Market Research 2024-2025 TRS 3D final.docx

Market Research Report

PR#: 52000PR240006239

A market research report documents market research in a manner appropriate to the size, complexity, and urgency of an acquisition. In accordance with the Homeland Security Acquisition Manual (HSAM) 3010.001(f), requirement-specific market research efforts and results are required prior to issuance of the solicitation and shall be clearly documented and included in the contract file. A market research report is required for contract actions awarded above the simplified acquisition threshold (SAT). In consultation with the Contracting Officer, the following template can be tailored to a requirement’s market research needs. Use only those sections applicable to your requirement. If a section is not applicable, it should be so identified and supported by a brief explanation.

I. Authority

A. Market research is required in accordance with:

1. FAR 7.102, Acquisition Planning Policy

2. FAR 10.001, Market Research Policy

II. Background Information

A. Describe the background of the procurement and circumstances/events leading up to the requirement:

1. SFLC Current Contract # 70Z08520D32055B00 period of performance Sept 2023 to Sept 2024 International Command Spares Pool (ICSP) support contract. SFLC had previous contracts #70Z08522PLREP0398 period of performance Sept 2022 to Sept 2023 #70Z08519CP42E74, period of performance 12 Sep 2019 to 11 Sept 2020 and Contract #70Z08520PP42A4200 period of performance Sept 2020 to Sept 2021 # 70Z08521PP42A8900 period of performance Sept 2021 to Sept 2022 International Command Spares Pool (ICSP) support contract.

2. LRE Supply and SES3 Elex recently had a meeting with AMS Group (previously Hensoldt) (Airbus) to discuss future support of the AN/SPS-75 radar on 25 May 2024. AMS Group will continue to provide support as sole source. LRE Supply recently submitted the PR for this contract & funding. The Program Manager for AMS Group explained the International Common Spare Pool (ICSP) process. The ICSP is maintained by the OEM and we pay a fee to have replacement serviceable A condition spare parts if a part is not available in the USCG inventory. Kind of like insurance, the good news is with the limited number of parts we currently have and the new baseline Radar slated for NSC-9 that is 40% diff than the previous version, this option will provide us access to the majority of OEM critical parts if we have a casualty. Currently C5ISC provides the Program Management, Help Desk Support and the retains the SSA for the Technical Documentation… Under the proposed ICSP we would only exercise this contract option if we did not have the part. Under the proposed ICSP contract the Contractor shall provide access to International Common Spares Pool. Additionally, we would be responsible to return failed part(s) to the Contractor within 20 business days after receipt of replacement part. If the failed part is aboard a deployed cutter the government will return the part within 20 business days following the Cutter’s return to CONUS. We would like to add to the contract to have parts delivered 30 days from confirmation of availability of parts. Under the contract the Government would have the responsibility to replace said part either through repair or procurement of a new part at the Government’s expense.

2. Other stakeholders: SFLC-LRE, C5ISC

3. North American Industry Classification System (NAICS) Code:

4. Product Service Code (PSC): 334511 – Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

5. Expected dollar value of requirement: $245,381.60. Received updated proposal for 2024-2025 from AMS Group. June 5, 2024.

6. Time frame in which the market research was conducted: Oct 2023– June 2024.

III. Initial Requirements

A. Describe the Government’s requirement in terms of:

1. Functions to establish a follow-on support contract for the AN/SPS-75 Radar. The specific requirement is the USCG will have access to the spare pool of parts limited to the TRS-3D system Baseline B and C.

2. Performance required: Match or exceed the performance of the original TRS-3D specifications.

3. Essential physical characteristics: Match, within reason, the original physical characteristics of the original TRS-3D part.

4. The Contractor shall make best effort to deliver the parts within 30 days from confirmation of availability of parts.

B. Discuss any cost effectiveness issues associated with the requirements:

1. If a part is provided from the ICSP the USCG shall return failed part within 20 business days or shall replace the said part through repair or procurement on new part at the Government expense.

2. Any cost/performance tradeoffs? Not evaluated at this time.

C. Describe schedule requirements: This will be a 12-month support contract.

D. APFS Record Date Published: TBD

IV. Participants in Market Research

A. Describe the involvement of the individual Team/IPT members and any other participants in the market research effort. (The titles listed in the table below are examples.)

