Justification_&_Approval_HEALY_DS20_Brand_Name_Rev1_Redacted.pdf

Justification and Approval Rev. 1

70Z08520RP4501200

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

70Z08520RP4501200

Pursuant to the requirements of the Competition in Contracting Act (CICA) the authority for other than full and open competition is permitted and justified under FAR subpart

6.302. Only a portion of this acquisition is for a brand-name product or item peculiar to one manufacturer, the justification and approval is to cover only the portion of the acquisition which is brand-name or peculiar to one manufacturer. The use of such descriptions in the acquisition or portion of an acquisition is essential to the Government’s requirements, thereby precluding consideration of a product manufactured by another company.

(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 Dock Side FY20 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 under the USCGC HEALY Dock Side Availability FY20 contract which is to be solicited under Request for Proposal (RFP) 70Z08520RP4501200. The total contract price is estimated at and will be awarded to one contractor as a commercial, firm fixed priced contract. The prime contractor will be required to use the brand name only subcontractors listed in this justification.

This justification is for the use of authorized Facility/Manufacturer/Representative by the Original Equipment Manufacturers (OEM) and the acquisition of one item of supply from a designated supplier that meets USCG technical guidelines. The estimated total price of work associated with this justification is $203,000.00. This justification covers the following subcontractors:

Alfa Laval 5400 International Trade Drive Richmond, VA 23231

Palfinger Marine USA Inc. (Washington) 2415 T Avenue Suite 204 Anacortes, WA 98221

REV 1

Allied Systems Co.

2300 Oregon Street Sherwood, OR, 97140

Adrick Marine Group 581 Cidco Rd.

Cocoa, FL, 32936

InterOcean Systems, Inc.

3738 Ruffin Rd.

San Diego, CA 92123

Boll Filter Protection Systems 22635 Venture Drive Novi, MI 48375

(3) Description of Supplies/Services.

The USCG requires the use of OEM or authorized technical representatives (tech rep) and parts to accomplish the requirements of Work Items (WI) 009, 010, 017, 018, 019, 020, 021, 043, 045, 046, and 047 for the USCGC HEALY Dock Side availability in fiscal year 2020.

A breakdown of the government estimate follows:

Prospective Work Item(s) Contractor Description

Estimated Total Price

009, 010 Alfa Laval Purifier Tech Rep and Parts $20,000

Palfinger Marine USA Inc.

Miranda Davit OEM Tech Rep required for Inspection and Certification of Davit $13,000

018, 019, 020, 021 Allied Systems Co.

Crane OEM Tech Rep required for Inspection and Certification of Cranes $48,000

043 Adrick Marine Group A/C Chiller Plant Renewal $45,000

045, 046 InterOcean Systems, Inc. Oceanographic Winch Inspect and Test $52,000

Boll Filter Protection Systems Automatic Lube Oil Filter Overhaul $25,000

TOTAL $203,000

(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 the 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 009, 010 Purifier Tech Rep and Parts

The OEM for the vessel’s purifiers is Alfa Laval. Alfa Laval has several authorized vendors to provide service to their equipment. A 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 via email on 12Jun19, and via phone on 20Jun19 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 the Coast Guard to use that data for free? (This would open it up for use by other companies). – No.

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

b) WI 017 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, Palfinger Marine USA Inc., or a 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 via email on 24Jun19, and via phone on 24Jun19 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 davit? – Yes.

2) Would you allow the Coast Guard to use that data for free? (This would open it up for use by other companies). – No, because we cannot be sure that these documents would not make their way to another company.

3) Would you sell the Coast Guard the data rights? (This would allow us to

c) WI 018, 019, 020, 021 Crane OEM Tech Rep required for Inspection and

Certification of Cranes

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, Allied Systems Co., or factory authorized tech rep for annual recertification in accordance with Technical Publication 4979 and NSTM 589. This crane began exhibiting abnormal movement during operational testing during the USCGC HEALY Dry Dock FY19 and an OEM tech rep was required to properly diagnose the crane. In addition, 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 via email on 13Jun19 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 the Coast Guard to use that data for free? (This would open it up for use by other companies). – No.

d) WI 043 A/C Chiller Plant Renewal

This work items require the oversight by the OEM, Adrick Marine Group, or factory authorized tech rep for installation of the new system. A/C Chillers were custom built by Adrick for the Coast Guard. Only the factory authorized tech rep has access to the proprietary data, software, and specialty tools needed to complete the installation, controls set-up and maintain the existing warranty of this equipment. The prime contractor is being provided this equipment as government furnished equipment (GFE) under the contact.

The company was contacted via email on 19Jun19, and via phone 20-21Jun19 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? – No response

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

use your data freely in the marketplace). – No response.

e) WI 045, 046 Oceanographic Winch Inspect and Test

These work items require the oversight by the OEM, InterOcean Systems Inc., 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 via email on 12Jun19, and via phone on 21Jun19 to inquire about their proprietary data rights. The following three questions were asked and their responses noted.

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

2) Would you allow the Coast Guard to use that data for free? (This would open it up for use by other companies). The USCG has all of the general drawings, and documents required to perform maintenance and overhaul on the equipment under discussion. We have provided, and are currently providing at Vigor Shipyards, technical assistance for a Groom of this equipment. We will not relinquish Data rights, or the manufacturing drawings for this equipment.

use your data freely in the marketplace). See above.

f) WI 048, Automatic Lube Oil Filter Overhaul

The OEM and parts supplier for the vessel’s automatic lube oil filters is Boll Filter Protection Systems. Boll Filter has several authorized service centers to provide service to their equipment. These filters have not been completely overhauled in the life of the cutter, and only the factory authorized suppliers provide parts and proprietary technical data/drawings available from the OEM.

Using the OEM maintains all warranties, ensures equipment reliability, and crew safety.

The company was contacted via email on 12Jun19, and via phone on 20Jun19 to inquire about their proprietary data rights. The following three questions were asked and the responses noted.

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

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

use your data freely in the marketplace). No.

(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 Dock Side FY20. An Acquisition Planning Forecast Record number F2019046170 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)web site on 21May2019. The notice detailed the work expected and notified 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 29May2019.

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 Justification and Approval 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 will determine that the anticipated prices received will be fair and reasonable in accordance with FAR subpart 12.209. A price analysis will be conducted comparing the proposed prices received in response to the solicitation.

(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 tech Reps will be capable of performing the service required or providing the parts. The prime contractor of this contract is required to order services and/or supplies from the identified OEMs listed here and in the specifications.

(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 or supply the part(s) on the specific systems onboard USCGC HEALY. Using other than the technical services and parts provided through the OEMs would pose an unacceptable risk of catastrophic failure to these systems thus preventing the USCGC HEALY from performing her mission.

(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 Notice for the dock side of the USCGC HEALY:

Business Category Name of Potential Source(s)/Other POC Information

Large Business

Small Business

Small Disadvantaged Business Section 8(a) Business Woman-Owned Business HUBZone Small Business

Veteran-Owned Small Business

Service-Disabled Veteran-Owned Small Business

(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.

The project manager contacted the aforementioned OEMs to inquire on receiving, using or purchasing the OEMs’ proprietary data rights, but none were acquired for use and/or sold to the USCG. In the future the OEMs will be contacted to inquiry on proprietary data rights usage or sale if the systems involved are included in future procurements. If the equipment involved is later replaced with a new system and/or parts then the USCG, at time of acquisition planning, will need to consider purchasing data rights so that future acquisitions would not be restricted to brand name only tech reps and parts.

The signature page and attachments are hereby redacted in their entirety.