STIDD_ JOTFOC Fully Signed 02-19-2025 (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)(1)(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 requirement to procure new Original Equipment Manufacturer (OEM) STIDD Systems helms chairs and related parts to support the 45’ Response Boat Medium (RB-M) and 47’ Motor Lifeboat (MLB) assets. This is a follow-on commercial products acquisition that was previously awarded to the OEM.

(b) Name and address of the contractor:

STIDD Systems Inc.

220 Carpenter Street, Greenport, NY 11944

UEI: J9HLS6FBH5J8

(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: $

Previous Contract 70Z04018D55550B00 was awarded as a sole source to the OEM with a Period of Performance of 22 February 2018 – 21 February 2023.

(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: 70Z04025Q52101B00

(h) Background information about the requirement: Previous Contract

70Z04018D55550B00 with the OEM, STIDD Systems Inc., expired on 02/21/2023. Sole source purchase orders to the OEM have been processed by the SAP team since the expiration of the previous contract.

3. Description of Supplies/Services.

The requirement is for the procurement of the STIDD Systems helm chairs and related parts listed on “Attachment 1 – STIDD Systems Parts List” in support of the 45’ Response Boat Medium (RB-M) and USCG 47’ Motor Life Boat (MLB) boats. 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.

STIDD Systems Inc., located in Greenport, NY, is the OEM for STIDD Systems helm chairs and related parts that are installed on the 45’ RB-Ms and 47’ MLBs. The current STIDD Systems helm chairs and related parts are the only authorized equipment configured for the 45’ RB-M and 47’ MLB platforms. The USCG does not possess the complete technical data package necessary to support a competitive solicitation for non- OEM replacement helm chairs and parts, nor is the USCG aware of any alternative supplier of compatible helm chairs or related parts. These data rights were not acquired when these vessels were first designed and built. Due to this limitation, the USCG must procure OEM parts because the necessary data rights cannot be provided to industry to allow for non-OEM 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 45’ RB-M and 47’ MLB vessels. During previous acquisitions, the USCG has offered to purchase the data rights necessary to promote full and open competition, however STIDD Systems, Inc. has declined at each instance.

Failure to procure these STIDD Systems helm chairs and related parts would result in a shortage of replacement parts in the USCG inventory, thus hindering the Coast Guard’s ability to keep the 45’ RB-M and 47’ MLB assets mission-ready.

Based on the results of the market research effort, the only company that can provide OEM STIDD Systems helm chairs and related parts is STIDD Systems Inc.

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 03/08/2024 and closed 03/25/2024 with no responses received. APFS F2023062943 was published on 02/22/2024 with no responses received. In an email dated 01/31/2024, STIDD Systems stated they manufacture and sell all their products directly, and do not utilize distributors or re-sellers for the items identified by the requirement.

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), historical pricing, and published price lists.

9. Description of Market Research.

Market research, as prescribed in FAR Part 10, was conducted from November 2023 to September 2024 by the Contracting Officer’s Representative (COR), Contract Specialist and Contracting Officer. Not only does the COR have extensive experience with the STIDD Systems Helm Chairs and Related 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 STIDD Systems, Inc. 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 03/08/2024 for this requirement. In an e-mail provided by Richard Wagner on 04/02/2024 the request for data rights was denied. Market research indicates there will be no competition and purchased directly from the OEM.

Notice of Intent to Solicit Sole Source 70Z04024S52101B00 was posted to SAM.gov on 03/08/2024, with a closing date of 03/25/2024. No responses were received.

APFS F2023062943 was published on 02/22/2024 with one response received from RV

Global Solutions Inc. It was subsequently determined in an email with RV Global Solutions, Inc. that RV Global Solutions, Inc. is not an authorized distributor of the OEM, STIDD Systems, Inc.

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

The government does not have the technical data rights to share technical data and the complete technical data package necessary to manufacture of replacement parts, which could be used to compete the production of replacement parts. Also, because the government does not possess the full technical data package, it would be impossible for us to evaluate any submission to determine if that complies with this requirement.

It is highly unlikely that the government would recover the cost of obtaining the technical data package through competition because it would be expensive for other contractors to create the tooling and develop the manufacturing process that would provide similar products. Also, it is highly likely that the process of obtaining data rights, paying for the data and competing for manufacture of replacement parts would engender significant delays.

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

Stidd Systems Inc.

220 Carpenter ST Greenport, New York 11944-1406, United States

UEI: J9HLS6FBH5J8

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.

Stidd Systems Inc. owns the proprietary technical data that the Government would need to compete and evaluate the full and open competition for all Helm chairs and related parts of compatible Helm chairs. The USCG sent a letter to STIDD Systems via email on 03/08/2024 requesting permission to obtain the technical data package for these OEM parts. Stidd Systems Inc. responded to that email on 04/02/2024, stating that they are unwilling to provide this information to the USCG, or any other Government Agency. For future requirements, the USCG will continue to engage the OEM for release of the complete technical data package prior to any subsequent acquisition.