JOTFOC_Signed_WARTSILA_For_FBO.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Under 41 U.S.C. 1901

Sole Source Justification

RFQ No: HSCG40-15-Q-19005

Pursuant to the requirement of Federal Acquisition Regulation (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), Patrol Boat Product Line (PBPL), located at 711 E. Ordnance Road, Baltimore, MD 21226 proposes to enter into a firm fixed price contract on the basis of other than full and open competition.

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED:

The Surface Forces Logistics Center, Patrol Boat Product Line, has a requirement on a sole source basis, utilizing other than full and open competition procedures in accordance with Federal

Acquisition Regulation (FAR) 6.302-1 for the acquisition of the below cited Wartsila Shaft Seals and Parts. It is intended to award one firm fixed-price contract to Wartsila Defense, Inc., 3617

Koppens Way, Chesapeake, VA 23323.

The proposed contractor/Original Equipment Manufacturer (OEM) is:

o Wartsila Defense Inc.

3617 Koppens Way

Chesapeake, VA 23323

(757) 485-5275

POC: Ben Lezu

3. DESCRIPTION OF SUPPLIES/SERVICES:

This justification and approval covers the SFLC’s need to acquire parts in relation to this requirement. It is anticipated that this requirement can only be satisfied by the OEM and no other authorized distributors are available to sell these parts.

The requirement is to purchase;

a. Twenty-Five (25) Wartsila NON-Split Face Seals, Part Number: H75440-01-6, NSN:

2040-01-642-6640.

b. Twenty-Five (25) Wartsila NON-Split Seat Seals, Part Number: H75440-01-7, NSN:

2010-01-643-1801.

c. Two (02) Wartsila Shaft Spring Seal Assembly, Part Number: H7621400020320, NSN: 4320-01-618-5305.

d. Two (02) Wartsila Seal Replacement Parts Kit “A” (Split Seal), Part Number:

H76214/5/8.0, NSN: 5330-01-618-2380.

e. Four (04) Wartsila Nonmetallic Special Shape Seal (O-Cord), Part Number:

H76214010420320, NSN: 5330-01-618-2400.

f. Four (04) Wartsila Inflatable Seal Assembly, Part Number: H76214080620320, NSN:

5330-01-618-2434.

g. Four (04) Wartsila Gasket (Split), Part Number: H76214080720320, NSN: 5330-01-

618-2469.

h. Six (06) Wartsila Seal Replacement Parts Kit “B” (NON-Split Seal), Part Number:

H76214/6/8.0, NSN: 5330-01-618-5248.

i. Four (04) Wartsila Seal Replacement Parts Kit “C” (Split Seal), Part Number:

H76214/8/8.0, NSN: 5330-01-618-5276.

j. Two (02) Wartsila Packing Retainers, Part Number: H78479100020320, NSN: 5330-

01-623-5962.

4. IDENTIFICATION OF THE JUSTIFICATION AND THE RATIONALE:

The statutory authority permitting other than full and open competition is 41 U.S.C. 1901, as implemented by FAR Part 13.5(a)(1)(ii), Test Program for Certain Commercial Items.

5. DEMONSTRATION THAT THE NATURE OF THE ACQUISITION REQUIRES USE

OF AUTHORITY CITED:

The Wartsila Defense Inc. Shaft Seals and associated parts are critical to the smooth operation of the propulsion shafts and also prevent water intrusion into the cutter. The advanced design of the propulsion shafts, shaft seal assemblies and associated components provides a statically mounted elastomeric body, capable of accepting large amounts of axial and radial movements, misalignment, and vibration while still providing a static seal against water intrusion. Using only

Wartsila Defense, Inc. approved shaft seals and parts ensures the propulsion shaft seals and emergency propulsion shaft seal systems are mission capable at all times which is extremely imperative for the safety and protection of the United States of America’s waterways and coastal areas under the U.S. Coast Guard’s area of responsibility. In addition, having an established parts inventory provider removes the burden and cost for the U.S. Coast Guard for changing the

Allowance Parts List (APL), configuration data and the overall logistic maintenance plan for Unit and Depot level maintenance, i.e. Maintenance Procedure Cards (MPC), Unit level sparing, etc.

Patrol Boat Product Line does not have manufacturing and technical information required to evaluate and determine whether non-OEM components and replacement parts offered are equivalent to the OEM components and replacements parts. The Coast Guard inquired about the data rights for the required parts on June 26, 2015. Wartsila respectfully declined. Without the proprietary data the Coast Guard is not capable of evaluating equal or alternate parts manufactured by other than the OEM. Further, the scope of manufacturing, special tools and equipment required to manufacture the various parts is unknown.

In accordance with Commandant Instruction 4130.6A, CG Configuration Management Policy, it is mandatory that we maintain cutter configuration. The use of Wartsila’s OEM specific parts will ensure components and processes are sufficient to enable physical and functional interchangeability, as well as meeting source, size, configuration and performance requirements.

