Attachment 6 - JA.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 Number: 70Z08521QP4507300

USCGC OAK FY21 DRY-DOCK

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 of FAR 6.303-2, the following facts and rationale support this justification.

1. AGENCY AND CONTRACTING ACTIVITY.

The Department of Homeland Security (DHS), U.S. Coast Guard (USCG) Surface Forces Logistics Center (SFLC) Icebreaker, Buoy and Construction Tender Product Line (IBCTPL) Contracting Office located at proposes to enter into a single contract with a prime contractor to be solicited on the open market and sets forth requirements for the contractor to utilize sole source technical representatives as specified Work Items (WI) D-012, D-013, and D-018 of the Specification Rev 0 dated 21 October 2020.

2. NATURE/DESCRIPTION OF THE ACTION.

a) Nature of the action: This justification seeks approval to award a firm fixed price maintenance contract where the “Prime Contractor” shall be required to obtain and provide the services of Original Equipment Manufacturers (OEM) and specialized “Qualified technical services” as required and listed in Work Items D-012, D-013, and D-018 of the Specification Rev 0 dated 21 October 2020. Original Equipment Manufacturer (OEM) requirement is covering only the portion of the acquisition specific to WIs D-012, D-013, and D-018.

b) Name and address of the contractor: Rolls Royce, Corp. 450 S Meridian St, Indianapolis, IN 46225

c) Type of action: Firm Fixed-Price Contract

d) Estimated total value (including options) is $___________broken down as follows:

Work Item Unit Price Total D-012 Controllable Pitch Propeller, System Maintenance: $ $ D-013 Controllable Pitch Propeller Hub, General Maintenance $ $ D-018 Thruster Units (Bow and Stern), Overhaul $ $

TOTAL $

e) Type of Funding: PLANMAINT AFC45 funds

f) Year of Funding: Fiscal Year 2021

g) Solicitation Number: 70Z08521QP4507300

h) This justification for other than full and open competition seeks approval to award a firm fixed price contract where the “Prime Contractor” shall be required to obtain and provide the services and parts of OEMs listed in paragraph 3 below.

3. DESCRIPTION OF SUPPLIES/SERVICES:

SFLC requires OEM authorized technical field service representatives and OEM parts to accomplish the requirements of WIs D-012, D-013, and D-018. These WIs require the provision of highly skilled, specialized, and unique services and associated OEM replacement parts.

a. Work Item D-12 Controllable Pitch Propeller, System Maintenance: The Contractor shall provide the services of an OEM authorized/ licensed Technical Representative (Tech Rep) for the Rolls Royce Controllable Pitch Propeller System (CPP System) to accomplish the following on site:

Assist with proper repair methods, and ensure compliance with manufacturer's procedures and standards during disassembly, inspection, repair, modification, calibration, and reassembly of the CPP System and its components during system maintenance of the CPP System.

“Rolls Royce” is the OEM authorized vender and supplier of approved repair parts & services for this equipment. Proper refurbishment and maintenance of precision maneuvering equipment is critical to the safe operation of USCGC OAK during Aids To Navigation missions within hazardous areas of operations as required. This requirement maintains all OEM warranties and ensures equipment reliability and crew safety, therefore precluding consideration of technical oversight by an unauthorized or unqualified technician.

b. Work Item D-13 Controllable Pitch Propeller Hub, General Maintenance: The Contractor shall provide the services of an OEM authorized/licensed Tech Rep for the Rolls Royce Controllable Pitch Propeller Hub System (CPP Hub System) to accomplish the following onsite:

Assist with proper repair methods, and ensure compliance with manufacturer's procedures and standards during disassembly, inspection, repair, modification, calibration, and reassembly of the equipment/system during general maintenance of the CPP Hub System.

