JOFOC - NSC Spare Crane_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

In compliance with Federal Acquisition Regulation (FAR) 13.501(a)(ii), this justification uses the format at FAR 6.303-2 and is modified to state that the procedures in FAR subpart 13.5 are used.

1. Agency and Contracting Activity.

The Department of Homeland Security, United States Coast Guard (USCG), Office of Contract Operations (CG-912) prepared this justification for other than full and open competition.

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

(a) Nature of the action: USCG intends to procure on a sole source basis one (1) mission critical spare shipset of the National Security Cutter (NSC) aft folding boom cranes. The critical spare shipset includes two (2) FB90- 28, AMD-2367 (Crane #2 and Crane #4) folding boom cranes, less crane pedestals and one (1) FB90-28, AMD-2372 (Crane #3) folding crane, less crane pedestal.

(b) Name and address of the contractor:

Appleton Marine, Inc., 3030 E. Pershing St., Appleton, WI 54911

(c) Type of action: Firm Fixed-Price Contract

(d) Estimated total value (including options):

Period Unit Price Total

Base

Total

The same crane set under this justification has been previously procured as part of a two complete aft crane systems-buy under contract 70Z02319CADB01100 (complete aft crane system, including cranes, crane pedestals, and below decks hydraulic equipment) with shipping for NSCs 8 and 9 with PoP end date 08/19/2021). A requirement to provide and install this same three-crane set has been incorporated into the National Security Cutter (NSC) Production and Delivery contract HSCG23-16-ADB016 for NSCs 10 and 11. These cranes have also been previously procured under separate contract(s) for installation during NSC post-delivery periods (e.g., contract HSCG40-12-D-30011 with PoP end date 08/28/2017).

(e) Type of funding: Procurement, Construction, and Improvement

(f) Year of funding: Fiscal Year 2022

(g) Solicitation number: TBD

(h) Background information about the requirement: The National Security Cutter (NSC) design employs a three-crane aft boat and stores handling system. The three cranes for this system were custom configured to meet the reach, coverage, seaway acceleration, and lift performance requirements, and fantail and flight deck arrangement requirements, for NSC aft boat and stores handling, including a constant tension winch feature. Each of the three cranes has a long lead procurement time. One (1) complete three-crane set is required for procurement as a ready spare set to allow complete crane replacement to shorten crane maintenance completion timelines and associated maintenance availability periods thereby decreasing the time where the cutter would not be available to perform missions.

Description of Supplies/Services.

The requirement is to provide two (2) FB90-28, AMD-2367 (Crane #2 and Crane #4) folding boom cranes, less crane pedestals, one (1) FB90-28, AMD-2372 (Crane #3) folding crane, less crane pedestal, in long-term reusable shipping and storage containers as ready spare cranes for the increased NSC fleet size. The cranes are required to be the same configuration as those provided for the NSC 10 production line, incorporating the same objective boat handling constant tension winch feature. The two cranes on the port side (Cranes #2, forward and #4, aft) provide the capability to lift and transfer a large cutter boat between the boat notch and boat cradle. The starboard side crane (Crane #3) provides the capability to lift and transfer a small cutter boat between the boat notch and boat cradle.

Cranes #2 and #3 each provide the capability to transfer cargo between the pier and the flight deck. Crane #4 provides the capability to service areas aft of the crane and over the stern.

The purpose the cranes are to as spares to allow the complete replacement of each of the cranes onboard to reduce the time required for the NSCs to complete crane scheduled and corrective maintenance thereby reducing maintenance availability durations, and increasing the amount of the time the NSCs are available to conduct missions.

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.

The required cranes under this J&A are only manufactured in the United States, therefore, not applicable.

6. Demonstration that the Nature of the Acquisition Require Use of the Authority Cited.

(a) The previously selected as the NSC aft crane system provider, and custom-configured the crane system to meet the NSCs unique performance and topside design arrangement requirements. No other cranes will meet the requirement of serving as ready depot spares to allow the removal of an existing crane, and replacement with an identical crane to more quickly bring the system back into service while allowing for preventive or corrective maintenance on the remove crane shoreside as opposed to onboard the cutter. There is no alternative crane system that would interface with the existing welded-in crane pedestals and below decks hydraulic systems, both also provided exclusively by the OEM, while providing the same performance and top-side arrangement integration for reducing fantail operations and flight deck interferences. Only the exact aft cranes used on the NSCs, as exclusively manufactured, and uniquely tailored by the OEM to the NSCs design requirements, can fulfill the requirement of being ready spares, otherwise the crane system would have to be redesigned and the cutter configuration modified to accommodate different cranes.

(b) The situation requiring use of other than full and open competition procedures is based on the essential requirement that the cranes procured are identical to the cranes installed on the NSCs. This identicality allows the ability to remove an existing crane and seamlessly replace it with an identical crane. This avoids the time and cost of modifying the NSCs structural and electrical design and modifying top-side arrangements to accommodate different cranes, which would defeat the purpose of procuring identical cranes as ready depot spares.

