SAFE Boats JOTFOC Final (Redacted).pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

10 U.S.C. § 3205

In compliance with Federal Acquisition Regulation (FAR) 13.501(a)(ii), this justification uses the format at FAR 6.303-2 and is modified to state that the procedures in FAR subpart 13.5 are used.

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), United States Coast Guard (USCG), Surface Forces Logistics Center (SFLC), Contract & Procurement Division 3 (C&P-3), Small Boat Product Line (SBPL) prepared this justification for other than full and open competition.

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

(a) Nature of the action: The USCG SBPL has a new, formal requirement to procure new Original Equipment Manufacturer (OEM) SAFE Boats Over the Horizon (OTH) Parts to support the 26’ Over the Horizon Cutter Boat

(CB-OTH-IV) assets. This is a commercial products acquisition.

(b) Name and address of the contractor:

SAFE Boats International, LLC

8800 SW Barney White Rd, Bremerton, WA 98312

UEI: NG5DSM9C8EE7

(c) Type of action: Requirements contract with firm, fixed-price delivery orders.

(d) Estimated total value (including options):

Period Unit Price

Base Year 12 mo. $

Option Year 1 12 mo. $

Option Year 2 12 mo. $

Option Year 3 12 mo. $

Option Year 4 12 mo. $

Total $

Note: This will be the first formal contract for all required SAFE Boats

OTH Parts. The required parts have previously been purchased under multiple sole source Simplified Acquisition Procedures (SAP) orders.

(e) Type of funding: Operations and Support funds

(f) Year of funding: Current year funds will be applied to delivery orders when issued.

(g) Solicitation number: 70Z04025Q51599B00

(h) Background information about the requirement: The USCG has procured SAFE Boats OTH Parts to support the 26’ Over the horizon cutter boat (CB-OTH-IV) through multiple sole source Simplified Acquisition Procedures (SAP) purchases over the past few years; however, has not yet had a formal contract in place for the required items; this will be a new formal requirement.

3. Description of Supplies/Services.

The requirement is for the procurement of the SAFE Boats OTH Parts listed on

“Attachment 1 – SAFE Boats OTH Parts List” in support of the CB-OTH-IV assets.

These parts include, but are not limited to vessel specific collar kits and fuel tanks. The vendor will provide new, genuine OEM parts that will be preserved, packaged, and marked in accordance with Government specifications. No aftermarket parts will be accepted.

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

Competition.

The statutory authority permitting other than full and open competition is 10 U.S.C. § 3205 implemented by FAR Subpart 13.501(a) sole source (including brand name) acquisitions as defined in FAR 2.101.

5. Identification of Exception to the Buy American Act.

Exception is not applicable – parts are U.S. Manufactured.

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

SAFE Boats International, LLC, located in Bremerton WA, is the OEM for the required

SAFE Boats OTH Parts. The current SAFE Boats OTH parts are the only authorized parts configured for the OTH platform. The USCG does not possess the technical data rights necessary to support a full-and-open, competitive solicitation for non-OEM replacement parts, nor is the USCG aware of any alternative supplier of compatible parts. These data rights were not acquired when these vessels were first designed and built. Due to this limitation, the USCG must procure OEM OTH parts because the necessary data rights cannot be provided to industry to allow for non-OEM OTH parts to satisfy the USCG’s requirement. Moreover, the USCG cannot evaluate alternative solutions due to the lack of the necessary data rights; the USCG cannot verify the compatibility of alternative solutions to the parts that are currently installed on the OTH vessels. During previous acquisitions, the USCG has offered to purchase the data rights necessary to promote full and open competition, however SAFE Boats International has declined at each instance.

Furthermore, if the USCG were to reverse engineer these SAFE Boats OTH parts to obtain sufficient technical data to compete the manufacture of replacement parts in an attempt to obtain them through full and open competition, the time it would take to solicit industry for the reverse engineering and data package preparation, solicitation for manufacture of the parts, tooling up the production facilities, manufacture and shipping would result in a shortage of parts in the USCG replacement inventory and the costs associated with the effort would be significant and not likely to be recovered through competition for manufacturing the parts.

Based on the results of the market research effort, the only company that can provide compatible, SAFE Boats OTH Parts is SAFE Boats International, LLC.

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

Potential Sources as is Practicable

In effort to identify alternate sources, a Notice of Intent to Solicit Sole Source was posted to

SAM.gov on 03/13/2024 and closed 03/27/2024 with no responses received. APFS

F2023063677 was published on 01/31/2024 with no responses received. In an email dated

03/01/2024, the OEM, SAFE Boats International, LLC, stated they do not have a distributor network and all orders for the required parts will come directly through SAFE Boats

International, LLC.

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

Government will be Fair and Reasonable.

The Contracting Officer (KO) will determine that the anticipated price(s) will be fair and reasonable based on comparison with the Independent Government Estimate (IGE), which was created using historic pricing data from recent SAP purchases for the required OEM parts.

9. Description of Market Research.

Market research, as prescribed in FAR Part 10, was conducted from August 2023 to April

2024 by the Contracting Officer’s Representative (COR), Contract Specialist and

Contracting Officer. Not only does the COR have extensive experience with the SAFE Boats

OTH parts utilized on these Coast Guard small boats, he also conducted internet searches to look for other sources that could provide replacement parts to satisfy this requirement. Only

SAFE Boats International, LLC has access to the required technical data to successfully fulfill the needs of this requirement.

Data rights and requests for intellectual property were requested on 03/28/2024 for this requirement. In an e-mail provided by Justin Babcock on 03/29/2024 the request for data rights was denied.

Notice of Intent to Solicit Sole Source 70Z04024S51599B00 was posted to SAM.gov on

03/13/2024, with a closing date of 03/27/2024. No responses were received.

APFS F2023063677 was published on 01/31/2024 with no responses received.

From the results of market research and lack of response from Notice of Intent and the posted APFS record, it is anticipated that only the OEM can effectively support this requirement.

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

No additional facts can be identified.

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

Acquisition.

SAFE Boats International LLC

8800 SW Barney White Rd, Bremerton, WA 98312

UEI: NG5DSM9C8EE7

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.

Safe Boats International LLC. owns the proprietary technical data package.that the

Government would need to compete and evaluate offers on a full and open competition basis for the required SAFE Boats OTH Parts. Safe Boats International, LLC has stated in an email dated 03/29/2024 that they are unwilling to provide this information to the USCG. For future requirements, the USCG will continue to engage the OEM for release of the complete technical data package prior to any subsequent acquisition.