JA BERTHOLF_Redacted.pdf

These services will ensure that USCGC BERTHOLF can continue to operate safely and effectively, maintaining compliance with Coast Guard operational standards and preventing equipment failure during critical missions. The specialized nature of the systems and the proprietary requirements necessitate the use of OEM technicians.

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

The statutory authority permitting other than full and open competition is 41 U.S.C. § 1901 implemented by FAR Subpart 13.501(a) sole source (including brand name) acquisitions as defined in FAR 2.101 and 10 U.S.C. § 2305, simplified procedures for small purchases for USCG specific.

5. Identification of Exception to the Buy American Act

Not Applicable, FAR 25.103(b) or FAR 25.202(a)(2) does not apply.

6. Demonstration that the Proposed Contractor’s Unique Qualifications, or the Nature of the Acquisition Require Use of the Authority Cited

The proposed action must be accomplished through other than full and open competition due to the proprietary nature of the systems and components involved in maintaining USCGC BERTHOLF’s critical equipment, which includes the Oily Water Separator (OWS) This system was designed, manufactured, and installed by their respective OEM, and access to the necessary technical data, software, and tools required for maintenance and repair is restricted solely to the manufacturer or their authorized representatives. Attempting to conduct these services through other vendors would compromise system integrity, void warranties, and jeopardize offshore operational endurance of the vessel and safety of the crew.

(a) Rationale for Using the Authority Cited in Section 4 of the J&A:

The authority cited, 41 U.S.C. § 1901, is applicable here because the equipment used on the USCGC BERTHOLF (and other WMSLs) was custom-built by

The manufacturer holds proprietary control over the technical data, software, and diagnostic tools required to maintain these systems. Only the OEM or their authorized representatives are capable of performing the required services in accordance with Coast Guard standards, ensuring compliance with safety regulations and maintaining warranties.

(b) Events Leading to the Situation Requiring Use of Other Than Full and Open Competition:

The necessity for sole-source procurement arises from the proprietary nature of the Oily Water Separator Over the years, the USCG has invested in these specific systems across the entire class of WMSLs. -Certified technicians have access to these resources, and without them, routine inspections, testing, and repairs cannot be performed.

Similarly, only the OEM has the proprietary data and certifications necessary to ensure proper maintenance. Any deviation from using the OEM could void warranties, lead to improper repairs, and cause equipment failure.

Segregating the work for competitive bidding is not feasible, as the entire system— including software, mechanical components, and safety features—must be serviced as an integrated unit. OEM technicians are the only individuals certified to perform such comprehensive work.

(c) Alternatives Considered and Why They Will Not Work:

The Coast Guard explored alternatives, such as utilizing third-party vendors or seeking competitive bids. However, without access to the OEM proprietary data and tools, no third-party contractor could meet the specific maintenance and repair requirements.

Furthermore, the use of uncertified technicians could void critical warranties, introduce safety risks, and lead to system failures. The Oily Water Separator system is crucial for the safety and operational readiness of the vessel.

No alternative providers can perform the necessary tasks while ensuring compliance with Coast Guard technical standards and safety protocols. The Coast Guard also attempted to purchase proprietary rights from the OEM but was unsuccessful, as the manufacturers declined to sell or release this data.

On October 21st 2024 at was contacted via E-Mail and asked the following questions regarding the company’s proprietary information, responses provided via E-Mail on October 21st 2024 at 1457.

1) Do you still hold the rights to the proprietary data for the [enter service/Item]? – Response provided: Yes

2) Would you allow the Coast Guard to use that data for free? (This would open it up for use by other companies). – Response provided: No

3) Would you sell the Coast Guard the data rights? (This would allow us to use your data freely in the marketplace). – Response provided: No

(d) Impact on the Mission If the J&A Is Not Approved:

Failure to approve this J&A would result in the inability to properly maintain and repair this critical system, which would have a direct negative impact on USCGC BERTHOLF's mission readiness. The Oily Water Separator is essential for maintaining offshore operational endurance and safeguarding the vessel and crew from potential fire hazards.

Without the OEM certified technicians, the system cannot be inspected, tested, or repaired to the required standards, increasing the risk of failure during vital missions.

If the Coast Guard cannot procure these services from the OEM, it would significantly delay repairs, leaving the vessel vulnerable to operational failures and potentially reducing offshore operational endurance and shipboard safety.. This would severely impact the Coast Guard’s ability to conduct missions.

Unique Capabilities or Qualifications of the Contractor:

The contractor, are the original designers and manufacturers of the system in question. They possess the unique capabilities required to service their systems, including access to proprietary software, technical data, and diagnostic tools. Additionally, their technicians are the only individuals certified to perform the necessary work without voiding warranties or compromising system integrity.

Why Other Contractors Are Unable to Meet the Requirements:

Other contractors are unable to meet the requirements because they do not have access to the proprietary information, tools, or certifications needed to maintain and repair this system. Any attempt to use non-OEM-certified contractors would result in improper maintenance, increased safety risks, and a potential loss of operational capability.

