Attachment_4_Brand_Name_Justification_-_Redacted.pdf

SOLE SOURCE JUSTIFICATION

Simplified Procedures for Certain Commercial Items for Procurements Exceeding the

Simplified Acquisition Threshold pursuant to FAR Subpart 13.5

Pursuant to the requirements under the authority of the simplified procedures for certain commercial items at 41 U.S.C. 1901 as implemented by Federal Acquisition Regulation (FAR) Subpart 13.501 and consistent with the content requirements of FAR 6.303-2 the following facts and rationale support this sole source justification:

(1) Agency and Contracting Activity.

The Department of Homeland Security (DHS), United States Coast Guard (USCG) Surface Forces Logistics Center (SFLC), Small Boat Product Line (SBPL), and Contract & Procurement Division 3 (C&P3), located at 2401 Hawkins Point Road, Baltimore, MD 21226, proposes to enter into a contract on a sole source basis with an Original Equipment Manufacturer (OEM) approved dealer.

(2) Nature and/or description of the action being approved.

The USCG, SFLC, SBPL has a requirement on a brand name basis for the acquisition of Twin Disc brand parts provided by Twin Disc and/or their authorized distributors, for the overhaul of the Twin Disc Reduction Gears models MG-507A1, and MG-5114SC. The MG-507A1 is currently used on the 49’ Buoy Stern Load (BUSL); and the MG-5114SC is currently used on the 45’ Response Boat Medium (RBM). The Government intends to award a requirements type contract for parts and service, with firm fixed price delivery orders, consisting of one base and four option years at an estimated cost of REDACTED. Individual orders issued under this contract will be funded with Operating Expenses (OE) 30 funds with the year of funding to be determined based upon the time of order placement. The estimated cost of the brand name item portion of the requirement is REDACTED.

Name and Address of the Original Equipment Manufacturer (OEM)

Twin Disc, Inc.

1328 Racine Street Racine, WI 53403 Phone: 262-638-4000

(3) Description of Supplies/Services.

The requirement requires each reduction gear inducted for overhaul to be disassembled, inspected, overhauled, tested, preserved, packaged, and marked utilizing Coast Guard Specification Number R-233-0562 for general quality assurance of reduction gear overhauls and utilizing only genuine OEM parts. The Government estimate for the OEM parts is: REDACTED

(4) Identification of the justification and the rationale.

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

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

The limitation to use only Original Equipment Manufacturer (OEM) parts for the overhaul of these reduction gears must be enforced or the Government may experience negative repercussions. The Coast Guard Boats mentioned above in section (2) are critical to the Coast Guard mission of search and rescue, marine safety, Law Enforcement and other multi-mission operations. The use of any aftermarket or third party parts that are not manufactured in accordance with OEM specifications, materials, tolerances, etc., could cause severe equipment failure including but not limited to a failure of bearings, clutch assembly, seals, springs, couplings, etc. thus rendering the assets unable to provide the proper forward and reverse maneuverability to complete critical mission requirements and could place the crew in very dangerous and hazardous conditions possibly causing injury or death.

All OEM drawings, specifications, and other technical data required to overhaul these gears was not obtained when the reduction gears were originally purchased for these boat classes. The Coast Guard does not possess the necessary data required to obtain full and open competition.

The technical data (manuals, drawings, specifications, etc.) are not available from any other source and is proprietary to the OEM. Without the adequate data, the Coast Guard is not capable of evaluating equal or alternate parts manufactured by other than the OEM. In addition, if other than OEM parts are used, Twin Disc will not honor the warranty on the reduction gear or associated parts.

(6) A description of the efforts made to ensure that offers are solicited from as many potential sources as is practicable.

In accordance with FAR Subpart 5.2, in an effort to solicit as many potential sources as practical, a sources sought notice was posted on FedBizOpps (FBO) on 22 February 2017 advising industry that it is the Government’s belief that only Twin Disc and/or authorized OEM service facility could obtain the necessary proprietary data to overhaul the reduction gears to OEM specifications utilizing only OEM parts. The notice allowed seven (7) calendar days for potential sources to demonstrate their capability to overhaul the aforementioned machinery to OEM specifications using genuine OEM parts.

(7) Determination by the Contracting Officer that the anticipated cost to the government will be fair and reasonable.

The Contracting Officer (KO) anticipates that the cost to the Government will be fair and reasonable based on market research performed, comparison to similar previously awarded contracts, price analysis in comparison to the Government’s independent estimate, and competition among the various OEM dealers. Overhaul was previously procured under Contract Number HSG40-12-D-50109.

(8) Description of market research.

