Brand_Name_JOTFOC_Redacted.pdf

HSCG40-16-Q-31606

Justification for Other Full and Open Competition Under 41 U.S.C. 1901 and 10 U.S.C. 2304 (c)(1)

Per FAR 13.501(a) Sole Source (including brand name) Acquisition

RFQ HSCG40-16-Q-31606

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulations FAR Part 13.5, Simplified Procedures for Certain Commercial Items, and in accordance with the requirements of FAR 6.303-1 and 13.501, the justification for the use of the statutory authority is justified by the following facts and rationale required under FAR 6.303-2 and 13.501(a)(1)(ii) as follows:

1. AGENCY AND CONTRACTING ACTIVITY:

The Department of Homeland Security, United States Coast Guard (USCG) Surface Forces Logistics Center (SFLC) located at 2401 Hawkins Point Road, Baltimore, MD 21226-5000, proposes to enter into a contract on the basis of other than full and open competition.

2. NATURE/DESCRIPTION OF THE ACTION BEING APPROVED :

The USCG has a requirement on a Brand-Name basis to purchase two (2) Cooper Double Roller “Matched Set” Bearings (PN: 03EDB2600EX11), in support of the 400’ WAGB class vessel propulsion shafting machinery at an estimated cost of each for a total procurement cost of $ . Cooper Split Roller Bearing Corp., brand name Cooper Double Roller “Matched Set” Bearings is the only type of bearing that will satisfy the requirement.

Cooper Split Roller Bearing Corp. is the Original Equipment Manufacturer (OEM) but has authorized resellers and service centers. SFLC anticipates Operating Expense (AFC-45) funds will be used; the period of performance will be 7-months with no option years.

The SFLC anticipates awarding a Firm Fixed Price Contract to any contractor that has the proven capability to provide Cooper Bearing OEM parts. The proposed contractors that can satisfy this requirement are as follows:

A. Cooper Split Roller Bearing Corp. (OEM)

5365 Robin Hood Road Suite B Norfolk, VA 23513 Large Business

B. Norfolk Bearings & Supply 3512 E. Princess Anne Road Norfolk, VA 23502 Small Business

C. Applied Industrial Technologies Corporate Headquarters 1 Applied Plaza Cleveland, Ohio 44115

D. BDI – Bearing Distributors, Inc.

8000 Hub Parkway Cleveland, Ohio 44125 Small Business

E. Bearing Headquarters Co.

6121 W. Ash Blytheville, Arkansas 72315 Large Business

F. Bearings & Drives Inc. or B&D Industrial Corporate Office P.O. Box 4325 Macon, Georgia 31208-4325 Large Business

G. DXP Enterprises Inc.

7272 Pinemont Houston, Texas 77040-6606 Large Business

H. E.B. Atmus Co., Inc.

65 Main Street Springfield, Massachusetts Small Business

I. Gipson Bearings 980 Forest Avenue West Homestead, Pennsylvania 15120 Size Standard Unknown

J. IBT Inc.

7029 S. 107th Street La Vista, Nebraska 68128 Small Business

K. Kaman Industrial Technologies 1 Vision Way Bloomfield, Connecticut Large Business

L. Motion Industries 824 North. 31ST Street Bldg. B Birmingham, Alabama 35203-1328

M. Precision Industries 1151 Mid Valley Drive Olyphant, Pennsylvania 18447

Small Business

N. Purvis Industries 10500 Stemmons, Freeway Dallas, Texas 75220-2425

3. DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEED (INCLUDING ESTIMATED VALUE):

The requirement is for the purchase of two (2) ship sets, Cooper Double Roller Bearings, Part Number: 03EDB2600EX11 for 400’ WAGB propulsion shafting machinery. The bearings must be manufactured in accordance with the OEM specifications and standards to ensure conformance to original form, fit and function, and be compatible and interchangeable with existing equipment. The Government estimate for this requirement is .

