CGC SMILAX DD -Attachment 5 Justification and Approval.pdf

(f) Year of funding: Fiscal Year 2023

(g) Solicitation number: 70Z08523QIBCT1056

(h) Background information about the requirement: The USCGC SMILAX DD availability, scheduled for a period of performance of 15 May 2023 through 25 July 2023, is restricted from open water travel because of the hull design and staffing of the vessel. Thus, military considerations along with the ability to maximize the operational readiness of the vessel form the basis of this Other Than Full and Open Justification.

3. Description of Supplies/Services. This requirement is for the dry-dock and repairs of

USCGC SMILAX and consists of the planned work items required to maintain the 100-foot Inland Construction Tender home-ported in Atlantic Beach, NC. This dry dock will consist of approximately thirty-nine (39) work items to include, but is not limited to: Dry docking, sea trials, Hull Plating (U/W Body) ultrasonic testing, U/W Body, Hull Plating Freeboard, Stern Tube Interior Surfaces, Rudder, Exterior (Non-skid) and Buoy Decks and Tanks preserve 100%, clean and inspect sewage tanks, MP fuel and potable water tanks, Rudder Assembly, propeller and propulsion shafting remove inspect and reinstall, check clearances on shaft bearings, leak test appendages, renew fathometer transducer, Inspect Overhaul seas trainers, sea valves and waster pieces Commercial Clean Main Diesel Engine and Ship Service Diesel Generator, Preserve Spud Wells, inspect and service Boat Boom and Buoy Cargo Crane, Spot Abatement of Lead-Based Paint and Asbestos-containing Material, preserve bilges, renew interior wet and dry deck covering, fuel oil tank gooseneck ventilation pipes and tank fuel valves, repair visor plating on upper bridge

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 outlined in FAR Subpart 13.501(a)(ii), as implemented by FAR 13.5 Simplified Acquisition Procedures for Certain Commercial Items.

5. Identification of Exception to the Buy American Act. No exception to the Buy American Act has been identified.

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

(a) Rationale for using the authority cited in section 4 of the J&A; The procurement will be issued as other than full and open requirement. Determined by military consideration and the USCGC SMILAX’s hull design limits, they are restricted from open water transits. A WLIC’s design limits its use to protected and inland waters.

Open water transits are to be avoided whenever possible. The cutter is not crewed for continuous steaming and is normally limited to daylight transits. Due to crew manning, five days transit is the limit of crew endurance under normal operations. A WLIC class cutter is capable of transiting approximately 75 nm a day at an economical speed of 7.5 knots. Ten hours of transit a day is the planning factor due to crew fatigue and varying amount of daylight hours throughout the year.

(b) Details covering what events lead to the situation requiring use of other than full and open competition procedures including whether any portion of the work can be segregated to allow for competition; This requirement is being issued on another than full and open basis to commercial shipyards that do not require open water transits and are withing the crew operating limitations. No portion of the Specification can be segregated to allow competition.

(c) Summarize alternatives considered and why they will not work; Alternatives of solicitation as a Full and Open Competition were not considered due to ship limitations. Market research concluded three (3) small business showed interest in the Sources Sought Notice; Colonna’s Shipyard, Detyens Shipyard and The General Ship Repair. All three (3) businesses are within the limitations stated in para 6 (a) and do not require open water transit. All three (3) vendors are capable to provide support for this requirement.

(d) Impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided. If this service is not provided the integrity of the Cutter and all operating machinery would expose cutter and crew to safety risk. If this availability is not performed in a timely manner USCGC SMILAX will not be able to meet their mission requirement and the Coast Guard will be without a critical 100 FT WLIC class asset to meet Coast Guard Maritime/Navigation duties.

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

Sources as is Practicable.

(a) If an announcement has already been made in Contract Opportunities, provide the date of publication; or: A Sources Sought notice was posted to SAM.gov on November 1, 2022, and closed on November 16, 2022.

(b) If an announcement is being planned for posting in Contract Opportunities, provide the estimated date of publication. A combined synopsis/solicitation will be posted to SAM.gov on or about 16 January 2022.

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 on price analysis, comparison with the IGCE, historical pricing, previous awards, and price negotiations. Also, if necessary, the Contracting Officer will obtain and analyze other than certified cost and pricing data from the vendors.

9. Description of Market Research.

(a) Describe the market research techniques used, results, date when the market research was conducted, and how it was used by the contracting officer to determine price reasonableness. Market research was conducted using sources sought notice that was posted to SAM.gov on 1 November 2022. Three vendors replied to the sources sought notice and expressed interest in USCGC SMILAX dry-dock. The following three vendors (The General Ship Repair Corp, Colonna’s Shipyard, Inc and Detyens Shipyards Inc.) that replied to source sought notice do not require open water transit to get to their facility and are within the operating limitations of the WLIC as stated in para 6 (a) all three vendors are capable to provide support for this requirement.

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. N/A

(b) Discuss why your requirement cannot be modified to enhance competition. N/A

(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. N/A

(d) For a proposed contract subject to the restrictions of FAR 6.302-2(d) or HSAR

3006.302270 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. A Listing of the Sources, if Any that Expressed, in Writing, an Interest in the Acquisition.

A sources sought notice was issued in SAM.gov on 1 November 2022 requesting that parties express in writing their interest to the contracting officer. Three vendors responded.

• The General Ship Repair Corp, 1449 Key Highway, Baltimore, MD 21230

• Colonna’s Shipyard, Inc., 400 E Indian River Road, Norfolk, VA 23523

• Detyens Shipyards Inc., 1670 Dry-Dock Ave. North Charleston, SC 29405

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.

(a) Will the Government revise overly technical specifications, acquire data rights, etc.? All future requirements will be synopsized, and market research will be conducted to see if there are other vendors qualified to perform this service.