Rudder Seal Justification and Approval Final_redacted.pdf

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JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

10 U.S.C. § 3205

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by Federal Acquisition Regulation (FAR) 12.102(b), FAR Class Deviation 25-21 Rev. 1 for

FAR Part 121, FAR 6.103, FAR Class Deviation 25-11 for FAR Part 6 and in accordance with the requirements of RFO 6.104, the justification for the use of the statutory authority under

RFO 6.103 is justified by the following facts and rationale required under RFO 6.104-1 as follows:

1. Agency and Contracting Activity.

The Department of Homeland Security, United States Coast Guard (USCG), CG-SEA-C in support of Patrol Boat Product Line, 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: The USCG intends to procure on a brand name basis Original Equipment Manufacturer (OEM) rudder seal service kits

(“A” and “B”) used to support the 154’ WPC Coast Guard cutters.

(b) Name and address of the contractor:

(c) Contract Type: Firm Fixed Price, Definitive Contract

(d) Estimated total value (including options):

(e) Type of funding: Surface Operations funds to award contract.

(f) Year of funding: Fiscal Year 2026

(g) Solicitation number: 70Z08026Q14003B00

1 In this document, citations to RFO Parts 12, 6, 10, 15, and 25 are citations specifically to Federal Acquisition

Regulation (FAR) Class Deviation 25-21 Rev. 1 for FAR Part 12, FAR Class Deviation 25-11 for FAR Part 6, FAR

Class Deviation 25-06 for FAR Part 10, FAR Class Deviation 26-08 Rev. 1 for FAR Part 15, and FAR Class

Deviation 26-09, Rev. 1 for FAR Part 25, which were issued as part of the Revolutionary FAR Overhaul (RFO), which was implemented in response to Executive Order 14275, Restoring Common Sense to Federal Procurement, signed April 15, 2025.

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(h) Background information about the requirement: The rudder seal assemblies and service kits under this justification were previously awarded under formal one-time buys. The rudder seal assemblies and service kits listed in this requirement are commercial items, comprised of multiple interrelated service, designed, and manufactured by DMS, Inc., the OEM.

3. Description of Supplies/Services.

The rudder seal assemblies and associated service kits are part of the vessel steering system and keep sea water from entering the vessel where the rudder stocks protrude through the hull. The rudder seal assemblies are complete units installed when there is a complete failure of a rudder seal. The service kits (A&B) are used to replace wear components of the installed rudder seals during vessel dry docking.

The following rudder seal assemblies and associated service kits will be purchased:

Part Number NSN Description Units

H78525-01-7 /

5330015967760

5330-01-596-

Rudder Seal, Service Kit “B” 11

H78525-01-6 /

5330015954647

5330-01-595-

Rudder Seal, Service Kit “A” 19

H78525-01 /

2040015976204

2040-01-597-

Stuffing Box and Bearing, Rudder

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 RFO 12.201-1, Simplified procedures and in accordance with the requirements of RFO 6.104.

5. Identification of Exception to the Buy American Statute. These parts are exempt under the Buy American Act through RFO 25.104 (a) (30).

6. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

DMS, Inc. is the sole designer, OEM, and proprietary rights holder of the rudder seal assemblies and service kits installed on the 154’ WPC Fast Response Cutters. The technical data, manufacturing drawings, tolerances, and material specifications required to produce these items are the exclusive intellectual property of DMS, Inc. The Government does not own, possess, or have licensing rights to this technical data package, rendering it legally and technically impossible to develop a competitive solicitation package.

Because the proprietary design authority rests solely with DMS, Inc., no other manufacturer possesses the specialized tooling, exact quality control processes, or technical data required to fabricate these components. Consequently, no other source can

Last Updated 07/09/26 Page 3 of 5 produce or certify items that meet the necessary tolerances, material compositions, and performance standards required to integrate with the vessel's steering system. Procuring these proprietary items directly from DMS, Inc. is the only legally and technically viable method to ensure system compatibility, maintain configuration control, and preserve the certified operating parameters of the steering systems.

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

Potential Sources as is Practicable.

Sources Sought posted to SAM on October 16, 2025, and closed on October 30,2025.

Posting received response from OEM authorized distributor, Pioneer Industries. APFS record F2025071375 published on December 09,2025 and April 23,2026.

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

Government will be Fair and Reasonable.

The Contracting Officer (KO) will determine whether the anticipated price is fair and reasonable based on comparison with the IGE, market research, previous purchase history and, if necessary, require the offeror to submit other than certified pricing data. The purchase history has adequate data for evaluating price reasonableness by comparing the proposed prices to historical prices paid by the USCG for the same or similar items.

9. Description of Market Research.

Market research as prescribed in RFO Part 10 was conducted by SFLC PBPL Equipment

Specialists and the Contract Specialist from July through September 2025. These parts are not available as a result of a search of DHS Strategic Sourcing Vehicles (SSV's), existing

Coast Guard SSV's, and existing Government Wide Vehicles or Blanket Purchase

Agreements. Market Research has shown that the rudder seal assemblies and associated service kits utilized on the 154’ WPC class vessels are only available from the OEM and its authorized distributor.

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.

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 seal assemblies and associated service kits. OEM authorized distributor was responsive to the notice.

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.

Prior to subsequent rudder seal assembly and service kit acquisitions, the USCG will continue its attempt to obtain the applicable drawings, specifications, etc. from the OEM and will conduct follow-up market research to determine the availability of additional distributors for DMS, Inc. products.

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