SPMYM322Q3121_JA_Redacted.pdf

CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPMYM322Q3121

DLA Land & Maritime Justification for Other Than Full & Open Competition

(November 2021)

CUI Page 2 of 8

4. The statutory authority permitting other than full and open competition is:

[ X ] 10 U.S.C. 2304(c)(1) - Available from only one or a limited number of sources.

Brief narrative supporting the situation and weapon system:

Material:

This material is required to work with existing, PNS owned, Excel brand Scaffolding components, which must interconnect, and match in form, fit, and function. Portsmouth Naval Shipyard currently has approximately $18.9 million dollars of the Excel brand scaffolding material in their possession and in use. Boat Alterations and work packages are continuously changing and growing, along with the need to support increasing safety requirements and fall protection initiatives, mean additional scaffolding materials are often needed.

Due to the proprietary interlocking design of the scaffolding and the fact that this scaffolding must be compatible with existing inventory, any other brands will not be compatible.

This procurement is a small part of the whole boat’s enclosure, and is required due to changes in configurations that were needed to suit differences in the boat, and the specific alterations required during the boat’s overhaul.

Additionally, some new parts may be required in order to replace worn or damaged components from existing inventory that are no longer safe for use.

The proprietary design of this specific type of scaffolding entails a quick snap toolless feature that is Occupational

Safety and Health Administration (OSHA) approved, and is the only design that will coordinate with the existing

PNS owned material. Utilizing a different brand in conjunction with the proprietary excel design could pose a significant safety hazard to employees and contractors. If the shipyard were to use another type of scaffolding, they would be required to purchase or rent an entire new set of material, as no other known type of scaffolding is compatible with the excel scaffolding design. There is no other known source of supply capable of providing the required scaffolding material that would be compatible with this proprietary design and the scaffolding already in use.

The Portsmouth Naval Shipyard Temporary Services Structural Branch Head has determined from a technical perspective that Excel Scaffolding is the safest and most robust engineered system scaffolding available.

Converting or combining with another system would require redesigning all custom dry dock enclosures and hundreds of historical structural designs that have been evaluated and designed for personnel, equipment, seismic and destructive weather loads. These designs are specific to the Excel proprietary brand of scaffolding. Other brands use a completely different connection system. Additionally, the user Shop would need to re-train end users to the requirement of 1,100 hours of proficiency experience (each employee) with the new system according to

Process Instruction PI-992 requirements. As the Engineering authority, and through communication with the production Shop 64 C990 leaders, the Temporary Services Branch Head does not believe it is possible to migrate to multiple systems, or migration to a different inferior system. Additionally, Portsmouth Naval Shipyard has just executed a contract for an engineered wind tunnel study to determine the design requirements and wind load effects of Excel scaffolding structures within the three (3) existing dry docks.

The Temporary Structures Branch Head has advised that a dedicated team of Structural Engineering resources to re-design to a new system (which would take years) and production shop agreement to retrain all of their personnel to meet requirements of the product instruction for use and installation of scaffolding would be required.

Portsmouth Naval Shipyard would need to determine and consider the overall impact and risk of combining

SOLICITATION SPMYM322Q3121

DLA Land & Maritime Justification for Other Than Full & Open Competition

(November 2021)

CUI Page 3 of 8 multiple scaffolding systems, and determine the ability to segregate, store, inventory, and organize two completely different scaffolding systems with hundreds of components each.

This would result in the duplication of resources, cost, and time to the Government that would not be recovered through competition. The usage of any other type of scaffolding would require the shipyard to completely rewrite and change all work process instructions and procedures in place, to include items such as; boat scaffolding enclosures, equipment removal procedures, rigging requirements, dry dock arrangements, and equipment clearances. The instructional rewrite process would take several years to complete, which is not practical or cost effective. Additionally, the shipyard’s safety office would hinder all work from being performed until any process or instructional changes were approved and finalized. The work stoppage losses and labor hours involved for such an endeavor would not be justifiable or beneficial to the Government.

