Class JA 20NOV2020 Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

10 U.S.C. § 2304

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3 and in accordance with the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 is justified by the following facts and rationale required under FAR 6.303-2 as follows:

1. Agency and Contracting Activity

The Department of Homeland Security, United States Coast Guard (USCG), Surface Forces Logistics Center (SFLC), Contracting and Procurement Division (CPD) Branch 1 (CPD1) in support of the Patrol Boat Product Line (PBPL) located at 300 E. Main St., Norfolk, VA 23510.

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

(a) This Class Justification and Approval sets forth SFLC-CPD1 rationale to award separate sole source contracts for dry dock ship repairs in support of the PBPL. The contracts will allow for the completion of the first large-scale sustainment maintenance availability for the Fast Response Cutters (FRC) which require Original Equipment Manufacturer (OEM) correction of ___________. The proposed maintenance schedule and Independent Government Estimate (IGE) for the twelve east coast vessels and the three west coast vessels is listed below:

FRC Schedule

Vessel Location Estimated Period of Performance IGE Winslow Griesser (WPC-1116) East Coast 11 November 2020 – 09 February 2021 ___________ John McCormick (WPC-1121) West Coast 17 November 2020 – 17 February 2021 ___________

Rollin Fritch (WPC-1119) East Coast 06 January 2021 – 06 April 2021 ___________ Bernard C. Webber (WPC-1101) East Coast 03 March 2021 – 01 June 2021 ___________

Forrest Rednour (WPC-1129) West Coast 06 April 2021 – 06 July 2021 ___________ Jacob Poroo (WPC-1125) East Coast 28 April 2021 – 27 July 2021 ___________ Paul Clark (WPC-1106) East Coast 23 June 2021 – 21 September 2021 ___________

Bailey Barco (WPC-1122) West Coast 20 July 2021 – 19 October 2021 ___________ Benjamin Dailey (WPC-1123) East Coast 18 August 2021 – 16 November 2021 ___________

Charles David (WPC-1107) East Coast 17 November 2021 – 15 February 2022 ___________ Joseph Tezanos (WPC-1118) East Coast 12 January 2022 – 12 April 2022 ___________ Richard Snyder (WPC-1127) East Coast 09 March 2022 – 07 June 2022 ___________ Charles Sexton (WPC-1108) East Coast 04 May 2022 – 02 August 2022 ___________

Nathan Bruckenthal (WPC-1128) East Coast 29 June 2022 – 27 September 2022 ___________ Raymond Evans (WPC-1110) East Coast 24 August 2022 – 22 November 2022 ___________

ESTIMATED VALUE TOTAL ___________

(b) Name and address of contractor: Bollinger Shipyards Lockport, LLC (BSL), 8635 Highway 308, Lockport, LA 70374.

(c) Contract type: Individual firm fixed price contracts using the procedures set forth in FAR Part 12 Acquisition for Commercial Items in conjunction with FAR subpart 13.5 Simplified Procedures for Certain Commercial Items will be issued for each vessel prior to the estimated period of performance. The authority to act under this Class Justification will expire on 31 December 2023.

(d) Estimated total value: ____________________________.

(e) Type of funding: Operational and Maintenance (AFC-30) and Naval Engineering (AFC- 45).

(f) Year of funding: In accordance with the appropriate fiscal year.

(g) Solicitation numbers: To be determined for each vessel.

(h) Background information about the requirement: This requirement is to perform vessel sustainment maintenance and repair services concurrently during separate work __________________________________ under contract HSCG23-08-C-2FR125.

