HSCG85-15-R-HEADD16_JA__08Sept15.pdf

Justification and Approval rev.1

HSCG85-15-R-HEADD16

Justification 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

HSCG85-15-R-HEADD16

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 6.303-1, 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 (DHS), United States Coast Guard (USCG), Surface Forces Logistics Center (SFLC), Long Range Enforcement Product Line (LRE PL) proposes to direct a prime contractor on the CGC HEALY Dry Dock FY16 contract to order directly from Original Equipment Manufacturers (OEM) as per the specifications.

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

This is a brand name justification for work to be provided for the CGC HEALY Dry Dock Availability FY16 under Request for Proposal (RFP) HSCG-85-15-R-HEADD16.

This justification is covering the portion of the acquisition which an OEM authorized Facility/Manufacturer/Representative is required. This justification also covers where only one product meets the operational needs of the CGC HEALY. The approval level requirements only apply to these portions. The total estimated cost of work associated with this justification is This justification covers the following subcontractors:

Alfa Laval 5400 International Trade Drive Richmond, VA 23231

Allied Systems Co. Deck Cranes 2300 Oregon Street Sherwood, OR, 97140

International Paint LLC 1541 S. 92nd Place Suite C Seattle, Washington 98108

Omni Thruster 2201 Pinnacle Parkway Twinsburg, OH 44087

Wartsila North America, Inc.

3257 17th Ave. West #3 Seattle, WA 98119

Wilson Walton Marine Allaire Corporate Center 3349 Route 138 Building C Suite E Wall, NJ 07719

Rolls-Royce Naval Marine Inc.

110 Norfolk St Walpole, MA 02081

ABB Inc., BU Turbocharging Tacoma/Seattle Area Service Center 1640-B Marine View Drive Tacoma, WA 98422

(3) Description of Supplies/Services.

The USCG requires the use of OEM or authorized service representatives and parts to accomplish the requirements of Work Items (WI) for an 84 day CGC HEALY Dry Dock availability in fiscal year 2016 (Attachment 1, Price Work Items).

A breakdown of the government estimate follows:

Prospective Work Item Contractor Description

Estimated Total Price

11, 12 Alfa Laval Purifier OEM Tech Rep required for repair oversight and certification

14, 22, 23

International Paint / International Marine Coatings Hull and Rudder Paint

40, 46, 47 Allied Systems Co

Crane OEM Tech Rep required for Inspection and Certification of

Cranes

16, 60 Omni Thruster

Bow thruster OEM Tech Rep required for repair oversight and certification

27, 28, 29 Wilson Walton Marine

Cathodic protection system OEM Tech Rep required for repair oversight and certification

36, 62, 63 Wartsila Marine

Shaft seal and Main Diesel Engine OEM Tech Rep required for repair oversight and certification

Rolls-Royce Propeller

Propeller OEM Tech Rep required for repair oversight and certification

64 ABB

Main Diesel Engine turbo OEM Tech Rep required for repair oversight and certification

(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 FAR Subpart 6.302-1, “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 the authority cited.

Due to the nature of the equipment, the aforementioned subcontractors are the only contractors to have access to proprietary data needed to certify these systems for operation. Any other contractor would not have access to the needed proprietary information (i.e., data and drawings) to perform this work. Details are provided per work item below:

a) WI 11 Fuel Oil Purifier (FOP) Overhaul

The OEM for the vessel’s Fuel Oil Purifier (FOP) system is Alfa Laval. Alfa Laval has several authorized vendors to provide service to their equipment. Vendor is required to provide documentation with a Certificate of Approved training for the Alfa Lava FOP system installed on the vessel. Factory authorized suppliers provide parts and proprietary technical data/drawings only available from the OEM. This maintains all OEM warranties, ensures equipment reliability, and crew safety;

therefore, precluding consideration of a product manufactured by another company

b) WI 12 Lube Oil Purifier (LOP) Overhaul

The OEM for the vessel’s Lube Oil Purifier (LOP) system is Alfa Laval. Alfa Laval has several authorized vendors to provide service to their equipment. Vendor is required to provide documentation with a Certificate of Approved training for the Alfa Lava LOP system installed on the vessel. Factory authorized suppliers provide parts and proprietary technical data/drawings only available from the OEM. This maintains all OEM warranties, ensures equipment reliability, and crew safety;

therefore, precluding consideration of a product manufactured by another company

c) WI 15 Rudder(s), Preserve (“100%”)