“Rolls Royce” is the OEM authorized vender and supplier of approved repair parts & services for this equipment. Proper refurbishment and maintenance of precision maneuvering equipment is critical to the safe operation of USCGC OAK during Aids to Navigation missions within hazardous areas of operations as required. This requirement maintains all OEM warranties and ensures equipment reliability and crew safety, therefore precluding consideration of technical oversight by an unauthorized or unqualified technician.

c. Work Item D-18 Thruster Units (Bow and Stern), Overhaul: The Contractor shall provide the services of qualified Tech Rep, who is familiar with the Rolls Royce (formerly Bird Johnson) equipment/system, to accomplish the following tasks – on site:

Assist with proper repair methods, and ensure compliance with manufacturer's procedures and standards during disassembly, inspection, repair, modification, calibration, and reassembly of the equipment/system during Thruster Units (Bow and Stern), Overhaul.

OEM authorized vender and supplier of approved repair parts & services for this equipment. Proper refurbishment and maintenance of precision maneuvering equipment is critical to the safe operation of USCGC OAK during ATON missions within hazardous areas of operations as required. This requirement maintains all OEM warranties and ensures equipment reliability and crew safety, therefore precluding consideration of technical oversight by an unauthorized or unqualified technician.

Failure of the bow thruster unit will severely impact the safety of USCGC OAK during precision maneuvering operations while setting aids to navigation in areas outside of navigable channels.

4. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER

THAN FULL AND OPEN COMPETITION

The statutory authority permitting other than full and open competition is 41 U.S.C. 1901 as implemented by FAR 13.5, Simplified Procedures for Certain Commercial Items.

5. IDENTIFICATION OF EXCEPTION TO THE BUY AMERICAN ACT

N/A; no exceptions applies

6. DEMONSTRATION THAT THE NATURE OF THE ACQUISITION REQUIRES

USE OF AUTHORITY CITED:

WIs D-012, D-013, and D-018: This acquisition must be made using qualified technical services and OEM approved parts. The requirement must be performed by a Rolls Royce qualified technical representative who is familiar with Rolls Royce equipment/systems and possesses the necessary equipment, technical publications and experience to accomplish the required task for the disassembly, inspection, repair, modification, calibration and reassembly of the Seagoing Buoy Tender Juniper Class WLB 225 Rolls Royce Controllable Pitch Propeller and Hub Systems and Bow and Stern Thruster Units.

a) Background information about the requirement:

Rolls Royce thruster and Controllable Pitch Propellers are currently in use on the USCGC OAK. The data and proprietary equipment used to service and sustain these units are owned by and controlled by authorized Rolls Royce technicians and therefore was not available for release to generate competition for maintenance support and services.

Engineering control procedures and proprietary methods to ensure the latest design configuration, manufacturing and quality control required to maintain and support the various maintenance actions on the Thruster and Controllable Pitch Propeller units. The OEM units being installed must be “commissioned” and certified by the manufacturer to meet all Environmental Protection Agency and Oil Pollution Act-90 regulations.

b) Details covering what events led to the situation requiring use of other than full and open competition procedures:

Rolls Royce is the OEM for these components on USCGC OAK. The OEM does not publish proprietary information and has not released the rights to the Coast Guard. OEM offers training nor certifies companies outside of their companies to perform certain functions for sustaining the equipment. The Coast Guard relies on these technical representatives to oversee the inspections and overhauls of this equipment because they retain specific proprietary knowledge. In order to certify this equipment for use and ensure proper installations, the Government requires a Technical Representative contractor that possesses a certification by Rolls Royce to oversee and provide propriety technical assistance during overhaul, inspection and commissioning this equipment.

c) Why considered alternative will not work:

The Bow/Stern Thruster and the Controllable Pitch Propeller Systems addressed in these work items are the only equipment approved through SFLC configuration management program and must be sustained in accordance with OEM requirements to ensure critical and reliable functionality. As stated in the paragraph above, the OEM does not publish proprietary information and has not released the rights to the Coast Guard. OEM does not offer training nor certifies companies outside of their companies to perform certain functions for sustaining the equipment.

d) Impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided.

The Government would be faced with duplication of cost or unacceptable delays due to non OEM certified companies requiring proprietary information, software, repair process standards, tools and parts pertinent to the tasking held solely by the OEMs.

7. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICAL

While other systems and parts may exist within the commercial marketplace, these systems were selected for installation on these cutters. All technical information is proprietary to the OEM and unavailable for the Government to evaluate alternate technical representatives and parts. Any decision to replace the existing equipment with equipment that can be sustained, commissioned or properly calibrated will have to be done to achieve this goal.

8. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE:

These work items are incorporated into a firm fixed price maintenance contract that will be available for open market solicitation. The sole source requirements for the effected “sole source” work items listed above will be the responsibility of the “Prime Contractor” to accomplish. Determining factors with regards to fair and reasonable costs for all work items are determined by Market Research and historical data provided through agency records. The Contracting Officer determines the cost to the USCG will be fair and reasonable based on historical prices paid, competitive quotes from “Prime Contractors” and comparisons to the Independent Government Estimate. Price analysis will be performed to ensure fair and reasonable prices are obtained. Additionally, in accordance with FAR and DHS policy, the offertory may be required to submit Data Other Than Certified Cost or Pricing Data (FAR 15.403-3) to support price negotiations

9. DESCRIPTION OF MARKET RESEARCH:

In accordance with FAR 10.001 (a) (2), extensive market research was conducted by the Availability Project Manager (APM) from 03 October 2020 to 30 October 2020 to identify potential “Prime Contractors” capable of managing all work items contained within the SOW.

The internet was searched and a “Sources Sought” solicitation was posted on Beta Sam to identify potential offers that possess the necessary management abilities to achieve the necessary requirements through subcontracting and the ability to provide the necessary tech reps as per the various OEM requirements.

10. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION:

(a) An explanation why technical data packages, specifications, statement of work, or purchase descriptions are not suitable for full and open competition. Rolls Royce possesses the most up to date critical technical data and/or drawings for the Thruster and Controllable Pitch Propeller systems onboard aboard USCGC OAK. The OEM along with their authorized Tech Rep are the sole authorized service and incidental parts providers for the affected equipment. This data is proprietary so we must continue to rely solely on the OEM for these specific services and incidental parts to meet our current needs.

(b) Discuss why your requirement cannot be modified to enhance competition. Changes to the vessel configurations and costs to develop or procure replacements to the current ship's environmental, maneuvering and propulsion system(s) would be cost prohibitive.

(c) For a proposed contract subject to the restrictions of FAR 6.302-1 for follow-on acquisitions as described in 6.302(a) (2) (iii), provide an estimate of the cost to the Government that would be duplicated and detailed information on how the estimate was derived. Independent Government Estimate (IGE) for Work items D-012, D-013, and D- 018 was developed by reviewing historical award data for the same or similar work on WLB 225 drydock availabilities located in Contract Workbook Database (CWD) and Fleet Logistics System (FLS).

(d) For a proposed contract subject to the restrictions of FAR 6.302-2(d) or HSAR 3006.302- 270 and where FAR 6.302-2 is cited as the authority, describe the exceptional circumstances allowing for an award for a period of performance in excess of the one-year limitation (applicable to all federal agencies) or the DHS-specific statutory 150-day limitation. N/A

11. LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING,AN

INTEREST IN THE ACQUISITION:

No companies replied to sources sought notice. Since this requirement will be carried out by the prime contractor that is awarded the Firm Fixed Price Contract, that company will secure the tech rep services after the contract is awarded.

12. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TOREMOVE

OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY

SUBSEQUENT ACQUISITIONS FOR SUPPLIES OR SERVICES:

None known at this time. Unsuccessful efforts to obtain OEM data make it unlikely that barriers to competition will be overcome. At the present time, no other known manufacturers to provide aftermarket tech rep services, proprietary information and equipment, which meet the form, fit and function of the equipment.

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.

Torben Ohlsson 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.

Date

Date

Technical Representative/COR

APPROVAL:

28 OCT 2020

Final approver if not exceeding $700K Name Contractiong Officer