Redacted J and A for Carriage Winches.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 70Z8520RP45C1800

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, United States Coast Guard (USCG), Surface Forces Logistics Center (SFLC), Contracting and Procurement Division, Contracting and Procurement Branch 2, in support of the Long Range Enforcement Product Line (LREPL) proposes to enter into a contract on a basis other than full and open competition.

2. Nature and/or Description of the Action being Approved. A short paragraph describing the effort to be placed on contract, or the modification action.

Include the following information:

(a) Nature of the action: The USCG intends to procure on a sole source basis a set of Superior-Lidgerwood-Mundy Corporation (SLM) brand Carriage Winches, Sheaves, and Test Stand for the 418’ Maritime Security Cutter-Large (WMSL) USCG Cutter.

(b) Name and address of the contractor: Superior-Lidgerwood-Mundy Corporation (SLM), 301 Grand Ave, Superior, WI.

(c) Type of action: The Government intends to award a firm fixed price purchase order to SLM. This will be awarded utilizing the procedures set forth in FAR Part 12, Acquisition of Commercial Items, and FAR Subpart

13.5 Simplified Procedures for Certain Commercial.

(d) Estimated total value (including options): $

(e) Type of funding: AFC-45 Operating & Equipment (O&E) funds.

(f) Year of funding: FY2021

(g) Solicitation number: 70Z8520RP45C1800

(h) Background information about the requirement: Superior-Lidgerwood-Mundy Corporation (SLM) is the Original Equipment Manufacturer (OEM) and only

Solicitation Number 70Z8520RP45C1800

BERTHOLF CARRIAGE WINCHES

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3. Description of Supplies/Services. This procurement is for the acquisition of replacement SLM Right-Hand (RH) and Left-Hand (LH) carriage winches for a 418’ Maritime Security Cutter-Large (WMSL) USCG Cutter as shown on USCG Drawing 750-WMSL-583-004, specifically for USCG Cutter (USCGC) BERTHOLF, for installation during their FQ3 FY21 dockside availability. These are OEM parts that will address the maintenance and repair need onboard the BERTHOLF to renew the mission-critical boat handling system’s main components.

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 the FAR Subpart 13.501 Simplified Procedures for Certain Commercial Items.

5. Identification of Exception to the Buy American Act. This Sole Source Justification is for parts only and all parts will be built and provided in the United States. The USCG has not identified any exceptions to the Statute.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Require Use of the Authority Cited. SLM is the OEM and Original Integrator (OI) of the USCG 418’ WMSL small boat launch and recovery system, including the carriage winches, sheaves, and test controls.

USCG Headquarters did not acquire the related drawings and data supporting the carriage winches, sheaves, and test controls and their design that integrated them into the small boat launch and recovery system. There are no other vendors that possess the manufacturer’s drawings, specifications, engineering control procedures, proprietary methods, and other technical data to ensure the design configurations and quality control meet the latest engineering specifications and requirements.

In an effort to maximize competition, on 29 June 2020, the USCG posted a Sources Sought Notice to https://beta.sam.gov. On 29 June 2020, SLM responded by indicating that they are the OEM of the system and the only ones that can provide parts. On 30 June 2020, SLM indicated that they were unwilling to release proprietary data rights for this product. The proprietary data held by SLM would be required in order to open competition for these services to any other vendor, because attempting to fabricate and certify parts without access to this technical data, which includes engineering control procedures and proprietary methods, would create a significant increased risk of equipment failure.

If the small boat launch and recovery system on BERTHOLF were to fail, that could result in scheduling impacts that could significantly reduce the ability of USCGC BERTHOLF to support US interest around the globe.

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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 https://beta.sam.gov on 29 June 2020 with a response date of 07 July 2020. This procurement was published as DHS Acquisition Planning and Forecast System (APFS) No.

F2020050191 on 10 July 2020 and no responses were received.

8. 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 price(s) will be fair and reasonable based on a price analysis comparison with the Independent Government Estimate (IGE) and acquisition history with Superior- Lidgerwood-Mundy Corporation. 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.

9. Description of Market Research. Market research was conducted from 07 April 2020 to 10 July 2020. Market research included a review of acquisition history, commercial and government databases, and vendor outreach. A Sources Sought Notice was posted to https://beta.sam.gov on 29 June 2020 with a response date of 07 July 2020. SLM was the only vendor who responded that was able to satisfy agency requirements.

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

11. A Listing of the Sources, if Any, that Expressed, in Writing, an Interest in the Acquisition. SLM, The OEM is the only company who expressed their interest in writing in response to the Source Sought.

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. Since SLM continues to retain proprietary ownership of the technical data necessary for fabricating and certifying parts for WMSL carriage winches, sheaves, and test controls and has declined to release the data, the USCG anticipates that it may be difficult to obtain competition at this time. However, USCG Contracting will continue to advertise future requirements through https://beta.sam.gov and will continue to seek access to the technical data sufficient to enable competition.

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13. Contracting Officer’s Certification.

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.

Date

14. 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.

Date

Technical Representative/COR

15. Legal Review and Concurrence:

I have reviewed this justification and find it legally sufficient.

Date

Date

D