Extent of Government Harm If the Supply or Service Is Not Acquired:

If these services are not acquired from the OEM, the Government will face significant harm in the form of compromised vessel safety, reduced operational readiness, and potential failure of mission-critical equipment. The inability to properly maintain the oily water separator would severely limit USCGC BERTHOLF’s ability to operate, potentially removing the vessel from service and hampering the Coast Guard’s overall mission capabilities.

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

Efforts were made to solicit offers from as many potential sources as possible to meet the Coast Guard’s requirements for USCGC BERTHOLF. These efforts included the publication of a Sources Sought Notice and an Acquisition Planning Forecast System record as follows:

Sources Sought Notice (SSN)

The USCG issued an SSN for the dockside repairs of the USCGC BERTHOLF for fiscal year 2025 (FY25) under Notice ID BERTHOLF-Dockside FY25. The notice was published on the SAM.gov website on July 18, 2024. This SSN was designed to identify businesses capable of fulfilling the requirements for the dockside repairs, including maintenance of the fire detection system, dual point davit, and folding boom cranes.

The notice remained active, with responses due by August 2, 2024, giving interested parties the opportunity to submit their capabilities and qualifications. The notice specified that the scope of work included all necessary labor, materials, services, and equipment required to perform repairs and alterations to the USCGC BERTHOLF in Alameda, CA.

Acquisition Planning Forecast System (APFS) Record:

In addition to the SSN, the requirement was also posted in the APFS under F2024068132 on September 23, 2024 and revised on 5 November 2024 to reflect a realistic award date. This record provided additional information about the upcoming procurement and was made available to the public, further ensuring that as many potential vendors as possible were informed of the opportunity.

Both announcements were intended to attract interest from vendors that could provide the necessary services, with detailed descriptions of the requirements, timelines, and submission processes. Despite these efforts, only the Original Equipment Manufacturers (OEM) or their certified technical representatives possess the proprietary knowledge, tools, and certifications required to maintain and repair the systems aboard the USCGC BERTHOLF.

8. Determination by the Contracting Officer That the Anticipated Cost to the Government Will Be Fair and Reasonable

The contracting officer determines that the anticipated price(s) will be fair and reasonable based on the prospect of receiving competitive proposals and the analysis of prior acquisition history and market research data.

The proposed work for the oily water separator is similar to previous acquisitions for other WMSLs (e.g., USCGC WAESCHE, USCGC HAMILTON), and those contracts have provided a reliable baseline for pricing.

Moreover, the OEM has previously provided commercial pricelists for proprietary parts and services that further support the reasonableness of the costs. are the only vendors authorized to perform the required maintenance and repair services due to their proprietary control over the technical data, software, and tools, ensuring that the proposed pricing reflects the unique nature of the work.

Finally, the contracting specialist has conducted market research, which confirms that these prices align with the current market for specialized, proprietary maritime repair services. Thus, based on prior procurement history, commercial pricing standards, and the unique qualifications of the OEM, the contracting officer deems the anticipated cost to be fair and reasonable for the services required to maintain USCGC BERTHOLF’s operational readiness.

9. Description of Market Research

Market research was conducted in accordance with FAR Part 10 and summarized as follows to ensure that the Coast Guard’s requirements for the USCGC BERTHOLF Dockside repairs for Fiscal Year 2025 (FY25) are met in the most cost-effective and timely manner.

(a) Market Research Techniques Used:

From July 30, 2024, through October 07, 2024, a variety of market research techniques were employed to identify potential vendors capable of performing the necessary repairs.

The following methods were used:

1. Internet Searches: Various government databases such as SAM.gov, the Contract Workbook Database, and the Federal Procurement Data System – Next Generation (FPDS-NG) were queried to identify businesses that have previously performed ship repair work, particularly for the WMSL class cutters, not limited to the USCGC BERTHOLF.

2. Review of Similar Procurements: Recent contracts for similar work, including the USCGC STRATTON FQ3 FY23 Dockside Contract and the USCGC BERTHOLF FQ1 FY23 Dockside Contract, were examined to assess pricing and performance from prior acquisitions.

3. Sources Sought Notice (SSN): A SSN was posted on SAM.gov on July 18, 2024, under Notice ID BERTHOLF-DocksideFY25. This SSN helped determine whether there were any commercial vendors available to perform the work. Three vendors— — expressed interest and were evaluated for their ability to meet the technical requirements. On 07OCT24 the Contract Specialist reached out to who also expressed interest in the requirement. However, upon further review, it was determined that none of these vendors possess the maintenance and repair of this critical system without assistance from the OEM. This system is proprietary to and only the OEM or their authorized representatives can provide the necessary services to meet the Coast Guard's technical and safety standards.

4. Small Business Search: A search was conducted using the Small Business Administration’s Dynamic Small Business Search (DSBS) to identify small businesses capable of performing the work.