3. Description of Supplies/Services

In accordance with COMMANDANT INSTRUCTION M9000.6G, NAVAL ENGINEERING MANUAL, all FRCs must undergo dry dock maintenance and repairs every four years as part of the lifecycle sustainment program. The dry dock work includes maintenance and overhaul of electrical and auxiliary systems, and the Motoren-und Turbinen-Union (MTU) Friedrichshafen engine system, inspection and repair of hull plating, the propulsion shafting system, rudder assemblies, stabilizing fins, bow thruster propeller and tunnel, Impressed Current Cathodic Protection (ICCP) and anti-fouling system, renewal/overhaul of the fire main system components, inspection of the notch ski pads, topside exterior surfaces preservation, underwater body preservation, temporary services (optional), preservation of the grey water tank (optional), renewal of the Main Diesel Engines (MDE’s, optional), and MDE maintenance (definite and optional), assessment of the watertight closures, thermographic inspection, cleaning of the machinery ventilation system, cleaning of the HVAC duct system, cleaning and inspecting the diesel generator heat exchangers, and cleaning and inspection of the sewage and grey water system.

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 Statute

Not Applicable for this requirement as the exceptions listed under FAR 25.103(b)(2) or FAR 25.202(a)(2) do not apply.

6. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited The OEM, BSL was directed under contract HSCG23-08-C-2FR125 _________________ ____________________________________. By aligning ___________with the FRC’s first scheduled sustainment dry dock, the USCG will avoid paying significant costs normally associated with sustainment repairs. A detailed estimate of the cost avoidance for the twelve east coast and three west coast FRC hulls is illustrated below:

East Coast

Work Item Sustainment

Cost Estimate BSL Repair Cost

Obligation per Hull Estimated Cost

Avoidance Total Cost Avoidance

(12 Hulls)

Dry Docking ___________ ___________ ___________ ___________

Temporary Services ___________ ___________ ___________ ___________

Dining & Lodging ___________ ___________ ___________ ___________

Crew Travel ___________ ___________ ___________ ___________

TOTAL ___________ ___________ ___________ ___________

West Coast

Work Item Sustainment

Cost Estimate BSL Repair Cost

Obligation per Hull Estimated Cost

Avoidance Total Cost Avoidance

(3 Hulls)

Dry Docking ___________ ___________ ___________ ___________

Temporary Services ___________ ___________ ___________ ___________

Dining & Lodging ___________ ___________ ___________ ___________

Crew Travel ___________ ___________ ___________ ___________

TOTAL ___________ ___________ ___________ ___________

COMBINED TOTAL COST AVOIDANCE ___________

In comparison of the estimated cost avoidance and the IGE, the USCG will realize substantial cost avoidance of the normal sustainment costs for each FRC. The cost avoidance, aside from the broad scope of the respective sustainment work items, is primarily attributed to the following: Dry Docking, services identified in SFLC Standard Specification 8634;

Temporary Services, applicable services identified in SFLC Standard Specification 8635;

Dining and Lodging, costs calculated based on GSA per diem rates for lodging, meals and incidentals; and Crew Travel, costs based on round trip government fares for an assigned FRC crew to travel to a representative home port in the respective region, in accordance with entitlements for a 90-day maintenance availability under Joint Federal Travel Regulations and COMDTINST M4600.17, Coast Guard Supplement to the Joint Federal Travel Regulations (CGS-JFTR). Therefore, BSL is the only responsible contractor able to complete the sustainment maintenance and ___________ repairs at a reduced cost ensuring a unified schedule with a clear critical path to successful completion.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable In accordance with HSAM 3007.172, individual procurements for each respective vessel will be posted in the Acquisition Planning Forecast System (APFS).

In accordance with FAR Subpart 13.501(a)(1) Acquisitions conducted under simplified acquisition procedures are exempt from the requirements in part 6. In accordance with FAR 13.501(a)(iii), the USCG will make publicly available the justification required by 6.305(a) within 14 days after contract awards, in accordance with 6.305 procedures.