Sources:

The Excel scaffolding material is manufactured by Deltak Manufacturing Inc (Cage 6UL20, SM for NAICS

332323), and sold exclusively to Excel Modular Scaffolding (Cage 93D98). Excel Modular Scaffolding (Cage

93D98) is the only authorized distributor of Excel scaffolding.

Both companies are part of the Bartlett Group, privately owned by the same individual (Bruce Bartlett). When asked to elaborate upon the corporate relationship, and why Deltak does not contract directly with the Government, (General Manager of Bartlett Group), stated: “Deltak has always been the manufacturing arm for the companies that Bruce Bartlett owns that manufactures Excel scaffold material and then sells it directly to Excel and they take care of the utilization and distribution of the material.”

Previous distributor, BHI Energy (Cage 7AN38), was bought out by Westinghouse, and is no longer authorized to distribute Excel brand scaffolding. Regarding the former authorized seller: “Bruce Bartlett previously owned BHI

Energy up until approximately 15 years ago and BHI was sold to an equity investment firm with the exception of

Deltak & Excel and Bruce maintained full ownership of those two companies.” BHI is no longer authorized to sell

Excel brand scaffolding to the Navy/DoD.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code:

Sole Source to: Excel Modular Scaffolding (Cage 93D98)

Due to the proprietary nature of the material, and the need for it to be compatible with existing inventory, this requirement can only be fulfilled by Excel brand scaffolding, manufactured by Deltak Manufacturing (6UL20).

Deltak Manufacturing retains the data rights, manufacturing knowledge, or technical data, and they cannot be purchased, developed, or otherwise obtained by the Government. Excel Modular Scaffolding (Cage 93D98) is the only authorized distributor.

The use of the authority cited below:

[ X ] AMC 5. Acquire directly from the sole source contractor, who is not the manufacturer.

The use of the authority cited is based on:

[ X ] AMSC P. The rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part. This code is used in situations where the Government has the data but does not own the rights to the data.

SOLICITATION SPMYM322Q3121

DLA Land & Maritime Justification for Other Than Full & Open Competition

(November 2021)

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If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

[ X ] AMSC Z. This part is a commercial/nondevelopmental/off-the-shelf item. Commercial item descriptions, commercial vendor catalog or price lists or commercial manuals assigned a technical manual number apply. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources are available, AMCs 1 or 2 are valid (When one or a limited number of sources are available, then a J&A is required. When an item is coded with AMSC “Z” and is listed on an interchange catalog or appears on a commercial cross reference list, this constitutes full and open competition and a J&A is not necessary).

[ X ] Other (Explain):

This material is in accordance with a Sole Source description per FAR 6.302-1(a)(1) [10 U.S.C.2304(c)(1)], as this supply is available from only one responsible source.

In accordance with FAR 6.302-1(a)(2)(ii), this procurement will supplement existing equipment and for the purposes of defining a follow-on contract, is considered a system of specialized equipment. An award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition, and would result in unacceptable delays in fulfilling the agency’s requirements, as well as the overhaul schedule of the boat which would have a significant impact to the Navy.

In accordance with FAR 6.302-1(b) there is reasonable basis to conclude that (1) the minimum needs can only be satisfied by unique supplies available from only one source, and (2) the existence of patent rights and other proprietary rights make the supplies available from only one sources.

6. Efforts to ensure that offers are solicited from as many sources as practicable are:

[ X ] The acquisition will be synopsized on or about ___8/15/2022____________.

[ ] Manufacturers of similar products identified in the market research will be solicited.

[ X ] Dealers of the manufacturers will be solicited.

[ ] A synopsis exception cited in FAR 5.202 applies. (Explain): ________________________________.

[ X ] Other. (Explain): __The solicitation will be solicited on SAM.gov to encourage potential supplier participation. The solicitation will be posted for a reasonable amount of time, in consideration of the estimated material lead time, and Government’s material need date. The Government will continue to conduct market research to see if changes occur in the marketplace that would enable future actions for these items to be competitive. A sources sought was posted for this requirement, additional details can be found in paragraph 8__.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.

