Attachment K- Justification for Other than Full and Open Competition (WI D-11).pdf

Last Updated 01/29/25 1

SOLE SOURCE ACQUISITION

In compliance with Federal Acquisition Regulation (FAR) 13.501(a)(1)(ii), this justification uses the format at FAR 6.303-2 and is modified to state that the procedures in FAR subpart

13.5 are used.

1. Agency and Contracting Activity.

The Department of Homeland Security, United States Coast Guard (USCG), Long Range Enforcer Product Line (LRE PL) proposes to enter into a contract on a basis other than full and open competition for Work Item D-11 Side Boat Davit, Renew.

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

(a) Nature of the action: The United States Coast Guard, Surface Forces Logistics Command (SFLC) has a requirement to support, maintain and improve operations of the Allied Dual Point Davit system aboard the National Security Cutters (NSC). SFLC SES engineers have directed the Contractor to utilize an OEM licensed technical representative for Allied Dual Point Davit.

(b) Name and address of the contractor:

Allied Systems Company 21433 Oregon Street Sherwood, Oregon 97140-9808

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

(d) Estimated total value (including options):

Period Unit Price Total

14 Sep. – 14 Dec. 2025

$304,185.20

$304,185.20

Total $304,185.20

(e) Type of funding: Operations and Support funds

(f) Year of funding: Fiscal Year 2025

Last Updated 01/29/25 2

(g) Solicitation number: 70Z08525RLREP0009

(h) Background information about the requirement: The USCG SFLC LRE PL has a requirement for scheduled dockside repairs to be performed on the United States Coast Guard Cutter (USCGC) HAMILTON(WMSL-753) for Fiscal Year (FY) 2025 Fiscal Year Quarter (FYQ) 4. This requirement is for a contractor to provide all necessary materials, equipment, and personnel to perform dockside repairs to the USCGC HAMILTON (WMSL-753), a 418-foot National Security Cutter. The Renewal of the Side Boat Davit is work item D-11 to be performed during this dockside repair. This work item requires a Licensed Tech Rep defined by SFLC Standard Spec 0000 as an individual who is technically qualified and a trained employee of the OEM or OEM representative providing assistance of the installation, operation, and maintenance of the applicable equipment or system, with unrestricted access to the OEM current proprietary information, software, and tools. OEM Authorized Tech Rep is an interchangeable term with Licensed Tech Rep.

3. Description of Supplies/Services.

The United States Coast Guard, Surface Forces Logistics Command (SFLC) has a requirement to support, maintain and improve operations of the Allied Dual Point Davit system aboard the National Security Cutters (NSC). SFLC SES engineers have identified the need for the Contractor to utilize an OEM licensed technical representative for Allied Dual Point Davit because Allied is the only company with the proprietary data needed to complete this work item in accordance with FAR 13.106- 1(b)(1)(i) and work item D-11 Side Boat Davits Renew. These personnel shall be able to accomplish the following tasks Provide Technical Support during installation:

- Advise on OEM manufacturer’s proprietary information pertinent to the system.

- Ensure compliance with OEM manufacturer’s procedures and standards during installation.

- Provide Technical Support for safety circuit and control circuit verification.

- Provide Technical Support during load test and sea trail acceptance test.

- Install latest Operating Software

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

Competition. Section 3205 of Title 10, U.S. Code permits other than full and open competition. The FAR implements this authority in section 13.501(a) (sole source (including brand name acquisitions) as the FAR defines such term in section 2.101).

5. Identification of Exception to the Buy American Act. Not Applicable

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

Due to the nature of the equipment, the aforementioned subcontractor is the only

Last Updated 01/29/25 3 contractor to have access to the proprietary data needed to certify these systems for operation. Any other contractor would not have access to the needed proprietary information (i.e., data and drawings) to perform this work. Details are provided per work item below:

- Work Item D-11 Side Boat Davit, Renew.

The OEM for the vessel’s Dual Point Davit is Allied Systems Company. Only OEM technicians can provide proprietary technical data/drawings. This maintains all OEM warranties, ensures equipment reliability, and crew safety therefore precluding consideration of a technician from another company.

Allied Systems Company was contacted on 11 March 2025 to inquire about their proprietary data rights and availability of Licensed Tech Rep Support. The following questions were asked, and responses noted:

1. Does Allied Systems employ Licensed Technical Representatives to complete repairs/renewals onboard the cutters? Answered: Yes

2. Are there any authorized third-party companies that can perform this work in a licensed capacity? Answered: No

3. Does Allied Systems still own the proprietary data rights (including data required for the manufacturing of spare parts) for this davit system? Answered: Yes

4. Would Allied Systems be willing to allow the U.S. Coast Guard to use that data for free? Answered: No

5. Would Allied Systems consider selling those rights to the U.S. Coast Guard?

Answered: No

Renewal of the Side Boat Davit is work item D-11 to be performed during this dockside repair. This work item requires a Licensed Tech Rep defined by SFLC Standard Spec 0000 as an individual who is technically qualified and a trained employee of the OEM or OEM representative providing assistance of the installation, operation, and maintenance of the applicable equipment or system, with unrestricted access to the OEM current proprietary information, software, and tools. OEM Authorized Tech Rep is an interchangeable term with Licensed Tech Rep.