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 implemented by FAR Subpart 13.501(a) and 10 U.S.C. 2304(c)(1), as implemented by FAR 13.501(a)(1)(ii)— Special documentation requirement, Sole source (including brand name) acquisition. Based on the estimated dollar value of the items necessary can be purchased utilizing the procedures at FAR 13.5 – Simplified Procedures for Certain Commercial Items.

5. DEMONSTRATION THAT THE NATURE OF THE ACQUISITION REQUIRES

USE OF AUTHORITY CITED:

This acquisition must be made using brand name parts manufactured by Cooper Split Roller Bearing Corp., the OEM. The Cooper Bearing brand name is proprietary and only Cooper Bearing parts meet the USCG requirement. Cooper Bearing is the only known source that possesses the required capabilities, drawings, specifications, engineering control procedures and proprietary methods to ensure the latest design configurations, manufacturing, and quality control required to produce parts to meet the Coast Guard requirements.

The USCG does not possess and did not purchase the reproduction manufacturing drawings, specifications and other technical data to this item and therefore they are controlled by and remain the sole property of the OEM.

The 400’ WAGB propulsion equipment, specifically the propulsion shafts, and propellers are exposed to severe duty during polar glacier ice breaking operations which are conducted on a yearly basis. The Cooper Double Roller Bearing supports the forward half of the centerline propulsion shaft, and is a critical part of the propulsion system which operates continuously whenever the vessel is underway. Due to the severe and harsh operations this Cooper Double Roller Bearing is subjected to, the bearing is routinely renewed as part of the routine overhaul and maintenance conducted to the propulsion system during annual scheduled Dry-docking (DD) availabilities. The reliability of these bearings is critical to the Coast Guard mission and personnel safety.

These Cooper Double Roller Bearings are being manufactured for installation during FY 17 and FY

18 DD availabilities for the 400’ WAGB, USCGC POLAR STAR. The manufacture lead time for this Cooper Double Roller Bearing is 25 weeks.

Critical tolerances and clearances ensure proper operating parameters are met. Purchase of this Cooper Double Roller Bearing will ensure physical and functional interchangeability, as well as configuration and performance requirements.

6. A DESCRIPTION OF THE EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE

In accordance with FAR Subpart 5.2, in an effort to solicit as many potential sources as practicable, a sources sought notice was publicized on the Federal Business Opportunities, FBO, website http://www.fbo.gov, dated December 22, 2015. (See Attachment B- RFI Notice) The notice allowed twenty-nine (29) calendar days for potential sources to provide their capabilities to provide these parts.

Responses received as a result of this notice came from two (2) interested companies, listed in Section 10.

A Federal Business Opportunities website (FedBizOps) notice will be publicized, as required by FAR

5.2. The justification once approved will be posted with the combined synopsis/solicitation, as notice of intent to restrict competition to Cooper brand name manufacturers or authorized Cooper brand name non manufacturers (distributors).

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE

The Contracting Officer will determine that the overall cost to the Coast Guard will be fair and reasonable based on historical pricing and comparison with the Independent Government Cost Estimate (IGCE). Additionally, in accordance with DHS Policy, the offeror may be required to submit Data Other Than Certified Cost or Pricing Data (FAR 15.403-3) to support price negotiations.

8. DESCRIPTION OF MARKET RESEARCH

Market Research was conducted by the Contracting Officer’s Representative (COR) by carefully evaluating the technical requirements for acquisition. Cooper Split Roller Bearing Corp’s technical data currently available to the Coast Guard is inadequate to seek out manufacturing resources of parts that could satisfy performance, form, fit and function requirements since a significant portion of this data remains proprietary to the OEM. Market Research was performed between August 2015 and January 2016.

The COR researched the internet for authorized facilities that could overhaul or provide new Cooper Split Roller Bearings. Cooper Split Bearing Corp. and its authorized distributors, listed in section 2, were determined potential sources to satisfy the requirement.

