70Z08523DLREP0003 JandA Redacted.pdf

70Z08522RP4500500 Page 2 of 7 beyond 30 September 2022.

(e) Type of funding: AFC-45

(f) Year of funding: FY 2022, FY 2023, FY 2024, FY 2025, FY 2026

(g) Solicitation number: 70Z08522RP4500500

(h) Background information about the requirement: Since the USCGC HEALY’s commissioning in 2000, the OEM has held a services contract for support and maintenance of USCGC HEALY’s IPP system.

a. Contract Number

DTCG23-01-D-

625211

HSCG85-07-C-

6BX502

HSCG85-08-D-

6BX169

HSCG85-14-D-

P45E01

HSCG85-16-D-

P45819

HSCG85-17- D-

P45B34

b. Contractor Name

Alstom Power Conversion Inc.

to Converteam Inc. (2006)

Converteam Inc.

Converteam Inc.

to GE Energy

GE Energy GE Energy GE Energy

c. Contract Type IDIQ/FFP Definite-delivery, Definite-quantity/FFP

IDIQ/FFP IDIQ/FFP IDIQ/FFP IDIQ/FFP

d. Contract Value

e. Period of Performance

08Mar2001- 31Apr2007

06Mar2007- 30Jun2008

28Nov2007- 20Sept2014

22Sep2014 – 24Mar2016

30Mar2016- 30Sept2017

22Mar2017 – 31Mar2022

f. Competitive or Non- Competitive

Non-Competitive Non- Competitive

Non-Competitive Non- Competitive

Non- Competitive

Non-Competitive

g. Protests filed against the solicitation or award?

No No No No No No

3. Description of Supplies/Services. The USCG requires the original equipment manufacturer (OEM), GE Energy, to maintain the IPP systems on USCGC HEALY and Government owned shoreside equipment that is used in support of USCGC HEALY that includes:

• Periodic system maintenance and equipment grooms, including annual shipboard depot level maintenance and shoreside spare depot level maintenance at Coast Guard Inventory Control Points (ICP’s) and Contractor’s facilities, as well as inspection, and operational testing of all systems and equipment relating to the IPP.

• Technical support, including immediate access to 24/7 technical support while USCGC HEALY is underway and during portcalls while on mission.

• Conditional technical support for troubleshooting, repairs, casualty response, as well as engineering analysis and repairs identified as necessary during equipment grooms.

70Z08522RP4500500 Page 3 of 7

• Configuration management services, including obsolescence evaluation and prediction of out-year reliability, maintainability, and service availability concerns.

• Crew training, including hands-on and classroom training for operators and maintainers both attached to HEALY as permanent party crew and CG shore support personnel.

• Technical refresh and replacement of obsolete subcomponents to meet current industry supportability standards. This includes design, validation, and installation of specific system components to ensure operational availability and maintenance support.

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) implemented by the FAR 6.302-1(a)(2) entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” In accordance with FAR 6.302-1(b)(1)(ii), the USCG has a reasonable basis to conclude that the agency’s minimum needs can only be satisfied by one source.

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

American Act identified.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Require Use of the Authority Cited. Justification for accomplishing this work through other than full and open competition is provided below:

(a) GE Energy holds the proprietary data rights to the IPP. GE Energy will not allow usage and/or sale of those rights to the USCG or other vendors; furthermore, they will not sub-contract out their services to another vendor. USCG does not have rights to the required information: coding, interface, configuration, etc. that would allow the USCG to competitively procure the wide range of technical support services or replacement parts for all of the IPP components.

(b) USCGC HEALY was designed, accepted and commissioned in 2000. In the initial procurement of USCGC HEALY, the Specification of Requirements (SOR) required the shipbuilder to task a Single System Vendor (SSV) with sole responsibility for design and construction of the Main Propulsion Power Plant to include the selection and integration of all central power plant components. The shipbuilder selected Alstom Power Conversion Inc. (Alstom) to manufacture and install these systems. In 2001, Alstom was awarded an Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract with firm-fixed priced (FFP) provisions on a sole source basis to provide repairs, maintenance and technical support for the IPP. During the initial contract period of performance, Alstom changed their name to Converteam, Inc. Then, in 2007 Converteam, Inc. was purchased by General Electric under their subsidiary GE Energy Power Conversion USA Inc. (GE Energy). GE Energy is now the only vendor who possesses the OEM’s proprietary information and technical background to provide the

70Z08522RP4500500 Page 4 of 7 required repair and support for this custom control system. The IPP cannot be segregated to allow for competition, because GE Energy holds the proprietary data rights to the complete system and the machinery plant control and monitoring software that communicates with each component.

