JA Shaft Seals and Components Redacted.pdf

70Z08023Q13001B00

(f) Year of funding: Individual delivery orders will be funded from Fiscal Years 2023-2028

(g) Solicitation number: 70Z08023Q13001B00

(h) Background information about the requirement: The USCG has procured the shaft seal parts utilizing Simplified Acquisition Procedures (SAP) under $250k.

The propulsion shaft seal systems and associated components listed in this requirement are commercial items, comprised of multiple interrelated parts, designed and manufactured by Chesterton, the OEM. Each shaft seal system was procured as a whole. Procurement was not based on Government specified descriptions of all the various components contained within and the Government has not bought those descriptions from the OEM.

3. Description of Supplies/Services.

The requirement is to procure OEM parts associated with the propulsion shaft seal systems and components in support of the 87’ WPB fleet. It is anticipated that a five (5) year requirements type contract with Economic Price Adjustment utilizing one (1) year ordering periods will be issued to purchase the propulsion shaft seal systems and associated components needed to maintain necessary spare part stocking levels to support maintenance of the 87’ WPB fleet. The OEM is the only company that provides these parts. The shaft seal systems and components associated with this requirement are as follows:

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.

5. Identification of Exception to the Buy American Act.

No exception to the Buy American Act has been identified.

NSN DESCRIPTION PART NUMBER

5330-01-F18-5383 Kit Rebuild, Seal Assembly 388728 5330-01-F18-5381 Installation Kit, Shaft Seal 388827 5330-01-F18-5386 Kit Rebuild, Dry Dock 390832 5330-01-F18-5382 Packing Rings, Kit, Shaft Seal 388726 5330-01-F18-5385 Kit Rebuild, Iflatable Seal 390831 4320-01-670-5724 Seal Assy, Shaft, Spring Loaded 388725

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

Government will be Fair and Reasonable.

The Contracting Officer (KO) will determine that the anticipated price is fair and reasonable based on comparisons with the IGE, market research, previous acquisition history and, if necessary, require the offeror to submit other than certified pricing data.

Previous history includes various purchases under the simplified acquisition procedures (SAP) section. SAP purchase history has adequate data for evaluating price reasonableness by comparing the proposed prices to historical prices paid by the USCG for the same or similar items. FAR 52.216-2 Economic Price Adjustment-Standard Supplies will be included in the contract to account for any volatile price changes that could occur during this unstable market.

9. Description of Market Research.

Extensive market research as prescribed in FAR Part 10 was conducted by the Contracting Officer’s Representative (COR) and Contracting Officer (KO) from May 2022 through May 2023. Market Research has shown that the shaft seal systems and components utilized on the 87’ WPB vessels are only available from the OEM, Chesterton, who does not use distributors to sell these parts. On February 17, 2023, an SFLC Patrol Boat Product Line representative emailed Chesterton to inquire about the release of proprietary information to the USCG. Chesterton replied on that same day to confirm that Chesterton intended to solely retain the related proprietary designs. Further market research conducted by the contracting officer’s representative and contract specialist confirmed that there are no known distributors other than Chesterton that can provide the shaft seal systems and component parts listed in this requirement.

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.

A Sources Sought was posted on the SAM contract opportunities website from 10/13/2022 – 11/15/2022, requesting that companies express their ability to provide the parts needed for this requirement in writing to the contract specialist. Only Chesterton responded that they could provide the parts.

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 USCG does not own the required drawings, specifications, or technical data to evaluate non-OEM shaft seal systems and components and it is unlikely Chesterton will sell the data rights to the USCG or another company. Prior to subsequent shaft seal systems and components acquisitions, the USCG will continue its attempts to obtain the applicable drawings, specifications, etc. from the OEM and will conduct follow-up market research to identify companies that provide Chesterton products.