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 prices will be fair and reasonable based on various techniques to include market research, price comparison utilizing available purchase history, and the Independent Government Estimate. Previous history includes contracts with similar work items within the last two years. These contracts, listed below, have adequate data for evaluating the reasonableness of the prices by comparing the proposed prices to historical prices paid by the USCG for the same or similar items:

Contract Number and Vessel Period of Performance Total Contract

Value 70Z080-19-C-P45E3100 Isaac Mayo (WPC-1112)

14 May 2019 – 01 June 2019 ___________

70Z080-19-C-P45H2400 Richard Etheridge (WPC-1102)

07 August 2019 – 05 November 2019 ___________

70Z080-19-C-P45A7600 Richard Dixon (WPC-1113)

13 September 2019 – 01 January 2020 ___________

70Z080-20-C-P4567300 Robert Yered (WPC-1104)

08 January 2020 – 07 April 2020 ___________

70Z080-20-C-P4502400 Heriberto Hernandez (WPC-1114)

26 February 2020 – 26 May 2020 ___________

70Z080-20-C-P4503000 Joseph Napier (WPC-1115)

23 April 2020 – 14 July 2020 ___________

70Z080-20-C-P4503100 Kathleen Moore (WPC-1109) Donald Horsley (WPC-1117)

17 June 2020 to 10 November 2020

70Z080-20-C-P4555200 Benjamin Bottoms (WPC-1132)

07 August 2020 – 03 November 2020 ___________

9. Description of Market Research

Sources Sought Notice 70Z080-20-USCGFRCS was posted to FBO.gov on 27 September 2019 with a closing date of 07 October 2019. The notice informed interested contractors that the Government was contemplating the following award possibilities for six FY20 dry docks:

a single-award contract, several single-award contracts for any combination of the six FY20 availabilities, or a sole-source award contract to the prime contractor performing concurrent work, which is BSL. The notice requested responses from contractors with the ability to perform work concurrently at Tampa Ship LLC. with another contractor (BSL) performing on a separate contract with separate work items. Three responses were received from companies other than BSL expressing an interest to perform dry dock repairs; however, only BSL provided documentation confirming their ability to gain access to Tampa Ship LLC.

Sources Sought Notice 70Z080-21-22-USCGFRCS was posted to Beta.Sam.gov on 28 July 2020 with a closing date of 03 August 2020. The notice informed interested contractors that the Government was contemplating the following award possibilities for the fifteen FY21-22 dry docks listed in section two of this J&A: individual sole-source contract awards to the prime contractor performing concurrent work, which is BSL. The notice requested responses from contractors with the ability to perform work concurrently at Tampa Ship LLC for east coast requirements and/or Bay Ship and Yacht Co. for west coast requirements with another contractor (BSL) performing on a separate contract with separate work items. Four responses were received from companies other than BSL expressing an interest to perform dry dock repairs; however, none were able to provide documentation confirming their ability to gain access to Tampa Ship LLC and/or Bay Ship & Yacht Co and work concurrently with BSL.

Four prior contracts under the same concurrent sustainment maintenance and phase one ___________ corrections were solicited as full and open competition. With each solicitation, only one response was received, which was BSL. These contracts are listed below:

Value 70Z080-19-C-P45E3100 Isaac Mayo (WPC-1112)

14 May 2019 – 01 June 2019 ___________

70Z080-19-C-P45A7600 Richard Dixon (WPC-1113)

13 September 2019 – 01 January 2020 ___________

70Z080-20-C-P4567300 Robert Yered (WPC-1104)

08 January 2020 – 07 April 2020 ___________

70Z080-20-C-P4502400 Heriberto Hernandez (WPC-1114)

26 February 2020 – 26 May 2020 ___________

In addition, four prior contracts under the same concurrent sustainment maintenance and phase one ___________ corrections were issued and awarded on a sole source basis to BSL:

Value 70Z080-19-C-P45H2400

Richard Etheridge (WPC-1102) 07 August 2019 – 05 November 2019 ___________

70Z080-20-C-P4503000 Joseph Napier (WPC-1115)

23 April 2020 – 14 July 2020 ___________

70Z080-20-C-P4503100 Kathleen Moore (WPC-1109) Donald Horsley (WPC-1117)

17 June 2020 to 10 November 2020 ___________

70Z080-20-C-P4555200 Benjamin Bottoms (WPC-1132)

07 August 2020 – 03 November 2020 ___________

Based on the results of the market research to include prior procurement history and sources sought responses, BSL is the only company capable of satisfying this requirement.

