J A_Electronic_Charts_rev1.pdf

U.S. Coast Guard Navigation Center (NAVCEN) 7323 Telegraph Road

NAVCEN MS 7310

Alexandria, VA 22315-3998

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Solicitation Number: HSCG79-14-R-XNJ040

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by 10 USC 2304(c)(1) and FAR 6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 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, U.S. Coast Guard Navigation Center, located at 7323 Telegraph Road, NAVCEN MS 7310, Alexandria, VA 22315-3998.

2. NATURE/DESCRIPTION OF THE ACTION BEING APPROVED

The U.S. Coast Guard Navigation Center, has a requirement on a sole source basis for the acquisition of all Annual and Seasonal Electronic Chart Cards utilizing other than full and open competition procedures in accordance with Federal Acquisition Regulation (FAR) 6.3 at an estimated cost of $282,138.95 for the base year, and $1,497,450.30 if all four option years are exercised. These chart cards are typically updated twice per year, with mailings in April and October for the Spring and Fall evolutions. Each chart card carries charts of a specific area and, depending on the type of chart plotter, a unit may require more than one chart card per boat based on the unit’s assigned Area of Responsibility. These electronic chart cards and updates are used on various Coast Guard surface assets which include, but are not limited to the following boats; 24 SPC-SW, 25 RB-S, 25 RB-HS, 25 TPSB, 26 TANB, 33 SPC-LE, 41 UTB, 42 SPC- NLB, 45 BU, 45 RB-M, 47 MLB, 49 BUSL, 52 MLB, 55 ANB, 64 ANB, and several other prototype assets and non-standard boat classes. It is intended to award one fixed-price Indefinite Delivery/Indefinite Quantity (IDIQ) contract consisting of one base year plus four option years to Jeppesen Marine, Inc., 133 Falmouth Road, Mashpee, Massachusetts 02649, utilizing procedures established under FAR Part 12, Acquisition of Commercial Items.

3. DESCRIPTION OF SUPPLIES/SERVICES

Request for Proposal (RFP) Number HSCG79-14-R-XNJ040 will be issued for procurement of all Jeppesen Marine Annual and Seasonal Electronic Chart Cards for 2014. These chart cards provide navigational chart data to the Furuno chart plotters, part of the Furuno Scalable Integrated Navigational System (SINS) electronics package installed on USCG boats. All supplies must be provided by the suggested source as an all inclusive acquisition. In regards to warehousing, proper packaging, parts and shipping, it would be advantageous for one source to fulfill these requirements, which will eliminate additional costs. This strategy would be in the best interest of the Government from a logistical, financial, technical and negotiable standpoint.

Furthermore, this acquisition method will sustain sound business practices, allow the ability to

Solicitation Number HSCG79-14-R-XNJ040 1 streamline required supplies and services, and minimize the probability of error.

The Government estimate for this requirement is:

Base/Option Total Base Year $282,138.95 Option Year 1 $290,558.12 Option Year 2 $299,229.86 Option Year 3 $308,161.76 Option Year 4 $317,361.61

Total $1,497,450.30

4. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER THAN

FULL AND OPEN COMPETITION:

This statutory authority permitting other than full and open competition is 10 USC 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 electronic charts supplied by Jeppesen are formatted in a manner which is proprietary to the navigation system OEM (Furuno). They come from several government and private sources.

Jeppesen provides data to them, but most importantly Jeppesen is the exclusive licensee of Furuno to provide the charts in the proprietary format required to work with the Furuno navigation systems that we have on Coast Guard boats. Jeppesen provides a commercial product that has historically satisfied contract performance. This product has proven to be fully functional without error and as a commercial product, the development and quality cost are spread across the marketplace.

Jeppesen Marine retains all rights, title and interest in the copyrights, database rights and other neighboring rights, patents, trade secrets, trademarks, service marks, design rights, proprietary information rights and other intellectual property rights as may exist anywhere in the world in the Data. The Data and certain Materials may be protected by copyright, database rights and other neighboring rights. To the maximum extent permitted by applicable law, such protected works may not be copied, reproduced, translated, modified, adapted, reversed-engineered, decompiled, stored in a retrieval system, or retransmitted in whole or in part, in any form or by any means.