The use of parts that are not manufactured in accordance with OEM specification, materials, tolerances etc. could cause equipment failure rendering the vessel unable to complete mission requirements and place the crew in a hazardous environment, possibly causing injury or death.

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 practicable, a source sought synopsis HSCG40-15-S-19005 was posted on FedBizOpps on June 26, 2015 with a closing date of July 1, 2015. No vendors responded to the notice. On June 26, 2015 the sources sought was also sent via email to Wartsila Defense Inc. inquiring their interest in this requirement.

The vendor responded on June 29, 2015 verifying that they are interested and they are the only known source with no authorized distributors. This procurement was posted as DHS-Acquisition

Planning Forecast System F2015027830 at http://apsfs.dhs.gov.

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 USCG/SFLC awards in which the price was found fair and reasonable, and price negotiation.

8. DESCRIPTION OF MARKET RESEARCH:

In accordance with FAR 10.001 (a)(2), market research was performed between June 2015 and

July 2015 to identify companies capable of providing Wartsila OEM specific parts. Market research as prescribed in FAR Part 10 was conducted by the Contracting Officer’s Representative (COR).

Wartsila Defense, Inc., the OEM, is the only source that possesses the required technical and engineering data to successfully construct these items to ensure form, fit and function with existing propulsion shaft seal systems. While research indicates other propulsion shaft seal system manufacturers exist within the industry, their parts are particular to the equipment they manufacture and are not interchangeable with any other OEM’s propulsion shaft seal systems.

A search in Naval & Electronics Supply Support System (NESSS) revealed the most recent past contract HSCG40-14-D-30023, awarded to Wartsila Defense, Inc., as well as numerous simplified acquisition purchases (SAP) were awarded on the basis of other than full and open competition.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION:

The parts and services required to provide these propulsion shaft seal systems and retain the original equipment configuration cannot be stressed enough. Using inferior generic, non-tested or http://apsfs.dhs.gov/ non-approved material for parts, components and equipment on these propulsion shaft seal systems would significantly impact the mission of search and rescue, protection of critical maritime infrastructure, safe navigation of waterways, and other congressionally mandated U.S. Coast Guard missions. The U.S. Coast Guard has a minimal level of stock on hand to support these propulsion shaft seal systems. At the present time parts are being ordered on an as-needed basis to remove the need for warehouse space, limit shelf life, and provide the best value to the government for state of the art changes and upgrades to the existing equipment.

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

IN THE ACQUISITION:

A Sources Sought Synopsis (HSCG40-15-S-19005) was posted on FedBizOpps and emailed to the

OEM, Wartsila Defense Inc., on June 24, 2015 requesting that parties express their interest in writing to the Contracting Officer. The following vendor responded:

o Wartsila Defense Inc.

3617 Koppens Way

Chesapeake, VA 23323

(757) 485-5275

Ben Lezu

In accordance with FAR 13.501(a)(1)(iii) the approved, redacted J&A will be posted with the solicitation on the FedBizOps website, 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:

The Coast Guard does not own the required drawings, specifications, etc., to evaluate other than genuine OEM parts; it is not anticipated that any future requirements can be competed on a full and open competition basis. Every attempt will be made to obtain applicable drawings, specifications, etc., from the OEM before any subsequent acquisitions occur.

The Government has mitigated barriers to competition by seeking competition among the various

OEM distributors. At this time there are no other known sources that can provide these specialized parts designed to work with the configuration of the vessels. 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 that can supply the parts that meet required government specifications.

http://www.fbo.gov/

12. CONTRACTING OFFICER’S CERTIFICATION: I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

BLOUNT.JENNIFER.R.1 409914299

Digitally signed by BLOUNT.JENNIFER.R.1409914299 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USCG, cn=BLOUNT.JENNIFER.R.1409914299 Date: 2015.06.30 16:18:27 -04'00'

JENNIFER R. BLOUNT Date Contracting Officer

13. TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION: I certify this requirement meets the Government’s minimum need and that the supporting data which forms a basis for justification is complete and accurate.

WILHELMS.BENJAMIN.H.10 31436954

Digitally signed by WILHELMS.BENJAMIN.H.1031436954 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USCG, cn=WILHELMS.BENJAMIN.H.1031436954 Date: 2015.07.01 05:58:52 -04'00'

Benjamin H. Wilhelm Date Contracting Officer’s Representative

14. LEGAL REVIEW AND CONCURRENCE:

HOCKEMA.CORWIN.L.1271 055028

Digitally signed by HOCKEMA.CORWIN.L.1271055028 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USCG, cn=HOCKEMA.CORWIN.L.1271055028 Date: 2015.07.01 12:51:52 -04'00'

USCG, Procurement Law Attorney Date

LEVEL ABOVE APPROVAL:

JAMISON.SHAVON

DA.A.1272103298

Digitally signed by

JAMISON.SHAVONDA.A.1272103298

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USCG, cn=JAMISON.SHAVONDA.A.1272103298

Reason: I am approving this document

Date: 2015.07.02 12:12:04 -04'00'

SHAVONDA JAMISON Date Contracting Officer