Sole Source Justification_Redacted.pdf

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 70Z08520Q32058B00

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.

1. AGENCY AND CONTRACTING ACTIVITY

The Department of Homeland Security (DHS), U.S. Coast Guard (USCG), Surface Forces Logistics Center (SFLC), Contracting and Procurement Division Branch 2 (CPD2), Long Range Enforcer Product Line (LRE-PL), located at 2401 Hawkins Point Rd, Baltimore, MD 21226.

2. NATURE/DESCRIPTION OF THE ACTION

The USCG SFLC anticipates that a firm fixed price purchase order will be awarded in accordance with FAR Part 12 Acquisition of Commercial Items and FAR 13.5 Simplified Procedures for Certain Commercial Items. The period of performance will be 11 months after notice of award. It is anticipated that PC&I funding will be used. The proposed contract will be awarded to the Original Equipment Manufacturer (OEM).

a. Name of the Action: It is the Coast Guard’s intention that a sole source, commercial, firm fixed price contract be awarded to the Original Equipment Manufacturer (OEM) Timken Gear & Services, Inc. dba Philadelphia Gear using the procedures set forth in FAR Part 12, Acquisition of Commercial Items and FAR Part 13.5, Simplified Procedures for Certain Commercial Items.

b. Name and Address of the Contractor:

Timken Gear & Services dba Philadelphia Gear 100 Anchor Mill Road New Castle, DE 19720

c. Type of Action: Firm Fixed Price Requirements Contract

d. Estimated Total Value is $ broken down as follows:

BASE

YEAR

ORDERING

YR 1

ORDERING

YR 2

ORDERING

YR 3

ORDERING

YR 4

TOTAL

$ N/A N/A N/A N/A $

e. Type of Funding: Funded by Operations and Support (O&S)

f. Year of Funding: Fiscal Year 2020 funding for base year only

g. The Period of Performance will be for eleven (11) months

3. DESCRIPTION OF SUPPLIES/SERVICES

The requirement shall include services and parts for the maintenance of the Port and Centerline propulsion shaft Slow Speed Disconnect Couplings installed on board CGC POLAR STAR. The Slow Speed Disconnect Couplings parts operates on specific standards that were designed, engineered, and tested by the OEM.

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 as implemented by FAR 13.501(a)(1)(ii), Simplified Procedures for Certain Commercial Items.

5. DEMONSTRATION THAT THE NATURE OF THE ACQUISITION REQUIRES

USE OF AUTHORITY CITED

All technical information for the existing Slow Speed Disconnect Coupling is proprietary to the OEM and is unavailable to allow the government to evaluate alternative parts or competitively procure alternative parts. There are no known alternative parts and may not be easily determined without in depth reengineering of ships configuration. Rationale for using only one responsible source and no other supplies or services will satisfy USCG requirements are due to the existence of Timken Gear & Services, Inc. dba Philadelphia Gear proprietary rights to the Slow Speed Disconnect Coupling, the internal components, technical information in addition to shipboard configuration and uniqueness of the system.

In accordance with FAR subpart 6.302-1(b)(2) and (4), alternative Slow Speed Disconnect Coupling piece parts will not work due to the symbiotic relationship between the coupling components. Furthermore the authority in FAR 6.302-1(a)(2)ii could cause unacceptable delays in fulling CG requirements while determining fit, form and functions of alternative Slow Speed Disconnect Coupling components. The impact to the cutter if the Slow Speed Disconnect Coupling are not provided will result in loss the ability to shift between the Main Motors (M/M) or Marine Gas Turbines (MGT) driving the propulsion shafts. The MGTs are the primary source of propulsion while CGC POLAR STAR is conducting its primary operational mission of ice breaking in the Antarctic.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE

This requirement was posted in the Acquisition Planning Forecast System (APFS) on August 14, 2019. The APFS number is F2019047280. In accordance with FAR Subpart 5.203, an effort to solicit as many potential sources as practicable, a Sources Sought Notice was posted on Federal Business Opportunities Website from August 6, 2019 to August 21, 2019.

This notice informed the industry of the USCG’s intent to purchase these components of Slow Speed Disconnect Coupling parts manufactured by the OEM, Timken Gear & Services, Inc.

dba Philadelphia Gear. Other organizations having the expertise and required capabilities to provide equivalent parts were invited to submit information discussing such capabilities within six (6) calendar days after the posting date.

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 price(s) will be fair and reasonable based on comparisons with the Independent Government Estimate (IGE), market research, including searching pricing information on the internet, and historical pricing. Additionally, in accordance with FAR and DHS policy, the offeror may be required to submit Other Than Certified Cost or Pricing Data (FAR 15.403-3) to support price negotiations.

8. DESCRIPTION OF MARKET RESEARCH

Market research was conducted between March 2019 and August 2019. During market research the COR and Contract Specialist contacted the OEM for a list of qualified distributors. Timken Gear & Services Inc. confirmed there are no authorized distributors.

Internet/Industry Contact - The results of the internet research and industry contact confirmed that Timken Gear & Services Inc. is the OEM, possessing the necessary technical data, drawings, manufacturing data, specifications and purchase tolerances.

The Contract Specialist searched Timken Gear & Services, Inc. website for authorized distributors, and received an email from Timken Gears & Services, Inc. saying that they are the only authorized distributor.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPRTITON

The U.S. Coast Guard does not possess technical expertise nor did they purchase the data as part of the initial system acquisition for the slow speed disconnecting coupling and associated equipment to foster a competitive procurement effort. In September 2019 the U.S. Coast Guard requested Data Rights by email, but Timken Gears and Services, Inc. refused to sell/release proprietary information. . As a result, it would be difficult to foster competition, as the Coast

Guard does not have adequate technical descriptions of the manufacturing, performance, and acceptance data for the slow speed disconnecting coupling.

10. A LISTING OF THE SOURCES, IF ANY THAT EXPRESSED, IN

WRITING, AN INTEREST IN THE ACQUSITION

A sources sought notice #70Z08519S31949B00 was posted on FedBizOps (FBO) on August 6, 2019 requesting that parties express their interest in writing to the Contracting Officer.

No responses were received from the FBO posting. The notice yielded no expressing interest in this project. The one interest was the OEM, Timken Gears & Services, Inc. The OEM was able to confirm there are no authorized distributors.

Based on responses received and the proprietary nature of the required technical data, the Contracting Officer has determined that Timken Gears & Services, Inc. is the only vendor capable of satisfying this requirement; however, any responsible offers received will be considered.

11. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITON BEFORE

ANY SUBSEQUENT ACQUISITION FOR SUPPLIES OR SERVICES

REQUIRED

Due to the fact that Timken Gears & Services, Inc. owns the technical data and drawings, it is unlikely that they will sell the rights of such data to the Coast Guard. The Coast Guard has made an attempt to acquire them with no success, including an attempt for this acquisition. On September 12, 2019 the Contract Specialist sent an email to Timken Gears & Services, Inc.

requesting the release of data rights. On September 23, 2019 Timken Gears & Services, Inc.

chose to retain such information and declined to grant the request for proprietary information.

The Coast Guard will continue to engage Timken Gears & Services, Inc. for release of proprietary data prior to any subsequent acquisition.

12. TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION.

I certify that this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for the justification, is accurate and complete.