S1.4d_JA_MTU_One_Year_(002)_REDACTED.pdf

70Z080-19-Q-13001B00

USCG 87’ CPB MTU COMPONENT OVERHAULS & PARTS PURCHASE

*Based on DHS J&A Guide dtd 10/2018 – Version 3.0 Page 2 of 5

3. Description of Supplies/Services:

The USCG anticipates awarding a requirements contract with firm, fixed-price delivery orders to purchase overhauled components and OEM parts of the MTU model 8V396 TE94 series diesel engines and their electronic control systems. This requirement has been designated as a supply because the primary purpose of the requirement is to furnish an end item of supply. These overhauls and parts are considered commercial items and were previously purchased under SFLC contract vehicle . The overhauled components and OEM parts of the MTU model 8V396 TE94 series diesel engine system will be shipped to the SFLC Warehouse for storage and ready issue to the fleet or will be direct shipped to various USCG cutters and units when required.

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 Subpart 13.5, Simplified Procedures for Certain Commercial Items.

5. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

MTU (OEM) is the only known source that possesses the required capabilities, drawings, specifications, engineering control procedures and proprietary methods to ensure the latest design configuration, manufacturing and quality control required to overhaul components and produce parts to the latest engineering specifications and requirements. The 8V396 TE94 MDEs are critical to the safe and efficient operation of the 87’ CPB cutters. Using other than OEM components and parts could result in a failure of the main propulsion system as the technical publications, software key, engine calibration data and electronic control system programming is proprietary information to MTU. It is also not expected that other companies will be able to overhaul the MTU 8V396 TE94 series diesel engine components and provide new OEM parts without access to MTU proprietary information.

Using other than OEM components and parts would be an extremely high risk because the MDEs are critical to the maneuverability of the CPBs. A malfunction or failure of MDEs would cause loss of maneuverability and the mission would be severely impacted. The CPBs operate independently, in remote areas of the world, on missions of homeland security, search and rescue, Alien Immigration Migration Operations (AIMO), drug interdiction and fisheries patrol.

6. Description of Efforts Made to Ensure That Offers are Solicited from as Many Potential Sources as is Practicable:

In accordance with FAR Subpart 5.203, in an effort to solicit as many potential sources as practicable, a Sources Sought Notice was posted on the Federal Business Opportunities (FBO) website from January 3-8, 2018. To update market research efforts, the notice was reposted on February 4-6, 2019. The notices informed the industry of the USCG’s intent to purchase overhauled OEM components and new OEM parts for the model 8V396 TE94 diesel engine

70Z080-19-Q-13001B00

USCG 87’ CPB MTU COMPONENT OVERHAULS & PARTS PURCHASE

*Based on DHS J&A Guide dtd 10/2018 – Version 3.0 Page 3 of 5 manufactured by MTU. Other businesses having the expertise and required capabilities to provide these parts were invited to submit information on their companies. The notices yielded companies stating the ability to meet this requirement. MTU provided an e-mail dated February 14, 2019, which listed as authorized to service MTU 8V396 TE94 engine components. Any responsible vendor may submit a proposal/quote; all responsible offers will be considered. If any responses are received as a result of the solicitation, the file will be documented accordingly and the requirement competed among all eligible offerors.

The 87’ CPB requirement was published in the Acquisition Planning Forecast System (APFS) on December 11, 2018 and updated on May 17, 2019. The APFS number is F2018044654.

7. Determination by the Contracting Officer that the Anticipated Cost to the Government Will Be Fair and Reasonable:

The Contracting Officer (KO) will determine that the anticipated prices are fair and reasonable based on comparisons with the IGE, market research, previous acquisition history, price competition among authorized distributors and, if necessary, require the offeror to submit other than certified pricing data. Previous history includes Contract (expired in 2017), contract (current contract that expires in August 2019), and various simplified acquisitions. These contract vehicles have adequate data for evaluating the reasonableness of the prices by comparing the proposed prices to historical prices paid by the USCG for the same or similar items.

8. Description of Market Research:

Extensive market research was conducted by the Contracting Officer’s Representative (COR) and Contract Specialist (KS), from December 2018 – February 2019 in an effort to identify companies that can provide the overhaul components and new OEM parts. Market research was conducted by identifying various companies on the internet, through searching General Services Administration (GSA) Advantage, Department of Homeland Security’s Strategic Sourcing Vehicles. Information was also obtained from NESSS/NE-TIMS, various MTU distributors ( ), TRACEN Yorktown SME, ASSIST members, Fedlog, FLS, and HAYSTACK. Market research revealed that the OEM has a network of distributors within the U.S., of which, are capable and interested in performing this requirement as evidenced by their responses to the Sources Sought Notices.

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

Non-OEM distributors do not have access to OEM proprietary information and therefore cannot overhaul these components to OEM specifications or provide service-ready, new parts that are equal to OEM parts. The Government cannot share OEM proprietary information with companies not authorized by MTU to have access to their proprietary data. The assemblies of a model 8V396 TE94 diesel engine are designed, engineered and built to close tolerances and have undergone numerous shop tests and rigorous operational testing before being certified and approved by the OEM for use by the end user.