JA_Redacted_Switchboard_70Z08019R15001B00.pdf

Solicitation Number: 70Z08019R15001B00

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

10 U.S.C. 2304(c)(1)

Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3 and in accordance with the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 is justified by the following facts and rationale required under FAR 6.303-2 as follows:

1. Agency and Contracting Activity. The Department of Homeland Security (DHS), United States Coast Guard (USCG), Surface Forces Logistics Center (SFLC) located at 2401 Hawkins Point Road, Baltimore, MD proposes to enter into a requirements contract on a basis of other than full and open competition.

2. Nature and/or Description of the Action being Approved. The SFLC intends to procure Powergen Controls, LLC Main Switchboards via a sole source, requirements contract in support of the USCG WPB-87 Patrol Boat Cutters utilizing procedures established under FAR Part 12, Acquisition of Commercial Items and FAR Part 15, Contracting by Negotiation.

The proposed contract will be awarded to the Original Equipment Manufacturer (OEM), Powergen Controls, LLC, 7102 Brookside Rd., Suite 112 Pearland, TX 77581.

Firm-fixed priced (FFP) delivery orders will be issued against the contract. This base and four option year contract will use annual Operations & Support funding appropriate to the fiscal year.

Independent Government Estimate (IGE) total value for this acquisition is broken down as follows:

Contract Line Item Quantity

(each) Base Year 14

Option Year 1 12 Option Year 2 12 Option Year 3 12 Option Year 4 12

The IGE was developed utilizing historical prices on contract 70Z08018D15001B00 that was completed on December 14, 2018 for the purchase of ten switchboards.

3. Description of Supplies/Services. The use of these OEM switchboard, P/N PGC001079, NSN: 6110-01-F17-5033 is essential to match the specific designed required for the existing configuration on the WPB-87 Cutters. The use of these commercially available

70Z08019R15001B00

USCG WPB-87 SWITCHBOARD P/N PGC001079, NSN: 6110-01-F17-5033 PURCHASE

*Based on DHS J&A Guide dtd 10/2018 – Version 3.0 Page 2 of 3 switchboards will ensure the sixty-two (62) WPB-87 Cutters will maintain operational readiness to support the USCG mission.

4. Identification of Statutory Authority Permitting Other Than Full and Open Competition. The statutory authority permitting other than full and open competition is 10 USC 2304(c)(1) implemented by FAR Subpart 6.302-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Demonstration that the Nature of the Acquisition Require Use of the Authority Cited.

Powergen Controls, LLC designed a switchboard specific to the WPB- 87 configuration and designed specifically to integrate with Philadelphia Electrical Equipment Company (PEECO) generator sets (which were also designed specific to the WPB- 87 configuration).

Only Powergen Controls, LLC has a switchboard that is compatible with both the PEECO generator sets and the WPB-87 Class configuration. The USCG did not purchase the necessary data rights or the proprietary licensing for the switchboard hardware and software.

Thus, Powergen Controls, LLC is the only source that possesses the required capabilities, drawings, specifications, engineering control procedures and proprietary methods to ensure the configuration, manufacturing, and quality controls required to produce the switchboards that will both integrate with the WPB-87 generator sets and the boat’s configuration. Since the drawings and other technical data required to produce the switchboard is proprietary to the OEM, the USCG cannot evaluate and determine whether another manufactures’ product is equal to the Powergen Controls, LLC switchboards P/N PGC001079 that are currently approved for installation on the WPB-87 Cutters.

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 Sources Sought Notice 70Z08010S15001B00 was posted on Federal Business Opportunities (FBO) from February 5, 2019 to February 8, 2019. The OEM, Powergen, responded on February 8, 2019. No other vendor responses were received.

Acquisition Planning Forecast System (APFS) number F2017038298 was posted on August 22, 2017. The record was twice updated on February 12, 2019 and June 18, 2019. No vendor inquiries have been received.

7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable. The Contracting Officer will utilize techniques outlined in FAR 15.404 in determining that prices are fair and reasonable based on historical pricing of the recent first production run award 70Z08018D15001B00 and comparison with the IGE. Contract 70Z08018D15001B00 had a period of performance of 22 December 2017 to 21 December 2018 and it has adequate data for evaluating the reasonableness of the offer by comparing the proposed price to the historical price paid by the USCG for the same item in FY18. The Contracting Officer may request data other than certified cost or pricing data (as defined at FAR 2.101) if deemed necessary to determine if the offer is fair and reasonable.

70Z08019R15001B00

USCG WPB-87 SWITCHBOARD P/N PGC001079, NSN: 6110-01-F17-5033 PURCHASE

*Based on DHS J&A Guide dtd 10/2018 – Version 3.0 Page 3 of 3

8. Description of Market Research. Powergen Controls, LLC has consistently been the only source to respond to WPB-87 switchboard inquiries from the USCG and the sources sought posted on February 5, 2019 this is due their propriety hardware and software licensing pertaining to their uniquely designed switchboard for the WPB-87. Based on the Market Research conducted in February 2019, it has been determined that Powergen Controls, LLC is the only technically acceptable and responsible source for the switchboard required in this contract.

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

February 8, 2019 Powergen Controls, LLC sent a letter which stated, “At this time, Powergen Controls, LLC is not willing to sell any proprietary software developed for installation in the switchboard and controls of vessel diesel generators.”

10. A Listing of the Sources, if Any That Expressed, in Writing, an Interest in the Acquisition. Sources Sought Notice 70Z08010S15001B00 was issued on February 5, 2019 on FBO. Only Powergen Controls, LLC responded.

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 Coast Guard will continue to engage Powergen Controls, LLC for release of proprietary data prior to any subsequent requirement.

JACOBY.CHAD.L.1020725130

Digitally signed by

JACOBY.CHAD.L.1020725130

Date: 2019.07.08 08:53:56 -04'00'