In accordance with FAR 13.106-3 and 15.404, the Procuring Contracting Officer will make a determination of fair and reasonable pricing prior to award. Determination to establish price reasonableness will be made based upon comparison of the proposed price with prices found fair and reasonable on previous contracts, as well as information from market research and other price analysis techniques, such as Producer Price Index Industry (PPI)

Data, if necessary. Certified cost and pricing data is not required due to the fact that this requirement is under the threshold (FAR 15.403-4 and 15.403-1(b)(3)), and the Contracting Officer has determined this material to be

Commercial (in accordance with FAR 12.103) (See Attached CID).

SOLICITATION SPMYM322Q3121

DLA Land & Maritime Justification for Other Than Full & Open Competition

(November 2021)

CUI Page 5 of 8

8. Market Research/Efforts to Obtain Competition: Describe the market research conducted and the results.

Market Survey [10 U.S.C. 2304(f)(3)(D)]:

[ X ] A market survey was conducted on/during _7/1/2022-7/12/2022____________.

A Sources Sought Notice SPMYM322Q3121was posted on SAM.gov on 7/1/2022, and closed on 7/12/2022, seeking sources capable of providing Excel brand scaffolding.

Three (3) responses were received: Excel Modular Scaffolding (Cage 93D98, LG for 332323), API Construction

(Cage 5LJZ3, LG for 332323), and Architectural Metals (Cage 87G97, SM for 332323).

The response from Excel (93D98) stated that Excel is the only company “legally capable of providing and manufacturing Excel scaffold standard & custom components for rental or purchase.” As of May 2022, BHI

Energy / Bartlett Services Inc. (Cage 7AN38) no longer has a distribution agreement for providing Excel scaffold material to any of the US Navy Nuclear Shipyards. Regarding the material itself: “Excel was originally able to get a US Patent because our unique positive locking trigger mechanism was so significantly different than all of the other older previously patented modular system designs,” and “other generic modular system scaffold materials currently available in the market place like SGB Cup Lock, Patent QES, Safeway Systems, Layher, Etc have never been compatible with Excel.”

The scaffolding is manufactured by Deltak (6UL20, SM for 332323), and sold exclusively to Excel; both companies are part of the Bartlett Group, privately owned by the same individual (Bruce Bartlett). When asked to elaborate upon the corporate relationship, and why Deltak does not contract directly with the Government, (General Manager of Bartlett Group), stated: “Deltak has always been the manufacturing arm for the companies that Bruce Bartlett owns that manufactures Excel scaffold material and then sells it directly to Excel and they take care of the utilization and distribution of the material.”

The response from API (5LJZ3) stated that their product line was a direct competitor of HAKI (different material:

roofing, not scaffolding), and provided MonZon Protect IT product information. The response from Architectural

(87G97) noted manufacturer Cage 93D98 (indicating Excel), and said they were “capable of brokering the sale,” but stated they had not been in touch with the manufacturer. Excel has already stated that they are the only authorized seller, so Architectural is ‘not capable’ of brokering the sale. The responses from API (5LJZ3), and

Architectural (87G97), were determined not capable of meeting the requirement.

Regarding the former authorized seller, BHI Energy (Cage 7AN38): “Bruce Bartlett previously owned BHI Energy up until approximately 15 years ago and BHI was sold to an equity investment firm with the exception of Deltak &

Excel and Bruce maintained full ownership of those two companies.” BHI is no longer authorized to sell Excel brand scaffolding to the Navy/DoD.

Based on this information, it is determined that Excel (93D98) is the only company authorized to sell Excel brand scaffolding, therefore this requirement is Sole Sourced to Excel Modular Scaffolding and Leasing Corporation

(93D98).

SOLICITATION SPMYM322Q3121

DLA Land & Maritime Justification for Other Than Full & Open Competition

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Information received regarding the commerciality of the item(s): __Determined to be COTS_________.

When performing market research, Contracting discussed with the engineering team (knowledgeable Government individuals), previous acquisitions were looked at, as well as the manufacturer’s website. DLA KME is familiar with the nature of Excel scaffolding as it has been ordered through spot buys in the past. It is well known to KME personnel that Excel scaffolding is proprietary in nature, that Excel Modular Scaffolding is the authorized distributor, and that the required material is commercial in nature. A review of the manufacturer’s catalog and website is consistent with this existing knowledge.