Officer Rep.

V. Market Research Methods and Sources

A. Describe methods and sources used during market research. The following table may help structure and summarize the methods used in the market research effort.

Check if part of research

Sources Used in Market Research

Details of Research/Comments

APFS shows C5ISC had contracted with the OEM. COR has received a copy of the contract from Dale Smith at C5ISC.

Interviewed knowledgeable individuals in industry

Commercial databases reviewed

Participated/attended tradeshows and industry conferences

Professional journals reviewed

Source lists of DHS and other Government agencies reviewed

Participated in DHS small business vendor outreach sessions

Reviewed requirements with Small Business Specialist

Reviewed existing DHS-wide and Multi-Component Contract Vehicles with DHS Strategic Sourcing Program Office and/or on DHS Enterprise-wide Contract Vehicle Portal

Other

Check if part of research

Sources Used in Market Research

Details of Research/Comments

Priority Sources Reviewed

Supplies: Excess from other agencies

Supplies: Federal Prison Industries at www.unicor.gov

Supplies: Procurement list maintained by the Committee for Purchase from People who are Blind or Severely Disabled (AbilityOne) at https://www.sourceamerica.org/abilityone-and-procurement-list

Supplies: Federal Supply Schedules accessible through: www.gsa.gov

Services: Procurement list maintained by the Committee for Purchase from People who are Blind or Severely Disabled (AbilityOne) (formerly Javits-Wagner-O’Day (JWOD) Program at: http://www.AbilityOne.gov

Services: Federal Supply Schedules

Services: Federal Prison Industries

Mandatory sources reviewed (per FAR Part 8) if applicable for:

· Public utility services

· Printing and related supplies

· Leased motor vehicles

· Helium

· Strategic and critical materials from inventories exceeding Defense National Stockpile Requirements

Other:

References/Sources Checked

DHS’s Enterprise-wide Contract Vehicle Portal at: http://dhsconnect.dhs.gov/org/comp/mgmt/ocpo/SSPO/Pages/default.aspx.

If the requirement out of scope of existing vehicles or in scope?

If the requirement is within scope of a DHS strategic sourcing vehicle but you believe an exception or waiver applies, contact your contracting officer for guidance.

If a true exception or waiver applies, you will need to work with your contracting office to provide the corresponding documents and reviews that are separate from the market research report https://cg.portal.uscg.mil/units/cg9/1/CG913/Pages/Strategic-Sourcing-Vehicles.aspx

Out of scope

System for Award Management (SAM) at: https://sam.gov/portal/SAM/

Department of Labor Service Contract Act (SCA) and Davis-Bacon Act (DBA) wage determination information at: https://www.dol.gov

Past Performance Information Retrieval System (PPIRS) and Contractor Performance Assessment Reporting System (CPARS) at https://www.cpars.gov/

Other:

Contracting Officer-led Activities

Sources Sought Notices: Requests for Information (RFI)

Sources Sought Notices: RFI published in an industry or association publication

Pre-proposal engagement

Site visits

One-on-one vendor discussions

Industry Day

Other:

VI. Identify Product/Services and Sources Able to Meet the Requirement

A. Identify or describe:

1. Product/Service, include any brand name product information: The OEM parts are used for the repair of existing USCG Air Search Radar systems onboard the NSC platform. The service CLIN will be used by the USCG to request parts from the ICSP, and repair or replace parts.

2. Product/Service characteristics and/or capabilities: The parts provided by the manufacturer shall match the original system capabilities. The parts provided shall match, within reason, the original parts characteristics. Some minor characteristic deviations are expected due to new technology and commodity availability. Parts provided by the OEM will be fit/form/function of original system characteristics.

3. Company information (e.g., name, POCs, address, telephone number, e-mail address, website) Cynthia Hopson - Contract Support cynthia.hopson@ndi.amsgroup.net

(703) 836-0300 www.amsgroup.net Cody Bressette - Program Manager Email: cody.bressette@ndi.amsgroup.net cell: (919) 703-5252 office: (703) 836-0300 x 1085 www.amsgroup.net

B. If sole source, describe efforts to locate additional sources.

During market research, the Acquisition Team (AT) determined that the Coast Guard did not acquire the data rights for the system. This data would be required to manufacture the required parts and encode the systems with the proper software.

