(S1.4d) Sole Source Justification (SSJ) - 70Z08020CP4503000.pdf

Based on DHS Guide Dated 07/2019 – Version 3.1

SOLE SOURCE JUSTIFICATION

For Certain Commercial Items for Procurements Exceeding the Simplified Acquisition

Threshold Pursuant to FAR subpart 13.5

Solicitation Number: 70Z080-20-Q-P4503000

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), Contracting and Procurement

Division (CPD) Branch 1 (CPD1) in support of the Patrol Boat Product Line (PBPL) located at 300 E. Main St., Norfolk, VA 23510.

2. Nature and/or Description of the Action being Approved. The SFLC-CPD1-PBPL intends to negotiate a sole source, firm-fixed-price contract with Bollinger Shipyards

Lockport, LLC., 8635 Highway 308, Lockport, LA 70374 for dry dock ship repairs for the following Fast Response Cutters (FRC’s): Joseph Napier (WPC-1115); Kathleen Moore

(WPC-1109); Donald Horsley (WPC-1117) and Rollin Fritch (WPC-1119), with an overall period of performance of 15 April 2020 to 08 December 2020. Each vessel will include its own respective period of performance. The firm-fixed-price commercial contract will be issued using the procedures set forth in FAR part 12 Acquisition for Commercial Items, and

FAR subpart 13.5 Simplified Procedures for Certain Commercial Items. The estimated total value of this acquisition is $5,406,163.00 and is illustrated as follows:

FRC Schedule for Solicitation 70Z080-20-Q-P4503000

Vessel Period of Performance Independent

Government Estimate

Joseph Napier (WPC-1115) 15 April 2020 – 14 July 2020 $1,116,394.00

Kathleen Moore (WPC-1109) 03 June 2020 – 01 September 2020 $1,557,623.00

Donald Horsley (WPC-1117) 22 July 2020 – 20 October 2020 $1,116,394.00

Rollin Fritch (WPC-1119) 09 September 2020 – 08 December 2020 $1,615,752.00

TOTAL $5,406,163.00

(a) Type of funding: Operational and Maintenance (AFC-30) and Naval Engineering (AFC-

45) funding

(b) Year of funding: Fiscal Year 2020

(c) Solicitation Number: 70Z080-20-Q-P4503000

(d) Background information: The IGE is derived from an estimated composite labor rate of

$73/hr. in Tampa, FL. Estimated composite labor rates are based on expected average contractor costs (e.g. labor, burden, overhead, general, and administrative) and fees for the Tampa area. Estimated direct material prices are added to those labor prices to arrive at an estimated unit pricing. An analysis of historical award prices for similar and identical items, across several years and vessel classes, was also performed to ensure reasonableness.

3. Description of Supplies/Services. This requirement is to perform vessel sustainment maintenance and repair services concurrently during work to correct latent defects for each aforementioned respective vessel under contract HSCG23-08-C-2FR125. In accordance with

COMMANDANT INSTRUCTION M9000.6G, all FRCs must undergo dry dock maintenance and repairs every four years as part of the lifecycle sustainment program. The dry dock work includes maintenance and overhaul of electrical and auxiliary systems, and the

Motoren-und Turbinen-Union (MTU) Friedrichshafen engine system, inspection and repair of hull plating, the propulsion shafting system, rudder assemblies, stabilizing fins, bow thruster propeller and tunnel, Impressed Current Cathodic Protection (ICCP) and anti-fouling system, renewal/overhaul of the fire main system components, inspection of the notch ski pads, topside exterior surfaces preservation, underwater body preservation, temporary services (optional), preservation of the grey water tank (optional), renewal of the Main Diesel

Engines (MDE’s, optional), and MDE maintenance (definite and optional), assessment of the watertight closures, thermographic inspection, cleaning of the machinery ventilation system, cleaning of the HVAC duct system, cleaning and inspecting the diesel generator heat exchangers, and cleaning and inspection of the sewage and grey water system.

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 13.5, Simplified Procedures for Certain

Commercial Items.

5. Identification of Exception to the Buy American Statute. Not Applicable for this requirement as the exception listed under FAR 25.103(b)(2) or FAR 25.202(a)(2) do not apply.

6. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited. Under contract HSCG23-08-C-2FR125, Bollinger Shipyards Lockport, LLC. (BSL) was directed to correct latent defects associated with 32 FRC’s produced during the first phase of production. The PBPL is planning to have latent defects corrected for 7 vessels each year during the planned dry dock availability until all latent defects are corrected by FY25. Thus, the required sustainment maintenance and correction of latent defects will be completed concurrently as it is not feasible for another contractor to undergo the significant planning and coordination needed to perform the sustainment work without risking obstruction and interference with BSL’s work to correct the latent defects and potentially voiding warranties established in contract HSCG23-08-C-

2FR125.

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

Sources as is Practicable. In accordance with HSAM 3007.172, this requirement was posted in the Acquisition Planning Forecast System (APFS) with the following APFS number: F2019046546.

In addition, a Sources Sought Notice 70Z080-20-USCGFRCS was posted to FBO.gov on 27

September 2019 with a closing date of 07 October 2019. The results from this notice is explained in detail in paragraph nine.

