Attachment_3_Justification_for_the_Limited_Number_of_Sources__Redacted.pdf

HSCG40-17- Q-40000

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

UNDER 41 USC 1901 and 10 U.S.C. 2304(c)(1)

BRAND NAME JUSTIFICATION

Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements RFQ Number: HSCG40-17-Q-40000

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

1. AGENCY AND CONTRACTING ACTIVITY:

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

2. NATURE/DESCRIPTION OF THE ACTION:

The SFLC has a requirement on a brand name only basis to procure marine window assemblies and material to support geographically dispersed class cutters to include, but not limited to, WTGB-140’, WLM-175’, and WLB-225.’

The SFLC anticipates that a commercial requirements contract with firm fixed price delivery orders will be awarded utilizing the procedures set forth in FAR Part 13.5 Simplified Procedures for Certain Commercial Items. The period of performance will be for one year with four option years at an estimated cost of . Delivery orders will be issued against the contract and will use Operations & Maintenance (O&M) funds appropriated for the particular fiscal year of the orders.

This Justification and Approval covers the SFLC’s need to acquire OEM marine window assemblies and materials in relation to this requirement. The supplies will be provided by the Original Equipment Manufacturer (OEM), Cornell-Carr Co. Inc. or an authorized dealer who can provide written documentation that they have access to newly manufactured brand name parts.

The OEM for this procurement is Cornell-Carr Co. Inc. located at 626 Main Street, Monroe, CT 06468.

3. DESCRIPTION OF SUPPLIES/SERVICES:

This acquisition is to provide various window assemblies and material with associated part numbers. These items are categorized as window assemblies (including frame, glass, channel gasket and mounting gasket), plate glass (including channel gasket), and rotary windows (also known as clear view screens). A rotary window is circular-shaped glass driven by a motor and installed in a hole cut in the center of the main window. As the glass rotates, it flings water away from the glass to facilitate visibility in inclement weather. Many of the required window assemblies, plate glass, and rotary windows are heated which is also a unique characteristic of these windows. All windows fit specific hull cutout locations in the cutters pilot house, crane cab, and living spaces. To ensure reliability and compatibility with existing hull structure and electrical systems, the brand name manufacturer or their distributors are the only sources available to provide these items.

The Independent Government Estimate (IGE) for this acquisition is:

Base Year $ Option Year 1 $ Option Year 2 $ Option Year 3 $ Option Year 4 $ Total

4. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER

THAN FULL AND OPEN COMPETITION:

The statutory authority permitting other than full and open competition is 10 USC 2304(c)(1) and 41 USC 1901 implemented by the Federal Acquisition Regulation (FAR) Subpart 13.501(a), HSAM 3013.501, CGAP 3013 entitled “Simplified Acquisition Procedures” and 6.302-1, entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements,” (c) “Application for Brand Name Descriptions.”

5. DEMONSTRATION THAT THE NATURE OF THE ACQUISITION REQUIRES

USE OF AUTHORITY CITED:

This acquisition must be made using the brand name window assemblies and materials manufactured by Cornell Carr Co. Inc. 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 the window assemblies and materials to the engineering specifications and requirements.

a) Background information about the requirement: The ownership of the manufacturing data has changed several times over the years, and the current manufacturer is now Cornell-Carr Co. Inc. Only Cornell- Carr Co. Inc. has access to the proprietary drawings and data rights. The USCG did not purchase the manufacturer’s drawings or data rights for these windows originally. In an e-mail dated June 22, 2016, , Vice President (Sales), Cornell-Carr Co. Inc., stated that the proprietary rights to the OEM drawings are not for sale to the U.S. Government and provided a list of authorized dealers

b) Details covering what events lead to the situation requiring use of other than full and open competition procedures: Prior to 2008, the window assemblies and materials were sole sourced to BAE Systems. BAE Systems released a statement on their website that the BAE Marine Products Group facility would be closing on 08/01/2008 and that any new purchase or repair orders should be directed to Cornell-Carr Co Inc.

c) Why considered alternative will not work: The manufacturer’s drawings containing necessary details are not accessible as stated above. No Alternatives were considered.

Without adequate technical data, the USCG is not capable of evaluating equal or alternate parts manufactured by other than the OEM.

d) Which authority applies and why: 41 USC 1901 and 10 USC 2304 (c)(1) apply. There is only one source that will satisfy the agency’s needs as the USCG does not possess the necessary information required to obtain full and open competition.

e) Explain the impact to the mission that would result if the justification for other than full and open competition is not approved and consequently, the product or service not provided: The current window assemblies across the fleet vary in age from original windows dating back as early as 1979 to as recent as 2004. The WTGB 140s were commissioned from 1979-1998, the WLM-175s were commissioned 1996-2000 and the WLB-225s class cutters were commissioned from 1996-2004. Because the OEM drawings identified for the fleet of vessels include unique window specifications, it would be disadvantageous to the government and the mission if original OEM window assemblies are not obtained. If alternate windows were to be procured, it would be imperative that they have the same form, fit and function as the current windows.

Differently dimensioned and wired windows could result in serious personal injury as well as damage to the cutter. Additionally, if new windows are not the correct configuration, steamy and/or fogged windows may result which would impair the vision of the crew. Improper window fit could also result in water intrusion, resulting in other damage to the vessel. The required window assemblies and materials are specific to class cutter window(s) configuration. Each window assembly and glass cut has specific construction details, which are included in the OEM drawings.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICAL:

In an effort to promote full and open competition and to solicit as many potential vendors as possible, a sources sought notice was posted on June 10, 2016 in the Federal Business Opportunities (FedBizOpps) website. This notification informed the industry of the USCG’s intent to purchase the window assemblies and materials manufactured by Cornell Carr Co. Inc.

