Attachment 02 - Justification and Approval (Redacted).pdf

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JUSTIFICATION FOR SOLE SOURCE PROCUREMENT

10 U.S.C. § 3205

In compliance with Federal Acquisition Regulation (FAR) 13.501(a)(1)(ii), this justification uses the format at FAR 6.104-1 and is modified to state that the procedures in FAR subpart

13.5 are used.

1. Agency and Contracting Activity.

The Department of Homeland Security, United States Coast Guard (USCG), Surface Forces Logistics Center (SFLC), Contracting and Procurement Division (CPD)2 2402 Hawkins Point Road, Baltimore, MD 21226-5000 proposes to enter into a contract for a sole source, in accordance with Subpart 13.5 Simplified Procedures for Certain Commercial Products and Commercial Services and FAR 13.501(a)(i) Special documentation requirements for sole source (including brand name) acquisitions.

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

(a) Nature of the action: The U. S. Coast Guard SFLC proposes to enter a contract on a sole source basis with Neuver Maritime to purchase two (2) each steering actuator rotors.

(b) Name and address of the contractor:

Neuver Maritime Aarsundvegen 24 6270 Brattvåg POC: Stine Ødegaard Urke +47 920 16 904 stine.urke@neuver.com

(c) Type of action: Firm Fixed Price contract.

(d) Estimated total value (including options): Total Price $313,280.86

(e) Type of funding: Surface Operations funds

(f) Year of funding: Fiscal Year 2026

(g) PR number: Pending FY26 funding

(h) Background information about the requirement:

USCG Healy has two (2) rotors onboard. The current rotors are the original equipment manufacturer (OEM) built rotors from 1997. This requirement is for the mailto:stine.urke@neuver.com

Last Updated 01/06/25 2 new OEM replacement Rotors for the CGC Healy Steering Actuator.

3. Description of Supplies/Services.

The requirement is to provide two (2) Steering Actuator Rotors in long-term reusable shipping and storage containers as ready for issue rotors for CGC Healy. The rotors are required to be in the same configuration as those provided for the CGC Healy production line.

The Steering Actuator Rotors are installed onboard the 420’ WAGB, servicing the steering system on the cutter.

The items provided must be OEM, due to proprietary rights and no vendors licensed to build these. Due to the long lead time of these rotors, the parts must be purchased in advance of the cutter’s scheduled dockside availability. Rotors are in accordance with OEM part number specifications. Compatibility with the original equipment is required.

Items required to complete the assembly must be manufactured by or for the OEM, NEUVER Maritime Inc. The end item identification is: STEERING ACTUATOR ROTOR TO BE USED ON THE USCGC Healy 420 FT WAGB. The rotors’ dimensions are L1400xW1400xH1600 mm, each weighing 4700 kg. and the following description applies.

Name Part Number NSN QTY Steering Actuator

(ROTOR)

P80069 Styremotor HS 700-04 2 x 40 Rotor

2030-01- F24-7004 02

4. Identification of Statutory Authority Permitting Sole Source Procurement.

Section 3205 of Title 10, U.S. Code permits sole source procurement. The FAR implements this authority in section 13.501(a) (sole source (including brand name acquisitions) as the FAR defines such term in section 2.101).

5. Identification of Exception to the Buy American Act. in accordance with The Buy American Act does not apply. Per FAR 25.103(b)(1)(i), spare and replacement parts are an exception, under 25.104(a)(30).

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

Neuver Maritime is the only sole source to possess the drawings and proprietary information needed for this requirement. As the rotors approach their maximum operating hours, they are replaced/repaired as part of the routine overhaul and maintenance during scheduled drydock availabilities. The lead time for the repair/overhaul of the rotor from arrival at the repair facility is approximately 280 days. If the rotor is not delivered in time for an upcoming drydock availability, during which time the cutter will be docked for https://www.acquisition.gov/far/25.103#FAR_25_103

Last Updated 01/06/25 3 access to pull the shafts & rudders to make repairs, it could cause catastrophic failure and further delays to the cutters’ missions. The anticipated lead time to procure new rotors is approximately 180 days.

Critical tolerances and clearances ensure proper operating parameters are met. Use of this rotor will ensure physical and functional inter-changeability, as well as configuration and performance requirements. Using other than OEM rotors would be high risk because Neuver Maritime rotors must be configured in accordance with USCG system architecture requirements.

Procuring an alternative product other than Neuver Maritime rotors will require complete infrastructure replacement with a significant increase in cost. These costs include: The composition of the material, heat treatment (if required), determining whether the assemblies are forged or cast, as well as all dimensions (with tolerances), and operating parameters would be the minimum information needed before an evaluation of a rotor assembly could be attempted. Even if this information was available, the Coast Guard does not have the organic capabilities to evaluate and determine if all of the assemblies meet the OEM standards. Without the data and manufacturing specifications from the OEM, proving that the non-OEM assemblies are equal to the Neuver Maritime rotors would be impossible to determine.

During market research, a sources sought notice was posted and yielded no capable vendors.

Per information obtained from the OEM vendor, they maintain proprietary rights, have no licensed vendors and do not intend to sell the rights to any vendors or the USCG.

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

Potential Sources as is Practicable.

