Limited Sources Justification REDACTED.pdf

1 Ver 2.0 (01 July 2018)

Date: _02 Feb 2022_

MEMORANDUM

Subj: USE OF OTHER THAN FULL AND OPEN COMPETITION FOR AN ACQUISITION UNDER

THE SIMPLIFIED ACQUISITION THRESHOLD

Ref: (a) USNS PECOS T-AO 197, PR Number(s): 1300979272

I. BACKGROUND:

1. In considering the references, FAR 13.106-1(b)(1)(i) states for purchases not exceeding the simplified acquisition threshold, Contacting Officers may solicit from one source if the Contracting Officer determines that, under the circumstances of the contract action, only one source is reasonably available (e.g., urgency, exclusive licensing, brand-name, or industrial mobilization).

2. As required by FAR 13.106-3(b)(3)(i), this memorandum explains the absence of competition for this acquisition because only one source will be solicited for this requirement (or for a portion of the requirement) and the requirement is not expected to exceed the simplified acquisition threshold.

II. DESCRIPTION OF ITEM OR SERVICE:

1. Provide a description of the item or service required, to include:

a) the name of the required source or brand name;

MHE SERVICES (MAINTENANCE and REPAIRS) FOR CERTIFICATIONS AND WEIGHT TESTING IN SUPPORT OF USNS PECOS LOCATED IN PORTLAND Oregon C3F/AOR.

b) the required delivery date/period of performance, and;

POP: 18 MAR 2022 – 17 MAY 2022.

c) its intended use;

SAFETY RE-CERTIFICATION OF USNS PECOS MATERIAL HANDLING EQUIPMENT (MHE)

ASSETS.

2. List the source(s) or known vendor(s) who are able to provide the above described item or service.

**Authorized Service Representative(s):

Tony Steele Tony Steele tsteele@Papemh.com Or Joe Federico Joe Federico jfederico@Papemh.com

Vigor Ship yard

5555N Channel Ave

Portland Or 97217 mailto:tsteele@Papemh.com mailto:jfederico@Papemh.com

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III. THE DETERMINATION FOR USE OF OTHER THAN FULL AND OPEN COMPETITION IS

BASED ON THE FOLLOWING (select all that apply):

A. __X__ “BRAND NAME” (LIMITED) RESPONSIBLE SOURCE (select all that apply):

1. ___ RESTRICTIVE RIGHTS: the source has established proprietary rights, limited rights in data, patent rights, copyrights, or secret processes in the item or service.

a. Explain what is subject to the restrictive rights.

b. If drawings are included, who is identified as “owning” the drawings.

Hyster is the manufacturer which has access to business sensitive technical manuals, drawings, and software proprietary rights.

2. _____ EXCLUSIVE LICENSING AGREEMENTS: The item or service is only available from the Original Equipment Manufacturer (OEM), or there is ONLY ONE authorized distributor or technical representative for the OEM.

a. Identify the OEM and explain the circumstances surrounding why the item or service is only available from the OEM.

b. Identify the distributor / authorized technical representative for the item or service.

Provide evidence of the exclusive licensing agreement as an attachment to this document.

(NOTE: If there is more than one distributor / authorized technical representative, then use Part B – Brand Name.)

3. __X__ OTHER REASON:

a. __X__ CRITICAL SHIP EQUIPMENT: The required item is critical ship equipment, the failure of which poses a hazard to the ship, the crew or the environment.

i. SMS Procedure Number: __ 7.6-001.ALL__

ii. MHE is required for MSC vessels to perform Combat Logistics missions.

Improperly serviced and maintained MHE can pose a significant safety hazard to both personnel (through injury) and mission essential equipment (through direct damage). Non-operational MHE significantly degrades the mission readiness of deployed MSC vessels.

iii. This requirement is for a known service provider, OPEN BID. Material Handling Equipment (MHE) assets. SOW requires a technician thoroughly familiar with the repair and maintenance of Hyster MHE and experience to read Hyster diagnostic software codes. Hyster software which allows for the diagnosis of equipment issues, software provides equipment faults allowing the repair activity to properly identify and conduct the necessary repairs. Without these codes the equipment cannot be properly maintained which would cause the ship to not be able to execute its mission.

iv. Hyster is the manufacturer which has access to business sensitive technical manuals, drawings, and software proprietary rights.

