70Z08519RP4500800_HEALY_DD19_J&A_Redacted_Redacted.pdf

Justification and Approval Rev. 1

70Z08519RP4500800

Justification for Other Than Full and Open Competition Under 10 U.S.C. 2304 (c)(1)

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

70Z08519RP4500800

Pursuant to the requirements of the Competition in Contracting Act (CICA) as Implemented by 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), Long Range Enforcement Product Line (LRE PL) proposes to direct a prime contractor on the USCGC HEALY Dry Dock FY19 contract to order directly from Original Equipment Manufacturers (OEM) as per the specifications.

(2) Nature and/or description of the action being approved.

This is a brand name justification for work to be provided for the USCGC HEALY Dry Dock Availability FY19 under Request for Proposal (RFP) 70Z08519RP4500800. The resulting contract will be awarded as firm-fixed price. This justification is for the use of authorized Facility/Manufacturer/Representative by the OEM and the acquisition of one item of supply from a designated supplier that meets USCG technical guidelines. The total estimated cost of work associated with this justification is This justification covers the following subcontractors:

Alfa Laval 5400 International Trade Drive Richmond, VA 23231 Phone: (804) 222-5300

International Paint LLC 1541 S. 92nd Place Suite C Seattle, Washington 98108 Phone: (206) 763-8003

Palfinger Marine USA Inc. (Washington) 2415 T Avenue Suite 204 Anacortes, WA 98221 Phone: (360) 299-4585

Wilson Walton Marine Allaire Corporate Center 3349 Route 138 Building C Suite E Wall, NJ 07719 Phone: (732) 681-0707

InterOcean Systems, Inc.

3738 Ruffin Rd.

San Diego, CA 92123 Phone: (858) 565-8400

OmniThruster 2201 Pinnacle Parkway Twinsburg, OH 44087 Phone: (330) 963-6325

(3) Description of Supplies/Services.

The USCG requires the use of OEM or authorized service representatives and parts to accomplish the requirements of Work Items (WI) 010, 011, 012, 026, 029, 039, 056, 058, 059, and 061 for the USCGC HEALY Dry Dock availability in fiscal year 2019.

A breakdown of the government estimate follows:

Prospective Work Item(s) Contractor Description

Estimated Total Price

010, 011 Alfa Laval Purifier Tech Rep and Parts

012, 026

International Paint / International Marine Coatings Underwater body and rudder paint

Palfinger Marine USA Inc.

Miranda Davit OEM Tech Rep required for Inspection and Certification of Davit

039 Wilson Walton Marine

Cathodic protection system OEM Tech Rep required for repair oversight and certification

056,058, 059 InterOcean Oceanographic Winch Tech Rep

061 OmniThruster

Bow thruster OEM Tech Rep required for repair oversight and certification and parts

TOTAL

(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. 2304 (c)(1) as implemented by FAR Subpart 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”.

(5) Demonstration that the nature of the acquisition requires use of the authority cited.

Due to the nature of the equipment, the aforementioned subcontractors are the only contractors to have access to proprietary data needed to certify these systems for operation. Any other contractor would not have access to the needed proprietary information (i.e., data and drawings) to perform this work. Details are provided per work item below:

a) WI 010, 011 Purifier Overhauls

The OEM for the vessel’s purifiers is Alfa Laval. Alfa Laval has several authorized vendors to provide service to their equipment. Vendor is required to provide documentation with a Certificate of Approved training for the Alfa Lava system installed on the vessel. Factory authorized suppliers provide parts and proprietary technical data/drawings only available from the OEM. This maintains all OEM warranties, ensures equipment reliability, and crew safety; therefore, precluding consideration of a product manufactured by another company.

The company was contacted on 05Sept18 at 1058PT to inquire about their proprietary data rights.

The following three questions were asked and responses noted:

1) Do you still hold the rights to the proprietary data for the purifiers? Yes.

2) Would you allow us to use that data for free? (This would open it up for use by other companies). – No response.

3) Would you sell us the data rights? (This would allow us to use your data freely in the marketplace). – No response.

The OEM does hold the proprietary data rights to their purifiers that are installed on the USCGC HEALY. They did not respond back to our use or purchase of those rights. They will have an opportunity to do so at the release of this Justification & Approval (J&A) with the Solicitation on the FedBizOpps website.

b) WI 012, 026 Underwater Body and Rudder Preservation

Per SFLC Standard Specification 6310, the only product that meets the performance requirements and has been approved by the Coast Guard Office of Naval Engineering for use on the fleet of heavy ice breakers is International Marine Coatings Intershield 163 Interta 160. This coating is specifically designed for use on ice classed and ice breaking ships. The properties of the paint ensure the coating will not fail while the ship is operating in extreme and punishing environments of the Arctic and Antarctic waters. Premature failure of the hull paint will lead to hull steel wastage and reduce the ships ability to break ice.

c) WI 029 Miranda Davit, Inspection and Test

This work item is an annual regulatory requirement by the USCG in accordance with COMDTINST M9000.6. This item requires the oversight by the OEM or factory authorized tech rep for annual recertification in accordance with Technical Publication 4668 and NSTM 583. Historical data shows that without the oversight of a certified tech rep, the davits are prone to premature failure traceable to incorrect maintenance procedures or errors in assembly. Additionally, only a factory authorized tech rep will have access to the proprietary data and specialty tools needed to complete the certification and maintenance.

The company was contacted on 05Sept18 at 1104PT to inquire about their proprietary data rights.

The following three questions were asked and responses noted:

1) Do you still hold the rights to the proprietary data for the miranda davit? –

Yes.