Continued market surveillance has led to the determination that Jeppesen Marine is the only entity with complete and accurate knowledge of the equipment and the electronic chart cards required throughout the Coast Guard. The effort required to duplicate this data would involve contacting every Coast Guard Boat Station and Aid To Navigation Team to verify the equipment

Solicitation Number HSCG79-14-R-XNJ040 2 on hand, the chart(s) required, the quantity of cards per boat and the expiration date of the current subscription. This data call would require several months and numerous personnel resources to complete.

6. DESCRIPTION OF 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 on 11 March 2014, advising the industry that it is the Government’s belief that only Jeppesen Marine, Inc. possesses the necessary proprietary data and original configuration data to supply the Coast Guard with these Electronic Chart Cards.

The notice provided other possible sources 10 calendar days to respond to the notice and provide their capabilities to provide Electronic Chart Cards with equal or greater than Jeppesen Marine quantity discount and with no additional cost for return of expired chart cards or chart cards used for transit. By the closing date of the sources sought notice, there were no responses received.

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 Government will be fair and reasonable based on market research and comparison with prices paid under previous acquisitions.

8. DESCRIPTION OF MARKET RESEARCH:

Extensive market research as prescribed in FAR Part 10 was conducted by the Contracting Officer’s Technical Representative (COTR) and Contract Specialist. The COTR has used extensive experience with Coast Guard boat electronic navigation systems and devices in conducting internet searches to look for other sources that could provide these Electronic Chart Cards. No other sources were located during these searches.

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

OPEN COMPETITION:

Jeppesen Marine, Inc. provides the Government with priority fulfillment of orders. This is an invaluable benefit due to the large number of clients they serve. It ensures that the Coast Guard has all the required chart data on time. Jeppesen Marine, Inc. also has additional programs in place that are provided to the Government. The first is a program for the return of the expired chart card to their offices in Mashpee, MA. They provide a return mailer with each card and can notify the unit and NAVCEN as Inventory Manager of non-returned cards prior to charging the Coast Guard. These cards are reusable and this saves money by not having to purchase new cards every evolution of a subscription shipment.

The second program provides no-cost transit chart cards to units that have to move assets from one chart coverage area to another. As with the first program mentioned, as long as the chart card is returned to Jeppesen Marine, there will be no charge to the Government.

Solicitation Number HSCG79-14-R-XNJ040 3

Based on the data contained in the previous paragraphs, not awarding the contract to Jeppesen Marine Inc., who is the sole licensee of the OEM to supply chart cards in the proprietary format required for them to work with the navigation systems contained on Coast Guard Standard Boats, will prevent the supply of updated electronic charts to Coast Guard Standard Boats, and thus impact public safety

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

INTEREST IN THE ACQUISITION:

There were no sources that expressed an interest in this solicitation as a result of the sources sought synopsis posted on FedBizOpps on 11 March 2014.

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 REQUIRED:

The Electronic Chart Cards requirement for these boats will continue to be an on-going need for the Coast Guard. Replacement of this Electronic Chart Card program cannot be considered at this time because it has been determined that to do so could endanger the crews and mission of the Coast Guard. Due to the fact that the Coast Guard does not own the required drawings, specifications, etc., to evaluate other than Jeppesen Marine Electronic Chart Cards, it is not anticipated that any future requirements can be competed on a full and open competition basis.

The Coast Guard cannot demand 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 Jeppesen Marine. However, every attempt will be made to obtain applicable specifications, etc., from Jeppesen Marine before any subsequent applications occur.

TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION

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

JAMES RADICE Date

CG NAVCEN

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.

CYNTHIA VALDES Date Contracting Officer

Solicitation Number HSCG79-14-R-XNJ040 4

REVIEWED:

TIMOTHY CHENAULT

Legal Counsel Date

APPROVAL:

CYNTHIA VALDES Date Contracting Officer

ANDREW JERNELL Date Chief of Contracting Office

JAMES KOERMER, CAPT, USCG Date Procuring Activity Competition Advocate (PACA)

Solicitation Number HSCG79-14-R-XNJ040 5