Redacted_JOTFOC DeAngelo Marine Exhaust.pdf

70Z08021Q15002B00 Page 1 of 6

SOLE SOURCE JUSTIFICATION

Under 10 U.S.C. 2304 RFQ Number: 70Z08021Q15002B00

Pursuant to the authority of 41 USC 1901 as implemented by the Federal Acquisition Regulation (FAR) Subpart 13.501 and consistent with the content requirements of FAR 6.303-2 the following facts and rationale support this Justification.

1. Agency and Contracting Activity. The Department of Homeland Security

(DHS), U.S. Coast Guard (USCG), Surface Forces Logistics Center (SFLC), Contracting and Procurement Division (CPD) prepared this justification for other than full and open competition.

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, engine and ships service diesel engine exhaust systems and associated parts.

These parts will be used to support the 87’ (WPB) and 154’ (WPC) Coastal Patrol Cutters. The NAICS code is 333618 and the PSC Code is 2040.

(b) The OEM for this procurement is:

DeAngelo Marine Exhaust, Inc.; DUNS# 174474734, Contact: Dave Cook, dcook@deangelomarine.com ; Address: 3330SW 2nd Avenue, Fort Lauderdale, FL 33315; PH: (954) 763-3005 | Fax: 954-467-8133

(c) Type of action: The USCG intends to award a Requirements Contract with firm fixed priced delivery orders utilizing the procedures established under FAR part 12 Acquisition of Commercial Items in conjunction with FAR Part

13.5 Simplified Procedures for Certain Commercial Items.

(d) Estimated total value:

(e) Type of funding: Delivery orders issued against the contract may use annual

Operations and Support funds.

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(f) Year of funding: Delivery orders will use appropriate FY funds.

(g) Solicitation number: 70Z08021Q15002B00

(h) Background information about the requirement: This is a follow-on procurement to contract HSCG40-16-D-11001 which was awarded to the OEM DeAngelo Marine Exhaust Inc. for main diesel engine and ships service diesel engine exhaust systems and associated parts. These parts were used to support the USCG 87’ (WPB). In addition to what was procured on the preceding contract, this follow-on procurement will include exhaust systems and associated parts for the USCG 154’ (WPC) and the USCG 87’ (WPB).

3. Description of Supplies/Services. This requirement is for the procurement of various Deangelo Marine exhaust system parts in support of the USCG 87’ WPB and 154’ WPC Coastal Patrol Boats. The vendor will provide only new, genuine OEM parts that will be preserved, packaged and marked.

Required Parts List reflected below:

CLIN STOCK NUMBER DESCRIPTION PART

NUMBER

0001 5340‐01‐593‐2907 CLAMP, V‐BAND 024‐001000

0002 5340‐01‐593‐2913 CLAMP, TURBO ADAPTER 024‐001200

0003 5340‐01‐568‐6899 CLAMP, V‐BAND 8 INCH 024‐007‐000

0004 5340‐01‐590‐8152 CLAMP, SYNCHRO 024‐009000

0005 5340‐01‐595‐5795 MOUNT, RESILIENT, GENERAL 030‐004000

0006 5340‐01‐595‐5785 MOUNT, RESILIENT, GENERAL 030‐008000

0007 5330‐01‐626‐9639 GASKET 041‐010000

0008 8030‐01‐593‐2919 SEALENT, SILKOLENE 042‐023000

0009 5330‐01‐624‐0589 GASKET A09‐051900

0010 5330‐01‐624‐0592 GASKET A09‐052000

0011 5330‐01‐624‐0576 GASKET A09‐052100

0012 5330‐01‐624‐0655 GASKET A09‐052200

0013 5330‐01‐624‐0682 GASKET A09‐052600

0014 5340‐01‐624‐5380 KIT, EXHAUST FASTENER A10‐091501

0015 5340‐01‐624‐5308 KIT, EXHAUST FASTENER A10‐091502

0016 5340‐01‐624‐5056 HARDWARE KIT, MECHANICAL A10‐091505

0017 5340‐01‐624‐4746 HARDWARD KIT, MECHANICAL A10‐091508

0018 2990‐01‐f11‐2455 KIT, ISOLATION 100# A97‐083800

0019 2990‐01‐F11‐2456 KIT, ISOLATION 100# A97‐083900

0020 2990‐01‐597‐1603 BELLOWS, TURBO ADAPTER B99‐041400

0021 4730‐01‐597‐1936

BELLOWS ASSY, PIPE 12" FOR

MDE B99‐042600

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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. No Exception to the Buy American Act.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or the

