JA- Philly Red Gear Overhaul -032526.pdf

Sole Source Justification 10 U.S.C. § 3205

In compliance with Federal Acquisition Regulation (FAR) Subpart 12.102, restricting competition, this justification uses the format prescribed at FAR Subpart 6.104-1, justification content and is modified to state the procedures in FAR Subpart 12.201-1, simplified procedures are used in accordance with FAR Class Deviation 25-11 and RFO 25-21, Revision 1 (R1).

1. Agency and Contracting Activity.

This justification was prepared by the Department of Homeland Security, United States Coast Guard (USCG), CG-SEA-C, Contracting and Procurement Division (CPD) Branch 2, in support of the Surface Forces Logistics Center (SFLC), Ice Breaker, Buoy, and Construction Tender (IBCT) Product Line.

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

(a) Work Item (WI) #20 Service for Overhaul of the Main Reduction Gear.

Name and address of the contractor:

Timken Gears & Services Inc.

935 1ST AVE STE 200

King of Prussia, Pennsylvania 19406-1382, United States

(b) Type of action: Requirements contract with fixed price task orders.

(c) Estimated total value:

Table 1 Item Description Total

WORK ITEM 20: Main Reduction Gear Overhaul $ Total $

(d) Type of funding: Operations and Support funds

(e) Year of funding: FY26 funds.

(f) Solicitation number: 70Z08526QIBCT0026

(g) Background information about the requirement: USCGC JUNIPER (WLB-201), a 225’ Coastal Buoy Tender cutter is homeported in Honolulu, HI. This cutter has planned Drydock availability in FY26 for Table 1 Work Items.

The Main Reduction Gear (MRG) in Table 1 Work Items are near the end of service life, maintenance cycle and overhaul is necessary to continue operations and prevent catastrophic failure.

3. Description of Supplies/Services. This requirement is for a work item in a planned drydock and repairs for USCGC JUNIPER (WLB 201) requiring the shipyard to overhaul the reduction gear listed in the Table 1 Work Items, under the supervision of an Origin Equipment Manufacturer (OEM) Technical Representative from Timken Gears & Services. The MRG listed in the Table 1 Work Items enable the vessel’s main propulsion system to move the cutter and maneuver during restricted movement operations in confined spaces including transit, mooring and buoy tending operations.

4. Identification of Statutory Authority Permitting Sole Source Procurement. The statutory authority permitting other than full and open competition is 10 U.S.C. § 3204(a)(1), applied in conjunction with the commercial item procedures of FAR Subpart 12.201-1 and RFO 25-21, R1.

5. Identification of Exception to the Buy American Act.

No exception to the Buy American Act identified. However, if there is a need for the Technical Representative to procure parts from the OEM in the event of unforeseen circumstances not accounted for in the contract, the applicable FAR sections apply:

FAR 25.103(b)(1) and FAR 25.104(a)(30) and RFO 25-21,R1.

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

Nature of the Acquisition Require Use of the Authority Cited.

Timken Gears & Services is the only source for the necessary technical data and proprietary information to supply parts and perform services to maintain the MRG listed in the Table 1 Work Items, because the company is the OEM and integrator (OI) for this equipment on the Coastal Buoy Tender (WLB). The MRG listed in the Table 1 Work Items parts have very tight tolerances and the correct parts and assembly procedures are critical to their performance. There are no other firms that possess the manufacturer drawings, specifications, and other technical data or have access to the updates and technical bulletins which are pertinent to the maintenance of the propeller and bow thrusters. OEM software, parts, testing equipment and services are necessary for this requirement. As the OEM, Timken Gears & Services, owns the technical data & design rights to manufacture and supply the parts and provide the services required. This equipment enables a critical system on the cutter to function. Failure to use the OEM parts and services could result in a catastrophic failure of equipment and compromise the mission and safety of the crew. The Table 1 Work Items require the prime contractor to provide the services of an OEM authorized/licensed Technical Representative from Timken Gears & Services, certified for repair of the system/equipment stated above to accomplish the following on site:

Provide manufacturer's proprietary information, software, and tools pertinent to the equipment/system.

