Attachment 5- Justification for Other than Full and Open Competition- Carver Repair REDACTED.pdf

JUSTIFICATION TO RESTRICT COMPETITION

10 U.S.C. § 3204

In compliance with Federal Acquisition Regulation (FAR) Subpart 12.102, restricting competition, this justification uses the format prescribed at FAR Subpart 6.104-1, justification content and is modified to state the procedures in FAR Subpart 12.201-1, simplified procedures are used in accordance with FAR Class Deviation 25-111 and RFO 25-21, Revision 12.

1. Agency and Contracting Activity.

The Department of Homeland Security, United States Coast Guard (USCG), CG-SEA-C in support of Surface Forces Logistics Center (SFLC), Contracting and Procurement Division (CPD)2, Hawkins Point Road, Baltimore, MD 21226 proposes to enter into a contract on a basis of other than full and open competition.

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

(a) Nature of the action: This action is to award a contract on a sole source basis to K&M Industrial, LLC. for the Open Inspect Report and Repair (OIR-R) of Carver Pump Original Equipment Manufacturer (OEM) centrifugal closed coupled pumps and piece parts, supporting the pumps for future repair and maintenance requirements. K&M Industrial, LLC. is the sole service provider for the OEM, Carver Pump Company.

(b) Name and address of the contractor:

Carver Pump Company (OEM) 2415 Park Ave.

Muscatine, IA 52761

UEI: W547TUQXJ8Y4

K&M Industrial, LLC. (Sole Service Provider) 80 Delta Ave.

Gladstone, MI 49837

UEI: WWHQ8N5MED6

(c) Type of action: Requirements Contract with Firm Fixed-Price Task Orders.

(d) Estimated total value: $7,982,791.08

Period Total

1 FAR Class Deviation guidance will hereby be referred to as RFO, Part 6:

https://www.acquisition.gov/sites/default/files/page_file_uploads/DHS_RFO_Deviation_Part-6.pdf 2 FAR Class Deviation Part 12, Revision 1: https://www.dhs.gov/sites/default/files/2025-11/25_1107_cpo_far-class-dev- 25-21-r1-far-part-12.pdf

Ordering Period 1

12 mo.

$2,268,630.23

Ordering Period 2 12 mo. $1,609,595.85 Ordering Period 3 12 mo. $1,297,449.35 Ordering Period 4 12 mo. $1,808,541.90 Ordering Period 5 12 mo. $998,573.76

Total $7,982,791.08

The base ordering period is estimated to be 14 April 2026 – 13 April 2027. For each Ordering Period a 6% inflation factor was included.

(e) Type of funding: Operation and Support

(f) Year of funding: Fiscal Year 2026 and funds appropriate for the Fiscal Year of availability and the time of the procurement.

(g) PR number: 2126406B4500AD007

(h) Background information about the requirement:

The USCG has an established history of repairing Carver Pumps. One (1) prior Simplified Acquisition Procedure (SAP) procurement was executed for the repair of Carver Pump units with the same National Stock Numbers (NSNs) identified in this requirement. That procurement was awarded under Contract 70Z08522P39007B00 for a total value of $197,318.31, covering 18 pump repairs. The awardee was K&M Industrial.

Historically, these repairs have included the replacement of seals, bearings, gaskets, and impellers as standard practice. There is currently no active contract for this requirement;

services have been obtained on an as-needed basis.

3. Description of Supplies/Services.

The USCG has a requirement to perform OIR-R of Carver Pumps for the 418' WMSL class cutters, also known as National Security Cutters (NSCs). Once repaired, the Carver Pumps will be stored at the SFLC, Baltimore, ready for fleet use as needed. This effort supports fleet readiness and ensures operational continuity for the WMSL Class Cutters.

The vendor will be required to perform disassembly, perform inspections, perform condition/test reports, perform repairs, conduct reassembly, perform testing, conduct preservation, perform packaging, perform packing, and marking of the Carver Self Priming Centrifugal Pumps used on 418 ft WMSL U.S. Coast Guard Cutters. The vendor will be required to repair the Carver pumps to OEM Standards in accordance with the specification and schedule.

4. Identification of Statutory Authority Permitting Restrictions on Competition.

The statutory authority permitting other than full and open competition is 10 U.S.C. § 3204(a)(1), applied in conjunction with the commercial item procedures of FAR Subpart 12.201-1 and RFO 25-21, R1.

