JA ALCO 251 Overhaul Parts Kits Redacted.pdf

Justification for Other than Full and Open Competition

10 U.S.C. § 3204(a)(1)

Only One Responsible Source and no Other Supplies or Services Will Satisfy Agency

Requirements.

Solicitation Number – 70Z08024RAG294

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal

Acquisition regulation (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 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), Contracting and Procurement Division 1 (C&PD1), 2401 Hawkins Point Road, Baltimore, MD 21226.

2. Nature and/or Description of the Action Being Approved.

The purpose of this J&A is to allow the USCG SFLC to solicit and award a requirements-type contract on a sole source basis for the purchase of ALCO 251 engine overhaul parts kits to support the Medium Endurance

Cutter Product Line (MECPL) and the Long-Range Enforcers Product Line (LREPL). The kits are required for the recurring purchase and overhaul needs for maintaining inventory stock and providing kits for planned maintenance in support of the ALCO 251 main diesel engines (MDE) installed onboard the vessels. The

Government intends to award one (1) requirements-type contract, with firm-fixed price delivery orders, consisting of one (1) 12-month base period and four (4) 12-month option periods. The total estimated value of this requirement is The contract will utilize the procedures established under FAR Part

12, Commercial Items and FAR Part 15, Contracting by Negotiation. The procurement will be completed via issuance of individual delivery order(s) which are anticipated to be funded using Operating and Support

(O&S) funding.

The kits are used on USCG WMEC 210’, 270’ cutters and WAGB 399’ class cutter, USCGC POLAR STAR.

The requirement consists of twenty-three (23) various parts kits with estimated annual procurements ranging from as little as one (1) anticipated over the life of the contract to several per year to support anticipated demands. The SFLC has previously purchased parts kits as part of previous contract HSCG80-16-D-P45D58 with Fairbanks Morse which expired on 20 April 2021. This requirement allows for the purchase of the parts kits within specified periods of time to meet planned maintenance schedules as well as any unplanned requirements that may arise.

The total estimated annual costs for the estimated quantities noted above, inclusive of a and inflation factor, are shown below:

Description Base

Year

Option

Year 1

Option

Year 2

Option

Year 3

Option

Year 4

70Z08024RAG294

ALCO 251 Overhaul Parts Kits

Period of Performance: FY 2024-FY 2029

3. Description of Supplies/Services.

A total of twenty-three (23) parts kits, containing OEM certified parts, are listed below and each kit line item will provide an estimated quantity that is anticipated each year. The different types of parts kits include fifteen

(15) various Center Section and Top End engine overhaul kits used on the 210’ and 270’ Medium Endurance

Cutters and eight (8) various overhaul kits (included Top End, Center Section, Camshaft and Governor Drive kits) to support POLAR STAR, Long Range Enforcers Produce Line’s (LREPL) icebreaking vessel. These kits are necessary to support the fifty-four (54) ALCO engines installed on WMECs and the eighteen (18) ALCO engines installed on the WAGB Polar Class vessel.

There is a bill of materials (BOM) for each line item which identifies all of the parts that make up that individual kit. These parts kits are intended to be purchased to fill inventory stock, at the USCG SFLC warehouse in Baltimore, MD, as well as for direct delivery to vessels for scheduled diesel engine inspections and routine maintenance.

The USCG maintenance program requires the availability of and USCG depot level stocking of Fairbanks Morse engine parts kits in support of scheduled/planned maintenance of ALCO 251 model engines installed aboard

USCG MECPL and LREPL cutters. All parts kits, as identified below, shall be available from USCG inventory or from the Fairbanks Morse storage facility, for those kits not capable of being stowed in the SFLC warehouse in Baltimore, MD. The overhaul kits range in size and complexity. Storage costs will be made a part of the schedule of pricing as it is anticipated to be required for the Center Section Overhaul Kits for the 270’s and

POLAR STAR due to the inability to store at the Coast Guard YARD warehouse or grounds due to size capacity and exposure to weather related hazards. The need will be determined at time of order placement, or it may be necessary to modify delivery orders to incorporate the storage fees if it is later determined that a schedule has been changed and direct delivery is no longer feasible. The kits are assembled and held for Quality

Assurance (QA) inspection prior to final shipment or storage.