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b. _____ STANDARDIZATION: Per MSCs standardization initiative, only the specified make/model of the equipment/parts will satisfy the Government’s needs for additional units or replacement items.

i. Identify Make / Model Number(s): ___________________

ii. Identify other vessels with this Make / Model:

c. _____ FORM, FIT, AND FUNCTION: Item is direct replacement parts / components for existing equipment and must be compatible in terms of form, fit, and function with existing equipment / configurations.

i. Identify Make / Model of existing equipment:

ii. Describe how the equipment must be compatible with the existing configuration.

d. __X__ OTHER:

This service requirement is tied to availability for the USNS PECOS in C3F/AOR. The desire is for OEM service providers due to hyster ‘s proprietary rights to the CP Service Tool software which allows for the diagnosis of equipment issues, hyster has confirmed other service providers are able to perform the maintenance on the hyster equipment owned by MSC. OPEN BID is an OEM service provider and is both capable and able to complete this service in the short allotted POP window. OPEN BID has access to replacement parts, software, and technical data/drawings required for properly maintaining the equipment to provide technical support for routine/annual inspections. This will allow USNS PECOS to get underway with a full complement of operational certified MHE.

Material Handling Equipment (MHE – Forklifts) are used daily to move supplies (stores), used at UNREP stations, and AMMO movements. If MHE is not Safety Certified for shipboard use, the ships overall mission would be at a work stoppage until Safety Certification is completed. Forklifts need to be Safety certified (Brakes/Lift Cylinders/EMI-sparks/Grounding strap ect..) to prevent Serious injured or death to personal and damage to ship/government property

B. ___X__ Brand Name: Item required must be a brand name product, or feature of a product, particular to one manufacturer. Discuss why you are precluding consideration of a product manufactured by another company.

Describe how the particular brand name, product, or feature is essential to the Government’s requirements and why a “brand name or equal” purchase description cannot be used (see FAR 11.104). Describe how market research indicates other companies’ similar products or products lacking the particular feature do not meet, or cannot be modified to meet, the agency’s needs.

The use of OEM materials in the servicing of the MHE is paramount in maintaining the integrity of the onboard MHE equipment. The MHE is critical in the completion of the ships CLF mission. The use of aftermarket parts cannot be verified not validated to ensure compliance with OEM specifications and certifications. OEM parts/software include Hyster, and Wesley International. Hyster in particular owns a Class IV-V warranty that covers the installation of its OEM parts and does not cover service that uses Non OEM materials in the event of

4 Ver 2.0 (01 July 2018) equipment failure. Failure to use OEM materials in servicing the onboard MHE could result in catastrophic mechanical failure causing damage to the equipment itself, the ship, loss of cargo, personal injury, or death.

C. _____ Unusual and Compelling Urgency: The supplies or services are of such unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits. Urgent requirements are supplies or services that will result in work stoppage, or are mission critical and the routine processing time would injure the Government. The determination that the procurement for the above is an urgent and compelling requirement is based on the following:

1.. Date on which the requirement was identified:

2.. Required delivery date / Period of Performance:

If the difference between a. and b. is more than one week, explain the delay in submitting the requirement.

3. Estimated production lead time:

4. Explanation of why delivery / commencement of services by the date required is needed: (explain the impact to the mission, any special circumstances or conditions, etc.)

5. CASREP Number: _________________________________________

IV. ANTICIPATED DOLLAR VALUE OF PROCURMENT: $

V. CERTIFICATIONS AND APPROVALS:

Technical / Requirement Certification: I certify that the facts and representation under my cognizance which are included in this justification are complete and accurate to the best of my knowledge and belief.