JA_York_Compressors_Repair_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Under 41 U.S.C. 1901 Simplified Acquisition Procedures

Solicitation Number:

Pursuant to the requirements of the authority of 41 U.S.C. 1901, as implemented by Federal Acquisition Regulation (FAR) Part 13.5, Simplified Procedures for Certain Commercial Items, Special documentation requirements for Sole Source (including brand name) acquisitions and is justified by the following facts and rationale required under FAR 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 and/or Description of the Action Being Approved.

The United States Coast Guard (USCG) has a requirement to repair a brand-name compressor, NSN 4130 01-549-7925, which support the operation and maintenance of the Ship Service Air Conditioning Compressor, installed on the USCG 418-foot Marine Security Cutter, (WMSL) Legend Class of CG Cutters. The compressor’s OEM is Johnson Controls, Inc., 631 S. Richland Ave., York, PA, 17403. SFLC anticipates that a commercial firm fixed price contract will be awarded using procedures set forth in FAR part 12 and 13.5, with the estimated cost of

3. Description of Supplies/Services.

This acquisition is for the repair of the compressors in support WMSL class vessels. The USCG requires the use of Original Equipment Manufacturer (OEM) parts to match the unique design of existing cutter configuration on the 418’ WMSL cutters. This repair includes Ten (10) compressors needed to be overhauled. Theses compressors will be stored at the SFLC warehouse and will be ready for issue to the fleet when required.

Repairing the components below provides significant protection against the Coast Guard not having the required items in stock should an immediate unforeseen need occur as well as expected maintenance these compressors are needed for. Just as important is that this repair allows the Coast Guard supply teams responsible for providing these compressors to the fleet the ability to support back-ordered items requested by the fleet in a timely manner.

NSN Description 4130 01-549-7925 130 Ton Compressor

4. Identification of the 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 Simplified Acquisition Procedures implemented by FAR Subpart 13.501.

5. Demonstration that the nature of the acquisition requires use of the authority cited.

This acquisition must be made using brand name parts from Johnson Controls, Inc., the OEM for the repair. The OEM is the only known source that possesses the required capabilities, drawings, specifications, engineering control procedures and proprietary methods to ensure the latest design configuration, manufacturing and quality control required to produce parts to the latest engineering specifications and requirements. Limitation to the use of OEM parts is as follows:

The limitation to use only OEM parts must be enforced to ensure compatibility and/or interchangeability with existing and future Ship Service Air Conditioning Compressor. 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 to the proper ventilation of the main, auxiliary spaces and other spaces throughout the cutter. Issues with ventilation could cause a heat stress condition for personnel and overheating of equipment which would result in a major degradation of the ship’s ability to perform its mission and put crew safety at risk.

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 Johnson Controls, Inc. without the adequate data the Coast Guard is not capable of evaluating equal or alternative parts manufactured by other than the OEM. The use of OEM parts will ensure components and processes are sufficient to enable physical and functional interchangeability.

6. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable.

This requirement was posted in the Acquisition Planning Forecast System (APFS) on May 10, 2017. The APFS number is F2017036761. In accordance with FAR Subpart 5.203, an effort to solicit as many potential sources as practicable, a Sources Sought Notice was posted on the Federal Business Opportunities Website from June 14, 2017 to June 20, 2017. This notice informed the industry of the CG’s intent to repair these components of an air compressor parts manufactured by the OEM, Johnson Controls, Inc. Other organizations having the expertise and required capabilities to provide equivalent parts were invited to submit information discussing such capabilities within six (6) calendar days after the posting date. The notice yielded two expressing interest in this project. The one interest was the OEM, Johnson Controls, Inc. The second interest was Quality Refrigeration. The OEM was not able to confirm or fully deny any authorized repair facilities. Quality Refrigeration expressed the ability to procure OEM parts and the technical knowledge and experience needed to repair the compressors to OEM standards.

Quality Refrigeration was not able to provide documentation from the OEM that they will have access to all technical data and proprietary repair data and information needed to effectively repair to OEM standards.

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 comparisons with the IGE, market research, previous history and if necessary price negotiation.

Price analysis will be performed to ensure a fair and reasonable price is determined in accordance with FAR 13.106-3.

8. Description of Market Research:

Extensive market research was conducted by the Contracting Officer’s Representative (COR) and validated by Contract Officer (KO) in January – August 2017, and validated by the Contracting Officer as an effort to identify companies that can provide the requested services.

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 repair facilities. Johnson Controls, Inc. could not fully confirm there are no authorized repair facilities.

Internet/Industry Contact - The results of the internet research and industry contact revealed that Johnson Controls, Inc. is the contractor identified as being the OEM, possessing the necessary technical data, drawings, manufacturing data, specifications and repair tolerances.

The Contracting Officer's Representative (COR)’s communication with the OEM revealed a potential repair source, Resolute Industrial located at 298 Messner Drive Wheeling, IL 60090.

The OEM provided an extended warranty with Resolute Industrial letterhead. The COR found the document sufficient in displaying the company’s capability of repairing the compressors.

The Contracting Specialist communicated with Quality Refrigeration about historical and current contracts the company has with United States Coast Guard. Quality Refrigeration expressed the ability to procure OEM parts and the technical knowledge and experience needed to repair the compressors to OEM standards. Quality Refrigeration was not able to provide documentation from the OEM that they will have access to all technical data and proprietary repair data and information needed to effectively repair to OEM standards.

FedLog – FedLog research revealed that Johnson Controls, Inc. is the incumbent for the National Stock Number associated with this justification.

Acquisition History – The compressors support the WMSLs class cutters. This will be the first contract in which this NSN will be repaired in the United States Coast Guard’s history.

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition.

The WMSL Air Conditioning Compressor must conform to design, materials and operational requirements. As stated above, manufacturing drawings, specifications and other technical data are proprietary to Johnson Controls, Inc. Johnson Controls, Inc. refused to sell the proprietary data to the USCG on June 14, 2017. Any attempt to manufacture these parts without the proper specifications, drawings and technical data could result in damage to the ship’s air conditioning compressor, and could cause a fire and serious bodily harm if the system components were to fail. The Government does not possess the technical data and/or drawings pertaining to the manufacturing of Johnson Controls, Inc. compressors, which are proprietary. Therefore, the

Government does not have any data to compare other manufacturer’s parts to ensure the same fit, form, and function nor does the Government possess the independent expertise to evaluate other manufacturer’s parts. After market (non-OEM) parts manufacturers do not have access to this proprietary information and therefore could not produce parts that are equal.

10. A Listing of Sources, if Any, That Expressed, in Writing, and Interest in the Acquisition.

A synopsis was issued in FedBizOpps on June 14, 2017 requesting that parties express their interest in writing to the contracting officer. Two sources expressed interest in this requirement.

The sources are Johnson Controls, Inc. and Quality Refrigeration Co. Inc.

11. A Statement of Actions, if Any, the Agency May Take to Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisition for Supplies or Services Required.

Due to the fact that Johnson Controls, Inc. 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 June 14, 2017 the Contract Specialist sent an email to Johnson Controls, Inc. requesting the release of data rights. On June 14, 2017 Johnson Controls, Inc. chose to retain such information and declined to grant the request for proprietary information. The Coast Guard will continue to engage Johnson Controls, Inc. for release of proprietary data prior to any subsequent acquisition.