Assist with proper repair methods and ensure compliance with manufacturer's procedures and standards during disassembly, inspection, repair, modification, calibration, and reassembly of the equipment/system.

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

This request is for OEM services to ensure correct installation using manufacturing drawings, specifications, or other technical data related to the maintenance, installation, programming and operational testing parameters of the Table 1 Work Items during and after installation. Timken Gears & Services maintains the drawings and proprietary data needed to complete services of the Table 1 Work Items assemblies. On 21 Apr 2025 Timken Gears & Services shared their qualifications with a Coast Guard representative from the product line, CWO Keith Hoefer, through email and stated that they would not sell Table 1 Work Items propriety data to third-party. To maximize competition, on 21 Apr 2025, the Availability Project Manager (APM) for IBCT Product line asked a representative from Timken Gears & Services whether they would be willing to release proprietary data via email correspondence. Timken Gears & Services responded in an email dated 21 Apr 2025 that they were unwilling to release any manufacturing drawings, specifications, or other technical data related to the maintenance of the Table 1 Work Items. This technical and proprietary data would be required to compete these parts services with other vendors, because attempting to perform maintenance and inspection services without access to this technical data, which includes performance tolerances /characteristics/parameters, would create a significant increased risk of thruster failure.

On 12 Feb 2026 the APM follow up with a representative from Timken Gears & Services whether they would be willing to release proprietary data via email correspondence.

Timken Gears & Services responded in an email dated 12 Feb 2026. Timken Gears & Services respond still stands and provided an updated letter.

Due to this being a service for installation, grooming and operational testing of MRG, an OEM Tech rep will be required to be present for the duration of installation.

Failure to use OEM services to ensure the thruster unit is installed and programmed in accordance with manufactures procedures could lead to catastrophic failure of thruster unit and propulsion system thus requiring further costly repairs and severely disrupting the availability of JUNIPER to complete high visibility operations in support of Aids to Navigation and National security.

The Sources Sought Notices for this J/A item was posted it on SAM.gov from 9 Sep 2025

– 10 Oct 2025. APFS was published on 21 Oct 2025, revision one was published on 25 Feb 2026.

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

Government will be Fair and Reasonable.

The Contracting Officer anticipates that the price will be fair and reasonable based on a price analysis comparison with the Independent Government Estimate and extensive acquisition history with Timken Gears & Services. That the contract’s price will determine fair and reasonable in accordance with FAR Part 12.

9. Description of Market Research.

A number are firms can perform these kinds of drydock repairs. All three vendors noted interest in submitting a quote and three vendors (BHPE LLC, JT Marine Inc, and Pacific Shipyards International, LLC.) Two ( JT Marine Inc, and Pacific Shipyards International, LLC. ) have relevant acceptable past performance under CPARS. Unable to locate any CAPRS for BHPE LLC.

The commercial marketplace is competitive, and we anticipate receiving offers from multiple business concerns. The customary commercial practices used by the selected contractor is to use qualified personnel and staff according to the work specifications required and the standards found within the ship repair industry.

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

None.

11. A Listing of the Sources, if Any, that Expressed, in Writing, an Interest in the Acquisition.

The Sources Sought Notices for this J/A item was posted it on SAM.gov from 9 Sep 2025 – 10 Oct 2025. Based on the Sources Sought Notices, we have received 3 responses back. BHPE LLC, JT Marine Inc, and Pacific Shipyards International, LLC.

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.

Since Timken Gears & Services continues to retain ownership of the proprietary and technical data necessary for maintaining the Table 1 Work Items for the CGC JUNIPER and has declined to release the data to the Coast Guard. However, the Coast Guard will continue to seek access to the technical data sufficient to enable competition.

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.

Joel Mason 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.

CWO Keith A Hoefer Date Technical Representative

APPROVAL:

Edward S. Frank Date

PAAC