The Contracting Officer’s Representative (COR) and Contracting Officer conducted extensive market research as prescribed in FAR Part 10. Many of the companies that the COR requested Market Research from did not respond back or did not want participate. The COR generated a market research questionnaire consisting of twenty-three questions. The goal of the questionnaire was to obtain information on the companies’ capabilities to perform an overhaul on the various models of Twin Disc gears that the Coast Guard possesses, and their related standard practices for testing, preserving, and packaging of those gears. The market research provided details of the company’s storage infrastructure for long-term storage at their facility and the availability of OEM parts, for the overhaul of these gears. The COR conducted searches via the internet for sources that could provide the required parts and service. During the internet search, no other qualified companies were located with the exception of those provided in paragraph 10 below.

In addition, the sources sought notice identified in paragraph 6 was posted on FedBizOpps (FBO) on 22 February 2017. The only responses to this notice were received from authorized repair facilities interested in receiving a copy of the solicitation when released. No other sources expressed interest. While other types of Reduction Gears may exist in the commercial marketplace, they do not provide the same form, fit, and function characteristics or capabilities as these Twin Disc gears therefore there are no viable replacements.

(9) Any other facts supporting the use of other than full and open competition.

The machinery listed in section (2) is the original equipment installed when the boats that they belong to were procured. The Coast Guard has approximately 384 reduction gears to support: 49’ BUSL, (44) and (340) RBM that were listed in section (2). These assets operate nationwide supporting search and rescue, law enforcement, drugs interdiction, aids to navigation, marine safety, migrant interdiction, ports, waterway, and coastal security. The Coast Guard does not possess any manufacturing data for these reduction gears that would facilitate the procurement of other than OEM parts. Further, the scope of manufacturing, special processes, special tools and equipment required to manufacture the various engine model parts is unknown. The use of only OEM parts will ensure that components and processes are sufficient to enable physical and functional interchangeability, as well as identifying source, size, configuration, mating and attachment characteristics, functional characteristics, and performance requirements, ensuring performance is in accordance with expectations for reliability and endurance to permit planning and execution of our missions IAW doctrine.

(10) A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

A total of two (2) companies responded to the sources sought notice published in FBO on 22 February 2017. Both companies are authorized Twin Disc service centers.

Great Lakes Power Products, Inc.

7455 Tyler Boulevard Mentor, OH 44060

DUNS 180698847

Large Business

Palmer Johnson Power Systems 1835 Haynes Drive Sun Prairie, WI 53590 608-834-5214

DUNS 966622383

Large Business

(11) A statement of actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for required supplies or services.

The overhaul of these reduction gears will continue to be an ongoing need for the Coast Guard.

Replacement of these reduction gears has been considered, however it has been determined to be cost prohibitive at this time. Due to the fact that the Coast Guard does not own the required technical data, drawings, specifications, etc., to evaluate other than OEM parts, it is not anticipated that any future requirements for OEM parts can be competed on a full and open competition basis. An attempt was made to acquire the data rights from the OEM on August 3, 2017 and the OEM failed to respond to the request; however, historically, the OEM has declined the CG’s requests for proprietary data. The Coast Guard cannot force any OEM to release proprietary information and it is highly unlikely that the Coast Guard will have the required funding to purchase such rights if offered by the OEM. However, every attempt will still be made to obtain applicable drawings, technical data, specifications, etc., from the OEM before any subsequent acquisitions occur. In addition, SBPL will continue to research the market for comparable parts.

(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.

Digitally signed by

VINING.DRENA.SHAVOUN.1288644698

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USCG, cn=VINING.DRENA.SHAVOUN.1288644698

Date:2017.06.2210:10:05 -04'00' 06/22/2017 DRENA S. VINING Date Contracting Officer

(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.

Digitally signed by TURNER.TONY.L.1069571197 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USCG, cn=TURNER.TONY.L.1069571197 Date: 2017.06.22 10:17:47 -04'00'

06/22/2017

TONY L. TURNER Date Technical Representative/COR

(14) Legal Review and Concurrence:

WALSH.CARLIN.R.

1274087184

Digitally signed by WALSH.CARLIN.R.1274087184 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USCG, cn=WALSH.CARLIN.R.1274087184 Date: 2017.08.29 11:42:41 -04'00'

Attorney Date

(15) One Level Above Contracting Officer Review and Concurrence:

WALTER A. MACK JR. Date C&P3 SBPL Supervisor

APPROVAL:

Digitally signed by

VINING.DRENA.SHAVOUN.1288644698

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, VOUN.1288644698 ou=USCG, cn=VINING.DRENA.SHAVOUN.1288644698 Date: 2017.08.29 13:56:44 -04'00'

Contracting Officer Date

MACK.WALTER.AUS

TIN.JR.1134228608

Digitally signed by

MACK.WALTER.AUSTIN.JR.1134228608

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USCG, cn=MACK.WALTER.AUSTIN.JR.1134228608 Date: 2017.08.29 13:51:01 -04'00'

VOUN.1288644698

VINING.DRENA.SHA

TURNER.TONY.L.1069571197

VINING.DRENA.SHA