Final_JA_redacted2_Redacted.pdf

RFP No. HSCG40-16-Q-31618 Page 1 of 5

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

UNDER 10 U.S.C.2304(c) (1)

Per FAR 13.501(a) Sole Source Acquisition (including brand name) RFQ #: HSCG40- 16-Q-31618

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulations (FAR) Subpart 6.3 and 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 FAR Subpart 13.501(a) (1) (ii) as follows:

1. AGENCY AND CONTRACTING ACTIVITY:

The Department of Homeland Security, U.S. Coast Guard Surface Forces Logistics Center (SFLC), Long Range Enforcer (LRE) Product Line (PL), located at 2401 Hawkins Point Road, Baltimore, MD, proposes to enter into a firm-fixed price contract, on a basis of other than full and open competition.

2. NATURE/DESCRIPTION OF THE ACTION:

The Coast Guard has a requirement on a brand name basis for the purchase of 16 Howden American Fan brand name Vaneaxial fans P/N XA2-1/2A4W5MNF for the Coast Guard 418-foot Marine Security Cutter, Large (WMSL) formerly known as National Security Cutter (NSC) class of ships.

The SFLC anticipates awarding a Firm-Fixed Price contract to any Contractor that has the proven capability to provide Vaneaxial fans P/N XA2-1/2A4W5MNF Original Equipment Manufacturer (OEM) American Fan Company. The delivery date is 1 month after award of the contract at an estimated value . The brand name Vaneaxial Fans is the only fans that will satisfy the requirement. The OEM has an authorized distributor in the United States. SFLC anticipates AFC 45 Naval Engineering funds will be used. The proposed contractors that can satify this requirement are as follows:

A. American Fan Company, Original Equipment Manufacturer (OEM) 2933 Symmes Road, Fairfield, OH 45014-2099. Large Business

b. Pioneer Industries, Inc. 155 Marine Street, Farmingdale, NY 11735 Duns # 043175926 Small Business.

3. DESCRIPTION OF SUPPLIES/SERVICES:

This requirement is for purchase of brand-name Ventilation Vaneaxial fans for the Coast Guard 418 ft WMSL National Security Cutter (NSC) class of ships. The WMSL fleet is in continued production. The WMSL fleet will replace the aging 378-foot High

RFP No. HSCG40-16-Q-31618 Page 2 of 5

Endurance class cutters. The USCG requires the use of Original Equipment Manufacturer (OEM) parts to match the unique design of existing cutter configuration on the following Coast Guard fleet: 418 ft WMSL National Security Cutter (NSC). All existing cutters were built using Vaneaxial fans WMSL class cutters currently in the construction and preconstruction phases are designed with these fans therefore a need to stock additional fans and components is required to support the fleet for future maintenance or casualties to the ventilation system.

A list of the items to be purchased is as follows:

• Vaneaxial Fans 4140-01-561-9655 P/N XA2-1/2A4W5 The Government Estimate for this requirement is:

FY ITEM QUANTITY ESTIMATE

2016 Vaneaxial Fans 16

Total 16

These items are to be stored as spares in the Coast Guard warehouses so that they are available when needed. There is an immediate need for two under CASREP

2116406B4500AD025.

4. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER

THAN FULL AND OPEN COMPETITION:

The statutory authority permitting other than full and open competition is 10 U.S.C.

2304(c) (1), as implemented by FAR 13.501(a) – Special documentation requirement, Sole source (including brand name) acquisitions. Based on the estimated dollar value of $177,605.28, 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:

In accordance with FAR 13.501(a) Sole Source (including brand name acquisitions:

This acquisition must be made using parts from Howden American Fan., the OEM. The Howden American Fan brand name is proprietary and only Howden American Fan manufactures the fans necessary to meet the USCG requirement. Howden American Fan.

and authorized distributors or partners are the only known sources that possess 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 the Coast Guard’s requirement.

The limitation to use only OEM parts must be enforced to ensure compatibility and/or interchangeability with existing and future WMSL NSC ventilation systems. It is imperative that all parts conform to the exact same form fit and function as the existing parts. Using other than OEM parts could cause problems including loss of oil into the environment from an improper seal or failure of the ventilation system which would

RFP No. HSCG40-16-Q-31618 Page 3 of 5 result in a major degradation of the ship’s ability to perform its mission and put crew safety at risk. Damage of this type would also place the crew at risk of not being able to perform necessary de-smoking and gas free functions. In effective ventilation also performs essential propulsion system functions for providing engines with fresh air for the intake system. Failure to provide fresh air to the engine propulsion system will also result into engine damage. Operation capabilities and crew safety rely on a properly working ventilation system.

During initial development and current building of the WMSL class of vessels proprietary data was not requested, required nor purchased for the parts and components utilized.

The SFLC does not possess the necessary drawings and specifications that would enable another vendor to manufacture any of the parts listed. The scope of manufacturing, tolerances, specifications, procedures, equipment and special tools required to manufacture these parts is unknown. The technical data needed is proprietary to the OEM Howden American Fan Without the adequate data the Coast Guard is not capable of evaluating equal or alternative parts manufactured by other then the OEM. The use of OEM parts will ensure components and processes 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:

On 08/22/2016, a notice via FBO was publicized as required by FAR subpart 5.2. The notice covered the USCG’s intent to award a brand name requirement based on the information within this justification.

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:

Extensive market research was conducted by the Contracting Officer's Representative (COR) and Contract Specialist between April 2016 and August 2016. All technical information is proprietary to the OEM and is unavailable to allow the government to evaluate alternative parts. During market research the COR and Contract Specialist contacted the OEM for a list of qualified distributors.

Internet/Industry Contact - The results of the internet research and industry contact revealed that Howden American Fan is the only contractor identified as being the OEM, RFP No. HSCG40-16-Q-31618 Page 4 of 5 possessing the necessary technical data, drawings, manufacturing data, specifications and repair tolerances.

The Contracting Officer's Representative (COR) searched Howden American Fan’s website for authorized distributors, and have an email from Howden American Fan saying that they have only one authorized distributor. The use of brand name would extend competition beyond a sole source and the supplies could be completed by an above authorized distributor or dealer Howden American Fan. As a result of these searches, the following potential vendor was identified:

1) Pioneer Industries, Inc.

Acquisition History – The Vaneaxial fan was purchased in 2013 under order HSCG40- 13-P-40431. In 2016 purchases under HSCG40-16-P-40259 and HSCG40-16-P-40409 were made of Vaneaxial fans.

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

AND OPEN COMPETITION:

The data rights were not provided when the cutter was purchased; therefore, the USCG does not possess or have access to the data.

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

INTEREST IN THE ACQUISITION:

In August 2016 Howden American Fan is the only source that expressed interest by providing a response to HSCG40-16-S-31618 sources sought posted on FBO.

Howden American Fan Company 2933 Symmes Rd Fairfield, OH 45014-2099 Business Size: Large

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 OR SERVICES:

Due to the fact that Howden American Fan owns the technical data and drawings, it is unlikely that they will sell the rights of such data to the Coast Guard. The Coast Guard has made an attempt to acquire them with no success, including an attempt for this acquisition. On August 15, 2016 the Contract Specialist sent an email to Howden American Fan requesting the release of data rights. On August 16, 2016 Howden American Fan chose to retain such information and declined to grant the request for proprietary information. The Coast Guard will continue to engage American Fan for release of proprietary data prior to any subsequent acquisition.

RFP No. HSCG40-16-Q-31618 Page 5 of 5

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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.

Date: 2016.09.07 06:58:29 -04'00'

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

Date

APPROVAL: