(S1.4d) WILLOW UPDD FY21 Justification and Approval for FAR 13.5 Simplified Procedures for Certain Commercial Items Final 17 Feb 21_Redacted.pdf

Fiscal Year 2021

(g) Solicitation number:

70Z08521QP4584000

(h) Background information about the requirement:

This justification is for a sole source solicitation in support of repairs to CGC

WILLOW (WLB-202). The CGC WILLOW (WLB-202) is critical for Aids to

Navigation (ATON) work for Coast Guard District 7 and is currently the only cutter providing heavy lift operations on the Gulf Coast. Failure to repair will result in hardship to Government, including the inability to conduct Aids to Navigation

(ATON) and Gulf Coast operations. By issuing this sole source request D7 is able to recover a necessary asset to compensate for loss of 225 asset and only having one available asset for Coast Guard Maritime/Navigation operations.

3. Description of Supplies/Services.

This acquisition requires a Contractor to provide Unplanned dry dock maintenance and repairs to USCGC WILLOW (WLB-202) a 225 foot seagoing buoy tender home-ported in

Charleston, South Carolina to take place from 9 March 2021 through 5 April 2021. This dry dock will consist of approximately nine (9) Definite work items which are as follows:

There are two (2) option items which are laydays and composite labor rate.

ITEM DESCRIPTION

D-001 Drydock

D-002 Temporary Services, Provide - Cutter

D-003 Sea Trial Performance, Support, Provide

D-004 Propeller Blade, Removal and Installation

D-005

Controllable Pitch Propeller Hub, Remove and Reinstall

D-006 Thruster Units (Bow and Stern), Overhaul

D-007 Towing Services, Provide

D-008 Auxiliary Sea Water System Piping, Renew

O-009 723 Plus Governor Upgrade

O-00A Composite Labor Rate

O-00Z Laydays

4. Identification of Statutory Authority Permitting Other Than Full and Open

Competition:

The statutory authority permitting other than full and open competition is 10 USC. 2304

(c)(1) as implemented by FAR 13.5, Simplified Procedures for Certain Commercial

Items.

5. Identification of Exception to the Buy American Act.

N/A.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Require Use of the Authority Cited.

(a) Rationale for using the authority cited in section 4 of the J&A;

10 USC. 2304 (c),(1) applies because there is “only one source that will satisfy the

USCG’s needs”.. Due to the inability of CGC WILLOW (WLB-202) to operate both the controllable pitch propeller systems without significant environmental impact and the engines without reliable operations, CGC WILLOW (WLB-202) is unable to navigate under their own power and will need to be towed to a dry docking facility.

Because of these two discrepancies, the U.S. Coast Guard’s Surface Forces Logistics

Center intends to award the needed dry dock repair contract to the nearest qualified vendor.

Out of the three (3) companies who expressed interest in this unplanned drydock

Detyens Shipyard was the closest, approx. 5 nm from CGC WILLOW’s homeport.

The next closest shipyard, North Florida Shipyard is approx. 197nm, however this shipyard is unable to lift the WLB-225 cutter class. And the third (3rd) shipyard, International Ship Repair is approx. 865nm. The aforementioned environmental, operational reliability/safety, and economic considerations compel the government to award CGC WILLOW’s unplanned Dry Dock project to the nearest shipyard which is

Detyens Shipyard.

(b) Details covering what events lead to the situation requiring use of other than full and open competition procedures including whether any portion of the work can be segregated to allow for competition;

The CGC WILLOW (WLB-202) homeported in Charleston, SC has sustained a severe casualty. The controllable pitch propeller system leaks significant amounts of hydraulic oil when pressurized and operated into the water, posing an unacceptable environmental pollution issue. Furthermore, CGC WILLOW’s main diesel engine governors are not operating properly, exposing the cutter and her crew to significant risk of failure/unreliable operations of the propulsion plant.

