19-SEK-022 JA Redacted 18 March 2020_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

J&A Number: 0231-19-166-00.1 Code: 0231 P.R. Number: 19-SEK-022

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The contracting activity is the Naval Surface Warfare Center, Philadelphia Division, NSWCPD Code 0231, Philadelphia, PA.

2. Description of the Action Being Approved

Award of a Cost-Plus-Fixed–Fee (CPFF)and Firm-Fixed–Price (FFP) contract on a sole source basis to Caterpillar Defense Products for engineering, logistics and program management services.

3. Description of Supplies/Services

The planned acquisition will provide for engineering, logistics and program management services in support of NSWCPD Code 421’s mission as Lifecycle Manager (LCM) and In-Service Engineering Agent (ISEA) for US Navy diesel engine systems.

This contract will provide enhanced LCM and ISEA support services for Navy, Military Sealift Command (MSC) and United States Coast Guard (USCG) engine lines under Caterpillar’s cognizance, including Diesel Readiness System (DRS) and Diesel Maintenance System (DMS) by engaging with a primary diesel engine Original Equipment Manufacturer (OEM), Caterpillar. The scope of the work will include the following with minimal administrative support:

Program Management Engineering/Technical Support Logistics Support Engine Training Support

MOPAS Acquisition Strategy Plan #0231-16-166-00 covers this acquisition.

The Government’s minimum needs have been verified by the certifying technical and requirements

IN REPLY REFER TO:

personnel.

The total estimated dollar value of the proposed acquisition is $16,663,669 for a period of performance of five (5) years. Funding amounts for this estimated cost are as such:

FY-20 FY-21 FY-22 FY-23 FY-24 TOTAL

O&MN $3,119,228 $3,247,917 $3,415,850 $3,367,321 $3,513,353 $16,663,669

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304 (c) (1), Only One Responsible Source and No Other Supplier or Services Will Satisfy Agency Requirements (FAR 6.302-1).

5. Rationale Justifying Use of Cited Statutory Authority

Caterpillar (CAT) is the designer and original equipment manufacturer (OEM) for the engine lines to be addressed by this contract. Additionally, CAT has developed the equipment at their own expense which provides proprietary field technical services and aftermarket parts support for these engine lines throughout their lifecycle. As such, CAT owns the rights to the proprietary design, fabrication and assembly drawings that support these engine lines, as well as proprietary processes and procedures for the fabrication of engine parts, systems and sub-systems and proprietary processes and procedures for the accomplishment of certain maintenance and repair actions.

Proprietary information such as design dimensional data (measurements, tolerances, clearances, etc.), component surface finish, material composition, manufacturing procedures, component wear limits, repair specifications and engine qualification test data is the sole property of CAT, and is not available to the Government or other potential vendors or contractors without a contractual agreement involving CAT. Attempts by the Government to purchase the rights to this proprietary information have repeatedly been declined. In addition to owning the rights to proprietary design, fabrication, assembly, repair and test information, CAT has developed unique and highly specialized repair procedures and tooling as a result of their extensive field service experience and expertise. This information is also considered the proprietary property of CAT.

The Government does own and has access to certain technical documentation related to the various CAT engine lines (i.e. technical manuals, maintenance procedures, logistics provisioning information), and only possessed limited capabilities to operate and maintain the equipment over its lifecycle. However, current Navy programs, specifically the Diesel Maintenance Strategy Program (DMS) and the Diesel Readiness System Program (DRS), require the development of complex repair and maintenance processes and procedures to effectively execute program initiatives. Without access to the proprietary information detailed above, the Navy cannot develop processes and procedures with the requisite level of detail and precision necessary to comply with program requirements.

Additionally, current Navy technical and logistics support documentation has been found to be lacking in sufficient detail, accuracy and comprehensiveness necessary to support effective lifecycle maintenance on the impacted equipment. The Navy’s ability to improve and expand on existing technical and logistics support documentation is significantly restricted by the lack of access to applicable proprietary information and data. And finally, the Navy’s capacity to develop and execute lifecycle product improvement strategies is negatively impacted by limited access to proprietary design information. Design upgrades and product improvements related to obsolescence and currently available technology, and in support of maintenance improvement/reduction and fuel consumption/energy conservation initiatives, are virtually impossible without full access to information currently owned by and available exclusively to

CAT.

CAT, as the Original Equipment Manufacturer (OEM), is the sole designer and fabricator of the equipment to be addressed by this contract, and as such, is the only contractor with the background, technical knowledge and expertise, design familiarity and access to proprietary information and processes necessary to comply with the requirements of this contract. No other firm possesses the requisite capabilities or access to proprietary information necessary to execute the taskings that will be promulgated on this contract. As a result, CAT is the only contractor qualified to perform the efforts associated with the statement of work under this requirement.

Based on the above, CAT is the only known responsible source capable of providing the required services.

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

A synopsis was posted June 19 2019 in addition to the Sources Sought/Request for Information (RFI) notice that was posted 15 March 2019 to the Federal Business Opportunities (FedBizOpps.gov) website. No responses were received to either notice other than CAT. A market survey was not conducted because it is not practicable to establish further competition beyond the one competitor mentioned for the reasons stated in paragraph 5 above. In this case, the FedBizOpps synopsis is considered to perform the same function as a market survey, advising industry of pending acquisitions and soliciting inquiries from interested parties

7. Determination of Fair and Reasonable Cost

Prior to award, the Contracting Officer will determine whether the proposed costs to the Government for the supplies/services covered by the J&A are fair and reasonable. The contractor will submit a formal price proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate.

Experienced technical analysts and contract specialists with the aid of necessary field pricing support will review the contractor’s proposal. The Contracting Officer will use cost and pricing analysis as the basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Competition

For the reasons set forth in paragraph 5, the Government has no plans at this time to compete future contracts for the items covered by this procurement. If another potential source emerges, the Government will assess whether competition for future requirements is feasible.

TECHNICAL AND REQUIREMENTS CERTIFICATION – FAR 6.303-2(b) I certify that the facts and representations under my cognizance, which are included in this justification and its supporting data, including AP/MOPAS No 0231-19-166-00,except as noted herein, are complete and accurate to the best of my knowledge and belief.

COMBINED TECHNICAL AND REQUIREMENTS COGNIZANCE:

Signature Date

LEGAL SUFFICIENCY REVIEW (NMCAR 5206.303(90))

I have determined this justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(a)(12))

I certify that this justification is accurate and complete to the best of my knowledge and belief.

APPROVAL BLOCK (FAR 3.604 for Approving Official)

Upon the basis of the above justification , I hereby approve, as Designee of the Head of the Contracting Activity, the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c )(1).

Signature T.A. Perotti, Date Technical Director, Code TD