JOTFOC STRATTON MPDE - REDACTED.pdf

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), Branch 2 in support of Long Range Enforcement Product Line (LREPL).

2. Nature/Description of the Action: SFLC CPD2 LREPL intends to solicit and negotiate a sole source contract with MTU America, Inc. (MTU), 39525 Mackenzie Drive, Novi, MI 48377-1602, to purchase services and materials required to conduct the unplanned inspection and repair of the number one main reduction gear onboard USCGC STRATTON. The total estimated value of this acquisition is $278,955.38. A firm-fixed price commercial solicitation will be issued using the procedures set forth in FAR Parts 12 Acquisition of Commercial Items, and FAR Subpart 13.5 Simplified Procedures for Certain Commercial Items. The period of performance is December 9, 2019 March 13, 2020. Operating & Support funds for Fiscal year 2020 will be utilized for this requirement and will be awarded subject to the availability of these funds.

3. Description of Supplies/Services: This requirement is for the contractor to provide all necessary materials, equipment and personnel and other such things to perform ship repair services onboard USCGC STRATTON (see table below).

A breakdown of the government estimate follows:

CLIN

Item Description

Total

Main Propulsion Diesel Engine, Diesel Engine Inspection, Perform

$18,883.26

Main Propulsion Diesel Engine, Geislinger Coupling, Renew

$86,759.64

Propulsion Diesel Engine HP and LP Intercoolers Air Sides, Chemically Cleaning & Inspect In-place- Optional

$173,312.48

$278,955.38

4. Identification of Statutory Authority: The statutory authority permitting other than full and open competition is 41 U.S.C. 1901 as implemented by FAR 13.5.

5. Demonstration that the Nature of the Acquisition Requires Use of the Authority Cited: MTU is the sole certified repair company in the United States for the MTU 20V1163 engine series. MTU is the only source for proprietary information, because the company is the original equipment manufacturer (OEM) and original integrator (OI) of the STRATTON . MTU is both the OEM of the main engines and the OI of the engines connections to the support generators. They are also the OI for the connection of both Main Propulsion Diesel engines (MPDEs) to the controls for the controllable pitch propellers. At the time the MTU 20V, 20- from MTU America, the Coast

SOLE SOURCE JUSTIFICATION

For Certain Commercial Items for Procurements Exceeding the Simplified Acquisition Threshold pursuant to FAR Subpart 13.5, Including Brand Name Solicitation Number 70Z08520QP45H0100

Pursuant to the authority of 41 U.S.C. 1901 as implemented by Federal Acquisition Regulation (FAR) Subpart

13.501 and consistent with the content requirements of FAR 6.303-2, the following facts and rationale support this justification.

s Center did not acquire the related drawings and data supporting the engine and its design that integrated them into the propulsion system. The engine parts have very tight tolerances and the correct assembly procedures are critical to the performance of the engines. There are no other firms that possess the manufacturer drawings, specifications, and other technical data that include the updates and technical bulletins which are pertinent to the maintenance of the MPDEs. On 2 July 2019, the USCG asked a representative from MTU whether they would be willing to release proprietary data. MTU responded by indicating that they and their parent companies were unwilling to release any manufacturing drawings, specifications, or other technical data related to the maintenance of the MPDEs. This proprietary data, which includes performance tolerances / characteristics / parameters, is necessary to perform servicing on the engines for optimal functioning and the avoidance of engine failure. Additionally, the updates/upgrades to this data are incorporated periodically to ensure continued reliability and safe operation of the main engine propulsion system. These updates are not available commercially, e.g. there are no dealers of MTU parts and technical data.

6. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable: In an effort to promote competition a Sources Sought was posted on Fedbizopps (70Z08519SSSTRATTONMPDE) on 17 June 2019.

Additionally, this procurement is posted as DHS-Acquisition Planning Forecast System (APFS) No.

F2019045091 at h ttp://apfs.dhs.gov.

7. Determination by the Contracting Officer that the anticipated cost to the Government will be Fair and Reasonable: The Contracting Officer anticipates that the price will be fair and reasonable price based on a price analysis comparison with the Independent Government Estimate and extensive acquisition history with MTU America. Additionally, in accordance with DHS policy, the offeror may be required to submit Data Other than Certified Cost or pricing Data (FAR 15.403-3) to support price negotiations.

8. Description of Market Research: Market research was conducted on 8 June 2019 to 15 July 2019. Market research included a review of acquisition history, commercial and government databases (Fed Log, Inventory Locator Service research tools, internet research and FedBizOpps). A Sources Sought Notice was posted on Fedbizopps on 17 June 2019 with a response due date of July 1st. No responses were received except for MTU.

In addition, MTU shared their qualifications with the Contract Specialist and they stated that they would not sell engine propriety data to 3rd party companies. Market research confirmed that MTU America does not have any authorized distributors or certified service centers for this model engine.

9. Any Other Facts Supporting the Sole Source Action: NA

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

As a result of the sources sought notice #70Z08519SSSTRATTONMPDE posted on FBO on June 16, 2019, an email from MTU was received on July 8, 2019. MTU stated having the capability, tooling, parts, and expertise to perform all required Main Diesel Engine (MDE) maintenance. Between MTU America Inc. and their parent company, Rolls Royce Power Systems/MTU Friedrichshafen, they have the service capability of performing up to a QL4 maintenance level on the 20V1163TB93 engines currently installed in the US Coast Guard's National Security Cutters (NSC). MTU will review the work requirements, and submit a quote. No other responses were received.

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: Due to the fact that MTU America continues to retain proprietary ownership of the technical data necessary for performing the required services on the STRATTON USCG, USCG anticipates that it may be difficult to obtain competition in future procurements. However, USCG Contracting will continue to advertise future requirements through FBO and will continue to seek access to the technical data sufficient to enable competition.

12. Technical/Requirements Personnel Certification:

ms a basis for the justification, is accurate and complete.

LT Hughes

Availability Project Manager Date

13. :

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Digitally signed by

REYES.ANTHONY.G.1171166922 REYES.ANTHONY.G.1171166922

Date: 2019.08.13 11:12:37 -07'00'

Contracting Officer Date

14. Legal Review

I have reviewed this justification and deemed it legally sufficient.

Attorney Date