Justification and Approval_Redacted.pdf

(e) Type of funding: Surface Operations

(f) Year of funding: Fiscal Year 2024

(g) Solicitation number: To be determined.

(h) Background information about the requirement: Previous Requirements Contract HSCG40-16-D-40328 was awarded to OEM on March 16, 2016, and expired on March 17, 2021.

3. Description of Supplies/Services. SFLC requires inspection, overhaul, repair of, and option to purchase In-haul Winch Hydraulic Motors which are configured on the 175’ WLM and 225’ WLB class buoy tenders, and the 240’ WLBB Great Lakes icebreaker. It is estimated that up to eight defective hydraulic motors will be submitted each year for inspection and repair, requiring activation of one or more of the line items noted in the table below. Exact quantities will depend on the cutter availabilities, individual cutter needs and SFLC warehouse inventory levels. In the event any motor inducted for overhaul is deemed beyond economical repair (BER), the Government may exercise an option to purchase a new OEM in-haul winch hydraulic motor. For motors deemed BER, the Contractor will scrap the material locally and submit a completed Inventory Disposal Report, Standard Form SF-1424 to the Contracting Officer. The overhaul must be conducted by an OEM-certified technician in accordance with OEM specification and standards to ensure operability and proper warranty of the equipment. The Government intends to award one requirement-type contract for the following Contract Line-Item Numbers (CLINs):

CLIN Description 0001 Open and Inspect Hydraulic Motor, P/N: HMB4.0A-A04-A01-038 0002 Overhaul Hydraulic Motor, P/N: HMB4.0A-A04-A01-038

For BER Items, Option for Purchase of New Hydraulic Winch Motor, P/N HMB4.0A-A04-A01-038

0004 For BER Items: Scrap material at Contractor’s facility and submit completed Standard Form 1424 (SF-1424) to the Contracting Officer

0005 Purchase of new Hydraulic Motor, P/N HMB4.0A-A04-A01-038

4. Identification of Statutory Authority Permitting Other Than Full and Open Competition. The statutory authority permitting other than full and open competition is 10 U.S.C. § 3204(a) implemented by FAR Subpart 6.302-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Identification of Exception to the Buy American Act. The nonavailability exception to the Buy American Act at FAR 25.103(b)(2) is applicable.

supplies of the class or kind to be acquired, either as end items or components, are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality.

The nonavailability exception to the Buy American statute is applicable because the motors are not manufactured in the United States. The fit and function of this specific motor is precise to the winch system. The motor must be compatible with the winch system or the system will not function properly. The motor can only be manufactured by the OEM because the OEM has repeatedly refused to sell data rights or otherwise made them available to the USCG as explained in paragraphs (a) and (c) above.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many

Potential Sources as is Practicable.

Acquisition Planning Forecast Record number F2024064643 was posted on November 1, 2023.

Pursuant to FAR Subpart 5.2, in an effort to solicit as many potential sources as practical, a sources sought notice was posted to System for Award Management at https://sam.gov, on December 12, 2023, detailing the required work, that proprietary data was involved and notifying industry that it is the USCG’s intent to award a sole-source contract to the OEM for this acquisition. The sources sought notice also invited vendors with the expertise and required knowledge to accomplish this work to submit information discussing such capabilities. A combined synopsis/solicitation will be posted to SAM.gov on or about June 15, 2024.

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 awarded price will be fair and reasonable based on comparison with the IGE and historical prices paid under purchase order and contract numbers HSCG40-11-P-42015, HSCG40-12-P-49018, HSCG40-13-C-40003, HSCG40-14-P-49029, and HSCG40-16-D-40328 for similar work. Also, if necessary, the Contracting Officer will obtain and analyze other than certified cost and pricing data from the vendors. Price analysis will be performed to ensure a fair and reasonable price is determined in accordance with FAR Section 12.209 and Subsection 15.404-1(b)(2)(ii) and (iv).

9. Description of Market Research.

(a) Describe the market research techniques used, results, date when the market research was conducted, and how it was used by the contracting officer to determine price reasonableness.

Market research as prescribed in FAR Part 10.001(a)(2) was conducted via the internet using NSN, part number, and item name for a list of manufacturers/vendors that could overhaul and provide suitable hydraulic motors from October 2022 thru November 2023. The market research showed that only MacTaggart Scott & Co. Ltd could provide the items. FedLog, IHS-Haystack Gold, Supply Support Grams, and the internet were used to attempt to identify additional manufacturers and vendors, with no success.

(b) Describe the market research results that support the determination that the items are nonavailable.

A sources sought notice was issued on December 10, 2023 to determine if a domestic end product exists that meets the requirements of the USCG. The sources sought notice closed on January 4, 2024 and no responses were received. Based on the results of the market research, it has been determined that the requisite supplies and services are nonavailable.

(c) If market research was not conducted, state why.

Not applicable.

(d) If patents, copyrights, and/or intellectual property are applicable to the acquisition, describe the circumstances for acquiring a patented or copyrighted product on the representation of the intellectual property holder that has not been licensed for resale.

As stated in Section 6(a), the OEM is the proprietor of all applicable developmental and production material and has consistently declared that it has no intent to sell any applicable data rights or technical specifications.

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

Not applicable.

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

Acquisition.

No responses were received to the sources sought notice posted to SAM.gov from December 12, 2023 to January 4, 2024.

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.

(a) Will the Government revise overly technical specifications, acquire data rights, etc.?

The maintenance and purchase of the In-Haul Hydraulic Winch Motors will continue to be an ongoing need for the USCG. The USCG does not own the required technical data, drawings, specifications, etc., to evaluate other than OEM parts, therefore, it is not anticipated that any future requirements can be competed on a full and open competition basis. The OEM indicated no interest or intention to sell the data rights.

The USCG cannot compel any OEM to release proprietary information and it is highly unlikely that the USCG will have the necessary funding to purchase such rights if offered by the OEM. However, every attempt will still be made to obtain applicable drawings, technical data, specifications, etc., before any subsequent acquisitions occur. All future requirements will be synopsized, and market research will be conducted to determine if there are other vendors qualified to perform this service.