FRC_HSM_JOTFOC_-_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Under 41 U.S.C. 1901

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

Solicitation Number: HSCG40-14-R-AFR436

Pursuant to the requirement of Federal Acquisition Regulation (FAR) Part 13.5, Test Program for Certain Commercial Items, the justification for the use of the statutory authority is supported by the following facts and rationale required under FAR 13.501.

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), U.S. Coast Guard (USCG) Surface Forces Logistics Center (SFLC), Engineering Services Division (ESD) and Contract Procurement Division 3(CPD3), located at 707 East Ordnance Road, Baltimore, MD, proposes to enter into a firm fixed-price contract on an other than full and open competition basis.

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

This is to be a firm-fixed price commercial procurement for the FRC Hull Structure Monitoring (HSM) equipment and installation at an estimated value of $480,350.00.

Funding type is Fiscal Year 2014, Operations and Equipment (OE), and the period of performance is anticipated to be award through 31 August 2015. It is intended to award a one-time contract to the Original Equipment Manufacturer (OEM), Light Structures AS, Fyrstikkbakken 7, 0667 OSLO, Norway, utilizing commercial acquisition procedures established under FAR Part 13.5, Test Program for Certain Commercial Items. Light Structures AS has performed the required services successfully for the U.S. Coast Guard under contract number HSCG40-11-C-P13001. The current procurement is a follow-on to the previous award, which was solicited using full and open competition procedures and a best value evaluation.

3. Description of Supplies/Services.

The U.S. Coast Guard Surface Forces Logistics Center (SFLC) Engineering Services Division (ESD) is supporting development of hull structural life maintenance strategies for the USCG 154 foot WPC Fast Response Cutters (FRC). A Hull Structure Monitoring (HSM) system has been prototyped to support operational and maintenance planning decisions for the FRC class of high speed cutters.

Objectives of this effort are for the sole source OEM to provide the manufacturing, testing, and installation of the hull structure monitoring equipment for the USCG FRC to monitor fatigue budget for maintenance and operational decisions by SFLC ESD and the Patrol Boat Product Line (PBPL).

4. Identification of Statutory Authority Permitting Other Than Full and Open Competition.

The statuary authority permitting other than full and open competition is 41 U.S.C. 1901 implemented by FAR 13.501.

5. Demonstration that the Nature of the Acquisition Require Use of the Authority Cited.

The required hull structure monitoring system available from Light Structures AS is FRC class equipment procured previously under full and open competition and is essential to the technical needs of the USCG. The hull structure monitoring systems are part of the baseline configuration and need to be installed on the FRC class. The hull structure monitoring system includes proprietary components essential to the systems being installed and is only available from the OEM, Light Structures. Failure to acquire this system will result in significant costs associated with procurement and prototyping of more expensive equipment (based on prior full and open competition) and loss of monitoring and assessment of the conditions of the FRC class after they are delivered and operational.

6. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable.

A sources sought notice was posted to FedBizOpps, as required by FAR Subpart 5.102(a)(6) on 17 July 2014. We received one response, from The Weir-Jones Group of Companies. Upon review of their submission, they were deemed unqualified due to their inability to confirm they would be able to gain access to Light Structure AS proprietary information (hardware and software). Additionally, the experience described and system proposed do not meet the USCG's technical requirements and objective for long term fatigue life budget monitoring on a high speed Coast Guard Cutter. The experience described relates to icebreakers, commercial ferries, offshore structures and real time operator guidance all of which are not part of the USCG's requirements. There is no description of experience or technical knowledge demonstrated relating to monitoring systems that meet the requirement for long term fatigue monitoring on the USCG's Fast Response Cutter. The sensor installation methods presented are not suitable for the USCG Fast Response Cutter application and represent a lack of technical understanding of the requirements of the USCG.

An email was sent back to Mr. Lincoln Bodner who submitted the response on 22 July 2014 explaining the reasoning behind the USCG moving forward with a sole source solicitation.

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

Government will be Fair and Reasonable.

The Contracting Officer determines that the anticipated price will be fair and reasonable based on the market survey and prior full and open competition that resulted in a contract for the specialized test equipment being installed on the USCG FRC, comparison to the IGE and, if necessary, pricing data obtained from the vendor in support of their offer.

8. Description of Market Research.

Market research, conducted for the current effort, included prior full and open competition and was updated during May of 2014 using internet search, technical journals and trade publication search. An additional internet search was conducted through the proper sources for this specific type of instrumentation. No additional sources were found beyond Light Structures AS including those who responded to the full and open competition resulting in USCG contract HSCG40-11-C-P13001.

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

The results of the prior open competition and the selection of Light Structures AS provided the specific test equipment required for application on the FRC. This equipment is highly specialized and Light Structures has proprietary components that are essential to the fiber optic strain sensing technology being used. This proprietary technology is integrated into the system being procured and additional prototyping of other systems will result in duplication of costs already incurred and not in keeping with the current FRC baseline configuration.

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

Acquisition.

A Sources Sought synopsis was issued on FedBizOpps on July 16, 2014 requesting that parties express their interest in writing to the Contracting Officer. After the closing date, July 22, 2014, one response was received from The Weir-Jones Group of Companies as indicated in Section 6.

11. Statement of the Actions the Agency May Take to Remove or Overcome Any

Barriers to Competition Before Any Subsequent Acquisition for Supplies or Services Required.

Market research in accordance with FAR Part 10 will continue to be conducted; however, unless the Coast Guard acquires proprietary data rights to the HSM system, or the contractor establishes authorized distributors, these manufacturing, installation, and testing services will not be available for full and open competition. As a follow-on requirement, this service must be conducted by the sole source OEM, for the HSM system prototyped and approved under the previous contract.