Justification.pdf

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MTU ENGINE PARTS
Solicitation number
70Z04023Q60491Y00
Issued by

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This justification document supports a sole-source acquisition of MTU engine parts from an Original Equipment Manufacturer licensee to overhaul engines on a US Coast Guard cutter. The acquisition is for an estimated amount over the micro-purchase threshold but below the simplified acquisition threshold. The parts are required to overhaul 154' FRC McCormick engines to support PBPL operations. A sole-source award is justified because only MTU licensed distributors can provide the proprietary, certified parts required to avoid catastrophic failures. Market research identified potential vendors but only an OEM can meet the need for certified parts delivered within two weeks to support Coast Guard fleet maintenance timelines. The contracting officer signed the justification on September 20, 2023 in support of solicitation 70Z04023Q60491Y00 for MTU engine parts issued by the Department of Homeland Security US Coast Guard.

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PR 2123403Y2593552003_MTU Parts Contract SOW.docx DOCX document
FAR Clauses.pdf PDF

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SIMPLIFIED ACQUISITION PROCEDURES (SAP) FAR 13.106-1(b)

SOLICITATIONS MAY BE LIMITED TO ONE SOURCE ONLY IF THE CONTRACTING OFFICER DETERMINES THAT ONLY ONE SOURCE IS REASONABLY AVAILABLE. THIS DETERMINATION MUST BE SUPPORTED WITH FULL JUSTIFICATION FOR SOLE SOURCE FROM THE CUSTOMER. WHEN THE CUSTOMER DESCRIBES AN ITEM WITH A PURCHASE DESCRIPTION WHICH LIMITS THE AVAILABILITY TO ONE SOURCE, THE JUSTIFICATION MUST EXPLAIN WHY THE ITEM IS THE ONLY ONE THAT WILL MEET THE GOVERNMENTS REQUIREMENT. STATEMENTS SUCH AS "ONLY KNOWN SOURCE" OR "ONLY SOURCE WHICH CAN MEET THE REQUIRED DELIVERY DATE" ARE INADEQUATE TO SUPPORT A SOLE SOURCE PURCHASE. Do not use marketing language in this document. Language such as "This company has made its mark," "This company is recognized as industry's best," and "This company is the leader in ... " is unacceptable.

PROJECT/TASK ESTIMATED AMOUNT (Over Micro-Purchase NUMBER Threshold, but up to the SAT)

PURCHASE

REQUEST OR REQUISITION

NUMBER

- CITE AUTHORITY & JUSTIFICATION TYPE - READ FAR 6.302 TO DETERMINE APPROPRIATE TYPE

1 o U.S.C. § 3204(al{1 l

ONLY ONE RESPONSIBLE SOURCE AND NO OTHER SUPPLIES OR SERVICES WILL SATISFY

� AGENCY REQUIREMENTS.

1 o u.�.c. § 3204(aH2l UNUSUAL AND COMPELLING URGENCY

10 U.S.C. § 3204(al(3}

INDUSTRIAL MOBILIZATION; ENGINEERING, DEVELOPMENTAL, OR RESEARCH CAPABILITY; OR

EXPERT SERVICES

1 o u.�.Q. § 3204(al{4l INTERNATIONAL AGREEMENT

1 o U.S.C. § 3204(al(5} AUTHORIZED OR REQUIRED BY STATUTE- MUST PROVIDE IT

10 U.S.C. § 3204(al(6} NATIONAL SECURITY

1 o U.S.C. § 3204(al{7} PUBLIC INTEREST [SECRETARY OF HOMELAND SECURITY NEEDS TO APPROVE THIS DOC]

BRIEF DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED, AND THE INTENDED USE.

MTU Parts are required to the overhaul of 154' FRC McCormick Engine for PBPL.

UNIQUE CHARACTERISTICS THAT LIMIT AVAILABILITY TO ONLY ONE SOURCE, WITH THE REASON NO OTHER

SUPPLIES OR SERVICES CAN BE USED.

SFLC customer requires OEM vendors only.

A DESCRIPTION OF EFFORTS MADE TO ENSURE THAT QUOTATIONS OR OFFERS ARE SOLICITED FROM AS MANY

POTENTIAL SOURCES AS PRACTICABLE (INCLUDE YOUR MARKET RESEARCH EFFORTS HERE).

Yard's Engine shop reached out to three (3) OEM vendors for market research, which are W.W.Williams, Pacific Power Group, and Johnson Towers.

REASON THAT SUGGESTED SOURCE IS THE ONLY SOURCE WHICH CAN PROVIDE THE SUPPLIES OR SERVICES.

A host of companies provide engine assemblies and parts, but MTU parts are proprietary and only MTU licensed distributors can provide MTU certified parts. The rationale for limiting competition revolves the risks involved with utilizing in-kind or equivalent parts in MTU MDEs. These engines are engineered with narrow tolerances, and deviation from MTU certified parts could result in catastrophic failures, endangering USCG personnel and assets and limiting mission effectiveness. Until a manufacturing standard is released by MTU, this requirement will always be limited to brand name justification. Market Research has identified several vendors that are capable of providing parts certified by the Original Equipment Manufacturer (MTU). Vendors must be licensed MTU dealers capable of providing the parts in the quantities/ manner specified herein;

vendors may include: Rolls-Royce solutions, Pacific Power Group, WW Williams, and Johnson & Towers; however, this contract must not be awarded to vendors who are not able to provide all MTU certified parts as required under this contract.

Also, the overhaul is complex and require significant coordination to accomplish in the volume required to support USCG fleet operation. Without timely delivery of parts, the overhauls cannot be completed appropriately; therefore, portions of this requirement cannot be•egregated to foster additional competition. Parts must arrive within two ( ) weeks.

EXPLAIN WHY AN ADEQUATE PURCHASE DESCRIPTION OR OTHER INFORMATION SUITABLE TO SOLICIT BY FULL

AND OPEN COMPETITION HAS NOT BEEN DEVELOPED OR ARE NOT AVAILABLE.

Only MTU licensed distributors can provide MTU certified parts.

March 8, 2023 Version

PROVIDE A STATEMENT OF ACTIONS, IF ANY, THE GOVERNMENT MAY TAKE TO REMOVE OR OVERCOME ANY

BARRIERS TO COMPETITION BEFORE FUTURE ACQUISITIONS ARE REQUIRED.

N/A

SIGNATURE AND TITLE OF CUSTOMER CODE TELEPHONE NUMBER DATE

TRANG.HAU.DUY. 1503657224 ~:~~~;;9;_,~:i.::~~::~tuv 1503657224 (410) 320-9200 09/15/2023

SIGNATURE OF CONTRACTING OFFICER CODE TELEPHONE NUMBER DATE

CARTER.SHANNON.ROBYN.155 Digitally signed by

09/20/2023 CARTER.SHANNON.ROBYN. I 554079322 410-762-6503 4079322 Date: 2023.09.20 13:33:04 -04'00'

March 8, 2023 Version

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