(c) Reverse engineering the IPP has been considered by our product line for viability. The product line concluded that without GE Energy’s proprietary data it is highly doubtful that another contractor would be able to successfully reverse engineer the IPP. In addition, the risk level for reverse engineering such a complex system would be high and that IPP is comprised of several obsolete parts and system interfaces that would be extremely difficult to troubleshoot and create without needed proprietary data held by GE Energy. Reverse engineering the IPP software and parts would require considerable time for trial and error and testing that the USCGC HEALY does not have has the vessel’s dry dock and dock side repair times are governed by required mission schedules. The high risk of failure involved in reverse engineering would prevent the USCGC HEALY from performing missions vital to the country.

(d) The IPP is comprised of the critical systems that provide shipboard and propulsion power to USCGC HEALY, as well as various scientific and navigation equipment that USCGC HEALY needs to perform her missions in the Arctic regions. Awarding this contract to a vendor without all of the proprietary information and technical documentation would risk the failure of IPP systems due to reduced maintenance, and ultimately jeopardize the success of USCGC HEALY’s annual missions and the safety of its crew.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable. In accordance with HSAM 3007.172, this procurement was posted in the Acquisition Planning Forecast System (APFS) on 22 September 2020. A sources sought notice with a draft statement of work was originally posted on beta.sam.gov for 70Z08522IP4500500 on 15 January 2021 with responses due by 01 February 2021. An updated notice and draft statement of work were posted on beta.sam.gov on 11 May 2021 with responses due by 18 May 20201. GE Energy and both responded to the original posting as interested vendors.

(a) GE Energy, the OEM, affirmed on 22 February 2021 via email that they own the proprietary data rights to the IPP systems and that they are not willing to sell those rights, or allow use of those rights by other parties, and would not be a sub-contractor to as a potential competitor.

(b) The USCG reviewed and considered response to the sources sought notice, but determined that they could not meet our requirements for IPP services, because they do not have access to the proprietary data of the OEM, and they do not have a contractual relationship with the OEM to provide OEM certified services or materials, which shows an unacceptable risk to the completion of critical maintenance and would place an undue burden on the Government for contract performance.

70Z08522RP4500500 Page 5 of 7

(c) To demonstrate support of competition and consideration of interested vendors, the

USCG re-issued the sources sought notice on 11 May 2021 with an updated statement of work that made clear the Government’s requirement for OEM services. Interested vendor, responded via email on 11 May 2021 that they could not do the work if OEM certified personnel were required.

(d) A notice to award sole source will be issued on beta.sam.gov after this justification is approved.

(e) The USCG will make publicly available the approved justification and approval within

14 days after contract award, in accordance with FAR 6.305 procedures.

8. 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 various techniques to include market research, price comparison utilizing price history of similar work and through the comparison of proposed prices to the Independent Government Estimate (IGE). Also, if necessary, the Contracting Officer will obtain and analyze other than certified cost and pricing data from the vendor and conduct discussions and negotiations as referenced in

FAR 15.4.

9. Description of Market Research.

(a) Market research was conducted by the Program Manager and the Contracting Officer from January 2021 – April 2021. Market Research determined that there is only one source capable of satisfying the agency’s requirements. Market Research efforts included talking to industry partners, government subject matter experts (SME’s), consulting with other Coast Guard programs, and posting a sources sought notice with a draft statement of work on beta.sam.gov.

(b) The USCGC HEALY is the most technologically advanced polar icebreaker in the U.S.

Icebreaker fleet. It is designed as a dual purpose ship – a polar icebreaker, and a research vessel – to conduct regular U.S. Coast Guard missions and to meet unique interagency missions of scientists working in the Arctic. In order for the USCG to depart from the current maintenance model with the OEM that has been in place since USCGC HEALY’s commissioning, the complete IPP would have to be rebuilt by another SSV. This process is estimated to take at least 4 years to design, install, and test, during which time USCGC HEALY would be unable to perform any missions. This is not a feasible option as there are currently no other USCG ships with the unique capability to perform polar icebreaking and scientific research in the Arctic region.

10. Any Other Facts Supporting the Use of Other Than Full and Open Competition. It was well known and accepted during the designing and building of USCGC HEALY that the IPP would be a proprietary system owned by a SSV. During the acquisition of USCGC HEALY, the USCG made the decision not to purchase the proprietary data relating to USCGC HEALY’s IPP system. As a result, the Government does not possess the technical data and/or

Signature page below is redacted.

70Z08522RP4500500 Page 7 of 7