Other organizations having the expertise and required capabilities to provide equivalent window assemblies and materials were invited to submit information discussing such capabilities within ten (10) calendar days after the posting date. No responses were received during this period.

On June 10, 2016 Cornell-Carr Co. Inc. provided authorized dealers list

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE:

The Contracting Officer anticipates that the cost to the USCG will be fair and reasonable based on historical prices paid, anticipated price competition between authorized dealers, and comparisons with the Independent Government Estimate. Price analysis will be performed to ensure fair and reasonable prices are obtained. 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 Officers Representative (COR) from October 2014 to June 2016. During that time, internet searches, direct contact with industry, and reviews of previous government contracts were researched to look for companies that are capable of providing window assemblies and material.

Internet/Industry Contact - The results of the internet research and industry contact revealed that Cornell Carr Co. Inc. is the only contractor identified as being the OEM, and is the only vendor that possesses the necessary technical data, drawings, manufacturing data, specifications and repair tolerances.

The Program (Item) Manager searched Cornell-Carr Co. Inc.’s website for authorized dealers, and performed an SBA dynamic search using the keywords “marine windows.” In addition, ThomasNet was searched for marine window manufacturers. As a result of these searches, the following potential vendors were identified:

1) Triman Industries

2) Beclawat Manufacturing

3) Byrne, Rice & Turner

Market research questionnaires were sent to to determine, among other things, their ability to legally obtain the OEM drawings and manufacture the required items. Responses were requested within 10 calendar days.

provided a late response stating that they are unable to legally procure the OEM drawings or manufacture windows according to those drawings. The response further stated that they would be able to build the windows if provided the drawings; however, the Government does not have the proprietary data to provide to other companies for manufacture. As of this writing, no response was received from . As stated above, Cornell-Carr Co. Inc. confirmed dealers for these marine windows

Acquisition History – Since 2008 this office has awarded 60 window contracts, 55 of which were awarded to Cornell-Carr Co. Inc. Five (5) were awarded to , a small business wholesaler. Previous acquisition history research showed that past simplified acquisitions have been awarded requiring the same OEM parts by as a wholesaler in which the company obtained the parts needed for the award from Cornell Carr Co.

Inc.

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

OPEN COMPETITION:

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/distributors do not have access to this proprietary information and therefore could not produce parts that are equal.

The only way to provide technical data packages to other vendors would be to re-create the construction drawings by inspecting and reverse-engineering each of the multiple items listed in the IGE or to purchase proprietary data rights to the technical data packages from the OEM.As referenced previously, efforts to obtain data rights from the OEM have been denied. Currently the USCG does not possess the funding, manpower, in-depth knowledge or expertise to perform inspections and reverse-engineering functions for the 74 different window assemblies and material associated with this requirement. Additionally, even if the USCG had the manpower, knowledge, funding and expertise to perform reverse engineering, only 52 of these 74 items are currently in stock. The remaining 22 items would need to be removed from operational cutters for approximately 3-4 weeks each in order to attempt to do any sort of reverse-engineering. The table below shows the estimated total cost and time required to reverse engineer all 74 items:

Task Hours Cost/hour Total Cost

Note: to reverse engineer, not all items would require complete assemblies and thus would not require disassembly; however, there is neither adequate funding nor staffing available to perform such duties. Furthermore, other items are more complex (e.g. heated window assemblies with a fixed pane and a sliding pane) and would require more labor hours to reverse engineer the bill of materials and create the drawing. These variations in scope of work were considered when estimating average labor hours. Total estimated time for all 74 items is approximately 380 person-days, which equates to the lead time of drawings only and does not consider the 120 day(s) manufacturing time as specified in the delivery schedule. Based on this estimate, it is not realistic for the Government to reverse-engineer this commercial item.

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

INTEREST IN THE ACQUISITION:

A sources sought notice was advertised via the Federal Business Opportunities (FBO) website https://www.fbo.gov on June 10, 2016. No companies responded to the sources sought notice posted to FBO; however, known authorized vendors are capable of the requirement.

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:

Cornell Carr Co. Inc. owns the data rights and drawings, and has consistently denied USCG requests to purchase them. The USCG has made several attempts to acquire them with no success, including a request by the Contract Specialist for this requirement via email on June 22, 2016 USCG will continue to engage the Cornell Carr Co. Inc. for release of proprietary data prior to any subsequent acquisition.

At the present time, no other known manufacturers produce aftermarket marine windows, which are suitable or interchangeable with the OEM, Cornell Carr Co. Inc window assemblies. For all future needs, the USCG will assess the feasibility of reverse engineering vice purchasing from the OEM or its distributors.

https://www.fbo.gov/

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

USCG-SFLC-CPD-C&P2-IBCT

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 the justification, is accurate and complete.

Technical Representative/COR Date

14. Legal Review and Concurrence:

I have reviewed this justification and deemed it legally sufficient.

Attorney Date USCG, Legal Service Command

Branch Chief Date

USCG-SFLC-CPD-C&P2

APPROVAL:

, Chief of Contracting Office Date

USCG-SFLC-CPD

Advocate

USCG-SFLC

The Contracting Officer anticipates that the cost to the USCG will be fair and reasonable based on historical prices paid, anticipated price competition between authorized dealers, and comparisons with the Independent Government Estimate. Price analy...