In accordance with FAR subpart 5.2, an effort to solicit as many potential sources as practicable, a sources sought notice was posted in SAM.GOV, to confirm or deny whether Neuver Maritime is the only responsible source. Refer to para. 9. for the information.

The notice yielded one (1) company stating their interest in this requirement.

The CGC Healy – Steering Actuator (Rotor) purchase was submitted in the Acquisition Planning Forecast System (hereafter APFS) on February 20, 2025. APFS F2025069435 was published on 07 August 2025, and no responses have been received.

On Aug 6, 2025, Neuver Maritime responded to a USCG e-mail sent by Mr. Alan Randolph regarding Steering Actuator Rotors list of authorized supply distributors and repair facilities. Based on the specificity of the requirement at the time, which was to provide supply parts and repairs, Neuver Maritime informed USCG that they do not have authorized distributors and do not plan to license any for our equipment.

8. Determination by the Contracting Officer that the Anticipated Cost to the

Government will be Fair and Reasonable.

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The Contracting Officer (KO) anticipates that the overall cost of the Coast Guard will be fair and reasonable based on historical pricing and the independent Government cost estimate (IGCE).

9. Description of Market Research.

Extensive market research was conducted by the Contracting Officer’s Representative (COR), from February 2025 – August 2025 in an effort to identify companies that can provide new OEM parts. Market research was conducted by identifying various companies on the internet, through searching General Service Administration (GSA) Advantage and Department of Homeland Security’s Strategic Sourcing Vehicles. Information was also obtained from NESSS/NE-TIMS, Neuver Maritime Inc, FEDLOG, FLS, and HAYSTACK, and through the Acquisition Planning Forecast System. Market Research revealed that the OEM has a network of Neuver Maritime Inc. distributors within the U.S.

Neuver Maritime Inc. technical data is currently unavailable to the U.S. Coast Guard.

Manufacturing resources of parts that could satisfy the OEM requirements has been determined to be a sole source, since a significant portion of this data remains proprietary to Neuver Maritime Inc, and they do not have, nor are they allowing any vendors to obtain proprietary rights to perform any of the work required.

The contracting officer issued a sources sought notice number 70Z08525S_HEALY STEERING ACTUATOR, on August 26, 2025, to determine if a domestic end product exists that meets this requirement. The sources sought notice closed on Sept 5, 2025, and one (1) response was received. The company responded with interest, however, did not provide any evidence of their capability to build these rotors or that they have any licenses with Neuver Maritime to meet the specifications identified in the sources sought notice.

Based on the results of all the market research, it has been determined that the requisite supplies are not available from any other source.

10. Any Other Facts Supporting the Use of Sole Source Procurement.

Neuver Maritime Inc. is the only known company possessing the specifications, engineering control procedures and proprietary methods to ensure the design configuration, manufacturing and quality control required to produce the rotors to the engineering specifications and requirements. Therefore, the Government does not have any data to compare other manufacturers’ parts to ensure the same fit, form, and function, nor does the Government possess the independent expertise to evaluate other manufacturer’s parts. These steering actuator rotors are designed, engineered and built to close tolerances and have undergone numerous shop tests and rigorous operational testing before being certified and approved by the OEM for use by the end user. After market (non-OEM) parts manufacturers/distributors do not have access to this proprietary information and therefore could not produce parts that are equal.

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

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Acquisition.

Neuver Maritime Aarsundvegen 24 6270 Brattvåg POC: Stine Ødegaard Urke +47 920 16 904 stine.urke@neuver.com

The sources sought notice received one response from the following company:

BHPE, LLC. BHPE; UEI# UPDJHPJUYQ71; Cage Code: 9SWS7 Point of Contact and Company Address:

Jonathan Howard 405-473-0422 Jonathan@bh.pe Address:

10601 S Western AVE

SUITE- 113

Oklahoma City, Oklahoma 73170

The company stated interest in the requirement, however, did not submit any further information that supported their ability to perform the required work.

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.

Neuver Maritime owns the technical data and drawings, and they have stated the company does not intend to sell the rights to such data to the Coast Guard, or any other vendors. The Coast Guard has made several attempts to acquire them with no success. The proprietary data is required to allow competition for the requirement. To date, Neuver Maritime has not expressed any interest in selling or otherwise providing the appropriate data rights to USCG. Based on the findings of the market research conducted it is determined that this requirement is only available from one source. The Coast Guard will continue to engage Neuver Maritime for the release of proprietary data prior to any subsequent acquisitions. All future requirements will be synopsized. Unsuccessful efforts to obtain OEM data make it unlikely that barriers to competition will be overcome. At this time, no other known equipment manufacturers produce aftermarket assemblies that are suitable or interchangeable with the Neuver rotors.

13. Contracting Officer’s Certification.

I certify that the data supporting the recommended use of a sole source procurement is accurate and complete to the best of my knowledge and belief.

mailto:stine.urke@neuver.com mailto:Jonathan@bh.pe

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RANDOLPH.ALA Digitally signed by

RANDOLPH.ALAN.K.1104338425

KLOEPPEL.ROBI Digitally signed by

KLOEPPEL.ROBIN.B.1229493945

N.B.1229493945 Date: 2025.10.07 12:26:34 -04'00'

Robin B. Kloeppel, CPD2, LRE, SFLC Date Contracting Officer

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.

Alan K. Randolph, LRE, PL Date Technical Representative/COR