HONDA PARTS JOTFOC_REDACTED.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

In compliance with Federal Acquisition Regulation (FAR) 13.501(a)(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), Small Boat Product Line (SBPL), Contract & Procurement

Division 3 (C&P3) prepared this justification for other than full and open competition.

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

(a) Nature of the action: The SFLC SBPL, has a requirement for Original Equipment

Manufacturer (OEM) Honda parts on a brand name basis to support USCG boats.

The SBPL is responsible for maintaining the 29’ Gen II Response Boat Small

(RBS), 26’ Trailerable Aids to Navigation Boats (TANB), Aton Boat Small, and the 24’ Special Purpose Craft-Shallow Water (SPC-SW). The engines on these boats were manufactured by Honda Motor Co., LTD. USCG intends to procure these parts on a brand name basis. This requirement is a commercial product acquisition.

(b) Name and address of the manufacturer:

Honda Motor Co., LTD.

2-1-1 Minami-Aoyama, Minato-ku

Tokyo, 1078556, Japan

(c) Type of action: Multi-award Indefinite Delivery/ Indefinite Quantity

(IDIQ) Contract (up to 6 contracts) with Firm Fixed-Price Delivery Orders.

(d) Estimated total shared value (including options):

Period Unit Price 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

Previous Contract was awarded to

Period of Performance (July 28, 2017 – July 27, 2022).

At the present time, parts are being ordered on an as-needed basis using Simplified

Acquisition Procedures.

(e) Type of funding: Anticipated that Surface Operation funds will be applied at the delivery order level.

(f) Year of funding: Intend to use current years funds when individual delivery orders are issued.

(g) Solicitation number: 70Z04023Q58800B00

(h) Background information about the requirement:

The SFLC has an ongoing, brand name requirement for the acquisition of all parts, components, and equipment in support of Honda outboard engines including, but not limited to: BF225 engine, BF60 engine, BF50 engine, and the BF150 engines used on the 29’ Gen II Response

Boat Small (RBS), 26’ Trailerable Aids to Navigation Boats (TANB), Aton Boat Small and the

24’ Special Purpose Craft-Shallow Water (SPC-SW). All further references to “parts” include parts, components, and equipment.

3. Description of Supplies/Services.

The requirement for the procurement of various Honda Motor Co., LTD. brand name only engine parts to support the 29’ Gen II Response Boat Small (RBS), 26’ Trailerable Aids to

Navigation Boats (TANB), Aton Boat Small and the 24’ Special Purpose Craft-Shallow Water

(SPC-SW) utilized throughout the Coast Guard. The vendor will provide new, genuine OEM

(Original Equipment Manufacturer) parts that will be preserved, packaged, and marked. See

Attachment (1) Required Parts List.

The contract will provide BF225 engine, BF60 engine, BF50 engine, and the BF150 engine parts listed on Enclosure 1. These parts are required for replacement and corrective maintenance and upkeep of the engines. The vendor will provide new, genuine OEM Honda parts that will be preserved, packaged, and marked. No aftermarket or refurbished parts will be accepted by the Government.

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.

FAR 25.104 Nonavailable articles.

(a) The following articles have been determined to be nonavailable in accordance with

25.103(b)(1)(i): Spare and replacement parts for equipment of foreign manufacture, and for which domestic parts are not available.

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

Honda Motor Co., LTD, located in Tokyo, Japan, is the manufacturer for OEM Honda parts.

Honda Motor Co., LTD. will not sell the required parts directly to the Government. As a result, Honda has authorized multiple distributors to provide parts on behalf of the Honda Motor Co. In addition, the Honda engines are the only engines that are configured to operate interchangeably within the tolerances of these platforms as directed by USCG Headquarters. The USCG does not possess the complete technical data package necessary to support a competitive solicitation for non-OEM replacement parts, nor is the USCG aware of any alternative supplier of compatible parts. Based on market research, the only company that can provide the OEM parts is Honda

Motor Co., LTD.

The use of non-OEM parts, which are not manufactured in accordance with OEM specifications, materials, tolerances, etc., would void the engine warranty and could cause safety issues due to engine failure of non-OEM parts, which could lead to boats being stranded in the open water until help could arrive. This could have an adverse effect on mission performance.

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

Potential Sources as is Practical.

In an effort to identify alternative sources, two Sources Sought Notices (SSN), 70Z04022S58800B00 and 70Z04023S58800B00, were posted on sam.gov.

70Z04022S58800B00 was posted from 4/28/22 through 5/5/22, while 70Z04023S58800B00 was posted 12/15/22 through 1/12/23. A total of three responses were received from these notices. All three vendors have been contacted via email within the past week, and are still interested in participating in this requirement.

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

Government will be Fair and Reasonable.

Historical pricing from the previous Honda parts contract and similar buys was considered.

The Contracting Officer has determined that the anticipated price will be fair and reasonable, based on adequate competition amongst the distributors.

9. Description of Market Research.

Market research, as prescribed in FAR Part 10, was conducted by the Contracting Officer’s

Representative (COR) between July 2022 and April 2023 to identify alternative sources that can provide replacement parts. Specifically, an extensive Internet search was conducted to locate price and availability of parts and several Government databases were reviewed for availability. In order to solicit as many potential sources as practical, sources sought notice

70Z04022S58800B00 was posted from 4/28/22 through 5/5/22, while 70Z04023S58800B00 was posted 12/15/22 through 1/12/23, seeking potential sources. Market research has indicated that the OEM brand parts can be procured from Honda Motor Co., LTD. authorized distributors.

The COR conducted extensive research through historical purchases, the Federal Stock System, Honda’s website, authorized dealers’ websites, Federal Supply Schedules and other Federal agencies. The results of the market research revealed that Honda Motor Co., LTD. is the only source that possesses the required technical and engineering data to successfully manufacture these parts to ensure compatibility with existing Honda outboard engines. While research indicates other engine manufacturers exist within the Marine Engine industry, their parts are particular to the engines they manufacture and are not interchangeable with any other OEM’s engines, particularly Honda Engines. Honda is the only known company possessing the original drawings, specifications, engineering control procedures and proprietary methods to ensure the correct design configuration for the engines. The significance for keeping the configuration cannot be overstressed. Using non-OEM parts, components and equipment on these engines would void the engine warranty, which could lead to boats being stranded in the open water until help could arrive. This could have an adverse effect on mission performance. The USCG small boat fleet operates nationwide using Honda outboard engines supporting search and rescue, safe navigation of waterways, and multi-mission operations. The USCG has a minimal level of parts on-hand to support these engines. At the present time, parts are being ordered on an as-needed basis using Simplified Acquisition Procedures. Issuing a multi-award IDIQ contract (up to 6 contracts) will improve efficiencies in purchasing and logistics and will guarantee proper compatibility and reliability of the engine parts.

From the results of market research and responses from the sources sought notice, it is anticipated that only the OEM’s authorized distributors can effectively respond to all the solicitation requirements once it is posted.

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.

Although parts are manufactured by the OEM, Honda Motor Co., LTD., sales are conducted through its authorized distributors. The Government anticipates maximum competition amongst these authorized distributors.

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.

Honda owns the proprietary data rights for all these parts and components. The USCG sent a letter to Honda via email on 12/5/22 requesting permission to obtain the data rights for these

OEM Parts and Components. Honda responded to that email on 12/5/22, stating that they are unwilling to provide this information to the US Coast Guard, 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.