Nature of the Acquisition Require Use of the Authority Cited. The DeAngelo main diesel engine and ships service diesel engine exhaust system and associated parts listed in this requirement are commercial items, comprised of multiple interrelated parts, designed and manufactured by DeAngelo Marine Exhaust, Inc.

Other than basic part/component descriptions (part numbers, etc.) provided by DeAngelo Marine Exhaust, Inc., the Government does not possess descriptions adequate for procuring all the various components using full and open competition.

OEM parts must be used or the Government will be harmed. The use of parts not manufactured in accordance with OEM specifications, materials, tolerances etc.

could cause equipment failure rendering the vessel unable to complete mission requirements. In order for the cutters to meet their mission requirements the Coast Guard must maintain an aggressive parts purchasing program. It is imperative that the Coast Guard work in partnership with the OEM, DeAngelo Marine Exhaust, Inc., in providing parts to keep these vessels at their original operating capability. The actual equivalency of any non-DeAngelo main diesel engine and ships service diesel engine exhaust system and associated parts is not known, may not be easily determined, and the risk of accepting those exhaust systems or parts without fully vetting their equivalence is unacceptable and may result in excessive cost to the Government, reduced reliability, reduced safety, and may hamper the Coast Guard mission requirements. It is not uncommon for these vessels to experience heavy seas and extreme weather during normal operations.

In these conditions, these vessels and crew are exposed to various conditions that could make their duties and environment unsafe or extremely difficult. The DeAngelo Marine Exhaust, Inc. exhaust systems and parts were designed and tested to meet the vessel manufacturer requirements and specifications at the time of vessel construction. The failure of any of systems or parts could allow extremely hot exhaust gasses into the engine room causing a fire or asphyxiation of any crew personnel in affected spaces. This failure would affect vessel propulsion and/or electrical power. Since the 87’ WPB and 154’ WPC vessels operate in a wide variety of weather and sea state conditions and in close proximity of other vessels or fixed objects loss of propulsion or electrical power could be catastrophic possibly causing injury or death to crew or persons being assisted, loss of property or damage to the environment.

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All reproduction manufacturing drawings, specifications, and other technical data pertaining to the main diesel engine and ships service diesel engine exhaust system and associated parts were not purchased when these vessels were fitted with the main diesel engine and ships service diesel engine exhaust systems, and are not available for use by the Coast Guard now. The Coast Guard does not possess parts manufacturing data required to obtain full and open competition.

Further, the scope of manufacturing, special tools and equipment required to manufacture the various main diesel engine and ships service diesel engine exhaust system and parts are unknown. The technical data that is needed is proprietary as stated by the OEM in a letter dated March 4, 2020. Without the adequate data, the Coast Guard is not capable of evaluating equal or alternate main diesel engine and ships service diesel engine exhaust systems and parts manufactured by other than the OEM. The use of OEM Main diesel engine and ships service diesel engine exhaust system and parts will ensure components and processes are sufficient to enable physical and functional interchangeability, as well as meeting source, size, and configuration and performance requirements.

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

Many Potential Sources as is Practicable. In accordance with FAR Subpart 5.2, in an effort to solicit as many potential sources as practicable, Sources Sought Notice 70Z08021S15002B00 was issued on the BetaSAM website, from October 28, 2020 – November 10, 2020. This announcement yielded one response from the OEM.

Following the Sources Sought Notice closing date, in an attempt to locate additional sources other than the OEM, three (3) potential sources were contacted.

