FINAL_JOTFOC_REDACTED.docx

USCG Surface Forces Logistics Center Engineering Services Division In-Service Vessel Sustainment Team Baltimore, MD 21226-5000

Justification for Other Than Full and Open Competition Under 41 U.S.C. 1901

Solicitation Number HSCG40-16-Q-60020

Pursuant to the requirements of the authority of 41 U.S.C. 1901, as implemented by Federal Acquisition Regulation (FAR) Part 13.5, the justification for the use of the statutory authority is justified 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), U.S. Coast Guard (USCG), Surface Forces Logistics Center (SFLC), In-Service Vessel Sustainment (ISVS) team, located at 2401 Hawkins Point Road, Baltimore, MD 21226, proposes to enter into a contract on a basis of other than full and open competition.

2. NATURE/DESCRIPTION OF THE ACTION BEING APPROVED

The SFLC ESD ISVS team has a requirement, on a limited source basis, to procure an estimated five (5) each Anchor Windlass Assemblies, Appleton P/N BMD-478, currently installed on the 225’ WLB B Class Buoy Tenders, for the 225’ WLB A Class Buoy Tenders. The Government intends to award one requirements contract, with fixed price delivery orders, consisting of one 12-month base period and four 12-month option periods, at an estimated cost of $755,260.03, to the Original Equipment Manufacturer (OEM), Appleton Marine, located at 3030 E. Pershing Street, Appleton, WI 54011, utilizing procedures established under FAR Part 13.5, Simplified Procedures for Certain Commercial Items. Individual delivery orders will be funded with Acquisition, Construction, and Improvements (AC&I) funds.

3. DESCRIPTION OF SUPPLIES/SERVICES

This requirement is for the procurement of an estimated five (5) each Appleton Marine Anchor Windlass Assemblies, P/N BMD-478, for the 225’ WLB A Class Buoy Tenders.

The estimate for this requirement is:

Total

$755,260.03

Justification for Other Than Full and Open Competition Under 41 U.S.C. 1901 Solicitation Number HSCG40-16-Q-60020

4. IDENTIFICATION OF THE JUSTIFICATION AND RATIONALE

The statutory authority permitting other than full and open competition is 41 U.S.C. 1901 as implemented by FAR 13.5, Simplified Procedures for Certain Commercial Items.

5. DEMONSTRATION THAT THE NATURE OF THE ACQUISITION REQUIRES USE OF AUTHORITY CITED

This anchor windlass assembly is the original equipment installed on the 225’ WLB B class vessels. The anchor windlass assemblies are critical to 225’ WLB operations for lowering and recovering the 4,000 lb port and starboard anchors while servicing aids to navigation throughout the waters of the United States. Without the Anchor Windlass system the 225’ WLB’s would not be capable of anchoring which is an essential part of safe operations when retrieving and installing buoys. The Anchor Windlass assembly currently installed on the 225’ WLB A class vessels, Appleton Marine P/N BMD-389, has been identified by the OEM as obsolete because the gearbox is no longer supportable. The direct replacement for this assembly is the Appleton Marine Anchor Windlass Assembly P/N BMD-478 which is currently installed on the 225’ WLB B class vessels. Installation of the Appleton Marine BMD-478 assembly on the 225’ WLB A class vessels will resolve the existing obsolescence issue as well as standardize configuration across the 225’ WLB class thereby reducing overall life cycle costs including training, sparing, logistics, and supportability.

All reproduction manufacturing drawings, specifications, and other technical data required to manufacture these assemblies were not purchased at the time of original installation. The Coast Guard does not possess the necessary technical and engineering data required to obtain full and open competition. Further, the scope of manufacturing, special tools, and equipment required to manufacture these assemblies are unknown.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS MANY POTENTIAL SOURCES AS PRACTICAL

In accordance with FAR Subpart 5.2 and in an effort to solicit as many potential sources as practical, a sources sought notice was posted on FedBizOpps (FBO) on September 10, 2015 advising industry that it was the Government’s belief that only Appleton Marine, the OEM, could provide the system required. The notice allowed fifteen (15) calendar days for potential sources to demonstrate their capability to manufacture these assemblies. No responses were received.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The Contracting Officer anticipates the cost to the Government will be fair and reasonable based on market research performed, comparison to the Government estimate, and price comparison utilizing available previous history. Market research indicates three assemblies were procured under Contract Number HSCG40-14-C-20104, dated July 29, 2014, for a unit price of $154,423.00. Additionally, one each assembly was procured under Purchase Order Number HSCG40-12-P-40748, dated March 16, 2012, for a total price of $138,870.00.

8. DESCRIPTION OF MARKET RESEARCH

Extensive market research, as prescribed in FAR Part 10, was conducted by the Contracting Officer’s Representative (COR) and completed on September 10, 2015. While other anchor windlass manufacturers exist in the commercial marketplace, the Government does not possess the necessary technical and engineering data and drawings required to determine if these alternate sources can manufacture these anchor windlass assemblies and maintain form, fit, and function with existing equipment. In addition, this procurement only covers the purchase of an estimate five (5) each systems to replace the obsolete models on the 225’ WLB A class vessels. All sixteen WLB B class vessels already have the Appleton Marine 478-BMD model installed. Given limited funding availability, it is more cost effective to replace these five (5) systems on the WLB A class.

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

The original Anchor Windlass, P/N BMD-398 is obsolete. The only known direct replacement is the Appleton Marine Anchor Windlass P/N BMD-478. The Coast Guard is unable to obtain the data rights and/or drawings and therefore does not possess adequate data to allow for a competitive procurement. Using non-standard and unapproved systems will place the crews and missions of these vessels in harm’s way possibly causing injury or death. The anchor windlass assemblies are critical to 225’ WLB operations for lowering and recovering the 4,000 lb port and starboard anchors during buoy operations. Without the Anchor Windlass system the 225’ WLB’s would not be capable of anchoring which an essential part of safe operations. The procurement of this Anchor Windlass assembly will ensure that components are sufficient to enable physical and functional interchangeability among the 225’ WLB class as well as identifying source, size, configuration, mating and attachment characteristics, functional characteristics, and performance requirements that are essential in the planning and execution of buoy tender missions.

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

Appleton Marine, the OEM, is the only source that responded to the sources sought notice published on FBO on September 10, 2015 by indicating their interest in receiving a copy of the solicitation when released.

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

This is a one-time need for an estimated five (5) each Anchor Winch assemblies to replace the obsolete assemblies on the 225’ WLB A class vessels. There is no indication that future procurements for new assemblies will be required. On September 3, 2015, attempts were made to obtain data rights HOWEVER Appleton Marine refused our request. Should the need arise again, the Government will continue to make all attempts to obtain OEM data for any future acquisitions.