1B Justification and Approval (Only One Source) MAN Diesel- Redacted.pdf

20-J&A-005

JUSTIFICATION AND APPROVAL

FOR USE OFOTHER THAN FULL AND OPEN COMPETITION

1. Agency and Contracting Activity

Requiring Activity:

USNS WALLY SCHIRRA (T-AKE-8)

Military Sealift Command (MSC)

Ship Support Unit, Bahrain

PSC 851 Box 350

FPO AE 09834-0350

Contracting Activity:

NAVSUP Fleet Logistics Center (FLC) Bahrain DET Dubai

Umm Hurair, Bur Dubai P.O.Box 1217777

2. Description of the Action Being Approved

Negotiate and award a firm fixed price contract on a sole-source basis under FAR 6.302-1 (Only one responsible source and no other supplies or services will satisfy agency requirements) to accomplish the scheduled 6,000 Hours maintenance of Main Diesel Engines 2 and 3 and critical repairs on MDEs 1 through 4 of the USNS WALLY SCHIRRA (T-AKE 8) during its port visit at Jebel Ali, U.A.E. Jebel Ali Port has been established as the place of performance for this repair requirement.

The place of performance must be limited to Jebel Ali, United Arab Emirates (UAE) in order to meet the agency’s operational requirement. The rationale for this determination is described below:

During market research, it was determined that the services of the Original Equipment Manufacturer, Man

Diesel and Turbo Middle East, are required for critical maintenance and repairs on the ship’s Main Engines during this period. OEM has indicated that due to present travel restrictions brought about by COVID-19, neither personnel nor special equipment required to conduct the repairs will be available outside of the Jebel

Ali area. The OEM is situated in the United Arab Emirates. The OEM nor the Government does not anticipate the removal of the travel restrictions currently in place in the foreseeable future due to the aggravating pandemic situation.

The repairs to be conducted on USNS WALLY SCHIRRA (T-AKE 8) are mission essential and safety items that must be completed to allow the vessel to continue performing her mission. USNS WALLY SCHIRRA (T-

AKE 8) is a Military Sealift Command Expeditionary Combat Logistic Ship Assigned to overseas duty on an extended deployment to the FIFTH Fleet and all scheduled and unscheduled maintenance must be conducted while the ship is deployed. MSC reiterated that failure to repair each work item identified in this package would delay or impact the USNS WALLY SCHIRRA’s mission.

3. Description of Supplies/Services

This procurement is to provide authorized and certified MAN Diesel original equipment manufacturer (OEM) field service Engineer and technicians to accomplish the scheduled 6,000 Hours maintenance of Main Diesel

Engines 2 and 3 and critical repairs on MDEs 1 through 4 of the USNS WALLY SCHIRRA (T-AKE 8) during its port visit at Jebel Ali, U.A.E from 15 June – 14 July 2020.

The estimated dollar value for the repair package is $438,625.00.

The Main Diesel engines on the T-AKE Class are designated as Critical Ship Equipment, the failure of which poses a hazard to equipment, personnel, and loss of mission. Similarly, the use of OEM parts from the original manufacturer is required to maintain all warranties, ensure engine reliability and crew safety. The engine tolerances must be set as per the OEM specifications and drawings. Since the engineering construction drawings for the diesel engine are proprietary to MAN Diesel, non-OEM authorized/certified entities do not have access to MAN Diesel proprietary drawings nor have access to MAN Diesel engineering support/consultation to perform in-depth troubleshooting and intricate field repair that only OEM authorized and certified technicians and repair facility are authorized to accomplish. Therefore, the use of other than OEM authorized and certified field service technicians, repair facility, and/or replacement parts could preclude the American Bureau of

Shipping (ABS) regulatory compliance required to retain Class Certification to attain United States Coast Guard

Certificate of Inspection and pose a major risk of damage to the machinery and place the engine operators at risk of injury or death.

Failure of one diesel engine will require the ship to reduce speed. The loss of two diesel engines puts the ship in a CASREP-3 status with limited speed. Failure of a third engine at sea would require tug boats to move the ship from sea to a pier fleet. The reduction of speed can also pose a hazard to the crew, due to limited ships maneuverability. Therefore, proper refurbishment and maintenance of the diesel engines are critical to the safe operation of the vessel.

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C.2304(c)(1),Only one responsible source.

5. Rationale Justifying Use of Cited Statutory Authority

The selection of location within the FIFTH Fleet AOR for the ship’s port visit is at the discretion of

Commander Task Force FIVE THREE (CTF 53) based on overall future operational commitments. The supplies or services required under this requisition are available from only one responsible source and no other type of supplies or services will satisfy the Government's need.

On 14 March 2020, A Sources Sought Notice was posted on EURONECO to identify qualified and experienced sources that can satisfy the requirements of the Government. The posting was made available through 16 March 2020. At the time the request closed, only one offeror submitted the required information in response to the sources notice that was posted in EURONECO.

NICO International responded via email on 16 March 2020 through Krishna Diwakar (Estimator) that NICO

International is not MAN authorized workshop to perform repair works on MAN Engines. Therefore they declined to participate in the bid.

Duqm Naval Dockyard responded via email on 17 March 2019 through Helen Chapell (Bid Manager) that due to the place of performance of the required ship repair effort, DND is unable to participate in the effort.

Nordmarin LLC responded via email on 15 March 2020 through Ali Ashraf (General Manager for Operations) and stated that they presently do not gave the ability to support the Goverrnment as they do not possess OEM certification and authorization to work on MAN B&W engines.

MAN Diesel and Turbo Middle East, UAE responded via email on 15 March 2020 through Mr. Rupesh Naik

(Sales Manager) that they have no OEM representation in the Middle East other than MAN Diesel Turbo Middle East dealing with Naval vessels. As the OEM of these engines, they have the necessary facility and resources to fully undertake the work scope. This is further supported by the information obtained through contract N4033919CD001, N4033919CD003, N4033920CD005 and N4033918CD009 which were issued in

FY 19 in support of several MSC ships.

Salient details for each of these contracts are provided below:

Contract Number Contract Value Description Place and Period of

Performance

N4033919CD001 $561,368.87 36,000HR

overhaul on MDEs

3 and 4 for USNS

ALAN SHEPARD

5 – 18 Nov 2018, Jebel Ali Port

N4033919CD003 $914,118.37 36000HR overhaul on MDEs 3 and 4 and to replace the engine resilient mounts for MDG

Nos, 1,3 and 4 for the USNS

RICHARD BYRD

21 Jan – 17 Feb

2019, Jebel Ali

Port

N4033920CD005 $488,401.19 36,000 HRS

Maintenance requirements for

Nr. 1 MDE for the

USNS ALAN

SHEPARD (T-

AKE 3)

3 – 24 Mar 2019;

Jebel Ali

N4033918CD009 $664,953.18 6,000 HRS

overhaul on MDE

1 – 4 onboard the

USS LEWIS B

PULLER

10 Jul – 4 Sept

As search on MAN Diesel’s website, https://middle-east.man-es.com/about-us, revealed the following information:

MAN Diesel & Turbo Middle East LLC is a 100% subsidiary of MAN Diesel & Turbo SE based in Augsburg, Germany. MAN Diesel & Turbo Middle East LLC was established in 2008 to serve its customers in the Middle

East Region. MAN Diesel & Turbo Middle East deals with the sales and servicing of marine/power station engines and spare parts. It offers the full spectrum of service packages from tailor-made operations and maintenance contracts to stand-by support.

Final list of potential suppliers: MAN Diesel and Turbo Middle East, UAE

Due to MAN Diesel and Turbo ME’s territorial agreements, other authorized MAN Diesel and Turbo entities in the Gulf Cooperation Council (GCC) region will not perform work in the UAE.

Furthermore, third party vendors will not able to provide the required OEM requirement since the only authorized

MAN Diesel representative in the UAE elects to contract directly with the Government when the place of performance is determined to be a commercial port such as Jebel Ali, U.A.E. Ordering and delivery of required parts will also be a challenge for third party contractors since they currently do not have a direct relationship with MAN DIESEL in Augsburg, Germany.

https://middle-east.man-es.com/about-us

Based on the market research discussed in detail above, only one responsible offeror is capable of performing overhaul of MAN diesel engines onboard the USNS WALLY SCHIRRA at Jebel Ali Port, Dubai, UAE.

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

A member of Military Sealift Command (MSC) and NAVSUP FLC Bahrain DET Dubai conduct market research on a continual basis. Based on information gathered from the OEM representative and third party contractors, MSC and NAVSUP FLC Bahrain DET Dubai have determined that only MAN Diesel& Turbo

Middle East is still the only authorized OEM representative in the region. Other third party contractors are still unable to find an alternate OEM representative that is capable of meeting the Navy's requirements in the United

Arab Emirates (UAE). A synopsis of these planned contracts has not been published. In accordance with FAR

5.202(a)(12), a synopsis is not required when the contract action is by a Defense agency and the proposed contract action will be made and performed outside the United States and its outlying areas, and only local sources will be solicited.

7. Determination of Fair and Reasonable Cost.

The contracting officer will determine the total anticipated price to the Government for the repairs covered by this J&A to be fair and reasonable in accordance with FAR 15.404(1)(b).

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAVSUP has no plans at this time to compete future contacts for the types of supplies/services covered by his document. If another potential source emerges, NAVSUP will assess whether competition for future requirements is feasible. Meanwhile, MSC and the Contracting Office will communicate with the OEM and third party contractors on a regular basis in an attempt to have more than one certified MAN Diesel contractor certified in the UAE.

9. Contracting Point Of Contact

The contracting point of contact is Ms. Cheryl Geneciran - Paulino, who may be contacted via telephone on

+97150 4566178 or via e-mail at Cheryl.Geneciran.PH@me.navy.mil.

mailto:Cheryl.Geneciran.PH@me.navy.mil