One (1) of these sources replied with an email on November 11, 2020, stating that they are able to provide the items as a dealer; however subsequently, in an email dated December 23, 2020 the dealer retracted their claim because they learned from the OEM that the OEM is bidding directly on this requirement.

This requirement was published in the Acquisition Planning Forecast System (APFS) on July 17, 2020. The APFS Record Number is F2020049698. No inquiries from industry have been received for APFS F2020049698.

8. Determination by the Contracting Officer that the Anticipated Cost to the

Government will be Fair and Reasonable. The Contracting Officer (KO) determines that the anticipated prices will be fair and reasonable based on comparisons with the IGE, market research, previous acquisition history and, if necessary, require other than certified pricing data.

9. Description of Market Research. Extensive market research was conducted from January through November 2020 in an effort to identify companies that can provide the requested main diesel engine and ships service diesel engine exhaust systems and associated parts. Market research was conducted by looking at various companies, parts and components on the internet, available companies

70Z08021Q15002B00 Page 5 of 6 through Federal Supply Schedules, and companies that have had previous contracts. There are no manufacturers other than DeAngelo Marine Exhaust, Inc.

that can provide the exhaust systems and parts listed in this contract. Since the proprietary data required for manufacturing the DeAngelo Main diesel engine and ships service diesel engine exhaust system and associated parts is not made available to the public, the government will not be able to determine if other than OEM exhaust systems and associated parts are authentic, after market or were manufactured in accordance with DeAngelo Marine Exhaust, Inc. specifications, materials, tolerances or standards. It would not be possible for a third party to provide authentic DeAngelo Marine Exhaust, Inc. exhaust systems or parts without the OEM's proprietary information or purchasing directly from the OEM itself.

On March 3, 2020 the SFLC Patrol Boat Product Line Contracting Officer’s Representative (COR) emailed DeAngelo Marine Exhaust, Inc. inquiring as to the ability to purchase proprietary technical data for use in full and open competition.

DeAngelo responded on March 4, 2020 that the data was proprietary and therefore not available to the Coast Guard for use or purchase. DeAngelo was contacted again on December 23, 2020 for clarification on their status. They confirmed that they are the OEM and have no authorized dealers.

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

Competition. None.

11. A Listing of the Sources, if Any, that Expressed, in Writing, an Interest in the Acquisition. Market research efforts revealed that the OEM is the only source to supply all of the main diesel engine and ships service diesel engine exhaust system and associated parts for this requirement.

OEM: DeAngelo Marine Exhaust, Inc.; DUNS# 174474734, Contact: Dave Cook, dcook@deangelomarine.com; Address: 3330SW 2nd Avenue, Fort Lauderdale, FL 33315; PH: (954) 763-3005 | Fax: 954-467-8133

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. The Coast Guard does not own the required drawings, specifications or technical data to evaluate Non-OEM exhaust systems and associated parts; and it is unlikely DeAngelo Marine Exhaust, Inc. will sell the data rights to the Coast Guard. However, every attempt will be made to obtain the applicable drawings, specifications, etc. from the OEM for future procurements.

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13. Contracting Officer’s Certification.

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief:

JENNIFER LUCAS Date Contracting Officer

14. Technical/Requirements Personnel Certification.

I certify that this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for the justification, is accurate and complete.

WAYNE B. NICKEL Date Contracting Officer’s Representative

APROVAL:

JENNIFER LUCAS Date Contracting Officer

LUCAS.JENNIFER.B.1

409914299

Digitally signed by

LUCAS.JENNIFER.B.1409914299

Date: 2021.04.05 14:48:49 -04'00'

LUCAS.JENNIFER.B.14099

14299

Digitally signed by

LUCAS.JENNIFER.B.1409914299

Date: 2021.04.05 14:49:17 -04'00'

NICKEL.WAYNE.

B.1044084798

Digitally signed by

NICKEL.WAYNE.B.1044084798

Date: 2021.04.07 05:35:55 -04'00'