(c) Summarize alternatives considered and why they will not work;

Coast Guard Yard services were considered for these repairs, however due to availability conflicts with scheduled cutters Coast Guard Yard is currently unable to conduct repairs on CGC WILLOW (WLB-202) with the finding of oil leaking into the water making a long tow to the Coast Guard Yard also poses environmental risk

Additionally, there are no other shipyards in close proximity to CGC WILLOW’s homeport of Charleston, SC other than Detyens Shipyard. Using a shipyard outside of the Charleston area will also cause concerns for posing environmental pollution issues and exposing the cutter and crew to safety concerns as well.

(d) Impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided.

If this service is not provided the failure of these systems would pose an environmental pollution issue as well as exposing cutter and crew to safety risk. If this casualty is not corrected in a timely manner CGC WILLOW (WLB202) will not be able to meet their mission requirement and the Coast Guard will be without a critical

225’ WLB asset to meet Coast Guard Maritime/Navigation duties. This would be a disadvantage to the Government and interference of the USCG mission.

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

Potential Sources as is Practicable.

(a) If an announcement has already been made in Contract Opportunities, provide the date of publication; or: N/A, On 27 January 2021 four companies were contacted to determine if they were any dry docks available to perform the Unplanned Dry Dock on the USCGC WILLOW (WLB-202) three of the companies expressed interest and were able to work on the USCGC WILLOW (WLB-202). On 28 January 2021 it was determined by the Causality Assessment Team (CAT) that the cutter would not be able to transit to any dry docks out of Charleston SC due to environmental concerns.

(b) If an announcement is being planned for posting in Contract Opportunities, provide the estimated date of publication. Because of urgent nature of requirement a

Sources Sought Notice will not be posted.

(c) If an announcement will not be published, identify the applicable exception under

FAR 5.202. FAR exception 5.202(a)(2) applies.

(d) If an announcement will be published after award, cite the applicable exception under FAR 6.305. FAR exception 6.305(a) applies and shall be made publicly available within 14 days after contract award.

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(s) will be fair and reasonable based on price analysis, comparison with the IGE, historical pricing, previous awards, and price negotiations.

9. Description of Market Research.

Formal market research was not conducted due to the environmental concerns with the

USCGC WILLIOW (WLB-202) leaking oil. The Contract Specialist contacted four companies to determine if they were any dry docks available to perform the Unplanned Dry

Dock on the USCGC WILLOW (WLB-202) three of the companies (all small businesses) express interest and were able to work on the USCGC WILLOW (WLB-202). Detyens

Shipyard stated that they would be able to work on the USCGC WILLIOW (WLB-202) and the dry dock is located within five nautical miles of the Cutter’s homeport.

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

(a) An explanation why technical data packages, specifications, statement of work, or purchase descriptions are not suitable for full and open competition. N/A

(b) Discuss why your requirement cannot be modified to enhance competition. N/A

(c) For a proposed contract subject to the restrictions of FAR 6.302-1 for follow-on acquisitions as described in 6.302(a)(2)(iii), provide an estimate of the cost to the

Government that would be duplicated and detailed information on how the estimate was derived. N/A

(d) For a proposed contract subject to the restrictions of FAR 6.302-2(d) or HSAR

3006.302270 and where FAR 6.302-2 is cited as the authority, describe the exceptional circumstances allowing for an award for a period of performance in excess of the one-year limitation (applicable to all federal agencies) or the DHS-specific statutory 150-day limitation. N/A

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

Acquisition.

N/A

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.

(a) All future requirements will be synopsized and market research will be conducted to see if there are other vendors qualified to perform this service.

(b) When a J&A is issued for the purposes of acquiring goods or services while a competitive procurement is being conducted, the justification should include a detailed timeline for completion of the competitive procurement. The period of performance for the sole source action should fairly balance the time needed to complete the competitive procurement. The focus should be on minimizing the need for additional sole source awards. N/A