Attachment 4_Sole Source JOTFOC Miller Leaman Duplex Strainers Remanufacturing_Redacted.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 70Z04021Q58450B00

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 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, Small Boat Product Line, located at 2401 Hawkins Point Road, Baltimore, MD

21226, prepared this justification for sole source.

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

(a) Nature of the action: The United States Coast Guard has a requirement on a sole source basis for remanufacturing of Miller-Leaman, Inc., Duplex Strainers.

(b) Name and address of the contractor: Miller-Leaman, Inc. 800 Orange Avenue

Daytona Beach, FL 32114.

(c) Type of action: Firm Fixed-Price Contract

(d) Type of funding: Operations and Support funds

(e) Year of funding: Intend to use current year funds when orders are issued.

(f) Solicitation number: 70Z04021Q58450B00

(g) Background information about the requirement: Miller-Leaman, Inc., is the

Original Equipment Manufacturer (OEM) for the duplex strainers on the 45’

Response Boat – Medium (RB-M), and has no resellers. Miller-Leaman previously remanufactured the strainers under contract HSCG40-16-D-53016.

3. Description of Supplies/Services

This requirement will call for each strainer to be disassembled, inspected, remanufactured, and tested in accordance with current OEM specifications and standards to include a “like new” warranty in accordance with Coast Guard Specification Number R-233-0562.

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

Competition.

The statutory authority of 41 U.S.C. 1901 permitting other than full and open competition as implemented by Federal Acquisition Regulation (FAR) Subpart 13.501, Simplified Procedures for Certain Commercial Items.

5. Identification of Exception to the Buy American Act.

The Coast Guard has not identified any exception to the Buy American Act.

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

This is a sole source requirement for duplex strainers, two each per boat, used on the 45’ RB-M.

These strainers are off the shelf commercial strainers that were modified per the Coast Guard’s original boat specifications by the OEM, Miller-Leaman, Inc., with no other sources having access to the designs used to manufacture them. The use of non-OEM strainers and applicable controls not manufactured in accordance with OEM specifications, materials, tolerances, etc., could cause severe equipment failure rendering these boats inoperable due to engine damage. All reproduction-manufacturing drawings, specifications, and other technical data for these strainers were not purchased when the 45’ RB-M boats were originally constructed. The Coast Guard does not possess the necessary data required to obtain competition. Further, the scope of manufacturing, special tools, and equipment required to repair the strainers and manufacture the strainer components are unknown. The technical data (manuals, drawings, specifications, etc.,) necessary is proprietary to the OEM. Without the data the Coast Guard is not capable of evaluating equal or alternate parts. The use of only OEM authorized parts will ensure components and processes are sufficient to enable physical and functional interchangeability, as well as identifying and verifying the source, size, configuration, and performance requirements to OEM specifications. On July 20, 2020 the Government contacted the OEM to obtain data rights. On March 2, 2021 the Government contact the OEM a second time to obtain data rights.

The OEM responded on March 8, 2021 that Miller-Leaman, Inc’s, Duplex Strainers and related sub-components were designed and manufactured by Miller-Leaman, Inc., are proprietary and at this time not available for distribution or purchase. Based on market research, the only company that can satisfy this requirement is Miller-Leaman, Inc., with no resellers.

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

Potential Sources as is Practicable.

In an effort to solicit as many potential sources as practical in accordance with FAR Subpart 5.2, a sources sought notice was posted on https://beta.sam.gov to try to identify any sources that have the capability to remanufacture the machinery mentioned in section two (2) utilizing only

OEM parts. The notice provided other possible sources to respond by providing their capabilities to remanufacturing this machinery to OEM specifications using genuine OEM parts. No responses to the sources sought notice were received.

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

Government will be Fair and Reasonable.

The Contracting Officer (KO) will determine the anticipated price(s) to be fair and reasonable based on comparison with the Independent Government Estimate (IGE), previous contract number HSCG40-16-D-53016, prior acquisition history, and market research results.

9. Description of Market Research.

Market research was conducted in accordance with FAR Part 10. The Contracting Officer’s

Representative (COR) generated a market research questionnaire that was forwarded to several companies to ascertain their capabilities. Many of the companies contacted did not respond, were not capable of performing the work, or did not want to participate. In addition, the COR conducted searches via the internet. No other companies were located that had the capabilities to remanufacture these strainers. The questionnaire was sent to three vendors on 7/20/2020, and again on 5/20/2021, asking questions about the Miller-Leaman, Inc., ML 20750 strainers. Sure

Flow Equipment and Stay Flow Strainer were non-responsive to the “Market Research

Questionnaire”. Miller-Leaman, Inc., responded to the “Market Research Questionnaire” saying they are able to provide the services the Coast Guard is looking for. Sources sought notice

70Z04021S58450B00 was posted on https://beta.sam.gov to try to identify any sources that have the capability to remanufacture the strainers using OEM parts, with no responses from industry.

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

None.

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

Acquisition.

No responses were received from the sources sought notice; however, through Market Research

(the market research questionnaire), the following company showed an interest in the acquisition:

Miller-Leaman, Inc.

800-Orange Ave

Daytona Beach, FL 32114

386-248-0500

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 Coast Guard does not own the proprietary technical data, drawings, specifications, etc., to evaluate other than OEM parts; therefore, it is not anticipated future requirements can be competed on a full and open competition basis. However, every attempt will be made to obtain this data for future procurements.