Hamilton Jet JOTFOC Final_ Redacted.pdf

SOLE SOURCE ACQUISITION

10 U.S.C. § 3205

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 (DHS), United States Coast Guard (USCG), Surface Forces Logistics Center (SFLC), Contract & Procurement Division 3 (C&P-3), Small Boat Product Line (SBPL) proposes to enter into a contract on a basis of other than full and open competition.

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

(a) Nature of the action: The USCG intends to procure on a brand name basis the overhaul of Hamilton Jet, Inc. Jet Drive Models HJ-213 and HJ- 292 installed on the USCG 17’ Cutter Boat-Medium (CB-M) and the Cutter Boat – Over the Horizon IV (CB-OTH-IV) boats, respectively. The USCG intends to award a Requirements-type contract consisting of one base year and four option years to the Original Equipment Manufacturer (OEM) or one of its authorized distributors/service providers. The OEM for the required waterjets and associated parts, Hamilton Jet, Inc. in Woodinville, WA, is owned by CWF Hamilton & Co. Ltd. in Christchurch, New Zealand. The area of responsibility for Hamilton Jet, Inc. is North and South America. This is a commercial product acquisition.

(b) Name and address of the OEM:

Hamilton Jet, Inc.

14680 NE North Woodinville Way

STE 100

Woodinville, Washington 98072-4456, United States

UEI: C45XVMFKMRN3

(c) Type of action: Requirements contract with firm, fixed-price delivery orders.

(d) Estimated total value (including options):

Period Total

Base Year

12 mo. $ Option Year 1 12 mo. $

Option Year 2 12 mo. $ Option Year 3 12 mo. $ Option Year 4 12 mo. $

Total $

(e) Type of funding: Operations and Support funds

(f) Year of funding: Current year funding will be applied to individual delivery orders.

(g)Solicitation number: 70Z04025Q51661B00

(h)Background information about the requirement: This is a follow-on requirement to existing Hamilton Jet Drive Overhaul Contract 70Z04019D55000B00, awarded on a brand name basis to OEM-authorized distributor/service provider GL, Power, Inc. The Requirements contract was awarded for $215,011.67 with Period of Performance (PoP) of 11/14/2019 through 11/14/2024.

3. Description of Supplies/Services.

This requirement is for the overhaul of Hamilton Jet, Inc. Jet Drives. Each Jet Drive inducted for overhaul is to be disassembled, inspected, overhauled, tested, packaged, and marked in accordance with Government specifications.

Only genuine OEM parts are authorized for required overhauls. No aftermarket or refurbished parts will be accepted.

Part Description OEM Part Number Hamilton Jet Drive Model No. HJ-213

2010-98-206-2591

Hamilton Jet Drive Model No. HJ-292

2010-01-624-5473

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. § 3205 implemented by FAR Subpart 13.501(a) sole source (including brand name) acquisitions as defined in FAR 2.101.

5. Identification of Exception to the Buy American Act.

An exception to the Buy American statue permitting the purchase of articles that are not domestic end products is FAR 25.103(b)(1) Nonavailability.

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

Hamilton Jet, Inc., located in Woodinville, WA is the OEM for Hamilton Jet, Inc. Jet Drive Models HJ-213 and HS-292. These Hamilton Jet, Inc. Jet Drives are the only authorized systems configured for the USCG’s 17’ CB-M and 26’ CB-OTH-IV platforms. The USCG does not possess the technical data rights necessary to support a competitive solicitation for non-OEM Jet Drives nor is the USCG aware of any alternative supplier of compatible Jet Drives. Failure to procure these Hamilton Jet Drives would result in a shortage of critical replacement items to the USCG inventory, thus hindering the Coast Guard’s ability to keep USCG 17’ CB-M and CB-OTH-IV boats mission ready. Based on the results of the market research effort, the only companies that can overhaul and supply OEM Jet Drives is the OEM, Hamilton Jet, Inc. or their authorized distributors/service providers.

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

Potential Sources as is Practicable.

In an effort to identify potential alternative sources, as well as to notify industry of the Government’s upcoming requirement, a Sources Sought Notice, 70Z04025S51661B00, was posted to SAM.gov on 12/20/2024 and closed 01/13/2025. The notice advised industry that it was the Government’s belief that only the OEM or OEM-authorized distributors/service providers possessed the necessary technical data to successfully overhaul the required jet drives on the applicable Coast Guard assets. The notice allowed fifteen (15) calendar days for potential sources to demonstrate their capability to overhaul and supply these parts to OEM specifications. Six responses were received.

BHPE LLC response was received on 12/20/2024.

Kraft Power was received on 12/20/2024.

Boatswain’s Locker was received on 12/30/2024.

Hamilton Jet (OEM) was received on 01/06/2025.

Palmer Johnson was received on 01/08/2025.