The Coast Guard has determined that there is only one product that meets the performance requirements for use on the fleet of heavy ice breakers. The International Marine Coatings, Intershield 163 Interta 160, is specifically designed for use on ice classed ships and ice breaking ships. The properties of the paint ensure the coating will not fail while the ship is operating in extreme and punishing environments of the Arctic and Antarctic waters. Premature failure of the hull paint will lead to hull steel wastage and reduce the ships ability to break ice.

d) WI 16 Thruster Unit (General) Overhaul

The OEM for the vessel’s bow thruster system is Omni Thruster. Omni Thruster has only one authorized vendors to provide service to their equipment. Vendor is required to provide documentation with a Certificate of Approved training for the Omni Thruster system installed on the vessel. Factory authorized suppliers provide parts and proprietary technical data/drawings only available from the OEM. This maintains all OEM warranties, ensures equipment reliability, and crew safety; therefore precluding consideration of a product manufactured by another company.

e) WI 22 U/W Body, Preserve (Partial)

Marine Coatings, Intershield 163 Interta 160, is specifically designed for use on ice classed ships and ice breaking ships. The properties of the paint ensure the coating will not fail while the ship is operating in extreme and punishing environments of the Arctic and Antarctic waters. Premature failure of the hull paint will lead to hull steel

f) WI 23 Stern Tube Interior Surfaces, Preserve 100% (Optional)

Marine Coatings, Intershield 163 Interta 160, is specifically designed for use on ice classed ships and ice breaking ships. The properties of the paint ensure the coating will not fail while the ship is operating in extreme and punishing environments of the Arctic and Antarctic waters. Premature failure of the hull paint will lead to hull steel

g) WI 27 Impressed Current Cathodic Protection System, Inspect and Maintain

The OEM for the vessel’s impressed Current Cathodic Protection system is Wilson Walton Marine. Wilson Walton Marine has several authorized vendors to provide service to their equipment. Vendor is required to provide documentation with a Certificate of Approved training for the Wilson Walton Marine system installed on the vessel. Factory authorized suppliers provide parts and proprietary technical data/drawings only available from the OEM. This maintains all OEM warranties, ensures equipment reliability, and crew safety; therefore precluding consideration of a product manufactured by another company.

h) WI 28 Impressed Current Cathodic Protection System Anodes, Renew service to their equipment. Vendor is required to provide documentation with a Certificate of Approved training for the Wilson Walton Marine system installed on the vessel. Factory authorized suppliers provide parts and proprietary technical data/drawings only available from the OEM. This maintains all OEM warranties,

i) WI 29 Impressed Current Cathodic Protection System Reference Cells, Renew

(Optional) service to their equipment. Vendor is required to provide documentation with a Certificate of Approved training for the Wilson Walton Marine system installed on the vessel. Factory authorized suppliers provide parts and proprietary technical data/drawings only available from the OEM. This maintains all OEM warranties,

j) WI 36 Propulsion Shaft Seals, Mechanical Overhaul and Inflatable Seal Renewal

The OEM for the vessel’s propulsion shaft seal is Wartsila. Wartsila has several authorized vendors to provide service to their equipment. Vendor is required to provide documentation with a Certificate of Approved training for the Wartsila system installed on the vessel. Factory authorized suppliers provide parts and proprietary technical data/drawings only available from the OEM. This maintains all OEM warranties, ensures equipment reliability, and crew safety; therefore precluding consideration of a product manufactured by another company.

k) WI 37 Propeller Hubs, Removal and Reinstallation

The OEM for the vessel’s propulsion shaft seal is Wartsila. Wartsila has several authorized vendors to provide service to their equipment. Vendor is required to provide documentation with a Certificate of Approved training for the Wartsila system installed on the vessel. Factory authorized suppliers provide parts and proprietary technical data/drawings only available from the OEM. This maintains

l) WI 40 04 Deck Cranes TB 100-55, Biennial Overhaul

This work item is an annual regulatory requirement by the USCG in accordance with COMDTINST M9000.6. This item requires the oversight by the OEM or factory authorized tech rep for annual recertification in accordance with Technical Publication 4979 and NSTM 589. Additionally, only a factory authorized tech rep will have access to the proprietary data and specialty tools needed to complete the certification and maintenance.

m) WI 46 Aft Port Crane K15-45, Biennial Overhaul authorized tech rep for annual recertification in accordance with Technical Publication 4979 and NSTM 589. Additionally, only a factory authorized tech rep

n) WI 47 Bow Crane TB 60-65, Biennial Overhaul authorized tech rep for annual recertification in accordance with Technical Publication 4979 and NSTM 589. Additionally, only a factory authorized tech rep

o) WI 60 Bow Thruster Steering Vane Repairs

The OEM for the vessel’s bow thruster system is Omni Thruster. Omni Thruster has only one authorized vendors to provide service to their equipment. Vendor is required to provide documentation with a Certificate of Approved training for the Omni

