70Z0824Q21413B00 REDACTED JA.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

Pursuant to the requirements of Federal Acquisition Regulation (FAR) 13.5, Test Program for Certain Commercial Items, the justification for the use of the statutory authority is supported by the following facts and rationale required under FAR 13.501(a)(1)(ii).

1. Agency and Contracting Activity.

The Department of Homeland Security, United States Coast Guard (USCG), Surface Forces Logistics Center (SFLC), Contracting and Procurement Division (CPD) proposes to enter into a contract on a basis of other than full and open competition.

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

(a) Nature of the action: USCG intends to procure for the overhaul of TW.PIV 5.0B davits on a sole source basis to support the Medium Endurance Cutter Product Line (MECPL).

(b) Name and address of the contractor: Fairbanks Morse, LLC.

701 White Ave, Beloit, Wisconsin 53511-5447

(c) Type of action: Firm Fixed-Price Contract

(d) Estimated total value (including options):

(e) Type of funding: Operations and Support funds

(f) Year of funding: Fiscal Year 2024

(g) Solicitation number: 70Z08024Q21413B00

(h) Background information about the requirement: Davit overhauls were previously completed under contract 70Z08018DP4535300 utilizing other than full and open competition from Welin Lambie Limited. The period of performance for the previous contract was June 12, 2018 through June 11, 2023. This definitive, one-time contract is required to ensure adequate davits were in process to allow for their availability while a new five (5) year requirements contract is being solicited and awarded.

3. Description of Supplies/Services.

The requirement is for the overhaul of two (2) of TW.PIV 5.0B davits, NSN 2030-99- 4854-8999, with the inclusion of an optional Contract Line Item Number (CLIN) for an additional two (2) davit overhauls.

The USCG maintenance program supporting Welin Lambie davits require each davit installed aboard cutters to be removed and factory overhauled every eight (8) years. At the four (4) year mark between factory overhauls, each davit is required to have an in-place-overhaul. When both factory and in-place overhauls are performed as scheduled, the effective life expectancy of each davit is twenty (20) years. Davits that exceeded their life expectancy are generally considered Beyond Economic Repair (BER). The USCG currently owns a total of 56 davits, of which 42 are currently installed aboard MEC and WLB Coast Guard Cutters. The remaining fourteen (14) davits owned are stocked to maintain a rotatable pool to accommodate USCG mission needs.

The davit system is utilized for launch and recovery of various USCG small boats onboard 27 MEC 210’/270’cutters and 16 WLB 225’ cutters, and the CGC Alex Haley. This davit system is mission critical in that it is essential for execution of primary missions including Search & Rescue, Law Enforcement and Counter-Narcotics onboard most operational major cutters. The davits are required to be operationally reliable, fully functional, and safe for use in any sea state. The davit systems must provide flexible, operational capability to launch the cutter small boats whenever needed, without notice. Not maintaining and servicing the capabilities of the davit systems would prevent the USCG from preforming critical missions. The impact of poorly maintained, unsafe, or non-operational davit systems cannot be overstated.

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 13.501(a) sole source acquisitions as defined in FAR 2.101.

5. Identification of Exception to the Buy American Act.

No exceptions to the Buy American Act have been identified.

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

Fairbanks Morse, LLC has submitted in writing, on June 6, 2024, that they are the sole source provider with no authorized distributors that can provide Original Equipment Manufacturer (OEM) parts or OEM support. Fairbanks Morse, LLC. purchased Welin Lambie Ltd. in December 2021, incorporating Welin Lambie as a wholly owned subsidiary under Fairbanks Morse, LLC. As a result, Fairbanks Morse, LLC. now the sole design authority and the OEM of the dual point davit and its component parts. They do not have any authorized dealers, distributors, or repair facilities, and solely maintain access to proprietary information of OEM drawings, specifications, manuals, special tooling, software/hardware updates, and other technical data needed to overhaul, upgrade and support the davits.

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

A sources sought notice was posted to SAM.gov on May 23, 2024. The OEM and one other firm responded to the notice. The sources sought notice stated that the USCG intended to award to make an award to the OEM and any interested sources could provide information to demonstrate their capabilities to provide genuine OEM supplies. The solicitation will be posted on SAM.gov. Should a proposal be received from an offeror other than Fairbanks Morse, LLC. with evidence of having OEM authorization to overhaul the davits, the proposal will be considered, However, based on the information provided by the OEM, it is not anticipated any sources other than Fairbanks Morse, LLC. will respond to the solicitation.

An Acquisition Planning Forecast (APFS) record was posted to the APFS website on May 29, 2024. No inquires or responses have been received in response to the APFS record.

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

The Contracting Officer anticipates that the cost to the Government will be fair and reasonable. Price analysis will be conducted in accordance with FAR Subpart 13.106-3, utilizing a combination of price analysis techniques to include comparison of proposed prices to historical prices paid on prior acquisitions, to the Independent Government Cost Estimate (IGCE), and to other similar items, as necessary. The offeror may be required to submit data other than certified cost of other than certified cost and pricing data to further ensure fair and reasonable pricing.

9. Description of Market Research.

Market research as prescribed in FAR Part 10 was conducted by the Contracting Officer’s Representative (COR) and Contract Specialist (KS). The internet was searched for a list of contractors that possessed the necessary technical data, drawings, manufacturing data and specifications that possess overhaul capabilities necessary to return the davits to OEM like new condition. The market research showed that only Fairbanks Morse, LLC. possesses these capabilities. Fairbanks Morse, LLC. is the only one that possess the required capabilities to ensure compatibility and/or interchangeability with existing davits. The purchase or use of other than OEM parts could result in faulty and/or nonstandard items. Additionally, the use of other than OEM parts can lead to voiding of any existing warranty(s) and unaccounted for costs associated with additional repairs.

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

Fairbanks Morse, LLC. will not disclose their drawings, specifications, and proprietary rights. The USCG does not possess technical data that would provide for competition for this requirement. Consideration of any other manufacturer or outside service representatives would not be cost effective because it would require additional funds to redesign and re-engineer the entire davit system and replace all primary components. The USCG also does not currently possess the required technical knowledge base to fully support these davits or the test stand, special tooling and access to software updates required to service them.

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

The OEM and one other firm, BHPE, LLC., responded to the sources sought notice published on May 23, 2024. BHPE, LLC. did not respond to a request to submit documentation demonstrating their capability to provide genuine OEM technical services nor a certification as being a service facility for the OEM.

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.

In their email dated June 6, 2024, Fairbanks Morse, LLC. stated that they are not interested in selling their data rights to the USCG. The Government will continue attempts to seek data rights. Efforts must continue to be made to support the davits due to their current installation on USCG cutters. It is anticipated that future procurements will continue to be made with Fairbanks Morse, LLC. unless they authorize additional sources to provide these parts, davits, and technical support. Fairbanks Morse, LLC.

included in their email that they are the sole provider with no authorized distributers or dealers that can provide OEM parts or OEM support.