Capital Management Consulting was received on 01/13/2025.

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

Government will be Fair and Reasonable.

The Contracting Officer (KO) will determine that the anticipated prices will be fair and reasonable based on adequate price competition, market research, as well as comparison with the Independent Government Estimate (IGE), which was created using historical data from previous Contract 70Z04019D55000B00 and price estimates from the OEM. If necessary, the KO will require the offeror to submit other than certified pricing data.

9. Description of Market Research.

Market research, as prescribed in FAR Part 10, was conducted by the Contracting Officer’s Representative (COR) between March 2023 and March 2025 to identify sources that can satisfy this requirement. In order to identify additional sources, Sources Sought Notice 70Z04025S51661B00 was posted to SAM.gov on 12/20/2024 and closed 01/13/2025. Six responses were received, including the OEM and two authorized distributors/service providers (Boatswain’s Locker and Kraft Power, Corp.). The KS emailed the GL Power, Inc., the awardee of previous contract 70Z04019D55000B00, to ask if they intended on quoting on future solicitation, to which GL Power, Inc. replied in the affirmative. Further, the KS emailed Boatswain’s Locker on 03/11/2025 to inquire about any possible regional restrictions that may preclude them from providing a quote. Boatswain responded via email on 03/14/2025 that the OEM confirmed there will be no regional restriction that would preclude them from quoting. The KS sent a similar email to GL Power, Inc. on 03/11/2025, and received a response on 03/14/2025 stating that GL Power had no reason to believe they would not be able to provide a quote based on their region. APFS Record F2023063243 was published on 02/04/2025 and did not yield any additional sources.

The COR conducted extensive research by reviewing historical purchases as well as using his own knowledge and experience with the OEM and the current contract requirements. In an effort to obtain the technical data to allow for a competitive acquisition, the Government sent a Request for Data Rights Letter to Hamilton Jet, Inc. on 12/20/2024. In response, the OEM denied the Government’s request via email on 01/22/2025 and provided a list of three authorized distributors/overhaul facilities capable of overhauling the required Jet Drives:

Boatswain’s Locker, Inc., Kraft Power Corp., and GL Power, Inc. While other Jet Drives may exist within the commercial marketplace, the Government does not possess the necessary technical and engineering data and drawings required to determine if these alternate sources can adhere to the OEM specifications and standards within the existing systems.

From the results of market research and information provided by the OEM and by OEM-authorized distributors/service providers, the Government anticipates adequate competition amongst authorized distributors/service facilities to compete this as a brand name requirement.

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

The government does not have the technical data rights to share technical data and the complete technical data package necessary to manufacture of replacement parts, which could be used to compete the production of replacement parts. Also, because the government does not possess the full technical data package, it would be impossible for us to evaluate any submission to determine if that complies with this requirement.

It is highly unlikely that the government would recover the cost of obtaining the technical data package through competition because it would be expensive for other contractors to create the tooling and develop the manufacturing process that would provide similar products. Also, it is highly likely that the process of obtaining data rights, paying for the data and competing for manufacture of replacement parts would engender significant delays

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

Hamilton Jet, Inc. (OEM) 14680 NE North Woodinville Way

STE 100

Woodinville, Washington 98072-4456, United States

UEI: C45XVMFKMRN3

Small Business

Kraft Power Corporation (Authorized Distributor/Service Provider) 199 Wildwood AVE Woburn, Massachusetts 01801-2024, United States

UEI: NPL8MJ46D543

Small Business

Boatswains Locker, Inc. (Authorized Distributor/Service Provider) 931 W. 18th Street, Costa Mesa, CA 92627

UEI: QFUKQ2BUAKA8

Small Business

GL Power, Inc. (Authorized Distributor/Service Provider) 1973 Great Lakes Way, Madison, OH 44057-9569

UEI: LYG2CJPQT9D1

Small Business

BHPE, LLC

10601 S Western AVE STE 113 Oklahoma City, Oklahoma 73170-6215, United States

UEI: UPDJHPJUYQ71

Small Business

Capitol Management Consulting Services, Inc.

49 Creek Curve Drive Colonial Beach, VA 22443

UEI: NSX4VL333RR3

Palmer Johnson Power System 1835 Haynes DR Sun Prairie, Wisconsin 53590-3909, United States

UEI: WGJSG2GA5KV9

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.

Hamilton Jet, Inc. owns the proprietary technical data rights for the required Hamilton Jet Drives that would be required to compete and evaluate as a full and open competition. The USCG sent a letter to Hamilton Jet on 12/20/2024 requesting permission to obtain the technical data package for these OEM parts. Hamilton Jet has stated that they are unwilling to provide this information to the USCG, or any other Government agency. For future requirements, the USCG will continue to engage the OEM for release of the complete technical data package prior to any subsequent acquisition. This acquisition will be conducted on a brand name basis.