Thruster system installed on the vessel. Factory authorized suppliers provide parts and proprietary technical data/drawings only available from the OEM. This maintains

p) WI 62 Main Diesel Engine Maintenance

The OEM for the vessel’s main diesel engines (MDE) is Wartsila. Wartsila has several authorized vendors to provide service to their equipment. Vendor is required to provide documentation with a Certificate of Approved training for the Wartsila system installed on the vessel. Factory authorized suppliers provide parts and proprietary technical data/drawings only available from the OEM. This maintains all OEM warranties, ensures equipment reliability, and crew safety; therefore precluding consideration of a product manufactured by another company

q) WI 63 MDE Post Operational Repairs Testing

The OEM for the vessel’s main diesel engines (MDE) is Wartsila. Wartsila has several authorized vendors to provide service to their equipment. Vendor is required to provide documentation with a Certificate of Approved training for the Wartsila system installed on the vessel. Factory authorized suppliers provide parts and proprietary technical data/drawings only available from the OEM. This maintains all OEM warranties, ensures equipment reliability, and crew safety; therefore precluding

r) WI 64 MDE Turbo overhaul

The OEM for the vessel’s main diesel engine (MDE) turbo is ABB. ABB has several authorized vendors to provide service to their equipment. Vendor is required to provide documentation with a Certificate of Approved training for the ABB system installed on the vessel. Factory authorized suppliers provide parts and proprietary technical data/drawings only available from the OEM. This maintains all OEM warranties, ensures equipment reliability, and crew safety; therefore precluding

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

This pertains to the overall acquisition of the CGC HEALY Dry Dock FY16. An Acquisition Planning Forecast Record number F2014023008 was posted December 12, 2014, at http://apfs.dhs.gov. Additionally, as required by FAR Subpart 5.2 a sources sought notice was posted on the Federal Business Opportunities (FedBizOpps) site on March 15, 2015 detailing the work and notifying industry of the future acquisition. It also invited vendors with the expertise and required knowledge for this work to submit information discussing such capabilities. The notice closed on March 30, 2015. Four interested vendor responses were received.

A Request for Proposal (RFP) will be issued on the Government Point of Entry, FedBizOpps website, with the intent of awarding a firm-fixed price contract. This Justification and Approval will be posted with the solicitation on the FedBizOpps website.

Any prospective contractor will be required to use OEM or OEM authorized vendor(s) as a subcontractor to perform the work in the related WIs.

(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 Independent Government Estimate and previous acquisition history with CGC HEALY dry docks. Price analysis will be performed to ensure a fair and reasonable price is negotiated in accordance with FAR 15.404.

(8) Description of market research.

Market research was conducted by the project manager to determine if there were any other viable resources available to meet the needs of this justification; however, due to the proprietary nature of the systems involved only the OEM certified technical representatives will be capable of performing the service required. All prime contractors will be required to order services and/or supplies from the identified OEMs in the specifications.

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

Each of the contactors listed in this Justification and Approval are the current OEM and have the proprietary knowledge, design data and drawings to coordinate repairs on the specific systems onboard CGC HEALY. Using other than the technical services and parts provided through the OEM would pose an unacceptable risk of catastrophic failure to this system.

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

The following four companies responded with interest to the Sources Sought Notice for the CGC HEALY Dry dock FY2016 :

1. Vigor Marine, LLC (large business)

5555 N. Channel Ave, Portland OR 97217 POC: Anna Hummel, Anna.Hummel@vigorindustrial.com

(503) 247-1592 Phone

(503) 247-1462 Fax anna.hummel@vigorindustrial.com <mailto:anna.hummel@vigorindustrial.com>

2. Mare Island Shipyard, LLC (small business) 1180 Nimitz Ave. Bldg 1326 Vallejo, CA 94592 POC: Steven Emblem, semblem@mareislanddrydock.com

(707) 652-7356 ext. 107 Phone

(707) 649-0408 Fax

3. Integrated Marine Services, Inc. (small disadvantaged business) 2320 Main Street

Chula Vista, CA 91911 POC: Yolanda Ochoa, yochoa@integratedmarineservices.com

(619) 429-0300 Phone

(619) 429-0700 Fax www.integratedmarineservices.com <http://www.integratedmarineservices.com/>

4. GMD Shipyard (small business)

Brooklyn Navy Yard Bldg. #595 65 Flushing Ave., Unit #276 Brooklyn, NY 11205

POC: Maria Reinares, mreinares@gmdshipyard.com

(718) 260-9200 Phone

(718) 260-9284 Fax

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

For the reasons detailed in Paragraph 5, the USCG has no plans at this time to allow prime contractors to solicit these requirements competitively. If another potential source emerges, the USCG will assess whether competition for future requirements is feasible.