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

Per ___________________________________________, a USCG WPC cutter has a limit of ___ days away from homeport (DAFHP) per year. Two separate 90-day dry dock periods for each of the FRCs could result in 180 DAFHP for each vessel. As a result, each FRC could have _________ remaining for performing mission operations. Therefore, the implementation of this Class J&A will ensure the FRC mission is not critically impacted.

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

Acquisition.

The following contractors expressed interest in this requirement through Sources Sought Notice 70Z080-20-USCGFRCS that was posted to FBO.gov on 27 September 2019 with a closing date of 07 October 2019:

Contractor Address Comments

Bollinger Shipyards Lockport, LLC

8635 Highway 308, Lockport, LA 70374

Demonstrated ability to gain access to Tampa Ship LLC and work concurrently with the prime contractor under contract HSCG23-08-C-2FR125 (Bollinger is the prime contractor).

Gulf Marine Repair 1800 Grant Street, Tampa, FL 33605

Did not demonstrate ability to gain access to Tampa Ship LLC and work concurrently with the prime contractor under contract HSCG23-08-C-

2FR125.

J. Goodison Co.

244 Burlingham Ave., North Kingstown, RI, 02852

Did not demonstrate ability to gain access to Tampa Ship LLC and work concurrently with the prime contractor under contract HSCG23-08-C-

2FR125.

JAG Industrial Services, Inc.

225 East Chicago Street, Jonesville, MI 49350

Did not demonstrate ability to gain access to Tampa Ship LLC and work concurrently with the prime contractor under contract HSCG23-08-C-

2FR125.

The following contractors expressed interest in this requirement through Sources Sought Notice 70Z080-21-22-USCGFRCS that was posted to Beta.Sam.gov on 28 July 2020 with a closing date of 03 August 2020.

Contractor Address Comments

Bollinger Shipyards Lockport, LLC

8635 Highway 308, Lockport, LA 70374

Demonstrated ability to gain access to Bollinger-partnered facilities and work concurrently with the prime contractor under contract HSCG23-08-C- 2FR125 (Bollinger is the prime contractor).

American Marine and Technical Services, LLC

1900 Kitty Hawk Ave, Building 57 Philadelphia, PA 19112

Did not demonstrate ability to gain access to Bollinger-partnered facilities and work concurrently with the prime contractor under contract HSCG23-08-C-2FR125.

Bluepoint Engineering LLC 15275 Collier Blvd Ste. 201-2030 Naples, FL 34119

Did not demonstrate ability to gain access to Bollinger-partnered facilities and work concurrently with the prime contractor under contract HSCG23-08-C-2FR125.

Fairlead Boatworks 99 Jefferson Ave, Newport News, VA 23607

Did not demonstrate ability to gain access to Bollinger-partnered facilities and work concurrently with the prime contractor under contract HSCG23-08-C-2FR125.

Jones Boatyard 3399 NW South River Dr. Miami, FL 33142

Did not demonstrate ability to gain access to Bollinger-partnered facilities and work concurrently with the prime contractor under contract HSCG23-08-C-2FR125.

For both Sources Sought Notices 70Z080-20-USCGFRCS and 70Z080-21-22-USCGFRCS, Bollinger Shipyards Lockport, LLC was the only company demonstrated ability to gain access to Bollinger-partnered facilities and work concurrently with the prime contractor under contract HSCG23-08-C-2FR125 (Bollinger is the prime contractor).

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 CPD-PBPL will continue to conduct market research on every acquisition and monitor industry for opportunities to remove competition barriers. At this time, sole source contracts to BSL remain the most cost effective acquisition strategy for the USCG over the next two years. These sole source contracts will only be executed for the first dry dock availability for each of the vessels produced during phase one. Beyond the first dry dock availability and upon the completion of the ___________ work, all planned future requirements for FRC sustainment maintenance will be solicited as competitive acquisitions.