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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901

In compliance with the Federal Acquisition Regulation (FAR) 13.501(a)(1)(ii), this justification uses the format at 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 (DHS), United States Coast Guard (USCG), Surface Forces Logistics Center (SFLC), Engineering Services Division (ESD), In Service Vessel Sustainment (ISVS) proposes to enter into a contract on a basis other than full and open competition.

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

(a) Nature of the action: USCG intends to procure, on a limited source basis, the following Rockwell Automation (Allen Bradley) brand name components, assembled into one (1) kit, to support the upgrade to the Coast Guard Machinery Control System (CGMCS) currently installed on the CGC IDA LEWIS as part of the cutters Major Maintenance Availability (MMA).

(b) Name and address of the contractor:

(c) Type of action: Firm Fixed-Price Contract

(d) Estimated total value (including options): $1,278,900.00.

(e) Type of funding: Procurement, Construction, and Improvement (PC&I)

(f) Year of funding: Fiscal Year 2025

(g) Solicitation number: 70Z04024Q62438B00

(h) Background information about the requirement:

These components, manufactured by Rockwell Automation (Allen Bradley) make up part of the CGMCS system, that was designed by the Naval Surface Warfare Center Philadelphia Division (NSWCPD), and accepted by the U.S. Coast Guard when installed on the CGC POLAR STAR via Interagency Agreement with the U.S. Navy.

As technical authority, the Engineering Services Division has elected to install this tested and approved system on the CGC IDA LEWIS during their scheduled MMA.

Due to the specific electronic interfaces, these hardware components will be a shipset of retrofit-style subassemblies that can be installed in the existing shipboard enclosures by the Coast Guard YARD in Baltimore, MD. The hardware identified in this justification will ensure seamless integration with the existing accepted software design.

3. Description of Supplies/Services

Procurement of replacement hardware to upgrade the CGMCS currently installed on the CGC IDA LEWIS. The replacement system chosen is the NWSCPD developed, Coast Guard approved system chosen for installation on several classes of cutters preceding this one. The recapitalization system software and hardware requires upgrades to allow integration of shipboard machinery systems. This upgrade will allow the seamless operation of critical machinery while accepting vital input from other ancillary shipboard systems. This justification specifically supports the use of a brand name (Rockwell Automation) acquisition limited to the OEM and its authorized retailer.

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 as implemented by FAR 13.501(a), sole source (including brand name) as defined in FAR 2.101.

5. Identification of Exception to the Buy American Act. The U.S. Coast Guard has not identified any exceptions 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.

(a) Current Cyber-Security requirements state that ethernet components must be sourced from the Original Equipment Manufacturer (OEM) or authorized retailers with a documented chain of custody to ensure no tampering of equipment has occurred. The NSWCPD software design was centered around Rockwell Automation ethernet Programmable Logic Controllers (PLCs). These ethernet components comprise in excess of 50% of the hardware portion of the CGMCS.

(b) All firmware will be pre-loaded into delivered hardware by the OEM, or an authorized retailer, ensuring no cyber security attacks may be performed. The risk of cyber security attacks increases significantly if components are purchased from another OEM.

(c) Due to the specific electronic interfaces, only Rockwell Automation components must be utilized. The re-engineering of the system would be detrimental to the Coast Guard on many levels, including, but not limited to a complete loss of configuration management; significantly higher engineering development costs; substantial schedule delays; and thousands of hours of research and development wasted.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable.

Acquisition Planning Forecast System (APFS) Number F2024066554 was posted to the APFS website on July 8, 2024. No responses to this posting were received. On July 8, 2024, a sources sought notice was posted on SAM.gov advising industry of the Government’s attempt to solicit only the OEM or their authorized retailers. The sources sought notice closed on July 23, 2024. Two (2) responses were received. Both Expanse Electrical and Virginia Energy & Lighting responded indicating their interest in this solicitation and confirming they were authorized distributors for the OEM. Additionally, on July 23, 2024, a request for data rights was forwarded to the OEM, Rockwell Automation, to explore the possibility of broadening competition in the future. On July 29, 2024, Rockwell Automation responded to the request for data rights indicating the information was proprietary and would not be provided to the Government for this procurement.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The Contracting Officer has determined that anticipated prices will be determined fair and reasonable based on comparison with the Independent Government Cost Estimate (IGCE); comparison among quotations received; comparison to available previous history; and other than cost and pricing data.

9. Description of Market Research.

In accordance with FAR 10.001 (a)(2), market research was conducted during the period of April 11, 2024, through July 30, 2024, by the Contracting Officer’s Representative (COR) and Contracting Officer. While other components may exist in the commercial marketplace, these components must be procured from the OEM, or authorized retailer, as explained throughout this document. Based on this, the internet was searched for a list of contractors that would be able to provide the required OEM components. Results of market research indicate that only the OEM, or an authorized distributor, can provide the required components and assemble them to NSWCPD specifications without the need for extensive engineering efforts and the need for cyber-security assessment tools.

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 this Acquisition.

Two responses, as indicated below, were received as a result of the source sought notice posted on SAM.gov on July 8, 2024. Both vendors responded indicating their interest in this solicitation and confirming they were authorized retailers for the OEM therefore will be contacted when the solicitation is issued.

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 anticipates the procurement of these components will be an ongoing need for future 175’ WLM MMAs. Due to strict cyber security concerns revolving around black/gray market supply chains and chain-of-custody oversight for hardware and its installed firmware, there are no options available to overcome any barriers to competition at this time. However, the Government will continue to search the marketplace for any other manufacturers that can produce components of similar performance and security capabilities, as well as contact the OEM to acquire data rights and compete future requirements if available. These efforts will be ongoing to ensure the widest practicable competition for future procurements while maintaining the required level of system compatibility and security.

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