KUKUI DS FY22 JA.pdf

SOLE SOURCE JUSTIFICATION

For Certain Commercial Items for Procurements Exceeding the Simplified Acquisition

Threshold pursuant to FAR Subpart 13.501(a)(ii), Including Brand Name

Solicitation Number: 70Z08522RP4505400

Pursuant to the authority of 41 U.S.C. 1901 as implemented by Federal Acquisition Regulation (FAR) Subpart 13.501(a)(ii) and consistent with the content requirements of FAR 6.303-1 the following facts and rationale support this justification.

1. Agency and Contracting Activity. The Department of Homeland Security, U. S. Coast

Guard, Surface Forces Logistics Center (SFLC) Icebreaker, Buoy and Construction

Tender Product Line (IBCTPL) and Contract & Procurement Division 2 (C&PD2) proposes to enter into a contract on the basis of other than full and open competition.

2. Nature and/or Description of the Action being Approved.

(a) Nature of the action: The Coast Guard intends to solicit for dockside maintenance services only from businesses located in Coast Guard District 17 IAW William

M. (Mac) Thornberry National Defense Authorization Act (NDAA) for Fiscal

Year 2021 – Section 8220. This will limit the USCGC KUKUI’s potential transit to shipyards solely within Coast Guard District 17.

(b) Name and address of the contractor: The following are the contractors who responded to the sources sought notice:

(i)

(ii)

(c) Type of action: This acquisition is for a firm fixed-price contract for commercial ship repair (service).

(d) Estimated total value (including options):

0 Definitive Work Items

Optional Work Items

Definitive & Optional Work Items

(e) Type of funding: Surface Operations

(f) Year of funding: Fiscal Year 2022

(g) Solicitation number: 70Z08522RP4505400

(h) Background information about the requirement: This justification and approval is for services to be provided in support of repairs to the USCGC KUKUI solely by businesses within Coast Guard District 17. The USCGC KUKUI is critical for Aids to Navigation work for Coast Guard District 17. Failure to repair will result in hardship to the Government, including the inability to support Operation Arctic

Shield priorities which exert sovereignty over U.S Arctic waters due to extended transit times to commercial facilities outside Alaska. District 17 is not in an asset readiness status to absorb additional operational days lost in this unusually maintenance intensive year.

3. Description of Supplies/Services. This acquisition requires a Contractor to provide the

USCG dockside maintenance and repairs to USCGC KUKUI, a 225 foot seagoing buoy tender home-ported in Sitka, Alaska to take place from 1 March 2022 to 10 May 2022.

This dockside will consist of approximately 21 definitive work items and 30 optional work items to include, but not limited to, clean/inspect/hydro of heat exchangers, valve overhaul/renewal, watertight door and hatch renewal, and various buoy deck equipment inspections/servicing.

As described in USCGC KUKUI DS FY22 Specification Rev-0 dated 15 September 2021, the Definitive items are identified by a “D” and the Optional items are identified by an “O” before the item numbers below. Definitive items shall be awarded upon contract award, optional items may be awarded as funding/material condition warrant:

ITEM DESCRIPTION

O-001 Tanks, Dirty Oil and Waste, Clean and Inspect

D-002 Heat Exchangers, Clean, Inspect And Hydro

D-003 Hull Fittings (Mooring and Towing), Inspect and Test

O-004 Tanks, Potable Water, Preserve, Partial, O-005 Decks – Exterior (Buoy or Construction Deck), Preserve 100%

O-006 Superstructure, Preserve, Partial

D-007 Temporary Services, Provide - Cutter

O-008 Watertight Door (External), Renew

O-009 Berthing Racks, Lockers, Renew

D-010 Crane Cab Window, Repair

D-011 Firemain Valves, Overhaul or Renew

D-012 Auxiliary Sea Water System Valves, Overhaul Or Renew

O-013 MDE & SSDG Exhaust Stack Insulation, Renew

D-014 Eliminator Transformer, Renew

O-015 MDE Exhaust Mounts Renew

D-016 Watertight Hatch (External DC Deck and Below), Renew

O-017 Fuel Valve (Pneumatic), Overhaul or Renew

O-018 Vent Fans and Motors, Overhaul(Non-Machinery Spaces)

O-019 Hydraulic Steering Cooler, Install

O-020 SSDG, Heat Exchanger, Modify

O-021 VR3/VR6 Voltage Regulator, Replace

D-022 Hydraulic Power Unit Cooler, Replace

D-023 Thruster Quick Disconnects (QDs), Install

D-024 Deck Covering (Interior Wet/Dry), Renew Epoxy Resin

D-025 Tanks, MP Fuel Stowage and Overflow, Clean and Inspect

D-026 Tanks, MP Fuel Service, Clean and Inspect

O-027 Tanks, Hydraulic Oil Stowage and Service, Clean and Inspect

O-028 Tanks, Potable Water, Clean and Inspect

O-029 Hydraulically Operated Cargo Hatch, Inspect and Service

O-030 Main Diesel Engine, MDE, Exhaust Piping, Commercial Clean

O-031

Ship Service Diesel Generator, SSDG, Exhaust Piping, Commercial Clean

O-032 Vent Ducts, Engine And Motor Room, All, Commercial Cleaning

O-033 Vent Ducts, Galley and Pantry Room, All, Commercial Cleaning

O-034 Vent Ducts, Laundry Exhaust, Commercial Cleaning

O-035 Vent Ducts, All Other, Commercial Cleaning

D-036

Compressed Air Receivers and System Valves, All, Clean, Inspect, Hydro and Lift

D-037

Hull Fittings (Weight Handling Rigging Hardware), Inspect and

Test

D-038 Hydraulic Inhaul Winch, Inspect And Service

O-039 Mechanical Chain Stoppers, Inspect and Service

O-040 Commissary Hoist, Inspect and Service

D-041 Grey Water Holding Tanks, Clean and Inspect

D-042 Sewage Holding Tanks, Clean and Inspect

D-043 Grey Water Piping, Clean and Flush

D-044 Sewage Piping, Clean and Flush

O-045 Tanks (Grey Water Holding), Preserve “Partial”

