JOTFOC_Wartsila_Defense_Seal_Assemblies.pdf

Justification and Approval 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

PR # 2113403AN005 ($433,933.55)

Pursuant to the requirements of the Competition in Contracting Act (CICA) as Implemented by FAR subpart 6.3 and in accordance with the requirements of FAR 6.302-1, 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 6.302-1 as follows:

1. Agency and Contracting Activity: The Department of Homeland Security, USCG Surface Forces Logistics Center (SFLC) located at 2401 Hawkins Point Rd., Baltimore, MD 21226 proposes to enter into a contract on a basis other than full and open competition.

2. Nature and/or Description of the Action Being Approved: SFLC Baltimore, MD proposes to enter into a contract on the basis of other than full and open competition with Wartsila Defense, the Original Equipment Manufacturer (OEM) for the purchase of the following parts:

a. 5 Major Stern Tube Seal Assembly Replacement Parts Kits, Part Number

JCL00169-000, $52,586.71 each

b. 5 Log Shaft Seal Assembly Replacement Parts Kit, Part Number US-76463-01, $34,200.00 each

This justification and approval covers the acquisition requiring OEM parts from Wartsila Defense that are used on WLB-225 and WTGB-140 Class vessels and are required to support the Surface Forces Logistics Center (SFLC) stocking.

3. Description of Supplies/Services. This requirement is for the replacement parts for the major stern tube seal assembly used on the WLB-225 Class Buoy Tenders and the log shaft seal assembly used in the WTGB-140 Class Ice Breaking Tugs. The seal assemblies are an integral and critical part of the cutters propulsion system. The current Coast Guard fleet consists of 16 WLB-225 and 9 WTGB-140 cutters. It is imperative that parts used to repair or replace shaft seals and stern tube seals equipment are the exact form, fit, and function to the parts being replaced. The technical information for the intended parts is proprietary to Wartsila Defense. The independent government estimate for this acquisition is $433,933.55. The independent government estimate was derived from previous history and similar type parts.

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) as implemented by Federal Acquisition Regulation (FAR), Subpart 6.302-1 for reasons that there are a limited number of responsible sources that can satisfy the requirement for mandatory parts.

BBryan Highlight

BBryan Highlight

BBryan Highlight

5. Demonstration that the Nature of the Acquisition Requires Use of the Authority Cited: This acquisition must be made solely from Wartsila Defense, the original equipment manufacturer. Wartsila Defense is the only source that possesses the required capabilities, drawings, specifications, engineering control procedures and proprietary methods to ensure the configuration, manufacturing and quality control required to produce the parts are to the proper engineering specifications and requirements.

Using other than OEM parts could cause failure to occur; degradation to the vessels primary mission could result in the loss of life and property or failure to meet Coast

Guard operational commitments. The 225’ WLB and 140’ WTGB operates independently of other vessels and inferior quality parts, parts that do not fit or are not fully compatible with the equipment being repaired would not only delay the already expensive repair, but could further degrade the reliability, functionality of the equipment being repaired, degrade the reliability and drastically shorten the meantime between failures of this equipment.

Reverse engineering has not been pursued because of the criticality of the equipment in which the parts are installed. Without drawings and tolerances, risky assumptions must be made as to clearances and tolerances required between the various moving parts.

Further complicating the reverse engineering process, there is no way of telling whether the OEM part being reverse engineered has been manufactured on the high side or low side of the allowed tolerance. Without this critical information, the resultant reverse engineered parts could cause damage or failure to the equipment in which they are installed.

6. Description of Efforts Made to Ensure that Offers are Solicited from as many potential sources as is practicable. All reproduction manufacturing drawings, specifications, and other technical data pertaining to the parts were not purchased when the original equipment procured and unsuccessful attempts have been made to procure the data rights. The Coast Guard does not possess manufacturing data required to obtain full and open competition. Further, the scope of manufacturing, special tools and equipment required to manufacture the various parts are unknown.

The technical data that is needed is proprietary. In an effort to promote full and open competition, Wartsila Defense was contacted by Timothy R. Pejza, Mr. Scott Miller, Wartsila Defense, Inc. General Sales Manager declined his request.

7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer anticipates the cost to the Government will be fair and reasonable based upon cost/price negotiations with the Contractor and previous history.

8. Market Research: Market research was performed via the internet on January 22 and 23, 2013 for contractors that may possess the necessary technical data, drawings, manufacturing data, specifications and repair tolerances, and that could provide OEM parts. The following companies are authorized to provide the Wartsila Defense seals:

• Wartsila Defense, Cage Code: 0EYA6, under Part Numbers: US76463-01 and

JCL00169-000

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition: The government does not possess the technical data and/or drawings pertaining to the manufacturing of the parts, 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 government possess the independent expertise to evaluate other manufacturer’s parts.

10. A Listing of the Sources, if any that Expressed in Writing an Interest in the

Acquisition. A synopsis was issued in FedBizOps on February 13, 2013 requesting that parties express their interest in writing to the Contracting Officer. No responses were received from any other parties except Wartsila Defense Inc.

11. A Statement of the Actions, if any, the Agency May Take to Remove or

Overcome Barriers to Competition before any subsequent acquisition for required supplies. Wartsila Defense owns all data rights; however, attempts will continue in the future to purchase the data in an effort to break these items out for Full and Open Competition.

Justification and Approval 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

PR # 2113403AN005 ($433,933.55)

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.

Sandra Martinez Contracting Officer

13. Technical/Requirements Personnel 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 knowledge and belief

Andrew G Ollerman

14. Approval

Linda C. Cho Contracting Officer