This requirement will be solicited through Beta.SAM.gov. This Sole Source Justification will be attached and any responsible contractor may submit a quote. All responsible quotes shall be considered by the agency. The estimated date for posting is currently 13 February

2020.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable. The Contracting Officer determines that the anticipated prices will be fair and reasonable based on various techniques to include market research, price comparison utilizing available purchase history, and the Independent Government Estimate.

Previous history includes contracts with similar work items within the last year. These contracts, which include 70Z080-19-C-P45E3100 USCGC ISAAC MAYO FY19

DOCKSIDE/DRY DOCK and 70Z080-19-C-P45A7600 USCGC RICHARD DIXON FY19

DOCKSIDE/DRY DOCK have adequate data for evaluating the reasonableness of the prices 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 was conducted for this requirement as prescribed in FAR part 10 beginning on 27 September 2020.

Sources Sought Notice 70Z080-20-USCGFRCS was posted to FBO.gov on 27 September

2019 with a closing date of 07 October 2019. The notice informed interested contractors that the Government was contemplating the following award possibilities: a single-award contract, several single-award contracts for any combination of each of these availabilities, or a sole-source award contract to the prime contractor performing concurrent work, which is

Bollinger. The notice requested responses from contractors with the ability to perform work concurrently at a facility with another contractor performing work to correct latent defects on the aforementioned vessels. Four responses were received from companies expressing an interest to perform dry dock repairs to each vessel; however, other than Bollinger, no company was able to provide documentation confirming their ability to work concurrently with Bollinger.

Solicitation 70Z080-20-Q-P4502300 for the USCGC ROBERT YERED FY20 DRY DOCK

AC&I was solicited on 01 November 2019 with a closing date of 18 November 2019 as competitive, full and open unrestricted competition. As a result, only one response was received, which was Bollinger.

Solicitation 70Z080-20-Q-P4502400 for the USCGC HERIBERTO HERNANDEZ FY20

DRY DOCK AC&I was solicited on 20 November 2019 with a closing date of 06 December

2019 as competitive, full and open unrestricted competition. As a result, only one response was received, which was once again Bollinger.

Based on the results of the market research, Bollinger is the only company capable of satisfying this requirement. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph six above, for any company other than

Bollinger to provide the required services.

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

Only a sole source award ensures operational efficiency and avoidance of substantial duplication of costs. Per COMDTINST 3100.5 (series), a USCG WPC cutter has a limit of

185 days away from homeport (DAFHP) per year. A separate dry dock for ship repair performance period for each FRC produced during Phase 1 outside of the scheduled sustainment work would result in an additional 90-day dry dock availability within the same year for each vessel. The mission would be critically impacted without the execution of this justification as essential ship repair services could not be met concurrently with the latent defect work. As a result, each FRC would have five or fewer operational days remaining for performing mission operations. Moreover, a separate dry dock ship repair performance period would create a substantial duplication of costs at an estimated value of $1,958,137.18.

A detailed estimate of these costs is illustrated below:

Estimated Costs From a Separate Dry Dock

Work Item Price per Vessel Number of Vessels Overall Price

Dry Docking $92,037.80 4 $368,151.18

Foreseeable Costs $397,496.50 4 $1,589,986.00

TOTAL $1,958,137.18

Dry Docking includes those services identified in SFLC Standard Specification 8634.

Foreseeable costs were calculated based on GSA per diem rates for lodging, meals and incidentals, mileage, family separation allowance, and any applicable travel during a 90 day availability for a ship repair project for the normal amount of crew members attached to an

FRC. Therefore it is in the best interest of the Government to include ship repair work concurrently with the latent defect work.

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

Acquisition.

The following contractors expressed interest in this requirement through Sources Sought

Notice 70Z080-20-USCGFRCS that was posted to FBO.gov on 27 September 2019 with a closing date of 07 October 2019:

Bollinger Shipyards Lockport, LLC.

8635 Highway 308, Lockport, LA 70374

Gulf Marine Repair

1800 Grant Street, Tampa, FL 33605

J. Goodison Co.

244 Burlingham Ave., North Kingstown, RI, 02852

JAG Industrial Services, Inc.

225 East Chicago Street, Jonesville, MI 49350

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. This sole source justification is only being executed for the first dry dock availability for each of the vessels produced during Phase 1. Due to the efficiencies of performing vessel sustainment maintenance and repairs concurrently with the scheduled latent defect repair work, a sole source to Bollinger remains the most desirable option for the

Phase 1 vessels over the next few years. The Government has no reasonable expectation the latent defect work and availability repairs could be segregated to allow for competition.

However, any responsible contractor may submit a quote; any responsible contractor will be considered. If any responses are received as a result of this solicitation, the file will be documented accordingly and the requirement competed among all eligible contractors. In addition to the aforementioned dry dock availabilities, CPD1-PBPL intends to competitively solicit and award approximately 20 total FRC docksides and dry docks in FY20.

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.

THOMAS A. LUCAS

Contracting Officer

Date

14. Technical/Requirements Personnel Certification. I certify this requirement meets the

Government’s minimum need and that the supporting data, which forms a basis for this justification, is complete and accurate.

LT JAMES E. JORGENSEN

Technical Representative

15. Legal Counsel Review.

ROBERT COLBY

Legal Counsel

16. APPROVAL:

ALC, SFLC – MS. TRENA MILLS

CPACA