For all other work items under RFP HSCG-85-15-R-HEADD16, there are no restrictions limiting competition to only OEM or authorized service representatives or technicians.

*Note: Entire Signature page is redacted. The signature page was the last page of this Justification and Approval document.

Justification and Approval for CGC HEALY Dry Dock FY16 Attachment 1, Price Work Items

Rev 1

Item Description D-001 Hull Plating (U/W Body), Inspect D-002 Appendages (U/W), Leak Test D-003 Voids (Non-Accessible), Leak Test D-005 Tanks (Ballast), Clean and Inspect D-006 Propulsion Shaft Alignment(DD), Check O-007 Propulsion Shaft Coating, Renew (Optional) D-008 Propulsion Shaft Bearings (External), Check Clearances D-009 Propulsion Stern Tube Bearings, Check Clearances D-010 Propulsion Shaft Bearing Staves, Renew D-011 Fuel Oil Purifier (FOP) Overhaul D-012 Lube Oil Purifier (LOP) Overhaul D-013 Fathometer Transducer, General Maintenance D-014 Rudder, Remove, Inspect and Reinstall D-015 Rudder(s), Preserve (“100%”) D-016 Thruster Unit (General) Overhaul D-017 Internal Hoist, Level 1 Inspect and Test D-018 Anchor Chain(s) and Ground Tackle, Inspect and Repair D-019 Port Miranda davit, Inspect and Repair – Annual Inspection D-020 Starboard Miranda davit, Biennial Inspection D-021 Tanks (Ballast), Preserve “100%” D-022 U/W Body, Preserve (Partial) O-023 Stern Tube Interior Surfaces, Preserve 100% (Optional) D-024 Hull Plating Freeboard, Preserve - Partial D-025 Superstructure, Preserve “Partial” D-026 Cathodic Protection / Zinc Anodes, Renew D-027 Impressed Current Cathodic Protection System, Inspect and Maintain D-028 Impressed Current Cathodic Protection System Anodes, Renew

O-029 Impressed Current Cathodic Protection System Reference Cells, Renew (Optional)

D-030 Impressed Current Cathodic Protection System Dielectric Shield, Renew D-031 Dry dock D-032 Temporary Services, Provide - Cutter D-033 Sea Trial Performance, Support, Provide D-034 Tanks (Aviation Fuel Service), Clean and Inspect D-035 Chain Lockers, Clean and Inspect D-036 Propulsion Shaft Seals, Mechanical Overhaul and Inflatable Seal Renewal D-037 Propeller Hubs, Removal and Reinstallation D-038 Boiler Tubes, Renew All Boiler Tubes on Boiler #2 D-039 Sea Valves and Waster Pieces, Overhaul or Renew D-040 04 Deck Cranes TB 100-55, Biennial Overhaul

Justification and Approval for CGC HEALY Dry Dock FY16 Attachment 1, Price Work Items

Rev 1

D-041 Boiler, Annual Maintenance D-042 Seawater Strainers (All Sizes), Minor Service and Inspect D-043 Pilot House Window Repairs D-044 Decks Exterior, Preserve - Science Working Deck D-045 A-Frames, Biennial Inspection D-046 Aft Port Crane K15-45, Biennial Overhaul D-047 Bow Crane TB 60-65, Biennial Overhaul D-048 Damage Control and Firefighting Systems, PMS O-049 Deck Socket, Modify (Optional) O-050 Deck Socket Renewal (Optional) D-051 Flex Hose Assemblies, Renew D-052 Pressure Gauges and Thermometers, Calibrate D-053 Piping Insulation, Renew D-054 System Relief Valves, Test D-055 RTD Sensors And Thermocouples, Calibrate D-056 Valves, Overhaul D-057 Valves, Renew D-058 Tanks (Ballast), Preserve “Partial” O-059 Tanks (Ballast), Preserve “Partial” (Optional) D-060 Bow Thruster Steering Vane Repairs D-061 Main Seawater Strainer Overhaul D-062 Main Diesel Engine Maintenance D-063 MDE Post Operational Repairs Testing D-064 MDE Turbo Overhaul D-065 Portable Stern Chock Deck Socket Repair D-066 Evaporator (General) Overhaul D-067 Propulsion Shaft Liners, Skim Cut All Shaft Liners O-00A Composite Labor Rate D-00B GFP Report O-00Z Laydays