S1.4d HEALY MPM OIR JA redacted.pdf

Solicitation No.: 70Z08521Q32199B00

SOLE SOURCE JUSTIFICATION

For Certain Commercial Items for Procurements Exceeding the Simplified Acquisition Threshold pursuant to FAR Subpart 13.5, Including Brand Name

Solicitation Number 70Z08521Q32199B00

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 of FAR 6.303-2, the following facts and rationale support this justification.

1. Agency and Contracting Activity.

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

(SFLC), Contracts and Procurement Division (CPD), Branch 2 Long Range Enforcer Product Line (C&P2 LRE)

2401 Hawkins Point Rd, Baltimore, MD 21226.

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

(a.) Nature of the Action: The USCG SFLC intends to solicit and negotiate a sole source contract for the overhaul of a GEC Alstom electric motor used as the main propulsion motor (MPM) onboard the USCG Cutter (USCGC)

HEALY (WAGB 420).

(b.) Name and Address of the Contractor: The USCG SFLC intends to award to: GE Energy Power Conversion USA

Inc. (GEC). GEC’s information is as follows:

100 E Kensinger Dr.

Cranberry Township, PA 16066

DUNS: 623852030

CAGE Code: 4DSJ9

(c.) Type of Action: A Firm Fixed Price (FFP) contract will be awarded using the procedures set forth in FAR Part

12 Acquisition of Commercial Items and FAR Subpart 13.5 Simplified Procedures for Certain Commercial Items.

(d.) Estimated Total Value: The total value (including options) for this requirement is . The requirement’s Independent Government Cost Estimate (IGCE) is as follows:

CLIN Task Description Amount

0001 Main Motor Receipt and Inspection

0002 Condition Found Inspection

0003 Overhaul Main Motor

0004 Preservation, Packing, Packaging, and Marking of Main Motor

Total

(e.) Type of Funding: AFC-45 Operating and Expense funding will be utilized for this requirement

(f.) Year of Funding: Fiscal Year 2021

(g.) Solicitation Number (No.): 70Z08521Q32199B00

(d.) Background Information about the Requirement: The Period of Performance for this requirement will be 15

December 2020 through 15 June 2022. The Place of Performance for this requirement will be at GEC’s overhaul facility, which is located in Rugby, England.

3. Description of Supplies/Services.

The requirement is for the overhaul of an USCG owned GEC Alstom electric motor used as the main propulsion motor onboard USCGC HEALY. This includes the performance of all work necessary to open, inspect, provide a written overhaul plan and execute repairs required to overhaul the MPM to an “as new” condition. GEC is the manufacturer for these MPMs; they are the only entity that can overhaul the USCGC HEALY’s MPM.

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

Subpart 13.5, Simplified Procedures for Certain Commercial Items.

5. Identification of Exception to the Buy American Statute.

No exceptions to the Buy American Statue identified for this requriement.

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

Require Use of the Authority Cited.

GEC Alstom is the Original Equipment Manufacturer (OEM) of the USCGC HEALY’s MPMs and therefore is the only source for proprietary information. When the contract was awarded to GEC for the delivery of the GEC Alstom

Main Propulsion Motors for the USCGC HEALY, the USCG did not acquire the necessary blueprints, data rights, and other technical drawings supporting the motor and its design. The motor parts have very stringent tolerances and the correct assembly procedures are critical to the performance of the motors. There are no other vendors that possess the necessary blueprints, data rights, and other technical drawings that are required for the overhaul of the MPMs.

On 20 September 2020 the USCG contacted GEC in order to gauge their interest in selling or otherwise releasing the necessary blueprints, data rights, and other technical drawings for the MPM overhaul. GEC responded by indicating that they were unwilling to release any blueprints, data rights, and other technical drawings supporting the motor and its design related to the overhaul of the MPM. This proprietary data would be required in order to open competition for these services to any other vendor, because attempting to overhaul the MPM without access to this technical data, which includes performance tolerances /characteristics / parameters, would create a significant increased risk of

MPM failure.

If the USCG or a third party vendor were to perform the USCG’s requirement without access to the OEM proprietary data the chances of an MPM failure in open waters is significantly increased. Delays due to motor failures could result in schedule impacts that would significantly reduce the ability of USCGC HEALY to support USCG missions around the globe.

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

Practicable.

Acquisition Planning Forecast System (APFS) record F2020052076 was published on 22 September 2020; no responses were received from interested parties. Sources Sought Notice (SSN) 70Z08521SP45-HEALY-OIR-FY21 was posted to beta.SAM on 9 September 2020. The SSN requested that firms who were interested in satisfying the

USCG’s requirement present evidence to the USCG of their capabilities. No firms responded to the Sources Sought

Notice.

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

Reasonable.

The Contracting Officer will determine that the anticipated price to the Government will be fair and reasonable based upon a price analysis comparison with the Independent Government Estimate and through the evaluation of other than certified cost and pricing data.

9. Description of Market Research.

In an effort to promote competition SSN 70Z08521SP45-HEALY-OIR-FY21 was posted to beta.SAM on 9

September 2020. This notice informed interested vendors of the USCG’s intent to acquire the required MPM overhaul from the OEM. Companies having the expertise and knowledge for the requirement were invited to submit information discussing such interest by 18 September 2020. No interested sources expressed interest in this requirement.

APFS record F2020052076 was published on 22 September 2020; no responses were received from interested parties as a result of that posting. No interested sources expressed interest in this requirement.

The Contracting Officer contacted GEC on 20 September 2020 to gauge GEC’s interest in the requirement; GEC confirmed that they were interested in the Government’s requirement and could satisfy that requirement within the

Government’s Period of Performance.

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

No additional information can be presented that hasn’t been detailed prior to this section.

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

GEC is the only vendor who expressed in writing their interest to the Government for this requirement. GEC’s information is as follows:

100 E Kensinger Dr.

Cranberry Township, PA 16066

DUNS: 623852030

CAGE Code: 4DSJ9

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.

On 20 September 2020 the USCG contacted GEC in order to gauge their interest in selling or otherwise releasing the necessary blueprints, data rights, and other technical drawings for the MPM overhaul. GEC responded by indicating that they were unwilling to release any blueprints, data rights, and other technical drawings supporting the motor and its design related to the overhaul of the MPMs. This proprietary data would be required in order to open competition for these services to any other vendor. The USCG shall continue to engage with GEC in the future on acquiring the applicable data rights and technical drawings for the WAGB class cutters MPMs. To date, GEC has not expressed any interest in selling or otherwise providing the appropriate data rights to the USCG.

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.

Matthew L. Jovinelli, Contracting Officer Date

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.

Brandon Andrews, Contracting Officer’s Representative Date

Approval:

CPACA Date