20-MMM-161 JA Final Redacted.pdf

J&A Number: 0232-21-270-00 Code: 0412 P.R. Number: 1300863849

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 0232

2. Description of Action Being Approved

Request approval to solicit and award a Firm-Fixed-Price (FFP) contract on a sole source basis to Tri-State Technical Sales Corporation, 382 Lancaster Ave., Malvern PA, 19355-1805 for Flowserve MIC Level I Large Steam Valves.

3. Description of the Supplies or Services The Steam Systems Branch, Code 412, requires a FFP purchase of two (2) long lead Flowserve Valves D20305, MIC Level I 12” stream gate valves. The valves will provide critical spares for LHD-1 and LCC 19 class ships in support of the Steam Safety & Reliability Engineering Program.

This requirement is for non-commercial supplies with no incidental services, therefore, a MOPAS Acquisition Strategy Plan is not required.

The Government will be utilizing Other Procurement, Navy (OPN) funds for this requirement.

The total Independent Government Cost Estimate (IGCE) for this requirement is $561,816. The following is a breakdown of the estimated funding amounts for this proposed contract action:

Funding Type FY21

OPN $561,816

The Governments minimum needs have been verified by the certifying technical and requirements personnel.

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1), Only One Responsible Source and No Other Sources and Services Will Satisfy Agency Requirements, as implemented by Federal Acquisition Regulation (FAR) Subpart 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority

The Steam Systems Branch, Code 412, ensures the readiness and safety of ship plant systems and components. The required long lead Flowserve Valves D20305, MIC Level I 12” stream gate valves will provide critical spares for LHD-1 and LCC 19 class ships in support of the Steam Safety & Reliability Engineering Program. The Steam Critical Spares program is essential to providing battle ready spares for Amphibious ships and allows them to meet the needs of the US Navy’s optimized fleet response plan and ships operational tempo (OPTEMPO).

The required valves are to be replacements for the main steam stop (MS-V-1) for the LHD-1 class ships. Currently, all LHD-1 class ships are outfitted with MS-V-1 valves manufactured by Anchor Darling Valve Co. which has been acquired by Flowserve. As a result, Flowserve now owns the intellectual property of the original valve design which makes Flowserve the only source that possesses the in house expertise, necessary technical data and uniquely qualified personnel to manufacture LHD-1 class MS-V-1 valves. Flowserve is the only contractor that is able to provide a direct replacement for the LHD-1 class MS-V-1 valves. Tri-State Sales Corporation is the only authorized distributer of this Flowserve valve.

Additionally, the main steam systems on LHD-1 and LCC-19 class ships are the only Navy systems that operate at a temperature high enough to require Chromium and Molybdenum (cro-moly) alloyed steel. The population of Navy ships and systems built with cro-moly is limited.

Consequently the pool of contractors with Navy approved cro-moly weld procedures, and more specifically valve manufacturers, is very limited. This is a consequence of the Navy’s lack of new construction of cro-moly systems over the last few decades. Flowserve is one of the only valve manufactures with Navy compliant and Navy approved cro-moly welding and associated NDT procedures.

The main steam valves to be purchased are also required to comply with NAVSEA 0948-LP- 045-7010, material identification and control (MIC) Level I program. Level I components require a high degree of material assurance, and a Navy certifying activity is required to verify the material traceability of the components. For this procurement, NSWCPD Code 242 will be the Navy certifying activity. NSWCPD Code 242 has reviewed and concurred with Level I quality assurance packages provided by Flowserve and Tri-State Sales Corporation.

If the required valves were not purchased from Tri-State Sales Corporation, the Government would incur additional costs in the estimated amount of $2,775,000. The table below is an estimate of the additional costs the Government would incur if required to purchase the valves from another contractor. A new manufacturer would have to be sourced. Its welding, NDT and submit a formal price proposal with other than certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. The contractor’s proposal will be reviewed by experienced technical analysts and contract specialists with the aid of necessary field pricing support. The PCO will use cost and pricing analysis as the basis for negotiating a fair and reasonable price as applicable.

8. Actions to Remove Barriers to Competition

Future requirements will be reviewed by the Procuring Contracting Officer to ensure that Tri-State Sales Corporation is still the only company that can satisfy agency requirements. NSWCPD will continue to monitor the marketplace and identify potential sources of the supplies identified in this Justification. Any sources discovered that can potentially satisfy this specific procurement will be taken into account for any future requirements.