Top End Overhaul Kits (TEO) (210’/270’ WMEC’s)

TEO Kit, NSN 2815-01-672-5544, P/N 2500860, 210-A No.2 Main Diesel Engine (MDE)

TEO Kit, NSN 2815-01-670-4063, P/N 2500861, 210-B No.1 MDE

TEO Kit, NSN 2815-01-672-5554, P/N 2500862, 210-A No.1 MDE

TEO Kit, NSN 2815-01-672-5604, P/N 2500863, 210-B No. 2 MDE

TEO Kit, NSN 2815-01-672-5749, P/N 2500864, 270 No. 1 MDE

TEO Kit, NSN 2815-01-672-5744, P/N 2500865, 270 No. 2 MDE

Center Section Overhaul Kits (CSO) (210’/270’ WMEC’s)

CSO Kit, NSN 2815-01-623-5786, P/N 2500521, 210-A No. 1 MDE

CSO Kit, NSN 2815-01-623-5594, P/N 2500522, 210-A No.2 MDE

CSO Kit, NSN 2815-01-624-5401, P/N 2500532, 210-B No. 1 MDE

CSO Kit, NSN 2815-01-632-5922, P/N 2500524, 210-B No. 2 MDE

CSO Kit, NSN 2815-01-625-3225, P/N 2500525, 270 No. 1 MDE

CSO Kit, NSN 2815-01-623-7020, P/N 2500526, 270 No. 2 MDE

210’/270’ MDE Inspection Parts Kits

MDE Inspection Parts Kits, WMEC 210A Class DE Engine DEI Parts Kit

Total Estimated Value:

MDE Inspection Parts Kits, WMEC 210B Class B Engine DEI Parts Kit

MDE Inspection Parts Kits, Main Diesel Engine DEI Parts Kit, WMEC 270

USCGC POLAR STAR Overhaul Kits

TEO Kit, NSN 2815-01-F19-5920, P/N 500866, SVK, CGC POLAR STAR 16 Cyl

CSO Kit, NSN 2815-01-F19-5921, P/N 2500867, SVK, CGC POLAR STAR, 16 Cyl

TEO Kit, NSN 2815-01-F19-5924, P/N 2500868, SVK, CGC POLAR STAR, 8 Cyl

CSO Kit, NSN 2815-01-F19-5925, P/N 2500869, SVK, CGC POLAR STAR, 8 Cyl

Camshaft Kit, NSN 2815-01-F19-5922, P/N 2500870, SVK, CGC POLAR STAR, 16 Cyl

Camshaft Kit, NSN 2815-01-F19-5926, P/N 2500871, SVK, CGC POLAR STAR, 8 Cyl

Governor Drive Kit, NSN 2815-01-F19-5923, P/N 2500412, SVK, CGC POLAR STAR, 16 Cyl

Governor Drive Kit, NSN 2990-01-F21-6418, P/N 2500413, SVK, CGC POLAR STAR, 8 Cyl

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

The statutory authority permitting other than full and open competition is 10 U.S.C. 3204(a)(1) as Implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-1 titled “Only One Responsible Source and No

Other Supplies or Services Will Satisfy Agency Requirements”.

5. Identification of Exception to the Buy American Statute.

No exceptions to the Buy American Act have been identified.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the

Acquisition Require use of the Authority Cited.

Fairbanks Morse LLC. is the OEM and the only known source that possesses the required capabilities, drawings, specifications, engineering control procedures and proprietary data to manufacture and update these part kits to the latest engineering specifications and requirements for the ALCO 251 engines installed on

USCG WMEC 210’ and 270’ cutters and on WAGB 399’ Polar cutter. Fairbanks Morse, LLC. has no authorized dealers, distributors, or repair facilities, making them the sole source for providing OEM parts and parts kits. The use of OEM part kits is necessary to ensure these kit parts are manufactured in accordance with

OEM specifications and standards, conform to original form, fit and function, and are OEM certified as compatible and interchangeable with existing kit components. Using other than OEM components and parts would be an extremely high risk as the main propulsion and auxiliary generator sets are critical to the cutter’s mission. A malfunction or failure of the engine could result in the loss of mission execution capabilities and a compromise to cutter preparedness. The cutters operate independently, in remote areas of the world, on missions of homeland security, search and rescue, law enforcement and protection, Alien Migrant Interdiction

Operations (AMIO), drug interdiction and fisheries patrol. Medium Endurance Cutters must be able to retain operational readiness when deployed. Additionally, USCGC POLAR STAR’s mission readiness is vital to ensure continued performance of scientific research and resupply operations in the Arctic region.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources As

Practicable.

