JOTFOC 70Z08520QP4528200.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION 10 U.S.C. 2304

Solicitation No.: 70Z08520QP4528200

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 Subpart 6.3 is justified by the following facts and rationale required under FAR 6.303-2 as follows:

1. Agency and Contracting Activity.

The United States Coast Guard, Surface Forces Logistics Center, Contracts and Procurement Division, Branch 2, Long Range Enforcer Product Line (USCG SFLC CPD C&P2 LRE) proposes to enter into a contract on sole source basis.

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

The USCG SFLC intends to award a Firm Fixed Price definitized contract on a sole source basis for the repairs to the USCG Cutter (USCGC) HAMILTON (WMSL 753) main propulsion diesel engines (MPDEs). The Period of Performance for this requirement will be 26 April 2020 through 12 June 2020.

located in North Charleston, SC.

The total value (including options) for this requirement is . The type of funding used for this requirement will be AFC-45 Fiscal Year 2020 funding. The Contractor that the USCG SFLC intends to award to:

MTU America, Inc. (MTU) 39525 MacKenzie Drive Novi, MI 48377

On 17 December 2019 a Sources Sought Notice was posted to the Government Point of Entry (GPE) awarded to MTU for this requirement. The Sources Sought Notice requested that any and all firms that supporting such claims; no firms did so.

3. Description of Supplies/Services.

The requirement is to provide the repairs to the USCGC HAMILTON MPDE; this includes the performing of the MPDE diesel engine inspection, performing the MPDE 8000 hour maintenance, and installing a new while the USCGC HAMILTON is underway. MTU is the manufacturer for these MPDEs; there are the only firm who can provide these repairs to the USCGC HAMILTON.

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 as implemented by FAR 13.5, Simplified Procedures for Certain Commercial Items.

5. Identification of Exception to the Buy American Statute.

No exception to the Buy American Statute is applicable.

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

MTU is the Original Equipment Manufacturer (OEM) and Original Integrator (OI) of the USCGC MPDEs and therefore is the only source for proprietary information. When the contract was awarded to MTU for the delivery of the MTU horse power engines for the National Security Cutters (WMSL), the USCG did not acquire the necessary blueprints, data rights, and other technical drawings supporting the engine and its design. The engine parts have very tight tolerances and the correct assembly procedures are critical to the performance of the engines. There are no other vendors that possess the necessary blueprints, data rights, and other technical drawings that are required for the maintenance of the MPDEs.

On 10 February 2020 the USCG reached out to MTU in order to gauge their interest in selling or otherwise releasing the necessary blueprints, data rights, and other technical drawings for the MPDE maintenance.

MTU responded by indicating that they were unwilling to release any blueprints, data rights, and other technical drawings supporting the engine and its design related to the maintenance of the MPDEs. This proprietary data would be required in order to open competition for these services to any other vendor, 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 engine failure.

If the USCG or a third party vendor were to perform the without access to the OEM proprietary data the chances of an MPDE failure in open waters is significantly increased. If the MPDEs were to fail while on patrol in open water not only would the congressionally mandated operational schedule be placed at risk due to delays associated with the maintenance and overhaul while impacting the following missions:

Search and Rescue: This is the most common and visible mission of the USCG. Since these missions deal with life and death, the MPDEs must meet an exceptionally high standard for reliability and performance. Completing all the planned maintenance is the best way to assure this.

Counter Narcotics Operations: When intelligence is received or a target is located, the MPDEs will be ramped up, so the cutter can respond as fast as possible. Not maintaining the MPDEs, or limiting its performance due to symptoms (ex: overheating, unusual noise, high vibration), will significantly

Fisheries Enforcement: These are endurance operations that require the MPDEs to either be sprinting to the next fishing fleet, or be in standby, while the cutter station- keeps alongside a fishing vessel with a boarding team onboard. Fisheries Enforcement patrols will require the MPDEs to be constantly engaged with predictable performance.

Defense Operations: Defense Operations are extremely high tempo with an exceptionally slim margin for error. While in a precarious situation, halting the MPDEs for even short periods to correct minor MPDE casualties is unacceptable.

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

The Contracting Officer has determined the price to be fair and reasonable based upon a review by the requirements generator to determine the technical suffici and subcontractor efforts, based upon similar efforts in the past.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The Contracting Officer has determined the price to be fair and reasonable based upon a review by the and subcontractor efforts, based upon similar efforts in the past.

9. Description of Market Research.

In an effort to promote competition, a Sources Sought Notice was posted to the GPE on 17 December 2019.

the OEM, MTU. Companies having the expertise and required knowledge for this work were invited to submit information discussing such capabilities by 3 January 2020. No sources expressed interest in this requirement. Acquisition Planning Forecast System (APFS) record F2016032509 was published on 17 July 2019; no responses were received from interested parties as a result of that posting. Due to the reoccurring need for the repairs to be made to the MPDEs on the WMSL class cutters, Sources Sought Notices and APFS records are posted routinely requesting capable sources to come forward with evidence to their abilities. No other capable sources have been identified by the USCG to this point for these WMSL class cutter MPDE requirements.

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

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

A Sources Sought Notice was posted to the GPE on 17 December 2019. The Notice requested that firms

No firms responded to the Sources Sought Notice. MTU responded via email and phone call in regards to

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.

On 10 February 2020 the USCG reached out to MTU in order to gauge their interest in selling or otherwise releasing the necessary blueprints, data rights, and other technical drawings for the MPDE maintenance.

MTU responded by indicating that they were unwilling to release any blueprints, data rights, and other technical drawings supporting the engine and its design related to the maintenance of the MPDEs. This proprietary data would be required in order to open competition for these services to any other vendor. The USCG shall continue to engage with MTU in the future on acquiring the applicable data rights and technical drawings for the WMSL class cutters MPDEs. To date, MTU has not expressed any interest in selling or otherwise providing the appropriate data rights to the USCG.

13.

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.

Contracting Officer Date

14. Technical/Requirements Personnel Certification.

forms a basis for the justification, is accurate and complete.

, APM Date

15. Legal Review and Concurrence:

I have reviewed this justification.

, Legal Counsel Date

APPROVAL:

Contracting Officer Date