HSCG85-15-C-P45865_J A_Redacted.pdf

HSCG85-15-R-P45865

USCGC HEALY MDE Overhaul Services Justification & Approval Page 1

Justification for Other Than Full and Open Competition

Under the Test Program for Commercial Items at 41 U.S.C. 1901 Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements

Pursuant to the requirements of and in accordance with FAR 13.501(a)(ii) the use of the statutory authority under the test program for commercial items at 41 U.S.C 1901 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, United States Coast Guard (USCG), Surface Forces Logistics Center (SFLC), Contract and Procurement Branch 2 (C&P2), 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.

This is a sole source justification for work to be provided for the USCGC HEALY Main Diesel Engine (MDE) Overhaul under Request for Proposal (RFP) HSCG85-15-R- P45865. This justification is for the requirement to provide an Original Equipment Manufacturer (OEM) authorized Facility/Manufacturer/Representative as required to meet the operational needs of the USCGC HEALY. The total estimated cost of work associated with this justification is . This justification is for the following contractor:

Wartsila Defense, Inc.

3617 Koppens Way Chesapeake, VA 23323-2531 Marine Propulsion & Power and Stationary Power Plants U.S. West Coast, Pacific Far East, & U.S. Great Lakes Seattle, WA Office Rich Reynolds, 206-227-2114

This will be solicited as a sole-source, firm-fixed price, commercial contract with a period of performance from date of award, to be determined prior to solicitation release, to 17 April 2015. This contract type was selected based on the estimated contract price and that this is for supplies. The contract will be awarded with allotment funds code (AFC) 45 funds for fiscal year 2015 via procurement request number 2114855P45865.

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(3) Description of Supplies/Services.

The USCG requires the use of the OEM’s authorized service representative(s) and parts to accomplish the attached Scope of Work titled “MDE Technical Representative and Shop Overhaul Services”

A breakdown of the government estimate follows:

Tech rep services at /day for 59 days:

Reports, testing, and sea trials:

Travel for tech rep:

Shop overhaul services:

(4) Identification of Statutory Authority Permitting Other Than Full and Open Competition:

The statutory authority permitting other than full and open competition is the test program for commercial items at 41 U.S.C 1901 implemented by the Federal Acquisition Regulation (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, Wartsila Defense, Inc. (Wartsila) is the only known source to have the access to the proprietary data needed to certify these systems for operation. Any other source would not have access to the needed data, drawings and proprietary information to perform this work.

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

This procurement is posted as DHS-Acquisition Planning Forecast System (APFS) No.

2014025513 at http://apfs.dhs.gov. This requirement was originally issued using simplified acquisition procedures (SAP) for purchases under $150,000.00. A combined synopsis/ solicitation was posted at the Government Point of Entry, FedBizOpps website, on 25Nov14 under solicitation number HSCG85-15-Q-P45002 as a total small business set-aside. The Request for Quote (RFQ) was posted on FedBizOpps with the intention of awarding a firm-fixed price contract; however, as of the notice close date, 08Dec2014, no quotes were received.

The procuring official, SK1 Williamson, contacted the following companies after no quotes were received: Pacific Marine Power, Federal Marine, and Integrated Marine

Justification & Approval Page 3

Services. All three responded back that they were not interested in the requirement and would not quote. The procuring official then contacted Wartsila and they were interested in providing a quote.

Wartsila is the only source for a certified repair shop and qualified tech reps. The original solicitation was open to any contractor that could provide the required services, even if they had to sub-contract it out to Wartsila.

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

The IGE was developed by reviewing the proposals received in the original SAP purchase request 855P45002 and using sound engineering practices to determine the length of time needed to conduct the overhauls.

The Contracting Officer will determine that the anticipated price(s) will be fair and reasonable based on comparison of the government estimate to the submitted pricing by Wartsila. Price analysis will be performed to ensure a fair and reasonable is awarded.

(8) Description of market research.

Through market research it was determined that Wartsila is the only contractor capable of performing the USCGC HEALY MDE Overhaul. Direct contact with industry and posting a SAP purchase request was conducted 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. Additionally, Wartsila has previously provided the repair and technical rep services for the MDE Overhauls as contractor furnished services under HEALY dry dock and dock side contracts.

Internet/Industry Contact - Industry contact revealed that Wartsila was the only interested vendor identified as possessing the necessary skill and expertise, along with drawings, to supply the technical oversight and shop services.

FedLog – NA this contract is for services, not parts.

Acquisition History – The supply of the engines were original equipment that came with the HEALY at the time of its delivery into USCG. In addition, Wartsila has provided technical rep services, and repair of the engines and spare parts for the engines as contractor furnished material under HEALY dry dock and dock side contracts.

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

The company listed is the current OEM and has the proprietary knowledge, design data and drawings to coordinate repairs on the specific systems onboard CGC HEALY. Using other than the parts provided through the OEM, or technical representatives trained and certified by the OEM, posses an unacceptable risk of catastrophic failure to this system.

On 19January15, the Contract Specialist called Wartsila to inquire if they would sell the rights to their drawings. Wartsila provided a memo stating that they would not sell us the proprietary drawings ( ).

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

A combined synopsis/solicitation was issued on FedBizOps on 25Nov2014 requesting that parties express their interest in writing to the Contracting Officer. No responses were received. The procuring official, SK1 Williamson, contacted the following companies after no quotes were received: Pacific Marine Power, Federal Marine, and Integrated Marine Services. All three responded back that they were not interested in the requirement and would not quote. The procuring official, SK1 Williamson then contacted Wartsila and received a reply that they were interested in the USCGC HEALY MDE Overhaul.

(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.

Due to the fact that Wartsila owns the drawings, it is unlikely they will sell the rights of such data to the Coast Guard; however, the Coast Guard will continue to engage Wartsila for the release of proprietary data prior to any subsequent acquisition. In the future, if Wartsila quotes a price for the proprietary data rights, the Coast Guard will weigh the benefits of purchasing the rights at that time.

When subsequent needs arise for these tech rep services market research should be conducted to discover additional capable firms and a sources sought notice posted to FedBizOps.

(12) Amendment to Document

On 25Feb2015, this document was amended to change the authority cited from “Section 4202 of the Clinger-Cohen Act of 1996” to “41 U.S.C. 1901”.