An Acquisition Planning Forecast (APFS) record, F2021054658, was initially posted to the APFS website on 17

June 2021. That announcement was updated and republished multiple times with the most recent on 28 March

2024. To date, no inquiries have been made in response to the APFS announcement.

A sources sought notice was posted on 28 March 2024, to SAM.gov, advising industry of the Government’s intent to solicit and negotiate with only Fairbanks Morse, LLC to maintain form, fit, and function with existing equipment. The sources sought notice response date was 12 April 2024. Interested vendors were invited to submit information discussing their capabilities to provide these systems within fifteen (15) calendar days of the posting date. The OEM was the only response to the notice, as identified in Paragraph 11 below.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government

Will be Fair and Reasonable.

The Contracting Officer will determine that the anticipated prices to be fair and reasonable based on price analysis in accordance with FAR Subpart 15.404-1(b), utilizing a combination of price analysis techniques to include: comparison of proposed prices to historical prices paid (FAR 15.404-1(b)(2)(ii)), current catalog prices, as available (FAR 15.404-1(b)(2)(iv)), and comparison of proposed prices with prices for same or similar items

(FAR 15.404-1(b)(2)(vi)). Additionally, in accordance with FAR 15.404-1(b)(2)(vii) and DHS policy, the offeror may be required to submit data other than certified cost or pricing data to further ensure fair and reasonable pricing.

9. Description of Market Research.

In accordance with FAR 10.001 (a)(2), market research was conducted by the Contracting Officer’s

Representative (COR) and Contracting Officer. While other engine and part manufacturers exist in the commercial marketplace, the Government would require the procurement of parts from alternative sources and using them real-time in situations that replicate the requirements of this requirement, as the Government does not possess the technical and engineering data required to otherwise evaluate alternate parts to ensure form, fit and function with existing systems. This would require resources, possibly extensive, within the organization and contracting as well as funds that cannot yet be determined or estimated. In addition to searching the

Internet, a sources sought notice was published to the Government wide point of entry (GPE), resulting in one

(1) response received from the OEM. The subject kits are made specifically by Fairbanks Morse; therefore, the purchase or use of other than OEM parts can lead to voiding of any existing warranty(s) and the potential to incur unnecessary costs associated with additional repairs. Previous attempts have been made to use other commercial suppliers for non-OEM diesel engine parts (injectors pumps, etc.) and refurbished equipment. This has led to quality and performance issues resulting in premature equipment failures, main and auxiliary engine casualties, and operational delays. Additionally commercial facilities may not consistently use standard or updated OEM recommended parts which could result in warranty, quality, and configuration management issues. Based on market research it is determined that this is a sole source requirement to the OEM, Fairbanks

Morse, LLC, a large business concern.

10. Any Other Facts supporting the Use of Other than Full and Open Competition.

None.

11. A Listing of the Sources, if any, Which Expressed in Writing, an Interest in the Acquisition.

The following vendor responded, via phone calls, to the sources sought notice posted on SAM.gov:

Fairbanks Morse, LLC.

701 White Avenue

Beloit, WI 53511

Unique Entity ID (UEI): TJ2MWNHN22G8

12. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to

Competition Before any Subsequent Acquisition for the Required Supplies or Services.

The USCG contacted the OEM to request the unrestricted data rights to the proprietary data and technical documentation. Fairbanks Morse, LLC. denied the request in a response on 13 July 2021, and again on 21 April

2023. Fairbanks Morse, LLC. has submitted in writing that they will not provide unrestricted data rights and they are the sole provider with no authorized distributors that can provide OEM parts or OEM support. A new request was submitted on 30 May 2024 to confirm the OEM’s current position on release of the data rights; however, only a verbal response was received to date and formal, written response is forthcoming. The Government will continue attempts to seek data rights. Efforts must continue to be made to support these systems due to their current installation on USCG cutters. It is anticipated that future procurements will continue to be made with

Fairbanks Morse, LLC unless they authorize additional sources to provide these parts.