1.07 J&A_Redacted.pdf

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Turbine Marine Gas Turbine Generator Maintenance and Operation Support Services
Solicitation number
N6824624Q0018
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This document is a Justification and Approval (J&A) for the use of sole source procurement procedures to acquire maintenance and technical support services for gas turbine generators (GTG) at the USS Frank Cable Waterfront T-Shed in Guam.

The GTGs are manufactured by Turbine Marine, Inc. and currently under warranty. Per the warranty terms, any repair or service by a third party other than an authorized Turbine Marine representative would void the warranty. Market research indicates Turbine Marine is the only source able to provide the required preventative maintenance, troubleshooting, and technical training services. The estimated value of the services over a 5-year period is $869,100. The contract was awarded to Turbine Marine, Inc. on June 25, 2024 as a sole source under simplified acquisition procedures. The Naval Supply Systems Command is the procuring agency.

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NAVSUP FLC Yokosuka SAP 13.5 – J&A for Sole Source NAVSUPFLCYINST 4280.1K

J&A Number: YOK 24-0017

Source Selection Information – See FAR 2.101 and 3.104

NAVSUPFLCY 4280/3 (Rev.12-19) Enclosure (3)

( CLASS) JUSTIFICATION AND APPROVAL

FOR USE OF SOLE SOURCE

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY.

NAVSUP Fleet Logistics Center (FLC) Yokosuka

2. Description of the Action Being Approved.

Sole source justification for Gas Turbine Generator (GTG) maintenance that are under warranty of the manufacturer (Turbine Marine, Inc.).

3. Description of Supplies/Services.

The USS Frank Cable Waterfront T-Shed requires maintenance, repair and technical support for four (4) GTG’s, model number TMC56334801MW, manufactured by Turbine Marine, Inc. (Turbine Marine) to include quarterly, semi-annual, and annual Preventative Maintenance (PM), troubleshooting support in-person or via telecommunications in times of GTG equipment malfunctions, and in the event of a complete and extended equipment failure, a technical response team able to travel to Guam as soon as possible to repair and get the GTG’s in full operation. Additionally, Waterfront T-shed requires technical training for equipment operators to perform standard procedures for operating and conducting routine maintenance of the GTG’s for performance reliability and longevity.

Estimated Dollar Value

FY24 FY25 FY26 FY27 FY28 Total

OPN

O&MN

Total

4. Statutory Authority Permitting SOLE SOURCE.

41 U.S.C. 1901(e)(2) - a sole source acquisition under the authority of the Simplified

Procedures for Certain Commercial Items, as implemented by FAR 13.501(a).

41 U.S.C. 1903 Special Emergency Procurement Authority - a sole source acquisition in support of a contingency operation; or to facilitate the defense against or recovery from nuclear, biological, chemical, or radiological attack against the United States, as implemented by FAR 13.501(a).

5. Rationale Justifying Use of Cited Statutory Authority.

NAVSUPFLCY 4280/3 (Rev.12-19) Enclosure (3)

Two of the four Turbine Marine GTG’s are currently under warranty. The warranty would be voided by awarding a contract to an outside source that is not a Turbine Marine factory trained authorized service representative. According to the manufacturer, Turbine Marine, they are the only source of service for these GTG’s and there are no vendors currently authorized to do preventative maintenance work on them.

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

The Contract Specialist (CS), , and LT , independently conducted the following market research in accordance with FAR 10 to determine sources capable of satisfying the requirement.

The CS reviewed the Turbine Marine Inc. Warranty for 1MW Compact Series Model

TMC56334801MW, the model of the GTG’s for this service requirement, and it states the Warranty shall not apply if the following occurs:

• Failures resulting from attachments, accessory items, and parts not sold by Turbine Marine, Inc.

• Repair or Service by any third party other than a Turbine Marine, Inc. authorized service representative.

The CS researched local ship repair vendors in Guam: Cabras Marine Corp., SEAFIX, and Guam

Shipyard. Cabras Marine Corp. and SEAFIX stated they do not have the capabilities or resources to support GTG type generator maintenance. Guam Shipyard did not respond. The CS also reached out to two generator sales and service providers in Guam to determine if they had the capabilities to service GTG’s. Morrico Equipment services only generators they sell and they don’t sell GTG’s and Mid-Pac Far East did not respond to inquiries. Speaking with an experienced generator technician locally on Dec. 2023, the CS was told GTG repair and maintenance requires a specialized skill set beyond what is needed for the type of generators primarily used in Guam and that there are not any GTG service technicians that he’s aware of in Guam.

A search of SBA certified small business firms was conducted through the SBA DSBS. The search criteria included SBA small businesses in Guam with NAICS 333611 – Turbine and Turbine Generator Set Units Manufacturing. A total of one (1) contractor was listed. The firm was Kwikspace Guam, Inc.; however, their Capabilities Narrative referenced container units for sale or rent/lease and not any reference to Turbine Generators.

A search within “any state” for NAICS 333611 yielded 491 profiles but by adding keywords Turbine Generator for a more specific search, only one (1) firm was given: Combustion Associates, Inc. A search in “any state” using keywords Turbine Generators but without a NAICS code showed 6 profiles. CS emailed the list of six firms to determine if they are an authorized service representative of Turbine Marine and if they had the capabilities to provide maintenance and technical support for the Turbine Marine GTG’s in Guam. The six firms were Combustion Associates, Inc., P.J. Schwalbenberg & Associates, Inc., Scarborough & Associates Inc., Sustainable Energy Inc., Enviroserv Inc., and Dynamic Non-Destructive Testing In. None of the

NAVSUPFLCY 4280/3 (Rev.12-19) Enclosure (3) firms responded that they are an authorized service representative of Turbine Marine or had the capabilities to perform preventative maintenance on Turbine Marine GTG’s.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer will determine the anticipated price to the Government of the services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

(If there is currently no reasonable likelihood of future competition, use the following or similar language:)

For the reasons set forth in Paragraph 5, NAVSUP FLC Yokosuka has no plans at this time to compete future contacts for the types of supplies/services covered by this document. If another potential source emerges, NAVSUP FLC Yokosuka will assess whether competition for future requirements is feasible.

(Discuss any actions the Contracting Officer plans to take to change conditions that would preclude the use of full and open competition for acquiring the same or similar supplies or services in the future.)

9. CONTRACTING POINT OF CONTACT.

The point of contact at NAVSUP FLC Yokosuka, Contracting Department is

(name) Jason Sak, Code C244 at DSN 339-5527 , commercial 671-339- or by email at jason.e.s @us.navy.mil.

NAVSUPFLCY 4280/3 (Rev.12-19) Enclosure (3)

CERTIFICATION AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

Technical Cognizance and Requirements Cognizance:

Signature Name (Printed) Phone No. Date

[Note that this page includes certification that the acquisition planning documents are complete and accurate. If a single individual has cognizance over both technical and requirements information included in the J&A, use of only one signature line is encouraged and "Technical Cognizance:" and Requirements Cognizance:" above the signature lines may also be deleted.]

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief. To the extent that the J&A value is from SAT to $750K, the Contracting Officer’s signature below also represents approval of the J&A.

CONTRACTING ACTIVITY COMPETITION ADVOCATE APPROVAL

Upon the basis of the above justification, I hereby approve, as Competition Advocate, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1). To the extent that the J&A value is from $750K to $15M as described in 13.501(a) (2) (ii), the Competition Advocate’s signature below also represents approval of the J&A.

Click to Enter Name xxx-xxx-xxxx Click to enter date.

NAVSUPFLCY 4280/3 (Rev.12-19) Enclosure (3)

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