JOTFOC_redact_Redacted.pdf

2117857P45C78

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 Solicitation No. HSCG85-17-Q-P45C78

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by Federal Acquisition Regulation (FAR) Subpart 6.3 and Federal Acquisition Regulation (FAR) 13.5, Simplified Procedures for Certain Commercial Items 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, United States Coast Guard (USCG), Surface Forces Logistics Center (SFLC), Long Range Enforcement Product Line (LRE PL).

2. Nature/Description of the Action: The United States Coast Guard (USCG) has a requirement, on a sole-source basis, to purchase a Superior-Lidgerwood-Mundy Corporation (SLM) brand Centerline Line Winch (CLW) for USCG 418’ Maritime Security Cutter (WMSL). The SFLC anticipates that a firm fixed-price purchase order to Superior-Lidgerwood-Mundy Corporation, 301 Grand Ave, Superior, WI will be awarded utilizing the procedures set forth in FAR Part 12, Acquisition of Commercial Items, FAR Subpart 13.5 Simplified Procedures for Certain Commercial items, and FAR Part 15, Contracting by Negotiation.

3. Description of Supplies/Services: This contract will address the need onboard the USCGC BERTHOLF to renew a mission-critical boat handling system. Failing to complete this maintenance will inhibit BERTHOLF from conducting the essential mission function of launching and recovering small boats. Not completing the Maintenance places an unacceptable risk since the existing system is in a severely degraded condition. The effects of not completing the maintenance will be felt during BERTHOLF’s patrol following the FQ4 FY17 dockside availability. If the CLW is not renewed prior to BERTHOLF’s next patrol, the Coast Guard can expect the following events to unfold: The CLW will begin to operate outside of its designed parameters, which will cause a degradation in performance of safe small boat operations and will directly impact mission success and lead to catastrophic casualty.

A breakdown of the government estimate follows:

CLIN Item Description Total

001 Centerline Winch Assembly

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

The 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” and 41 U.S.C. 1901 for the use of the Simplified Procedures for Certain Items, as implemented by FAR 13.5.

5. Demonstration that the Nature of the Acquisition Requires Use of the Authority Cited:

This acquisition must be made using brand name parts and assemblies. The applicable statutory authority applicable is 10 USC 2304(c)(1) due to the OEM being the only known sources that possess the required capabilities, drawings, specifications, engineering control procedures and proprietary methods to ensure the design configurations and quality control meet the latest engineering specifications and requirements. Limitation to the use of OEM parts is as follows:

The Center Line Winch (CLW) is critical to the safe and efficient operation the BERTHOLF during operations. Using other than OEM pats could result in failure of the vessel’s boat handling system. SLM is the only source who can deliver the correct system to BERTHOLF within the designated performance period safely, proficiently, and with an acceptable risk to Coast Guard’s finances and operational readiness. During acquisition of the National Security Cutters, SLM served as the CLW Integrator. This role enabled them to establish working relationships with all of the commercial vendors that provided such boat handling equipment for the National Security Cutters. These relationships give them the ability to provide a unique service and product not available from other contractors. In order to insure this project is completed correctly and on time, it is vital to utilize these capabilities.

Attempting to complete this work without OEM proprietary data or using other than OEM parts is not a viable option and could cause failure to occur; degradation to the vessel’s primary mission could result in a failure to meet Coast Guard operational commitments.

Using 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 and functionality of the equipment being repaired. Using other than OEM parts could shorten the mean time between failures of this equipment. Any schedule slip in the execution of this maintenance jeopardizes the USCGC BERTHOLF’s congressionally mandated operational schedule.

Following the inport, USCGC BERTHOLF will embark on another long patrol. This makes it critical that the scheduled maintenance is completed. Not completing this scheduled maintenance in a timely fashion jeopardizes the reliability and performance of BERTHOLF’s primary boat handling equipment. If some of the components that are affected by the maintenance were to fail, it would cost untold money to repair and would consume an unacceptable number of operational days. From a financial and operational readiness perspective, the Coast Guard cannot afford to defer this maintenance.

Maintaining the CLW and ensuring its reliability is necessary to complete critical missions.

Congress has mandated that the Coast Guard increase the 418' WMSL Days Away From Home Port (DAHFP) from the current standard of 185 DAFHP to 210 DAFHP. This congressional mandate also requires the Coast Guard to eventually increase this operational tempo to 235 DAFHP. The new maintenance takes the increased operational tempo into account, so as to ensure they meet the high reliability-standard. It also puts BERTHOLF's congressionally mandated operational schedule at significant risk. The operational impact to primary and secondary missions is described below:

- Search and Rescue: This is the most common and visible mission of the United States Coast Guard. Since these missions deal with life and death, the CLW must meet an exceptionally high standard for reliability and performance. Having a fully functioning CLW is the best way to assure this.

