2022).

(e) Type of funding: Surface Operation funds will be applied at the delivery order level.

(f) Year of funding: Current year funds will be applied to delivery orders when issued.

Base Year 12 mo. $6,196,007.76 Option Year 1 12 mo. $6,745,797.98 Option Year 2 12 mo. $6,961,834.32 Option Year 3 12 mo. $7,167,198.85 Option Year 4 12 mo. $7,597,230.78

Total

$34,668,069.69

(g) Solicitation number: 70Z04023R62485B00

(h) Background information about the requirement: The SFLC anticipates awarding multiple firm fixed price (FFP) IDIQ contracts on a brand name basis, for the acquisition of Honda engines in support of USCG SBPL assets including, but not limited to: BF225 engine and/or lower unit, BF60 engine and/or lower unit, BF50 engine and/or lower unit, and the BF150 engine and/or lower unit used on the 29’ Gen II Response Boat Small (RBS), 26’ Trailerable Aids to Navigation Boats (TANB), Aton Boat Small and the 24’ Special Purpose Craft-Shallow Water (SPC-SW). This is a follow-on commercial products contract that was previously awarded to Atlantic Marine, LLC.

3. Description of Supplies/Services.

This requirement is for the procurement of various Honda Motor Co., LTD brand name engines.

Honda engines were identified and configured by the Acquisition Program Office as the standard engine for all vessels identified in Section 2(a). The USCG SBPL will be required to maintain and support these vessels through the acquisition of OEM Honda engines for as long as the vessels are in use. The vendor will provide new, genuine OEM (Original Equipment Manufacturer) engines that will be preserved, packaged, and marked in accordance with Government specifications. No aftermarket or refurbished parts will be accepted.

The vendors must provide the following Honda engines:

BF225 engine and/or lower unit, BF60 engine and/or lower unit, BF50 engine and/or lower unit, and the BF150 engine and/or lower unit.

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

The statutory authority permitting other than full and open competition is 10 U.S.C. § 3204(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements, including brand name per FAR 6.302-1(c)(i).

5. Identification of Exception to the Buy American Act.

An exception to the Buy American statute permitting the purchase of articles that are not domestic end products is FAR 25.103(b)(1)(i): Spare and replacement parts for equipment of foreign manufacture, and for which domestic parts are not available.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Require Use of the Authority Cited.

Honda Motor Co., LTD, located in Tokyo, Japan, is the manufacturer for OEM Honda engines.

Honda Motor Co., LTD. will not sell the required engines directly to the Government. As a result, Honda has authorized multiple distributors to provide engines on behalf of the Honda Motor Co.

The USCG does not possess the complete technical data package necessary to support a competitive solicitation for non-OEM replacement engines, nor is the USCG aware of any alternative supplier of compatible engines. Based on the results of the market research effort, the only company that can provide the OEM Honda engines is Honda Motor Co., LTD.

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

Sources as is Practicable.

In an effort to identify alternative sources, Sources Sought Notice (SSN) 70Z04023Q62485B00 was posted to www.sam.gov on 19 April 2023, with a closing date of 30 April 2023. Three vendors responded to this notice. In addition, the Contracting Office reached out to three vendors that are both authorized distributors for Honda and were also interested in providing Honda parts to the USCG as part of a separate procurement. As a result of these efforts, the Government has identified a total of five small businesses that are Honda authorized distributors and have expressed interest in this requirement.

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

Historical pricing from the previous Honda parts and engines contract and similar buys was considered. The Contracting Officer has determined that the anticipated price will be fair and reasonable, based on adequate competition amongst the distributors.

9. Description of Market Research.

Market research, as prescribed in FAR part 10, was conducted by the Customer and the Contracting Office between December 2022 through April 2023 to identify alternative sources that can provide replacement engines. Specifically, an extensive internet search was conducted to locate price and availability of engines and several Government databases were reviewed for availability. In order to solicit as many potential sources as practical, sources sought notice 70Z04023Q62485B00 was posted to sam.gov on 19 April 2023 seeking potential sources. Market research has indicated that the OEM brand engines can only be procured from Honda Motor., LTD. authorized distributors.

The COR conducted extensive research through historical purchases, the Federal Stock System, Honda’s website, authorized dealers’ websites, Federal Supply Schedules, and other Federal agencies. The results of the market research indicate that Honda engines are the only engines compatible with the existing USCG boats. The use of any other brand of engine would not be compatible with the existing boat configurations and could negatively impact the operation of the boats. Honda is the only known company possessing the original drawings, specifications, engineering control procedures and proprietary methods to ensure the correct design configuration for the engines. The USCG small boat fleet operates nationwide using Honda outboard engines supporting search and rescue, safe navigation of waterways, and multi-mission operations.

From the results of market research and responses from the sources sought notice, it is anticipated that only the OEM’s authorized distributors can effectively respond to all the solicitation requirements once it is posted.

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

All the Coast Guard small boats that are currently operating with Honda outboard engines were designed and delivered with those engines installed and that a change in manufacturers would result in numerous changes to the vessel, including rigging, handling, and performance.

11. A Listing of the Sources, if Any, that Expressed, in Writing, an Interest in the Acquisition.

Atlantic Marine Service (Distributor) 337 Redoubt Rd Yorktown, VA

Central Florida Yamaha, Inc. (Distributor) 730 U.S. 27 N Lake Placid, FL 33852-9439

S.I.T Corporation 13200 SW 128th St, BLDG H Miami, FL 33186

US21 Inc.

2721 Prosperity Ave

STE 300

Fairfax, VA 22031-4341

Bowhead Marine Support Services LLC 6564 Loisdale Ct., Ste. 900, Springfield, VA 22150

Although engines are manufactured by the OEM, Honda Motor Co., LTD., sales are conducted through its authorized distributors. The Government anticipates maximum competition amongst these authorized distributors.

12. 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.

Honda owns the proprietary data and are the current holders of the limited data rights that we would need to compete and evaluate the full and open competition for all parts and components of compatible marine engines. Honda responded to that email on 01 May 2023, stating that they are unwilling to provide this information to the US Coast Guard, or any other Government Agency. For future requirements, the USCG will continue to engage the OEM for release of the complete technical data package prior to any subsequent acquisition.