(c) No alternatives were considered because only the OEM, Appleton Marine, Inc.

manufactures, and possesses the proprietary design and production data rights to provide the NSC aft cranes. All other parties are third party vendors and will not be considered based on additional fees associated with procuring through third party.

There is no cost benefit to procuring through any alternative as these fees range from 10%-20% and potentially could increase delivery time.

(d) If the J&A is not approved and the cranes not provided, the time the aft cranes will be out of service to complete scheduled and unscheduled maintenance will be increased with potential to contribute to increased maintenance availability timelines and cost, thereby increasing the time during which the cutter is not available to perform its missions.

(e) The required end items are manufactured only in the United States.

(f) Only one contractor is capable of fulfilling the requirements because the cranes are required to be identical to the cranes currently employed in the NSC design, and the cranes OEM, Appleton Marine Inc., is the only manufacturer in the world that manufactures and possesses the proprietary technical and production data rights to provide the required supplies. No other contractor possesses the proprietary technical ft cranes which were custom configured by the OEM to meet the NSCs unique crane performance requirements.

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

RFI Notice ID F2024064598 published to SAM.gov November 21, 2023 with a response date December 22, 2023. See para. 9 below for summary of responses to RFI.

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 an estimate derived from the actual prices under a previous procurement (contract 70Z02319CADB01100) of the same crane system, inclusive of the same three cranes subject of this procurement, for installation on NSCs 8 and 9. Additionally, a price quote was received from the manufacturer in FY 23.

9. Description of Market Research.

Acquisition Planning Forecast System (APFS) record F2024064598 was published November 2, 2023. Request for Information Notice ID F2024064598 was published November 21, 2023 with a response date of December 22, 2023. APFS and RFI postings collectively resulted in responses from three (3) companies representing that they can provide or source the required items. The cranes OEM, Appleton Marine, Inc. responded they are able to provide the required items. The OEM is able to provide the cranes directly to the Coast Guard, while the other two (2) companies reported that they are either (1) able to place orders to Appleton Marine on the Coast half or (2) facilitate a placement of an order between the OEM and the Coast Guard. In the case of , they may place a direct order with Appleton Marine, Inc., however, additional fees in excess of 10%-15% will be applicable as these items will be ordered from the OEM by and then delivered to the Coast Guard. In the case of , they are able to facilitate the placement of an order to the OEM through a DLA TLS Prime Vendor Contract vehicle, with additional fees being applicable. The additional fees charged by both of the other sources, will be above the purchase price, therefore, opening competition does not provide any cost benefit to the Government. Appleton Marine, Inc. indicated that they do not use distributors.

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

(a) A technical data package is not suitable for full and open competition because the technical and production data rights are proprietary and exclusively owned and controlled by the OEM, Appleton Marine Inc. Specifications are not suitable for full and open competition because only the cranes as provided by the OEM are suitable as ready depot spares to support removal and replacement of identical cranes to support offboard depot-level preventive and corrective maintenance while returning the system to fully mission capability status with use of the ready spare crane. The cranes must be readily compatible with the OEM-provided welded-in pedestal, and the OEM-provided below decks combined cost of obtaining the technical and production data rights, combined with costs associated with qualifying and new production line and low order quantity premium are cost prohibitive relative to the cost of the items.

(b) This requirement cannot be modified to enhance competition because only the OEM owns and controls the proprietary technical and production data rights, and only the exact cranes as provided by the OEM can fulfill the requirement of serving as ready depot spares for complete crane removal and replacement to facilitate the most time and cost-effective depot-level preventive and corrective maintenance while reducing the time to return the aft crane system to a fully mission capable status for supporting cutter missions. The requirement cannot be modified to enhance competition because only aft cranes identical to those employed in the NSC design provide the required form, fit, and function within the NSC aft crane system (i.e., within the existing welded-in crane foundations and below decks hydraulics system), both provided by the OEM, and compatible with the overall cutter design (i.e., topside arrangements, structural design and electrical infrastructure to support the cranes, and top-side weight distribution for list and trim and hull stability and performance). Assuming the OEM was willing to sell the proprietary technical data and production licensing rights, the overall cost to open the procurement to competition, detailed in the table below, is cost prohibitive relative to the cost of the items, or a combined estimated cost to open competition as compared to a combined (AMD-2367 unit cost estimate plus AMD-2372 unit cost estimate) crane unit cost estimate, or 74% of the combined unit cost estimate.

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

An RFI was published on November 21, 2023 with a closing date of December 22, 2023.

, and Appleton Marine indicated they are able to provide the cranes through order on DLA TLS prime vendor contract, by direct order to Appleton Marine, and Appleton Marine as OEM. representative asked if the cranes no further communication.

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