The Contracting Officer has determined this requirement to be Commercial (in accordance with FAR 12.103). The material provided by Deltak is offered to the general public via their website, including the option for customized parts from their catalog. Their catalog is available to the general public for ordering. Additionally, the Government has evidence from previous procurements that Excel material has been quoted to non-Government entities. During the solicitation phase of SPMYM315D3080 (an Excel scaffolding delivery order contract over $4 million awarded to BHI Energy), BHI submitted pricing information showing it had previously quoted Excel scaffolding items to

Graybar (CAGE 90176), a commercial entity. The material is determined to be Commercial Off the Shelf (COTS), (in accordance with FAR 12.103), and is under the threshold (FAR 15.403-4 and 15.403-1(b)(3)) therefore

Certified Cost and Pricing Data is not required. (See Attached CID).

9. Additional facts supporting other than full and open competition are:

[ X ] Based upon the attached technical certification, technical data is not available and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government.

__The proprietary design of this specific type of scaffolding entails a quick snap feature that will only coordinate with the existing material on hand. Excel Scaffold has been issued the following: U.S. Patent No. 5,028,164 &

U.S. Patent No. 5,078,532 Other Patents Pending. Utilizing a different brand in conjunction with the proprietary

Excel design could pose a significant safety hazard to employees and contractors. If the shipyard were to use another type of scaffolding, they would be required to purchase or rent an entire new set of material, as no other known type of scaffolding is compatible with the Excel scaffolding design. (See Attached)

[ X ] As stated in the attached certification by the requiring activity, the Military Services will be seriously injured in contract award is delayed. The extent and nature of harm are detailed in the attached certification, or provide a narrative Impact Statement below:

__Key event UD00 will be pushed to the right proportionately as this material is required to support installation of the Large Vertical Array (LVA) which is currently the docking duration driver. Material is critical to the structural integrity and rigidity of the LVA enclosure which is critical to the insulation and equipment support installation process. Failure to maintain the work space structure and equipment loading will result in the loss of an LVA stave and result in months of rework. Lack of this material will create a work stoppage for completing the Dry

Dock build in support of NDK and delay the LVA installation team from starting work. This particular staging is also the only type that our shipwrights are qualified to assemble. It would be unfeasible for them to qualify and maintain proficiency on other types. It is also technically unacceptable to mix various scaffolding systems which utilize incompatible connections. The work that is being performed is first of its kind work. The RDD being 2/1/23 is to allow for the work to be done and account for the long lead time. (See Attached)_________

SOLICITATION SPMYM322Q3121

DLA Land & Maritime Justification for Other Than Full & Open Competition

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[ X ] When FAR 6.302-1 is cited for follow-on acquisitions as described in 6.302-1(a)(2)(ii), an estimate of the cost to the Government that would be duplicated and how the estimate was derived.

___The cost to the Shipyard to purchase a separate brand of scaffolding (different from Excel) for whole configurations would be large. The impact of changing the brand of material would be enormous, and would be impossible under current cost and schedule parameters. The PNS Temporary Services Structural Branch Head has determined from a technical perspective that Excel Scaffolding is the safest and most robust engineered system scaffolding available. Converting or combining with another system would require redesigning all custom dry dock enclosures and hundreds of historical structural designs that have been evaluated and designed for personnel, equipment, seismic and destructive weather loads. These designs are specific to the Excel proprietary brand of scaffolding. Other brands use a completely different connection system. Previously approved large purchase sole source J&As from SPMYM321P3002, SPMYM319P0020, and SPMYM316Q3056 are attached to this J&A.___

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state)

__Excel Modular Scaffolding (Cage Code 93D98)______________________________________.

11. The following actions are being taken to identify additional sources:

[ X ] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items

[ X ] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items

[ ] VE Bailment Program

[ ] Source Development Review

[ ] Reverse Engineering

[ ] Other (Explain)________________________________________________________