Rudder and Shaft Seal JA 70Z08024Q16003B00OTB Redacted.pdf

70Z08024Q16003B00

5. Identification of Exception to the Buy American Act. No exception to the Buy American Act has been identified.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Require Use of the Authority Cited. The Wartsila Defense, Inc.

propulsion and rudder shaft seal systems and associated components listed in this requirement are commercial items, comprised of multiple interrelated parts, designed and manufactured by Wartsila Defense, Inc. The propulsion and rudder shaft seal systems were procured as a whole and was originally described as such by the Government.

Procurement was not based on Government specified descriptions of all the various components contained within; and the Government has not bought those descriptions from Wartsila Defense, Inc. Other than basic part/component descriptions (part numbers, etc.)

provided by Wartsila Defense, Inc., the Government does not possess descriptions adequate for procuring all the various propulsion and rudder shaft seal systems and associated components full and open.

The use of propulsion and rudder shaft seal systems or associated components not manufactured in accordance with OEM specifications, materials, tolerances etc. could cause equipment failure rendering an affected vessel unable to complete mission requirements.

For the cutters to meet their mission requirements, the Coast Guard must maintain an aggressive part purchasing program. It is imperative that the Coast Guard work in partnership with the OEM, Wartsila Defense, Inc., in providing propulsion and rudder shaft seal systems and associated components to keep these vessels at their original operating capability. The actual equivalency of any non-Wartsila Defense, Inc. propulsion and rudder shaft seal systems or associated components is not known, may not be easily determined, and the risk of accepting those propulsion and rudder shaft seal systems or components 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. Coast Guard policy requires configuration management.

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 Wartsila Defense, Inc. propulsion and rudder shaft seal systems and components were designed and tested to meet vessel manufacturer requirements and specifications when the vessels were built. The failure of any of propulsion and rudder shaft seal system or component would allow sea water into the engineering spaces. This failure could affect vessel propulsion, electrical power, and cause vessel instability.

. The Coast Guard does not possess the parts manufacturing technical data required to obtain full and open competition. Further, the scope of manufacturing, special tools and equipment required to manufacture the various propulsion and rudder shaft seal systems and components are unknown. The technical data that is needed is proprietary to the OEM.

The use of OEM propulsion and rudder shaft seal systems and components 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. Pursuant to FAR Subpart 5.2, in an effort to solicit as many potential sources as practicable, a Sources Sought Notice was posted on SAM.gov from February 23, 2024 – March 08, 2024, requesting that parties express their interest in writing to the Contract Specialist. The vendors were asked to respond with a positive statement of their intent to submit a quote while documenting their ability to provide the required rudder and shaft seal kits and associated components. The notice was then sent directly to Wartsila Defense, Inc. on February 27, 2024. The only response to the notice was from the OEM, Wartsila Defense, Inc. on March 08, 2024, notifying of their interest in the resulting solicitation and confirming that there are no authorized distributors. Wartsila also submitted a letter dated January 1, 2024, stating they are the sole source, no other vendors can provide the equipment for the 154’ WPC vessels, and that the data rights are not for sale.

The rudder and shaft seal systems and components requirement was published in the Acquisition Planning Forecast System (APFS) on April 11, 2024. No inquiries from industry were received.

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

9. Description of Market Research. Extensive market research as prescribed in FAR Part 10 was conducted by the Contracting Officer’s Representative (COR) and the Contract Specialist (KS) from November 2022 through May 2024. Market Research has shown that the propulsion rudder and shaft seal systems and components utilized on the 154’ WPC class vessels are only available from the OEM, Wartsila Defense, Inc., who does not use distributors to sell these parts.

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, and Interest in the

Acquisition. A Sources Sought Notice was posted on SAM.gov on February 23, 2024, requesting that parties express their interest in writing to the Contract Specialist. The vendors were asked to respond with a positive statement of their intent to submit a quote while documenting their ability to provide the required rudder and shaft seal kits and associated components. The only response to the notice was from the OEM, Wartsila Defense, Inc.

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 USCG does not own the required drawings, specifications, or technical data to evaluate non-OEM’s and it is unlikely that Wartsila will sell the data rights to the USCG or another company. The USCG will continue its attempt to obtain the applicable drawings, specification, etc. from the OEM and will conduct follow-up market research to determine the availability of distributors. The Coast Guard will continue to engage Wartsila for release of proprietary data prior to any subsequent requirement.