S1.4d - JOTFOC TC5 REDACTED.docx

BRAND NAME JUSTIFICATION

For Certain Commercial Items for Procurements Exceeding the Simplified Acquisition Threshold pursuant to FAR Subpart 13.5, Including Brand Name Solicitation Number: 70Z04020Q61002Y00

Pursuant to the requirement of the authority of 41 U.S.C. 1901, as implemented by Federal Acquisition Regulation (FAR) Subpart 13.5, Simplified Acquisition Procedures for Certain Commercial Items, the justification for the use of the authority is justified by the following rationale and facts required under FAR 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 (DHS), U.S. Coast Guard (USCG), Surface Forces Logistics Center (SFLC), Coast Guard (CG) Yard proposes to enter into a contract on a basis other than full and open competition.

2. NATURE/DESCRIPTION OF THE ACTION:

The government intends to limit competition on a brand name basis for Nidec-Avtron Industrial Automation software in the upgrade of Tower Crane 5. Only the crane drive software and PLC code are being procured on a brand name basis. A firm fixed priced contract will be awarded to the contractor determined to be best value to the United States Coast Guard (USCG). Estimated value of the brand name items of this acquisition is $295,065.97. This acquisition is a CG Yard Funded project for fiscal year 2020.

The brand name estimate for this procurement is:

3. DESCRIPTION OF SUPPLIES/SERVICES:

This acquisition is for the replacement all the AC motors (main hoist, aux hoist, boom hoist, swing and gantry) with associated AC drive, encoders, and wires/conduits. The awardee will design and furnish new PLC panels with Nidec-Avtron software and diagnostic system, new cab with controls, and replace emergency stop pushbutton stations. The Nidec-Avtron software is programmed with a proprietary, crane specific, application code. This software provides features such as torque proving and load calculators enhancing the operator’s handling and improving safety. Additionally, parts of the PLC code is tightly integrated with the drive software. This code enhances brake testing and fault handling which is required for safe operation.

Tower Crane #5 will provide crucial lifting capabilities for availability projects located on the East Wall such as removing shafts, rudders, equipment, engines, reduction gears, and masts. Tower Crane #5 also provides service and support of several CG YARD projects; Navy YP projects, 110’ availability projects, 87’ WPB projects, and loading buoy cranes for the Mid-Life Maintenance Availability projects. The completion of the TC#5 upgrade will allow the CG YARD the capability to not utilize several mobile cranes at once. The lifting capability of Tower Crane #5 is greater than other mobile cranes which are used for lifting and the docking of vessels. This provides the flexibility and efficiencies needed to keep projects on time and under budget.

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 implemented by FAR Subpart 13.501, Simplified Procedures for Certain Commercial Items.

5. DEMONSTRATION THAT THE NATURE OF THE ACQUISITION REQUIRES USE OF AUTHORITY CITED:

This is a brand name purchase of Nidec-Avtron software. USCG Yard Baltimore is in the process of retrofitting and upgrading Tower Crane #5.. Nidec-Avtron software is a key component to the cranes capability and production time. The Nidec-Avtron software enhances the cranes handling and increases the situational awareness of the crane operator. Nidec-Avtron software is currently installed at CG Yard. Changing the crane software would not only complicate maintenance and update schedules, but would require additional training for each crane operator. Nidec-Avtron possess the most up to date software and patches. The OEM is the only sources that have access to this information. This data is proprietary to Nidec-Avtron. The USCG does not have sufficient data rights to reproduce/upgrade the software. Therefore, the Government must continue to rely on the OEM for specific services and parts to meet our needs. Any contractor will need to work with Nidec-Avtron for any patch, repair, or maintenance of their proprietary software.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE:

In an effort to promote full and open competition and solicit as many potential vendors as possible, a sources sought notice was posted on August 28, 2019 on the Federal Business Opportunities (FedBizOpps) website. This notification informed industry of the Government’s intent to solicit Nidec-Avtron brand software. Interested vendors were invited to submit information discussing their capabilities within thirty (30) calendar days of the posting date. In addition, only the software portion of this requirement is being restricted on a brand name basis (i.e., the electrical motors, wires, and conduit are not restricted to a specific brand name).

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE:

The Contracting Officer anticipates that the anticipated price(s) to the USCG will be fair and reasonable based on historical prices paid, anticipated competition from 2 or more vendors, and comparisons to the Independent Government Estimate. Price analysis will be performed to ensure fair and reasonable prices are obtained. Additionally, in accordance with FAR and DHS policy, the offeror may be required to submit data other than certified cost or pricing data.

8. DESCRIPTION OF MARKET RESEARCH:

In accordance with FAR 10.001(a)(2), market research was conducted by the Contracting Officer’s Representative (COR) and Contracting Officer to identify companies capable of performing these services. Two (2) vendors responded to the sources sought notice posted to FBO on August 28, 2019; Nidec Industrial Services, and Sayers Construction LLC. Nidec Industrial Services is the manufacturer and dealer of the brand name product. Nidec-Avtron has no record of doing business with Sayers Construction LLC or authorizing them as a reseller. Which businesses Nidec-Avtron conducts business with or authorizes as resellers of their proprietary products is conducted on a case by case basis and is confidential privy information.

Two additional companies were identified by Nidec-Avtron as local resellers; Redding Crane, and Advance Crane Technologies (ACT). Both companies appear to have active and exclusion free accounts in SAM.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN COMPETITION:

Nidec-Avtron possess the most up to date software and patches. The OEM is the only sources to have access to this information. This data is proprietary to Nidec-Avtron and therefore the Government must continue to rely on the OEM for specific services and parts to meet our needs. Any contractor will need to work with Nidec-Avtron for any patch, repair, or maintenance of their proprietary software.

10. LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE ACQUISITION:

The following vendors responded to the sources sought notice posted on FBO on August 28, 2019:

11. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY

Nidec-Avtron owns all data rights for the crane software. It is not anticipated that any future requirements can be competed on a full and open competition basis. The Coast Guard will continue its attempts to obtain further information through additional market research in accordance with FAR Part 10, with a focus on locating contractors capable of meeting the requirement before subsequent acquisitions occur.