0231-21-223-00 JA_Redacted.pdf

J&A Number: 0231-21-223-00

Code: 0231

P.R. Number: 21-D2D-003

LIMITED SOURCES JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center, Philadelphia Division (NSWCPD), Code 0231.

2. Description of Action Being Approved

Award of a firm-fixed-price (FFP) Contract for a General Electric (GE) Level IV licensed maintenance and overhaul provider, for the procurement of depot-level overhaul services of US Navy LM2500+ Gas

Generators.

3. Description of the Supplies or Services

Repair of the LM2500+ Gas Generator (Serial Number GGA-5001) is a new requirement within

NSWCPD. Previously, similar services were procured under Contract No. N64498-20-P-5375, which was a competitively awarded single FFP Contract awarded on 25 September 2020 to MTU Maintenance

Berlin-Brandenburg GmbH (MTU) in the amount of $3,950,732 for the overhaul and repair of Serial

Number GGA-5002 LM2500+ Gas Generator.

NSWCPD Code 423 manages the 2SCOG Program for the US Navy. The 2SCOG program manages the rotatable pool and repair pipeline for US Navy non-nuclear propulsion assets, which includes Marine Gas

Turbines (MGTs) used for propulsion, power generation, and auxiliary power on various US Navy surface and amphibious platforms. MGTs are maintained on a condition basis such that an engine is only removed from service after it has failed, or, based on inspection, if it is likely to fail before the next ship availability.

The proposed acquisition will provide for depot-level overhaul and repair of one (1) US Navy LM2500+

Gas Generator in accordance with LM2500+ GE technical manual (GEK) 109982. This engine is used as the main propulsion driver on the LHA- and LHD- Class of amphibious assault ships. The LM2500+

Gas Generator is a part of GE LM lines of engines. GE Level IV certified depot facilities are the only known responsible sources to repair the LM2500+ Gas Generator. GE Level IV depot facilities provide high quality expertise in the full overhaul of GE LM lines of engines. This involves engine component repair and replacement ability, identifying bottlenecks in the repair schedule, successful engine performance tests, and providing timely, defect-free engines to the operator.

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

Total Time 5-7 years

*Tasks expected to occur concurrently

Seeking an alternative vendor to repair the LM2500+ Gas Generator would add substantial risk to the mission readiness of the U.S. Navy Fleet since there are currently no Ready-For-Issue (RFI) LM2500+ gas generators for replacement in the event of an engine failure. Of note, all naval platforms carrying this engine model are deployed or will be deployed in the near future.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable

Five (5) potential contractors were identified with the capability of satisfying these services. GE Level IV depot facilities can be identified with a licensing agreement with the OEM. Table 2 provides the list of potential depot facilities (GE Packaged Power, Inc, Avia SpA, TransCanada Turbines, IHI Corporation, MTU Berlin-Brandenburg, GmbH) however this list may not be an exhaustive list of all GE Level IV depot facilities worldwide.

Additional Market Research was performed through review of previous acquisitions for the same or similar requirements and discussions with the requiring technical divisions. Capability statements showing experience with gas turbines, repair facilities, test facilities, certifications or licensing were all in consideration. Technical Subject Matter Expert (SME) Mr. reached out to two (2) potential vendors, neither of these companies responded to the

To enhance competition, a Sources Sought notice was published on beta.SAM.gov on 01 December 2020 and closed on 11 December 2020. One (1) potential vendor, expressed an interest f

Furthermore, neither responded to the Source Sought notification. Market Research results are as follows:

Name of

Company

Company POC (Name, phone number, email)

Size

Standard

Technically capable

Method

Beta.SAM

OEM

Email

Web Search

N/A – was not contacted Web Search

MTU Berlin-

Brandenburg

GmbH

*Prime contractor on N64498-20-P-

Yes Historical contracts

The capability statements of potential alternative vendors were reviewed by the SME who determined that only the potential vendors whom are GE-certified are capable of providing the requisite services.

This proposed acquisition will be synopsized along with the solicitation in the Government Point of Entry

(GPE) website, beta.SAM.gov in accordance with FAR 5.203(a)(2).

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by the J&A will be fair and reasonable. Offerors will submit a formal price proposal and sufficient information to support the accuracy and reliability of the proposed amount. The

Contractor’s proposals will be reviewed by experienced technical analysists and contract specialists with the aid of field pricing support, if necessary. The Contracting Officer will use the results of this price analysis, as well as a price comparison of proposed pricing of competitive Offerors, as the basis for negotiating a fair and reasonable price. The acquisition is anticipated to receive multiple offers and allow adequate price competition to justify the price as fair and reasonable.

8. Actions to Remove Barriers to Competition

The Contracting Officer will continue to ensure that GE Level IV licensed maintenance and overhaul providers are still the only companies that can satisfy agency requirements. Contracts will only be placed to repair and overhaul of US Navy LM2500+ Gas Generators to GE Level IV licensed maintenance and overhaul providers. NSWCPD will continue to monitor the marketplace for any additional sources that are qualified under the GE Level IV maintenance and overhaul licensing agreement. Any sources discovered that can potentially satisfy this specific procurement will be taken into account for any future requirements.