This Work Item cannot be completed by a Qualified Tech Rep which is defined by SFLC Standard Spec 0000 as an individual who has provided a resume demonstrating qualification, training, and prior experience in the installation, operation, and maintenance of the applicable equipment or system; including a list of prior contracts as a OEM Authorized Tech Rep or Qualified Tech Rep with the equipment or system. Additional qualifications may be defined in the applicable requiring work item. A Qualified Tech Rep would not have access to the OEM’s proprietary information, software, and tools required to perform the functions outlined in this work item.

Last Updated 01/29/25 4

The Coast Guard has a requirement to install, maintain and improve operation of the Allied Dual Point davit installed on the National Security Cutter (NSC). The NSC is currently being acquired by USCG Acquisitions Directorate and is in full rate production. Currently the CG directly supports hulls 1-9 NSC. The USCG has invested over $5.4 Million dollars in this acquisition and future procurements are tentatively planned to support up to 11 hulls; an additional $2.4 Million procurement investment for a total of $7.6 Million in davit acquisition. With numerous safety MISHAPS and NEAR MISSES, without the modifications states in “Description of supplies and service” the crews will continue to operate in a REDUCED operational safety window and may continue to increase the number of mishaps and near misses as USCG continues to acquire these systems.

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

Potential Sources as is Practicable.

The following information is applicable to the entire dockside repair availability. Sources Sought Notices 70Z08525_USCGCHamiltonFQ4 and 70Z08525USCGCHamiltonFQ4 were posted to SAM.gov from February 04, 2025 – February 21, 2025.

An Acquisition Planning Forecast Record (APFS) number F2025069143 was published at https://apfs-cloud.dhs.gov on 06 March 2025.

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

Government will be Fair and Reasonable.

The contracting officer will determine that the anticipated price(s) will be fair and reasonable based in accordance with FAR 13.106-3(a).

9. Description of Market Research.

The following information pertains to the dockside repair procurement in its entirety:

Market research was conducted between January 2025-March 2025. Market Research included a review of acquisition history for similar dockside repairs, a review of commercial and government databases (Fed Log, SBA Small Business Search, FPDS-NG, SAM.gov). Sources Sought Notices “70Z08525USCGCHamiltonFQ4” and “70Z08525_USCGCHamiltonFQ4” seeking potential service providers were disseminated via SAM.gov from 4 February 2025 - 14 February 2025 and 11 February – 21 February 2025. There was a total of five (5) responses from small business concerns to the Sources Sought Notice. The OEM for work item D-11 did not respond to the Sources Sought Notice, however, Allied Systems did confirm via email on 11 March 2025 that they do employ factory authorized service technicians to complete repairs and renewals, Allied Systems confirmed that they are the only company

Last Updated 01/29/25 5 with access to the proprietary data needed to complete this work item. Work Item D-11 for Renewal of the Side Boat Davit requires a Licensed Tech Rep defined by SFLC Standard Spec 0000 as an individual who is technically qualified and a trained employee of the OEM or OEM representative providing assistance of the installation, operation, and maintenance of the applicable equipment or system, with unrestricted access to the OEM current proprietary information, software, and tools. OEM Authorized Tech Rep is an interchangeable term with Licensed Tech Rep.

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.

The following information pertains to the dockside repair procurement in its entirety:

Sources Sought Notices 70Z08525USCGCHamiltonFQ4 and 70Z08525_USCGCHamiltonFQ4 were issued on SAM.gov on February 4 and February 11, 2025, requesting that parties express in writing their interest to the contracting officer. Four (4) contractors responded, JAG, GI Industrial Marine, LLC., and 3MC Mobile & Mechanical Repair, LLC. One additional response was captured from Element Hotel, however, this response was for housing potential contractors and was not relevant to the dockside repairs or work item detailed above.

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.

Since Allied Systems Company continues to retain the proprietary rights to system design/interface necessary to install, maintain, and improve operation of the Allied Dual Point davit for the MPDE and has declined to release the data to the Coast Guard as of the latest email communication with Allied Systems Company on 11 March 2025, the Coast Guard anticipates that it may be difficult to obtain competition in future procurements.

However, the Coast Guard will continue to post SSNs for each acquisition and search various government databases in an effort to find additional sources of competition.

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.

Last Updated 01/29/25 6

Mark Cap 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.

LTJG Javon Wingate Date Technical Representative/APM