J&A for VCT Sewage Kits & Parts - Redacted.docx

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Under 10 U.S.C. 2304(c)(1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

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 as follows:

1. AGENCY AND CONTRACTING ACTIVITY:

The Department of Homeland Security, United States Coast Guard (USCG), Surface Forces Logistics Center (SFLC), Patrol Boat Product Line (PBPL) and Contracting and Procurement Division, located at 2401 Hawkins Point Road, Baltimore, Maryland proposes to enter into a requirements contract on a basis of other than full and open competition.

2. NATURE/DESCRIPTION OF THE ACTION:

The USCG, SFLC has a requirement to purchase Vacuum Sewage Systems for the 87’ Patrol Boat (WPB) class cutters on a brand name only basis. The estimated total cost of this acquisition includes one (1) base year and four (4) option years. The USCG intends to award a requirements type, supply contract with firm fixed price delivery orders on a brand name only basis. Since this will be a requirements contract, no funding is initially obligated. Fixed price delivery orders will be issued against the contract, which will use annual Operating Expense funds for the particular fiscal year of the ordering date.

The Original Equipment Manufacturer (OEM) is Jets Vacuum AS. Jets Vacuum AS is the only manufacturer who possesses the proprietary information and technical data required to manufacture the systems. There are two domestic vendors that provide genuine OEM parts:

· GTA Marine

· 17 Machinery, LLC

3. DESCRIPTION OF SUPPLIES/SERVICES:

The Vacuum Sewage System is used to move human waste from the ship’s water closets and store the waste in a collection tank until the waste may be lawfully disposed of; either via sewer shore connection, septic service, or at sea. As the 87’ WPB vessels have an endurance of three (3) days, the Vacuum Sewage System is vital to the safe and sanitary movement and storage of human waste while enabling the vessels to meet their operational requirements.

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), implemented by FAR Subpart 6.302-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

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

The Vacuum Sewage System and associated parts listed in this requirement are commercial off the shelf items, comprised of multiple interrelated parts, designed and manufactured by Jets. This acquisition will not be based on Government specified descriptions of all of the various components contained within; and the Government has not bought those descriptions from Jets. Other than basic part/component descriptions (part numbers, etc.) provided by Jets, the Government does not possess descriptions adequate for procuring other than OEM parts.

OEM parts must be used or the Government will be harmed. The use of parts not manufactured in accordance with OEM specifications, materials, tolerances, etc. could cause equipment failure rendering the vessel unable to complete mission requirements. In order for the cutters to meet their mission requirements, the Coast Guard must maintain an aggressive parts purchasing program. The actual equivalency of any non-Jets Vacuum Sewage System and associated parts is not known, and may not be easily determined. The risk of accepting those Vacuum Sewage Systems or parts without fully vetting their equivalence is unacceptable and may result in excessive cost to the Government, reduced reliability, reduced safety, and may hamper the Coast Guard mission requirements. The introduction of other manufacturers’ Vacuum Sewage Systems or parts will also require technical publications and separate spare parts storage, which would increase warehouse space and storage fees.

The use of OEM Vacuum Sewage System parts will ensure components and processes are sufficient to enable physical and functional interchangeability, as well as meeting source, size, configuration, and performance requirements. All reproduction manufacturing drawings, specifications and other technical data pertaining to the Vacuum Sewage System and associated parts were not purchased when these systems were fitted to the prototype vessels for Time Compliant Technical Order (TCTO) number TQ4010.0. Further, the scope of manufacturing, special tools and equipment required to manufacture the various Vacuum Sewage Systems and parts are unknown. The technical data that is needed is proprietary. Without the adequate data, the Coast Guard is not capable of evaluating equal or alternate Vacuum Sewage Systems and parts manufactured by other than the OEM.

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

This requirement was posted in the Acquisition Planning Forecast System (APFS) on March 31, 2016. The APFS number is F2016031895.

A Sources Sought Notice was issued on the Federal Business Opportunities Website, hereafter FBO, from September 30, 2016 - October 10, 2016, no responses were received. An additional Sources Sought Notice was issued on the FBO website from October 14, 2016 - October 23, 2016 and received two responses stating that they were authorized to re-sell from the OEM.

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 prices will be fair and reasonable based on historical pricing of previous awards under the simplified acquisition threshold. Further it is anticipated that competition will provide fair and reasonable pricing as well. A public price list was requested from an OEM distributor and the USCG was told that the OEM does not have a public price list.

8. DESCRIPTION OF MARKET RESEARCH:

Recent market research was conducted from April 2016 through October 2016 in an effort to identify companies that can provide the requested Vacuum Sewage Systems and associated parts. Market research was conducted by looking at various companies on the internet, available companies through Federal Supply Schedules, and companies that have been previously contracted to supply the parts. Two vendors have been identified as an authorized distributor (GTA Marine) and an authorized reseller (17 Machinery), one has previously provided some of the genuine OEM Vacuum Sewage System parts to the USCG. The USCG offered to purchase the proprietary data from Jets, but Jets was not willing to release the data.

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

The 87’ WPB Vacuum Sewage System parts must conform to design, materials and operational requirements. The Vacuum Sewage System parts listed are the required parts for TCTO# TQ4010.0, the new standard configuration to be installed onboard the 87’ WPB’s. As stated above, manufacturing drawings, specifications and other technical data are proprietary to Jets.

Any attempt to manufacture these parts without the proper specifications, drawings and technical data could result in damage to the vessel’s Vacuum Sewage Systems, associated piping, and present a serious health hazard to the ships’ crews if the Vacuum Sewage System components were to fail. Further, failure of the Vacuum Sewage System could impact mission capabilities if the cutter were to have to return to port due to full sewage tanks.

In accordance with COMDTINST M4130.6B, USCG Configuration Management Manual requires complete cutter configuration. Performing maintenance and making repairs to the cutters that are consistent to each requirement enables the Coast Guard to maintain cutter configuration, increase efficiency and reduce costs. The fundamental purpose of configuration management is to ensure that these assets meet their requirements. These cutters are assets that are used to satisfy a need for the Coast Guard’s mission. The configuration of these high value assets specifically impact safety, security, performance, schedule, cost and the environment. This configuration information is paramount to making timely and effective decisions regarding mission execution, mission support, and financial stewardship, and it is therefore imperative that consistency be maintained between these critical assets, their documented configuration and the driving requirements.

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

The second sources sought notice issued in FBO on October 14, 2016 and closed on October 23, 2016, requesting that parties express their interest in supplying the listed parts. The two responses received were from a Jets Distributor and a Jets Reseller stating they were authorized to provide Jets parts.

JetsTM owns the technical data and they have declined to sell the rights of such data to the USCG; however, the USCG will continue to engage Jets for the release of proprietary data prior to any subsequent acquisition. In the future, if Jets quotes a price for the proprietary data rights, the USCG will weigh the benefits of purchasing the data rights at that time. We will continue to search for other authorized distributors to increase price competition among them.

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.

Level Above Approval

13. TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION:

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

14. LEGAL REVIEW AND CONCURRENCE:

I have reviewed this justification and deemed it legally sufficient.

REVIEWED BY:

APPROVAL:

Activity Competition Advocate (CPACA)