Acquisition History: Previous contracts DTCG40-01-C-60016, HSCG40-05-C-60059, HSCG40- 09-C-60068 and HSCG40-15-P-49210 for the inspection and repair/work of Cooper Double Roller Bearings and HSCG85-10-C-P45KH5 for the purchase of Cooper Double Roller Bearings were awarded on a sole source basis. The COR found no other acquisition history regarding the http://www.fbo.gov/ procurement of the same or similar Cooper Double Roller Bearings.

Existing Vehicles: The Interagency Contract Delivery Portal, ContractDirectory.gov, was searched for existing contract vehicles, none were found.

FedLog: FedLog was searched and showed Cooper Split Roller Bearing Corp. as the sole manufacturer of this item.

FedBizOps: On December 22, 2015, a notice was posted with a market research questionnaire. The notice closed on January 12, 2016, with two responses. One of the responses was determined capable of providing Cooper Bearing brand name Double Roller Matched Set Bearing.

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

OPEN COMPETITION

Cooper Split Roller Bearing Corp. is the only known company possessing the original drawings, specifications, engineering control procedures and proprietary methods to ensure the design configuration, manufacturing and quality control required to manufacture Cooper Double Roller Bearings to the engineering specifications and requirements.

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

INTEREST IN THE ACQUISITION:

The following companies expressed interest in submitting a proposal for this acquisition:

• Norfolk Bearing & Supply; and

• BHI International LLC.

Norfolk Bearing & Supply is an authorized distributor for Cooper Bearing with an established relationship with the OEM. The Contractor stated their interest in submitting a quote and provided past performance information for similar services provided to the U.S.C.G, Military Sealift Command, NOAA Marine Operations Center and a few other organizations.

BHI International LLC is not an authorized distributor for the OEM. Mr. Anthon Snygg a representative for the company indicated in the response to the RFI that they partnered with Norfolk Bearing & Supply. An email dated January 28, 2016, was sent to Mr. Snygg to ask that further clarification of responses be provided. Specifically, we asked for a written document to support the agreement between BHI International and Norfolk Bearing Supply which we believe would address whether the Contractor could meet the requirement. Written documentation was not provided.

Therefore, we do not believe the Contractor can meet the requirement. However, in the event the Contractor submits a quote, we will determine if the Contractor is technically able to meet the requirement based on the information provided in the quote.

Cooper Bearing, the OEM did not respond directly to the notice, however, the OEM acknowledged their interest to submit a quote via email dated December 8, 2015.

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

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE

ANY SUBSEQUENT ACQUISITIONS FOR SUPPLIES FOR SERVICES:

Due to the fact that Cooper Split Roller Bearing Corp. owns the technical data and drawings necessary to manufacture the bearings, it unlikely that they will sell the rights of such data to the Coast Guard.

The Coast Guard has made several attempts to acquire the rights with no success, including an attempt to support this acquisition. On December 8, 2015, the USCG sent an email to the OEM requesting release of the data rights and was declined. The Coast Guard will continue to engage the OEM for release of proprietary data prior to any subsequent acquisition.

At the present time, there are no other known equipment manufacturers that are capable of producing aftermarket Cooper Bearing Double Roller Matched Set Bearings, which are suitable or interchangeable with the existing propulsion shafts. The Coast Guard does not possess the technical resources to properly determine if another manufacturer of bearings can meet the same form, fit and function of Cooper Bearing Double Roller Matched Set Bearings, without the OEM’s technical data and drawings.

The Coast Guard does not have the expertise to pursued reverse engineering of the bearings.

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

Date: 2016.05.23 14:30:45 -04'00'

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

Date: 2016.05.23 14:46:15 -04'00'

Contracting Officer Representative

14. LEGAL REVIEW AND CONCURRENCE

REVIEWED BY:

APPROVAL:

Advocate