The AT was able to locate a single manufacturer AMS Group. The original manufacturer declined to offer pricing or information on the part as it is protected for Hensoldt Sensors and not for sale.

The AT did attempt to locate other commercial sources for the parts and were unsuccessful.

VII. Description of the Commercial Marketplace

A. Describe marketplace: The marketplace for air search radars is limited due the military aspect of the system. While other radar vendors are available, the ability for a different vendor to replicate these parts would be unfeasible.

B. Assess Government’s leverage in marketplace, e.g., describe the Government’s negotiation strengths and/or weaknesses in the market: The Coast Guard’s leverage in this marketplace is weak. The small number of ships that the Coast Guard has and its organic support capability makes negotiations difficult. The Coast Guard relies on the Navy to leverage support and technology to make acquiring sophisticated radar systems feasible.

C. Describe nature of other market participants, e.g., other Governments (foreign, state/local), commercial firms, etc., and discuss how other buyers for the same product or service may affect your purchase: The Coast Guard relies heavily on the Navy for support and technology to adequately determine which of these radar systems can integrate with their weapon systems. The Coast Guard does “buy-in” to a rotatable international spare parts pool. This decreases the logistics footprint of the parts needed to be stocked. However, for many of these parts the logistics delay time is too great to rely solely on this pool of parts.

D. Identify availability of commercial or non-developmental items that satisfy requirements (value or shortcomings of each) and sub-components. The use of non-OEM parts will void any current warranties in place. Additionally, the use of non-OEM parts without significant testing or re-engineering may result in inadequate system performance or nullify the ability to obtain weapon system certification from the Navy.

VIII. Prevalent Business Practices

A. Identify standard/customary terms and conditions and industry business practices (include information on payment, freight delivery, acceptance, and warranties)

a. MILSPEC packaging performed by third party vendor.

b. Addition of FAR 52.246-15 Certificate of Conformance (understanding traceability documentation must be provided with the assets).

c. FOB Destination

d. Payment terms net 30 days B. Describe generally accepted business practices that differ from standard Government practices.

a. Commercial packaging does not adhere to MILSPEC requirements.

C. Discuss if contract financing is applicable. If so, ensure compliance with

a. FAR 32.202-3, Conducting Market Research About Financing Terms D. Discuss any laws and regulations unique to the requirement.

a. End User Certificate required by the German Government for the purpose of export control.

IX. Pricing and Market Issues

a. Identify price sources (e.g., market price, catalog, GSA, etc.), price ranges, and price variations.

a. Catalog Price

b. Previous or existing contracts

c. Comparative analysis to FLS pricing

b. Describe market trends for product or service, e.g., technical, business, and pricing:

The availability of parts is diminishing due to two factors. The first being non-selection of this radar by the US Navy. The second being technology advances by the company make this radar system less economically feasible to continue production far beyond current demand.

c. Describe how the application of cost or pricing market information collected from market research will be used in the development of the Independent Government Cost Estimate for the requirement:

Comparative analysis between current catalog pricing and previous contract awards.

X. Other Considerations

A. Identify other considerations gathered from market research, e.g., opportunities to “unbundle” requirements to enable more contracts or subcontracts to small, small disadvantaged and other socio-economic procurement categories:

The AT determined that only the OEM has the ability to evaluate parts for repair. Another vendor declined to provide pricing or sales. Thus, unbundling requirements not an option currently.

B. Discuss qualifying factors, including such issues as past performance, references, product testing or evaluation, customer satisfaction, warranties, and quality problems.

The NSC is the only Coast Guard platform this radar is installed on. The shipbuilder has thoroughly tested the system onboard the NSC platform. This radar system has met the Coast Guard need for air search and target acquisition during the lifecycle of the program. The current version of the radar will be supplied by the ship builder for all future cutters.

