JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION.pdf

70Z08523Q32101B00

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

Only One Responsible Source and no Other Supplies Will Satisfy Agency Requirement.

Solicitation Number – 70Z08523Q32101B00

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), Surface Forces

Logistics Center (SFLC), Contracting and Procurement Division (CPD)2 Hawkins Point

Road, Baltimore, MD 21226.

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

(a) Nature of the action: The USCG intends to procure on a sole source basis, the purchase of eight (8) ALCO 251 Engine Parts Kits as manufactured by

Fairbanks Morse Defense (FMD) to support Long Range Enforcer Product Line

(LREPL) ALCO 251 main propulsion diesel engines (MPDE) and Ship’s Service

Generator (SDG) engines planned maintenance. While there are eight kit types, varying quantities of each kit type are being procured as noted in Table 1 below.

FMD is the Original Equipment Manufacturer (OEM) and the only known source that possesses the required capabilities, drawings, specifications, and proprietary data to manufacture these part kits for the ALCO 251 engines; this is the basis for this justification. The kits are used on USCGC POLAR STAR (WAGB 10) and the requirement consists of eight (8) ALCO 251 Engine Parts Kits. A firm fixed price contract is required to support known upcoming planned maintenance needs until a full five year, requirements follow on contract can be solicited and awarded. The SFLC has purchased parts kits as part of previous contract

HSCG80-16-D-P45D58 with FMD, which expired on April 20, 2021. This requirement is currently being supported through on-hand inventory purchased prior to the expiration of HSCG40-16-D-P45D58.

The Coast Guard maintenance program requires USCG depot level stocking of readily available FMD overhaul parts kits as they are required to support planned maintenance of the ALCO 251 model engines onboard USCG cutters. In order to maintain POLAR STAR's mission readiness requirements for deployments to

Antarctica these engines require more frequent maintenance and overhauls then other cutters with the same engine series. This requirement supports meeting these needs.

(b) Name and address of the contractor:

Fairbanks Morse Defense, LLC

701 White Avenue, Beloit, WI 53511 mission, these engines require overhaul at a much shorter interval than the remainder of the fleet. In order to maintain POLAR STAR's mission readiness requirements for deployments to Antarctica, these engines require more frequent maintenance and overhauls then other cutters with the same engine series. This is because of the thickness of ice encountered, and corresponding vibrations induced during ice breaking operations.

3. Description of Supplies/Services.

This order consists of eight (08) different kits based on National Stock Numbers (2815-01-

F19-5921, 2815-01-F19-5922, 2815-01-F19-5920, 2815-01-F19-5923, 2815-01-F19-5926, 2990-01-F21-6418, 2815-01-F19-5925, 2815-01-F19-5924) with a total order quantity of twenty-one (21) individual kits as shown in a Table 1 above. All the kits must consist of only OEM certified parts. The bill of materials (BOM) for each line item identifies all parts that make up the individual kits. These parts kits are intended for delivery to the USCG

SFLC Inventory Control Point (ICP) Warehouse in Baltimore, MD to accommodate

USCGC POLAR STAR’s maintenance requirements and FMD lead time for delivery which has historically been up to one year from the award of a contract.

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 13.5, Simplified Procedures for Certain Commercial

Items.

5. Identification of Exception to the Buy American Act.

The Buy American Act applies to this requirement.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Require Use of the Authority Cited.

FMD is the OEM of the USCGC POLAR STAR’s ALCO 251 Engine Parts Kitts’s.

FMD is the only known source that possesses the required capabilities, drawings, specifications, and proprietary data to manufacture these part kits for the ALCO 251 engines installed on USCGC POLAR STAR as well as USCG WMEC 210’ and 270’ cutters. Without the appropriate information, documentation and specification for every part that makes up each overhaul parts kit, it is not possible to develop an appropriate purchase description to allow for full and open competition. FMD does not have any authorized dealers or distributors, making them the sole source for providing the OEM parts kits. The use of OEM part kits is necessary to ensure they are manufactured in accordance with OEM specifications and standards, conform to original form, fit and function, and are OEM certified as compatible and interchangeable with existing kit components and onboard systems. Using other than OEM components and parts would be an extremely high risk as a malfunction or failure of the engine could result in the loss of mission execution capabilities and a compromise to cutter preparedness.

USCGC POLAR STAR operates independently, in remote areas of the Arctic and Antarctic

Oceans including within the Polar Ice Caps, while conducting scientific research as well as escorting resupply ships into and out of the McMurdo Station on Antarctica. USCGC

POLAR STAR’s missions require operations in vast areas of the Polar Regions where there is very little shipping traffic or ability to receive urgently needed repair parts. Thus, the need to have items on hand and enable the cutter to retain operational readiness when deployed. The purchase or use of other than OEM parts could result in faulty items and could also lead to voiding of any existing warranty(s) and the potential to incur unnecessary costs associated with additional repairs.

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

Potential Sources as is Practicable.

An Acquisition Planning Forecast (APFS) record F2021056251 was published to the APFS website on September 8, 2021 and updated on October 19, 2022. No inquiries have been made in response to the announcement. A Sources Sought notice 70Z08523S-ALCO

Engine parts kits-FY23 was posted on 3 November 2022 at SAM.gov advising industry of the Government’s intent to solicit and negotiate with only FMD to maintain form, fit, and function with existing equipment. No firms responded to the Sources Sought. In addition to the Sources Sought notice, attempts were made to obtain the proprietary data from FMD on November 1, 2022, with FMD responding that they will not release technical data rights to the USCG. FMD has continued to uphold that same position regarding their propriety data through verbal conversations. The Government does not have the required technical information to allow the evaluation of other OEM parts and the kits are made specifically by FMD.

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 will be fair and reasonable in accordance with FAR Subpart 13.106-3, utilizing a combination of price analysis techniques to include comparison of proposed prices to historical prices paid on prior acquisition HSCG80-16-D-P45D58 and in comparison, to the Independent Government Cost Estimate (IGCE). The offeror may be required to submit data other than certified cost or pricing data to further ensure fair and reasonable pricing.

9. Description of Market Research.

In accordance with FAR 10.001 (a)(2), market research was conducted, from January 2022 through November 2022, by the Contracting Officer’s Representative (COR) and Contract

Specialist. The internet was searched for a list of contractors that possessed the necessary technical and manufacturing data, drawings and specifications that could provide OEM overhaul parts kits, but the market research revealed that only the OEM, FMD LLC., possesses the required capabilities to provide complete overhaul parts kits, containing only

OEM certified parts to ensure compatibility and/or interchangeability. Also, there are no

OEM distributors. While other engine and part manufacturers exist in the commercial marketplace, the Government does not possess the technical and engineering data required to evaluate alternate parts to ensure form, fit, and function with existing systems.

A Sources Sought Notice was posted to SAM.gov on November 3, 2022, and closed on

November 17, 2022, with no responses received to the announcement. While there were no responses received directly from the sources sought announcement, communications with