Attachment 3 -JOTFOC_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

10 U.S.C. § 2304

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3, the following facts and rationale justify the use of such authority:

1. Agency and Contracting Activity.

The Department of Homeland Security, United States Coast Guard (USCG), Long Range Enforcer Product Line (LREPL) and Contract & Procurement Division 1 (C&PD1), 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: USCG intends to procure on a sole source basis, the services to complete all Dry-Dock (DD) work for the USCG cutter (USCGC) KIMBALL (WMSL 756), a 418’ Maritime Security Cutter Large (WMSL) cutter is homeported in Honolulu, HI.

(b) Name and address of the contractors:

1. Marisco, Ltd, 91-607 Malakole St, Kapolei, HI 96707

2. Pacific Shipyards International, LLC, 705 N. Nimitz Highway, Honolulu, HI 96817

(c) Type of action: One definitive Firm Fixed Price contract

(d) Estimated total value (including options):

(e) Type of funding: Operations and Support funds (Surface Operations and C5IT Operations PPAs), Procurement, Construction, and Improvement funds.

(f) Year of funding: Single-year, FY 23

(g) Background information about the requirement:

1. This cutter has a planned DD availability in FY23. The exact period of performance is subject to final PACAREA scheduling, and is tentatively scheduled for 07 December 2022 to 06 March 2023. All DD work for this availability is restricted to a shipyard within a 50- mile commuting radius of the vessel’s homeport of Honolulu, HI as a necessary military consideration in order to maximize the operational readiness of the vessel to complete mission requirements and maintain crew proficiency standards. It was determined that there are two sources located within the vessel’s homeport that are capable of meeting the Government’s needs.

3. Description of Supplies/Services.

This requirement is for the DD and repairs of USCGC KIMBALL (WMSL 756) consisting of all maintenance and repairs as required by 5-year dry docking schedule. Completion of these requirements ensures the safe operation of the cutter for the next five years until scheduled for the next recurring DD.

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 Subpart 6.302-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

While this competition is not expected to be sole source, it will result in a limited competition, as is consistent with the authority from FAR Subpart 6.302-1, which states:

“When the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.”

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) The statutory authority permitting other than full and open competition is 10 U.S.C.

§ 2304(c)(1) implemented by the FAR Subpart 6.302-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

(b) This requirement is being issued on a limited number of responsible sources basis, as there are only two known DD service providers within 50 miles of USCGC KIMBALL’s homeport of Honolulu, HI. Attached is a Military Consideration Memo.

(c) It is necessary to restrict the services to within 50 miles of the homeport for Honolulu WMSLs to maintain the Operational Commander’s deployment schedule. The Commandant Instruction for Cutter Scheduling Standards (COMDTINST 3100.5C) defines the area within 50 miles of a cutter’s permanent berth as the cutter’s homeport.

When a DD is performed more than 50 miles away from homeport, the deployment schedule is impacted.

(d) WMSL cutters are more critical than ever to deliver the congressionally mandated coverage in the Bering Sea, Indo-Pacific, Oceania, and the Eastern Pacific Theater. To maximize deployment schedules, DD work for Honolulu-based WMSL must be performed within a 50-mile commuting radius of their homeport of Honolulu, HI.

Awarding to a contractor outside of the 50 mile radius could result in unacceptablemission impacts for the USCG. Based on the results of market research analysis, Marisco, Ltd and Pacific Shipyards International, LLC are the only responsible contractors able to complete DD sustainment maintenance within the operational restrictions described in the Government’s requirement without affecting future deployments.

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 originally posted in the Acquisition Planning Forecast System (APFS) on 19 October 2021, reposted on 02 March 2022, and reposted again on 06 July 2022 after updating the estimated solicitation and award dates. A sources Sought notice was posted to SAM.gov on 05 April 2022 requesting interest and availability.

A sources Sought notice was posted to SAM.gov on 05 April 2022 requesting interest and availability. Two sources responded and expressed interest in performing the DD: Marisco, LTD (large/small business) on 08 April 2022 and Pacific Shipyards (large/small business) responded on 19 April 2022.

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 competition, 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. This requirement is expected to have competition through the two known capable sources.

9. Description of Market Research.

(a) Based on market research that was conducted by the USCG, there are eight commercial dry-dock facilities on the West Coast (including Hawaii and Alaska), that have dry-docks of large enough capacity to provide the services necessary for a WMSL class cutter:

Pacific Shipyards International LLC in Honolulu, HI (04 miles) Marisco Shipyards in Honolulu, HI (24 miles) Mare Island Dry Dock, LLC in Vallejo, CA (2,114 miles) NASSCO in San Diego, CA (2,278 miles) Vigor Marine in Portland, OR (2,331 miles) Vigor Marine, Ketchikan, AK (2,383 miles) Vigor Marine in Seattle, WA (2,409 miles) Everett Shipyards in Everett, WA (2,439 miles)

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

There are no other major commercial shipyards within 50 miles of Honolulu, HI that have provided DD services to major cutters.

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

Acquisition.

Marisco, Ltd and Pacific Shipyards International, LLC are the only contractors with dry-dock facilities for WMSL class cutters within 50 miles of Honolulu, HI. Both contractors responded to a USCG inquiry on 31 March 2021 stating dry-dock space is currently available in the first quarter of FY23. Both Marisco, Ltd. And Pacific Shipyards International LLC are classified as small business in SAM.gov

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.

The USCG is in the process of acquiring new and more capable cutters in order to fill Coast Guard needs, including WMSLs, Heavy Icebreaking Polar Security Cutters (PSCs), and eventually additional Medium Icebreaking cutters. The first set of WMSL class cutters will be delivered to homeports on the West Coast in upcoming fiscal years.

Once these cutters are delivered, it may allow WMSLs such as the cutters homeported in Honolulu, HI for transit outside the local area for dry-dock repair without significant mission impacts.