2) Would you allow us to use that data for free? (This would open it up for use by other companies). – No.

freely in the marketplace). – No.

d) WI 039 Impressed Current Cathodic Protection System Anodes and Reference

Cells, Inspection and Renewal

The OEM for the vessel’s impressed Current Cathodic Protection system is Wilson Walton Marine. Wilson Walton Marine has several authorized vendors to provide service to their equipment. Vendor is required to provide documentation with a Certificate of Approved training for the Wilson Walton Marine system installed on the vessel. Factory authorized suppliers provide parts and proprietary technical data/drawings only available from the OEM. This maintains all OEM warranties, ensures equipment reliability, and crew safety; therefore precluding consideration of a product manufactured by another company.

The company was contacted on 05Sept18 at 1115PT to inquire about their

The following three questions were asked and responses noted:

1) Do you still hold the rights to the proprietary data for the cathodic protection system? - Yes.

2) Would you allow us to use that data for free? (This would open it up for use by other companies). – No.

freely in the marketplace). – No.

e) WI 056,058, 059 Oceanographic Winch and Motor Overhauls

These work items require the oversight by the OEM or factory authorized tech rep for overhaul of the system. Additionally, only a factory authorized tech rep will have access to the proprietary data and specialty tools needed to complete the maintenance.

The company was contacted on 05Sept18 at 1121PT to inquire about their

The following three questions were asked and responses noted:

1) Do you still hold the rights to the proprietary data for the oceanographic winch? – Yes.

2) Would you allow us to use that data for free? (This would open it up for use by other companies). – No response.

freely in the marketplace). - No response.

The OEM does hold the proprietary data rights to their oceanographic winch that is installed on the USCGC HEALY. They did not respond back to our use or purchase of those rights. They will have an opportunity to do so at the release of this J&A with the Solicitation on the FedBizOpps website.

f) WI 061 Bow Thruster Modification

This work item is for implementation of extensive design modifications to the bow thruster. Omni Thruster has only one authorized vendors to provide service to their equipment. Vendor is required to provide documentation with a Certificate of Approved training for the Omni Thruster system installed on the vessel. Over the last year and a half, OmniThruster has completed a complete system analysis and redesign to correct inherent design flaws with the currently installed configuration. This design work was completed under a separate contract and is the sole property of OmniThruster. To complete the design modifications, an OmniThruster tech rep is necessary to provide the proprietary technical data and drawings. Furthermore, since the OEM is the sole owner of all proprietary data and design drawings, only OEM parts can be used.

The Contracting Officer did not contact this OEM since we awarded contract 70Z08518CP4523800 for the Modified Bow Thruster Steering Vane Assembly Kit. That award is sole-source due to propriety data rights held by the OEM.

(6) Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

This pertains to the overall acquisition of the USCGC HEALY Dry Dock FY19. An Acquisition Planning Forecast Record number F2018041646 was posted at http://apfs.dhs.gov . Additionally, as required by FAR Subpart 5.2 a sources sought notice was posted on the Federal Business Opportunities (FedBizOpps) site on January 19, 2018 detailing the work and notifying industry of the future acquisition. It also invited vendors with the expertise and required knowledge for this work to submit information discussing such capabilities. The notice closed on February 02, 2018. The notice was posted again on June 08, 2018 with a close date of June 18, 2018

A Request for Proposal (RFP) will be issued on the Government Point of Entry, FedBizOpps website, with the intent of awarding a firm-fixed price contract. This J&A will be posted with the solicitation on the FedBizOpps website.

Any prospective contractor will be required to use OEM or OEM authorized vendor(s) as a subcontractor to perform the work in the related WIs.

(7) Determination by the Contracting Officer that the anticipated cost to the government will be fair and reasonable.

The Contracting Officer determines that the anticipated prices will be fair and reasonable based on comparisons with price proposals submitted by vendors (i.e.; competition in pricing). The Independent Government Estimate and previous acquisition history with USCGC HEALY docksides may be consulted. A price analysis will be performed to ensure a fair and reasonable price is negotiated in accordance with FAR 15.404.

(8) Description of market research.

Market research was conducted by the project manager to determine if there were any other viable resources available to meet the needs of this justification; however, due to the proprietary nature of the systems involved only the OEM certified technical representatives are capable of supplying and/or performing the services required. All prime contractors will be required to order services and/or supplies from the identified OEMs in the specifications.

The Contracting Officer contacted each company to inquire on the OEMs proprietary data rights and the results are listed under each contractor in paragraph 5 above.

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

Each of the companies listed is the current OEM and has the proprietary knowledge, design data and drawings to coordinate repairs on the specific systems onboard USCGC HEALY, or is the only company with a product approved by CG-45 for use on USCG cutters. Using other than the technical services and parts provided through the OEMs would pose an unacceptable risk of catastrophic failure to this system.

(10) A listing of sources, if any, that expressed, in writing, an interest in the acquisition.

The following companies responded with interest to the Sources Sought Notices:

(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.

For reasons set forth in Paragraph 5, the USCG has no plans at this time to obtain rights to the proprietary data held by the OEMs. The technical team will always review and conduct market research to determine if any other vendors can supply the items/services.

The team will also take into consideration new parts or systems that could be acquired with data rights as obsolescence and/or new systems are procured. Coatings manufacturers are able and encouraged to submit requests for other coatings approvals to the CG Office of Naval Engineering. Procedures for submitting such requests are outlined in SFLC Std Spec Appendix C. All other work items under RFP 70Z08519RP4500800 do not include OEM or authorized service representatives or technicians.

Signature page is redacted in its entirety.