O-046 Tanks (Sewage Holding), Preserve “Partial”

O-047 Potable Water Pump Room Deck, Preserve

O-048 Bow Thruster Machinery Room Upper Deck, Preserve

O-049 Compartment Decks, Preserve

D-050 Single Point Davit, Inspect and Service

O-051 Weather Deck Plating, Repair

4. Identification of Statutory Authority Permitting Other Than Full and Open

Competition. The statutory authority permitting this Sole Source Justification is 41 U.S.C.

1901, as outlined in FAR Subpart 13.501(a)(ii), as implemented by FAR 13.5, Simplified

Acquisition Procedures for Certain Commercial Items.

5. Identification of Exception to the Buy American Act. No exception to the Buy

American Act has been identified.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Require Use of the Authority Cited.

(a) Rationale for using the authority cited in section 4 of the J&A;

The Coast Guard’s need to utilize the NDAA Section 8220 in support of repairs to the USCGC KUKUI is due to a unique situation which the operational availability of

District 17 is degraded due to all four seagoing buoy tenders having major maintenance events in FY22.

(b) Details covering what events lead to the situation requiring use of other than full and open competition procedures including whether any portion of the work can be segregated to allow for competition; In accordance with 2021

National Defense Authorization Act (NDAA) Section 8220 for Coast Guard District

17 homeported Cutters. Per subsection (b) if there isn’t at least 2 qualified small businesses located in Coat Guard District 17 that are able and available to provide services then requirement will be solicited as Unrestricted Full and Open for businesses located in Coast Guard District 17.

(c) Summarize alternatives considered and why they will not work; The alternative is to accept businesses from outside Coast Guard District 17 which would decrease

CGC KUKUI’s operational availability from 2-12 days depending on potential transit times to the commercial facilities at various locations across the country. As stated above, District 17 does not have the asset availability to accept additional lost operational days from CGC KUKUI.

(d) Impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided If this service is not provided the integrity of the Cutter and all operating machinery would expose cutter and crew to safety risk. If this availability is not performed in a timely manner USCGC

KUKUI will not be able to meet their mission requirement and the Coast Guard will be without a critical 225 ft. WLB class asset to meet Coast Guard

Maritime/Navigation duties and availability for high profile operations (Operation

Arctic Shield & Exercise Northern Edge).

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many

Potential Sources as is Practicable.

(a) If an announcement has already been made in Contract Opportunities, provide the date of publication; or: A Sources Sought Notice was posted on Contract

Opportunities on 23 November 2021 with a response due date of no later than 1400

PT on 13 December 2021.

(b) If an announcement is being planned for posting in Contract Opportunities, provide the estimated date of publication. A combined synopsis/solicitation will be posted to SAM.gov on or about 31 December 2021.

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 price analysis, competitive price quotes, comparison with the IGCE, historical pricing, previous awards, and price negotiations. Also, if necessary, the Contracting Officer will obtain and analyze other than certified cost and pricing data from the vendors.

9. Description of market research techniques used, results, date when the market research was conducted, and how it was used by the contracting officer to determine price reasonableness. Market research was conducted using sources sought notice that was posted to SAM.gov on 23 November 2021. This office received two responses to the sources sought notice. The sources sought notice resulted with a response from a small business, , a small business, did not respond to the Sources Sought Notice, they were contacted to validate whether an additional small business was capable to support the requirement. They confirmed that they were not available to support and will not participate in the solicitation process for this requirement. Based on the NDAA Section 8220, this requirement will be procured utilizing unrestricted full & open to businesses located in CG District 17 Alaska.

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

(a) An explanation why technical data packages, specifications, statement of work, or purchase descriptions are not suitable for full and open competition. N/A

(b) Discuss why your requirement cannot be modified to enhance competition. N/A

(c) For a proposed contract subject to the restrictions of FAR 6.302-1 for follow-on acquisitions as described in 6.302(a)(2)(iii), provide an estimate of the cost to the

Government that would be duplicated and detailed information on how the estimate was derived. N/A

(d) For a proposed contract subject to the restrictions of FAR 6.302-2(d) or HSAR

3006.302270 and where FAR 6.302-2 is cited as the authority, describe the exceptional circumstances allowing for an award for a period of performance in excess of the one-year limitation (applicable to all federal agencies) or the

DHS-specific statutory 150-day limitation. N/A

11. A Listing of the Sources, if Any, that Expressed, in Writing, an Interest in the

Acquisition.

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.

(a) Will the Government revise overly technical specifications, acquire data rights, etc.? All future requirements will be synopsized and market research will be conducted to see if there are other vendors qualified to perform this service.