5. Identification of Exception to the Buy American Act. There are no applicable exceptions 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 requirement is being procured under the authority of 10 U.S.C. § 3204 as implemented under FAR Part 12, as a noncompetitive procurement to K&M Industrial, LLC. They are the only responsible source capable of providing repair services to the USCG owned Carver Pump units and components.

The OEM has confirmed that there is only one authorized service provider for this requirement and the OEM does not intend to support this effort directly at the OEM level, as confirmed during a discussion with the OEM on 09/16/2025.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable.

A Sources Sought Notice was posted on SAM.gov on 15 July 2025 in accordance with FAR Subpart 5.2, notifying industry of the U.S. Coast Guard’s intent to repair Government‑owned Carver Pump components. Interested businesses with the required capabilities were invited to respond by 29 July 2025. Only one company, K&M Industrial, submitted a response indicating the ability to meet the requirement. Additionally, the requirement was published in the Acquisition Planning Forecast System (APFS) under number F2025068413 on 9 September 2025 and 7 January 2026, with no additional sources identified.

To further validate market availability, the Coast Guard engaged directly with the OEM. The OEM confirmed during communications on 5 January 2024 and 27 February 2024, and again in a formal letter dated 24 April 2024, that K&M Industrial is the sole authorized service provider for pumps, parts, and repair services for Carver Pump equipment installed within the U.S. Coast Guard fleet. These combined efforts demonstrate that the Coast Guard sought participation from as many potential sources as practicable and that only one qualified source exists for this requirement.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The Contracting Officer (KO) will determine that the anticipated price is fair and reasonable based on comparisons with the IGE, previous purchase history, and other than certified cost and pricing data as needed.

9. Description of Market Research.

Market research was conducted from December 2023 – January 2026 in accordance with FAR Part 10 and included reviewing OEM capabilities, assessing the availability of authorized sources, and evaluating the commercial marketplace. The requirement was publicized through APFS, and a Sources Sought Notice was posted on SAM.gov to identify additional responsible sources. Only one response was received, and the detailed posting history and results are provided in Section 7.

As part of the market research, the U.S. Coast Guard also engaged directly with the OEM, who confirmed that only one authorized service provider is approved to support this requirement and that the OEM does not intend to perform the work at the OEM level. Based on these efforts, only the OEM‑authorized service provider was identified as capable of meeting the Government’s needs.

10. Any Other Facts Supporting the Use of a Sole Source Acquisition. None.

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

Company Name

K&M Industrial, LLC.

80 Delta Ave Gladstone, MI 49837

CAGE: 5EHF6

UEI: GWWHQ8N5MED6

A synopsis was issued in SAM.gov on July 15, 2025, requesting that parties express their interest in writing to the Contracting Officer. Only K&M Industrial, LLC. responded and is able to fulfill this requirement.

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 are Required.

Since the OEM owns the technical data and drawings, it is unlikely that they will sell the rights of such data to the USCG. The USCG has made several attempts to acquire them with no success, including an attempt for this acquisition on September 5, 2025. The Contract Specialist emailed Richard Paulsen with the OEM to inquire about the release or sale of the data rights and drawings related to the Carver Pumps, and Mr. Paulsen responded on September 16, 2025, advising that the drawings are proprietary to the OEM and would not be licensed or sold. Mr. Paulsen referred the USCG to K&M Industrial for repairs. The proprietary data is required to allow competition for the requirement. To date, the OEM has not expressed any interest in selling or otherwise providing the appropriate data rights to the USCG. Based on the findings of the market research conducted it is determined that this requirement is only available from one source. The USCG will continue to engage the OEM for release of proprietary data prior to any subsequent acquisition.

All future requirements will be synopsized. At this present time, no other known equipment manufacturers produce aftermarket assemblies that are suitable or interchangeable with the Carver Pumps.

13. Contracting Officer’s Certification.

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Kiya R. Plummer-Dantzler 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.

Jake Redden Date

Technical Representative/COR

RECOMMENDED FOR APPROVAL

Kiya R. Plummer-Dantzler Date

Contracting Officer

APPROVAL

Edward S. Frank Date Procuring Activity Advocate for Competition (PAAC)