Attachment 6 - JUNIPER BMDE Ovhl - Justification and Approval Redacted_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 Number 70Z08521QP4501300

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), Contract Procurement Division (CPD) Branch 2, Icebreaker, Buoy and Construction Tender Product Line (IBCTPL) located at 1301 Clay Street, Suite 800-N, Oakland, CA 94612.

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

It is the Coast Guard’s intention to award a Firm Fixed Price contract on a Brand Name basis to the original equipment manufacturer (OEM), Caterpillar Incorporated authorized dealers for remanufactured propulsion main diesel engines (MDE) #1 & #2.

(a) USCG intends to limit competition to certified Caterpillar (CAT) Dealers in the United States

(b) The OEM for this procurement is located at: Caterpillar’s Dealership in the United States.

(c) Type of action: Firm Fixed-Price Contract, Contract Modification, etc.;

(d) Estimated total value (including options): , broken down as follows:

Period Unit Price Total

Base

Option WI

TOTAL

(e) Type of funding: Contract will use annual AFC-45 Naval Engineering funds.

(f) Year of funding: Fiscal Year 2021

(g) Solicitation number: 70Z08521QP4501300

3. Description of Supplies/Services.

This acquisition is for maintenance and support services for the main propulsion engines and controls on the USCGC JUNIPER. The USCGC JUNIPER (WLM-201) is a multi-purpose vessel that can perform the heavy icebreaking mission as well as servicing the short-range aids to navigation, search and rescue, marine environmental response, and enforcement of laws and treaties of the United States on the Great Lakes. The main propulsion diesel engines and control systems are unique systems and require expertise outside of existing Coast Guard support infrastructure.

The repair, maintenance, and/or overhaul will consist of performance of maintenance and technical support services as described in the statement of work (SOW) and OEM’s latest guidance. Additional maintenance as described in the specification structure is to replace components of the MDE’s is authorized and may be completed during the required performance period. The support services and renewal of CAT parts may include Computer Aided Marine Performance Analysis Report (CAMPAR) testing, engine timing synchronization, engine valve rotators, vibration analysis, and Center Section Overhaul services. These services and components will satisfy the Coast Guard’s need for maintenance of CAT Marine Diesel engines.

The Contractor shall provide all personnel, labor, materials, parts, tools, test equipment, test fittings, supplies, and consumables necessary to accomplish the following test: (pre-operational and underway operational), conducting inspections, calibrations, overhauls, evaluating engine parts for re-usability, renewing parts in conjunction with the MDE overhaul, and submitting associated reports per specification in conjunction with the overhaul. Coast Guard personnel will operate the engines during the proposed testing and underway operational period.

Under this contract it is anticipated that the contractor will be required to perform the following services to include but not limited to:

• Validate marine diesel engine is operating within the manufacturer’s specifications, preliminary, and post overhaul and groom procedures.

• Performing Center Section and Top End Overhauls per manufacturer’s specifications and Coast Guard concurrence.

• Performing maintenance and repairs as stated in the statement of work.

• Ensure the proper communication and interoperability of gauges and engine Local Operating Panel (LOP) as applicable.

• Participate in dockside and underway performance test, evaluation, and validation.

• Overhaul, renew, adjust, calibrate, and test of improperly functioning system components as required.

• Provide genuine OEM approved parts as necessary for overhauls.

• Provide technical recommendations during overhaul.

• Complete CAMPAR testing on both MDEs.

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.”

5. Identification of Exception to the Buy American Act.

The USCG 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 brand name requirement for Caterpillar (OEM) remanufactured engines to include Caterpillar Model D3608 marine diesel engines and control systems. The USCG does not possess the necessary manufacturing technical data required to obtain full and open competition. The information to remanufacture the engines are proprietary to Caterpillar. Only the OEM and authorized OEM dealers are able to obtain the proprietary information to remanufacture engines. Therefore, only the OEM and authorized OEM dealers can meet the USCG need.

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

Potential Sources as is Practicable.

In an effort to promote full and open competition and solicit as many potential vendors as possible, a sources sought notice was posted on July 21, 2020 on the beta.SAM.gov Contract Opportunities website. This notification informed industry of the Government’s intent to solicit and negotiate with only Caterpillar and/or their authorized dealers.

Interested vendors were invited to submit information discussing their capabilities within ten (10) calendar days of the posting date. Three (3) firms expressed interest (ref 11 below).

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 adequate competition from Caterpillar OEM suppliers. The Contracting Officer will also utilize historical prices paid and compare to the Independent Government Estimate. Price analysis will be performed to ensure fair and reasonable prices are obtained.

9. Description of Market Research.

In accordance with FAR 10.001 (a)(2), market research was conducted by the Contracting Officer’s Representative (COR) and Contracting Officer to identify companies capable of performing these supplies Three (03) authorized Caterpillar dealers responded to the sources sought notice posted to beta.SAM.gov Contract Opportunities website on July 21, 2020 (ref 11 below). In addition to the sources sought notice, a search of the Internet was made to find OEM authorized dealers. Caterpillar website identified several authorized dealers in the United Sates.

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

On 02 April 2020, Caterpillar sent a letter confirming that they will not release or sell technical data rights to the USCG for these engines or components.

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

Carter Machinery Co., Inc.

3404 Business Center Drive Chesapeake, VA 23323

Gregory Poole Equipment Company 1500 Sensation Weigh Beaufort, NC 28516

Ring Power Systems 500 World Commerce Parkway St Augustine FL 32092

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 has made unsuccessful efforts to obtain OEM data make it unlikely that barriers to competition will be overcome. At the present time no other known equipment manufacturers, produce aftermarket components that are suitable or interchangeable with the propulsion system and associated equipment onboard the

CGC JUNIPER.