- Counter Narcotics Operations: When intelligence is received or a target is located, a cutter without an operational CLW cannot launch or recover the necessary small boats in the stern launch as designed. This will significantly degrade the cutter’s ability to respond.

- Fisheries Enforcement: Fisheries boardings are vital operations that require the cutter to station-keep off of a fishing vessel with a boarding team onboard. Without an operating boat launch and recovery system this mission is impossible. Fisheries Enforcement patrols will require the CLW to be constantly engaged with predictable performance.

- Training: The Coast Guard has not become proficient enough to complete the maintenance with 100% certainty. The Coast Guard plans on having technicians shadow and learn from the OEM. Having the maintenance completed by the OEM will ensure that the Coast Guard learns the correct methods and will be able to complete it in the future.

These combined impacts significantly reduce the ability of BERTHOLF to support US interests around the globe.

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. F2017036478 at http://apfs.dhs.gov on March 10, 2017.

In accordance with FAR Subpart 5.203, an effort to solicit as many potential sources as practicable, a Sources Sought Notice was posted on the Federal Business Opportunities Website from April 06 2017 to April 21, 2017. This notice informed the industry of the CG’s intent to purchase these a new SLM Centerline Winch Assembly manufactured by the OEM, Superior-Lidgewood-Mundy Corp. Other organizations having the expertise and required capabilities to provide an equivalent winch were invited to submit information discussing such capabilities within fifteen (15) calendar days after the posting date. The notice yielded one expressing interest in this project. The one interest was the OEM, Superior-Lidgewood- Mundy Corp.

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 IGE, market research, previous history, and if necessary, will conduct price negotiations. Price analysis will be performed to ensure a fair and reasonable price is determined in accordance with FAR 15.404. Finally, the Contracting Officer may request data other than certified cost or pricing data in accordance with FAR 15.403-3 if the initial price analysis does not result in the Contracting Officer’s ability to determine the proposed prices fair and reasonable.

8. Description of Market Research:

Extensive market research was conducted by the Contracting Officer’s Representative (COR) between October 2016 – March 2017 as an effort to identify companies that can provide the requested services. Market research was conducted by identifying various companies on Internet searches, direct contact with industry, as well as reviews of previous government contracts were researched to look for companies that were capable of providing sufficient components.

Research revealed that during the acquisition of the WMSL class vessels served as the integrator of the Center Line Winch (CLW), and therefore all WMSL class vessels are equipped with SLM brand winches.

Other Marine Contractors on the West Coast and throughout the country do not have the technical knowledge to provide the necessary CLW system on time, without government assuming significant risk. Removing SLM from the contract would subject the execution of this contract to unacceptable schedule and technical risks that would jeopardize BERTHOLF’s congressionally mandated operational schedule and the vessel’s ability to perform the Coast Guard’s missions safely.

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

The SLM CLW must conform to design, materials and operational requirements. As stated above, manufacturing drawings specifications and other technical data are proprietary to

SLM. SLM refused to sell this proprietary data to the USCG. Any attempt to manufacture these parts without the proper specifications, drawings and technical data could result in damage to the diesel engines, fire and serious bodily harm if the system components were to fail.

The Government does not possess the technical data and/or drawings pertaining to the manufacturing of SLM 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 the Government possess the independent expertise to evaluate other manufacturer’s parts. These assemblies of a SLM Center Line Winch are designed, engineered, and built to close tolerances and have undergone numerous shop tests and rigorous operational testing before being certified and approved by the OEM for use by the end user. After market (non-OEM) parts manufacturers do not have access to this proprietary information and therefore could not produce parts that are equal.

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

A synopsis requesting that parties express their interest in writing to the contracting officer was posted in FedBizOpps under HSCG40-17-S-31730 on 04/06/17 and closed on 04/21/17.

Superior-Lidgewood-Mundy Corp is the only source that expressed interest in this requirement.

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 required:

Currently, the CG has no CLW parts on hand and this will be one-time purchase for the Coast Guard. Following installation of the new CLW, the old winch will be overhauled and added into inventory as a spare part for use by other WMSL class cutters. BERTHOLF is the first of her class. Therefore, most ship system issues that arise are first seen onboard this particular cutter. The procurement of the CLW and addition of another CLW into CG inventory is a small upfront cost that will ensure uninhibited and safe small boat operation for the entire WMSL fleet.

12. Technical/Requirements Personnel Certification. I certify this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for this justification, is complete and accurate.

Contracting Officer’s Representative Date

13. 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.

Contracting Officer Date

14. Legal Review and Concurrence:

Procurement Law Attorney Date

APPROVAL:

Contracting Officer, Level Above Date