(b) Results of Market Research:

The results indicated that, while several small businesses showed interest in the project, none possess the required proprietary technical data and certifications to perform the maintenance and repair work on critical systems, such as the SPIR-O-LATER Model Number (US5000). The system is proprietary, and only the Original Equipment Manufacturers (OEM) and their certified technicians have access to the necessary data, tools, and software required for maintenance without compromising warranties and system integrity.

(b) Inability to Modify the Requirement to Enhance Competition:

The requirements for this procurement are highly specialized and directly tied to the proprietary nature of the system on board the USCGC BERTHOLF. Modifying the scope of work to allow for enhanced competition is not feasible due to the need for OEM-specific knowledge, tools, and parts. Any attempt to broaden the requirement by using third-party technicians would void warranties, compromise system integrity, and potentially introduce safety risks to critical vessel operations.

Additionally, the use of uncertified or unauthorized contractors could lead to non-compliance with Coast Guard safety protocols and regulatory requirements. The system—such as the Oily Water Separator—are mission-critical, and only OEM-certified technicians are trained and equipped to service them properly. Modifying the requirement to allow for non-OEM contractors would severely limit the ability to meet operational standards and would not address the proprietary nature of the equipment.

Given these constraints, modifying the requirement to foster more competition would result in significant safety and operational risks and is not in the best interest of the Government.

11. A Listing of the Sources, if Any, That Expressed Interest in the Acquisition

A Sources Sought Notice (SSN) was issued on SAM.gov on July 18, 2024, under Notice ID BERTHOLF-DocksideFY25, inviting interested parties to express their interest in writing to the contracting officer by August 2, 2024. The purpose of the notice was to gather information from potential contractors capable of performing the required dockside repairs on USCGC BERTHOLF during FY25, including work on the Siemens fire detection system, the Allied Systems dual point davit, and the Appleton Marine folding boom cranes.

Three vendors— replied to the sources sought notice expressing interest in the procurement. On 07OCT24 the Contract Specialist reached out to who also expressed interest in the requirement. However, upon further review, it was determined that none of these vendors possess the necessary proprietary data, tools, or certifications required to perform the maintenance and repair of this critical system without assistance from the OEM. This system is proprietary to and only the OEM or their authorized representatives can provide the necessary services to meet the Coast Guard's technical and safety standards. As a result, while these vendors showed interest, they are unable to perform the required work independently due to the proprietary nature of the equipment and the exclusive control of the technical information by the OEM.

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 Supplies or Services Required

The Coast Guard is committed to fostering competition where possible, and efforts are continually being made to remove barriers to competition for future acquisitions. However, the proprietary nature of the systems and equipment installed aboard the USCGC BERTHOLF presents significant challenges in this regard. Currently, the Oily Water Separator requires specialized maintenance and repair services that only the Original Equipment Manufacturers (OEM), are authorized to provide. The OEM retain exclusive control over the technical data, software, diagnostic tools, and training required to service these systems.

The Coast Guard has explored various strategies to overcome these barriers to competition. One such strategy has been to engage with the OEM to inquire whether they would be willing to license their proprietary data to third-party contractors, allowing for more competitive sourcing in future procurements. However, these efforts have not been successful, as the OEM have declined to sell or license their proprietary data or tools.

Moving forward, the Coast Guard will continue to explore opportunities to enhance competition by regularly revisiting the possibility of acquiring the necessary technical data rights or exploring other alternatives that may allow qualified third-party vendors to compete. If future systems or equipment are upgraded or replaced, the Coast Guard will evaluate whether competition could be introduced by negotiating for the purchase of the intellectual property as part of the acquisition process.

Additionally, the Coast Guard may consider conducting industry outreach events to engage with potential vendors early in the acquisition process, with the goal of identifying and addressing any challenges that could prevent these vendors from competing for future contracts. This proactive engagement could encourage OEM or other suppliers to offer more flexible licensing arrangements or develop partnerships with third-party vendors, thereby expanding the competitive landscape.

In summary, while the nature of the current requirement necessitates reliance on the OEM, the Coast Guard remains committed to exploring avenues for increasing competition in future procurements, including continued efforts to negotiate access to proprietary data, industry engagement, and evaluating competition possibilities as systems are replaced or upgraded.

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.

Amy Kelm Date

Contracting Officer

14. Technical/Requirements Personnel Certification.

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

ENG3 John J. Webber Date

Technical Representative/COR

APPROVAL:

Amy Kelm Date

Contracting Officer

KELM.AMY.A.1246902425 Digitally signed by KELM.AMY.A.1246902425 Date: 2024.11.06 09:12:12 -08'00'

WEBBER.JOHN.J.1187659236

Digitally signed by

WEBBER.JOHN.J.1187659236

Date: 2024.11.13 10:52:12 -08'00'

KELM.AMY.A.1246902425

Digitally signed by

KELM.AMY.A.1246902425

Date: 2024.11.13 11:11:20 -08'00'