RHI SPONSONS FY21 JOTFOC_Redacted.pdf

SOLE SOURCE JUSTIFICATION

For Certain Commercial Items for Procurements Exceeding the Simplified

Acquisition Threshold pursuant to FAR Subpart 13.5, Including Brand Name

Solicitation 70Z04021Q57751B00

Pursuant to the authority of 41 U.S.C. 1901 as implemented by Federal Acquisition Regulation (FAR)

Subpart 13.501 and consistent with the content requirements FAR 6.303-2, the following facts and rationale support this justification.

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), United States Coast Guard (USCG), Surface Forces

Logistics Center (SFLC), Small Boat Product Line (SBPL), and Contract & Procurement Division 3

(C&P3) located at 2401 Hawkins Point Road, Baltimore, MD 21226.

2. Nature and/or description of the action being approved.

The USCG, SFLC, SBPL has a requirement on a brand name basis for the supply of Original Equipment

Manufacturer (OEM) Wing Inflatables, Inc. sponsons and fenders part replenishment that conform to the exact form, fit, and function and direct replacement of what is now in place on the Cutter Boat – Long

Range Interceptor - II (CB-LRI-II) and the 29’ Response Boat-Small (29’ RB-S). Parts must be new, genuine OEM parts. Estimated total price of requirement is $1,328,719.18, broken down as follows:

CLIN Description Base Year Option Year 1 Option Year 2 Option Year 3 Option Year 4

0001 Inflatable Collar $22,000.00 $23,320.00 $24,719.20 $26,202.35 $27,774.49

0002 Fender Set $15,000.00 $15,900.00 $16,854.00 $17,865.24 $18,937.15

0003 Bow Cover $4,500.00 $4,770.00 $5,056.20 $5,359.57 $5,681.15

0004 Sheath, Starboard $62,720.00 $66,483.20 $70,472.19 $74,700.52 $79,182.55

0005 Sheath, Port $66,640.00 $70,638.40 $74,876.70 $79,369.31 $84,131.46

0006 Foam Fender, Starboard $35,800.00 $37,948.00 $40,224.88 $42,638.37 $45,196.68

0007 Foam Fender, Port $25,060.00 $26,563.60 $28,157.42 $29,846.86 $31,637.67

0008 Fender Repair Kit $3,990.00 $4,229.40 $4,483.16 $4,752.15 $5,037.28

Base Year $235,710.00

Option Year 1 $249,852.60

Option Year 2 $264,843.76

000Option Year 3 $280,734.38

Option Year 4 $297,578.44

Total: $1,328,719.18

The IGE is derived from current material pricing and contract history. Actual pricing data was extracted from NESSS using previous contracts and current Simplified Acquisition Procedures (SAP) acquisitions.

To adjust for inflation over the option years, a standard 6% escalation factor was applied. Escalation factor composed of Consumer Price Index rate with added adjustment to account for economy and market volatility due to COVID-19.

The USCG, SFLC, SBPL anticipates that a Requirements contract will be awarded from solicitation

70Z04021Q57751B00 in accordance with FAR Part 12, Acquisition of Commercial Items, using the procedures of FAR Part 13.5, Simplified Procedures for Certain Commercial Items. The period of performance will include one (1) base year with four (4) one-year options. It is anticipated that funding will be provided through individual, fixed-price delivery orders utilizing Fiscal Year 20 AFC-30

Operating funds. The proposed Requirements contract will be awarded to the OEM or authorized distributors.

Name and Address of OEM:

Wing Inflatables, Inc. (here after referred to as Wing)

1220 5th Street

Arcata, CA 95521

3. Description of Supplies/Services.

This requirement is for the replenishment of sponsons and fender parts used to support the CB-

LRI-II and 29’ RB-S platforms to prevent downtime and keep the cutter boat fleet operational.

The vendor will provide new, genuine OEM parts that will be preserved, packaged and marked. No aftermarket, gray-market or refurbished parts are permitted.

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 13.5, Simplified Procedures for Certain Commercial Items.

5. Identification of Exception to the Buy American Act.

None.

6. Demonstration that the Nature of the Acquisition Requires Use of Authority Cited.

The OEM holds the data rights for the required sponsons and fenders. The USCG does not own the blueprints, technical drawings, and other data rights that are necessary to allow for full and open competition while also ensuring proper form, fit, and function of the sponsons and fenders. These data rights were not acquired when these vessels were first designed and built. It is USCG SFLC’s belief that the current configuration / specifications will likely not be phased out over the coming five to seven years and therefore staying with the required OEM parts is in the best interest of the government as is the use of Wing Inflatable sponsons and fenders will ensure that the components and processes are sufficient to enable physical and functional interchangeability, as well as identifying and verifying the source, size, and configuration and performance requirements. No other sponsons and fenders have been proven to meet the USCG’s requirement.

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 practical, a sources sought notice, 70Z04020S57751B00, was posted on beta.Sam.gov on 28 May 2020. One response was received from OEM Wing, advising that they would be capable of providing all of the required parts.

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

Fair and Reasonable.

The Contracting Officer (KO) has determined that the anticipated prices will be fair and reasonable based on price analysis utilizing a combination of techniques to include comparison to the Independent

Government Estimate (IGE), and available previous agency history.

9. Description of Market Research.

Market research, as prescribed in FAR Part 10, was conducted from January 2020 through July 2020.

COR reviewed previous acquisition history, IGE’s, government data basses, and vendor commercial databases pertaining to parts and pricing for analysis. Additionally a sources sought notice was posted on beta.Sam.gov on 28 May 2020 and closed on 4 June 2020. One response was received from OEM Wing, advising that they would be capable of providing all of the required parts. Wing also advised that they have an authorized distributor for their parts, Atlantic Diving Supply, Inc. A vendor query was conducted on GSA eLibrary using NAICS 336999, All Other Transportation Equipment Manufacturing; source category “84” Total Solutions for Law Enforcement, Security, Facilities Management, Fire Rescue, Clothing, Marine Craft and Emergency/Disaster Response; under category “260-03” Boats, Nonpowered, Includes Life Rafts, Options, and Accessories; and three (3) sources were identified. Of those identified, Atlantic Diving Supply, Inc. was shown to have a GSA contract. While other parts exist within the commercial marketplace, the Government does not possess the necessary technical and engineering data and drawings required to be able to determine if alternate sources can successfully manufacture these parts and maintain form, fit, and function with existing equipment. The market research determined the

OEM Wing, along with their distributor are the only known sources to provide the brand name Wing sponsons and parts to satisfy the existing systems on board the CB-LRI-II and the 29’ RB-S for form, fit, function, and interchangeability.

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

None.

11. A Listing of Sources, if Any That Expressed, in Writing, an Interest in the Acquisition.

Wing Inflatables, Inc.

1220 5th Street

Arcata, CA 95521

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 requirement for the sponsons and fenders for the CB-LRI-II and 29’ RB-S will continue to be an ongoing need for the USCG. The USCG does not currently own the necessary data rights in order to evaluate other alternative solutions. It is not anticipated that any future requirements will be competed on a full and open competition basis. An attempt was made to acquire the data rights from the OEM, Wing

Inflatables, on 01/28/2020, and the request was denied. However, every attempt will continue to be made to obtain the required documentation before any subsequent acquisitions occur.