JOTFOC_-_FOIA_Redactions_HU40-9.5.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPEITITION

UNDER 41 U.S.C. 1901

Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

RFQ Number: HSCG40-14-Q-AN193

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by FAR Part 13.5, Test Program for Certain Commercial Items, this justification for the use of the statutory authority is supported by the following facts and rationale required under FAR 13.501(a)(1)(ii).

1. AGENCY AND CONTRACTING ACTIVITY:

The Department of Homeland Security (DHS), United States Coast Guard (USCG), Surface Forces Logistics Center (SFLC), Icebreaker Buoy Construction Tender Product Line (IBCTPL), located at 300 E. Main Street, Norfolk, VA 23501, proposes to enter into a contract on a basis other than full and open competition.

2. NATURE/DESCRIPTION OF THE ACTION:

The USCG SFLC IBCTPL has a requirement on a sole source basis for the purchase of ten (10) Drum Power Operated Winches, Part Number HU40-9.5. The RAM Winch & Hoist Drum Power Operated Winch is used on the WLIC-75, WLIC-100, and WLIC-160 Class Buoy and Construction Tenders. They are required to support the Surface Forces Logistics Center (SFLC) stocking. The Independent Government Cost Estimate (IGCE) estimate is $251,070.00.

3. DESCRIPTION OF SUPPLIES /SERVICES:

The requirement is for a hydraulic motor used to support geographically dispersed WLIC-75, WLIC-100, and WLIC-160 Class Buoy and Construction Tenders. The cutters mentioned use the RAM Winch & Hoist Drum Power Operated Winch for their anchoring and mooring. The winch is an integral and critical piece of equipment required for their mission and normal operation. It is imperative that parts used to repair or perform routine maintenance on the winch are exact in form, fit, and function to the parts being replaced. The parts intended are proprietary to RAM Winch & Hoist.

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 implemented by FAR 13.5, Test Program for Certain Commercial Items.

5. DEMONSTRATION THAT THE NATURE OF THE ACQUISITION REQUIRES

USE OF THE AUTHORITY CITED:

The limitation to use only OEM parts must be enforced. To date, only OEM parts have been used and have proven to be effective. Using other than OEM parts could cause failure to occur;

degradation to the vessel’s primary mission could result in the loss of life and property or failure to meet Coast Guard operational commitments. The WLIC-75, WLIC-100, and WLIC-160 operate independently of other vessels. Inferior quality parts, parts that do not fit or are not fully compatible with the equipment being replaced would not only delay the already expensive availability, but could further degrade the reliability and functionality of the other equipment.

Because our vessels operate independently and in remote locations, our critical anchoring and mooring equipment must be reliable and dependable. Using other than OEM products could degrade the reliability and drastically shorten the mean time between failures of this equipment.

Reverse engineering has not been pursued because of the criticality of the equipment in which the parts are installed. Without drawings and tolerances, risky assumptions must be made as to clearances and tolerances required between the various moving parts. Further complicating the reverse engineering process; there is no way of telling whether the OEM part that is being reverse engineered has been manufactured on the high side or low side of the allowed tolerance. Without this critical information, the resultant reverse engineered parts could cause damage or failure to the equipment in which they are installed.

All reproduction manufacturing drawings, specifications, and other technical data pertaining to the parts have not been purchased and are not available for use by the Coast Guard. The Coast Guard does not possess manufacturing data required to obtain full and open competition. Further, the scope of manufacturing, special tools and equipment required to manufacture the various parts are unknown. The technical data that is needed is proprietary. Without the adequate data, the Coast Guard is not capable of evaluating equal or alternate parts manufactured by other than the original equipment manufacturer. The use of OEM parts will ensure components and process are sufficient to enable physical and functional interchangeability, as well as identifying source, size, configuration and performance requirements.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICAL:

Pursuant to FAR Subpart 5.2, in an effort to solicit as many potential sources as practical, a sources sought notice was posted on FedBizOpps (FBO) July 5, 2014. No vendors responded expressing an interest.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED

COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE:

The Contracting Officer has determined that the anticipated price will be fair and reasonable based on price analysis, comparison with the IGCE, historical pricing, previous awards and price negotiation.

8. DESCRIPTION OF MARKET RESEARCH:

In accordance with FAR 10.001(a) (2), market research was conducted June 2014 to identify companies capable of repairing and providing Ram Winch & Hoist parts. Additional attempts were made by searching the internet for suppliers that may possess the necessary technical data, drawings, manufacturing data, specifications and repair tolerances, and that could provide an OEM equivalent winch. Market research indicated that there are no authorized distributors. The following company is the only known supplier for this item:

• RAM Winch & Hoist, CAGE Code: 3RTJ9, under Part Number HU40-REMAN

• Acquisition History: Ram Winch & Hoist is the only source available to provide parts to ensure form, fit and function on the class cutters. A search in the Naval & Electronics Supply Support System (NESSS) revealed contract numbers: HSCG40- 13-C-40005, awarded in the amt of $251,070.00; HSCG40-12-P-41118, awarded in the amt of $44,522.00; HSCG40-10-P-42006 awarded in the amount of $79,398.00.

• Fed Log: was searched and RAM Winch & Hoist was listed as the sole supplier.

• Web Flis: https://www.logisticsinformationservice.dla.mil/webflis/ was searched and

RAM Winch & Hoist was listed as the sole supplier.

9. ANY OTHER FACTS SUPPORTINNG THE USE OF OTHER THAN FULL AND

OPEN COMPETITION:

The WLIC-75, WLIC-100, and WLIC-160 operate independently of other vessels. Because our vessels operate independently and in remote locations, our critical anchoring and mooring equipment must be reliable and dependable. The Coast Guard does not possess any manufacturing data required to obtain full and open competition. Further, the scope of manufacturing, special tools and equipment required to manufacture the various parts are unknown. On June 26, 2014, Ram Winch & Hoist refused our request to purchase the rights and indicated all information is proprietary.

10. LISTING OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITION:

No vendors have expressed an interest in this requirement. Ram Winch and Hoist is the sole source provider and distributor. It is anticipated that only the OEM can effectively respond to all of the solicitation requirements once it is posted. In accordance with FAR subpart 13.501(a)(iv) the approved J&A will be posted with the solicitation at www.fbo.gov website. If proposals are received from qualified sources, they will be considered.

http://www.logisticsinformationservice.dla.mil/webflis/ http://www.logisticsinformationservice.dla.mil/webflis/ http://www.fbo.gov/

11. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE

OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT

ACQUISITIONS FOR SUPPLIES OR SERVICES:

RAM Winch & Hoist owns all data rights. It is not anticipated that any future requirements can be competed on a full and open competition basis. However, the Coast Guard will continue its attempts to obtain proprietary data rights and to conduct market research in accordance with FAR part 10, with a focus on locating vendors capable of meeting the requirement before subsequent acquisitions occur.