While interviewing Dale Smith of C5IT SC, the COR determined the vendor provides evaluation of parts services and on sight technical assistance. The level of service has been technically adequate, although occasionally hampered due to the lack of access to spare parts. Should this contract be established, the COR estimates that less on-site technical assistance be used due to the access to parts for troubleshooting. When on-site technical assistance is provided, the amount of time required to fix the system should dramatically decrease due to the access to robust sparing.

C. Describe consideration of environmentally preferable products and services. Include discussion of energy efficiency standards of market products, if applicable:

Not applicable in this application.

D. Describe SAFETY Act applicability.

Not applicable

E. Discuss Buy American Act applicability.

The vendor Hensoldt Inc. is an American entity who has the majority of their parts sourced overseas. Because this vendor is the only manufacturer of the needed parts, it is the best interest of the Government to award a sole source contract to Hensoldt Inc.

F. Discuss Trade Agreements Act applicability.

The award of the contract should not violate Trade Agreement Act. The company was vetted prior to original contract award. Addition of FAR 52.246-15 Certificate of Conformance (understanding traceability documentation must be provided with the assets) to be required from vendor.

G. Discuss Section 508 applicability for Electronic and Information Technology Not applicable.

XI. Market Analysis Summary

A. Summarize the market research methods and resources used in the market research.

a. Identify:

i. Products/Services available Interviews with knowledgeable government employees and internet web searches were the primary market research tools. Secondary research tools include catalog pricing from potential vendors.

ii. If Commercial/Non-Developmental/Developmental Product/Service Sources (companies, etc.): Commercial OEM can satisfy the government’s needs. Other sources were sought; however none were found.

iii. Types of Businesses (large, small, etc.) Large

iv. Pricing. Pricing was determined by comparing previous contracts to current catalog pricing.

b. Summarize:

i. Market conditions (commercial marketplace). There are limited number of air-search radar manufacturers certified to integrate with Navy weapons systems. The Coast Guard is mandated to interoperate with the Navy on National Security and Defense missions. Thus, acquisitions of OEM parts are required.

ii. Customary commercial practices. Commercial packaging practices do not conform with MILSPEC packaging. The OEM vendor will utilize an American company to repackage to meet MILSPEC.

iii. Other considerations. The AT attempted to unbundle a portion of the requirements and found that suppliers were not available.

B. Identify the timeframes when staff used the market research methods: October 2023– June 2024.

C. Provide the outcome and conclusion of the market research identifying potential sources, an analysis of the capabilities of potential sources and findings that impact the procurement, e.g., any actions taken as a result of the market research such as re-evaluation of the requirement to determine whether the need can be restated to permit commercial or non-developmental items to satisfy the agency’s needs; and solicitation and award of resultant contract using policies and procedures in FAR Part 12 - Acquisition of Commercial Items. (See FAR 10.002(c) and (d).) The OEM is capable of producing commercial non-developmental parts at this time. The Re-evaluation of the requirement in not in the best interest of the Government.

D. Document the decision and rationale to satisfy the agency’s need with a commercial item/service if market research so warrants. The Government did not purchase the technology or data rights for this radar and thus cannot have the parts manufactured or serviced by an alternate source. The OEM is capable of providing parts and services.

E. Document the decision and rationale if the agency’s need cannot be satisfied with a commercial item/service. Not applicable.

F. Provide supporting documents, as appropriate. Previous USCG contracts.

The following table provides a checklist for Market Analysis Summary information:

Yes

No

Market Analysis Summary

Are there products/services and sources capable of satisfying the Government’s requirements?

Are commercial items available to meet requirements?

Are available items used exclusively for Governmental purposes?

Provided: Customary industry terms and conditions including warranties, buyer financing, discounts

Provided: Requirements of any laws and regulations unique to the item being acquired

Provided: Identify available commercial items and describe the respective merits and shortcomings of each

Provided: Description of any market conditions that may be time sensitive or changes in supply or demand, technology, laws, and supplier costs, etc.

Provided: Identification of potential sources. Description of capabilities of individual vendors, pricing information; delivery schedules, and standard terms and conditions, such as incentives and warranties

I approve the market research report. The appropriate market research documentation is included in the official contract file.

Alec R. Goenner COR June 14th 2023 Name Date

Approved:

Contracting Officer