20-ZFM-017 - JA _Redacted.pdf

J&A Number: 0233-20-001-00

Code: 0233

P.R. Number: 20-ZFM-017

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 023.

2. Description of Action Being Approved

Award of a firm-fixed-price (FFP) contract to Rolls Royce Marine North America (RRMNA) for the procurement of Blade Balance Arbor Assemblies for the DDG-

3. Description of the Supplies or Services

The planned acquisition will provide the manufacturing and machining of Blade Balance

Arbor Assemblies through the fabrication process in order to provide this equipment to the US

Navy.

The total estimated dollar value of this procurement is $990,636 as indicated below.

Estimated Dollar Value $990,636

Year 1 Total Percent

OPN $990,636 $990,636 100%

Total $990,636 $990,636 100%

The Period of Performance (POP) for this effort will be two years from the date of award. The

Government’s 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

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

Certain Commercial Items, as implemented by Federal Acquisition Regulation (FAR) Subpart

13.501(a).

5. Rationale Justifying Use of Cited Statutory Authority

In order for proper propulsion of DDG- , propeller blade sets must be properly balanced. Each blade set is comprised of five (5) individual blades of varying weight. Properly balanced blade sets are necessary to prevent cavitation, excessive noise, and excessive wear. It also helps to promote propeller blade life, speed in the water, and overall ship readiness. Without propulsion systems operating properly, the ship will remain in port. In order to repair/refurbish individual propeller blades or blade sets, the Navy must provide a Government Furnished Material blade balance arbor assembly to support the repair/refurbishment process.

This limits the Navy’s repair capacity to only be able to repair one DDG blade or blade set at a time. The

Navy’s repair process is also interrupted whenever a ship in a docking availability period also requires the balance arbor to support in-dock repairs as the one balance arbor must be shipped to the hull/dry dock in need. These interruptions in the blade repair process result in extremely long repair-turnaround-times and in turn puts the Navy at higher risk of not having enough blades to support Casualty Reports (CASREP) requests.

RRMNA is the Original Equipment Manufacturer (OEM) for the equipment under this procurement. RRMNA, as the OEM, developed these items at private expense and is the only manufacturer that has previously manufactured Blade Balance Arbors for the US Navy through shipbuilder contracts. The Government did not procure the equipment manufacturing drawings from RRMNA, nor does it possess the equipment/procedures to, in any certainty, ensure the material is manufactured within OEM operational specifications.

The Navy is not able to purchase the drawings required to manufacture the equipment under this procurement as it is against RRMNA policy to sell data rights.

NSWCPD does not have the technical resources to reverse engineer the hardware. It is estimated that it would cost the Navy over $2 million in engineering, prototyping, testing equipment, testing, and certification costs which would not be recovered through competition. Additionally, it would take an estimated 3 years to complete and certify a new design. This delay would jeopardize the

Navy’s ability to repair and balance propeller blades to meet Fleet demand.

RRMNA is justified as being the sole supplier based on the following factors. First, this asset is currently developed, designed, and solely produced by RRMNA in which they hold proprietary rights to the design drawings and technical specifications. Assets cannot be manufactured without the RRMNA owned proprietary documentation. The Government does not own the data or the rights to the data needed to purchase this part from additional sources. Therefore, RRMNA is the only firm with the knowledge, experience, facilities, and data to properly produce the equipment needed.

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

As the drawings are currently source-controlled and it is against RRMNA policy to sell data rights, efforts to maximize competition cannot be made under this requirement.

A Sources Sought notice was posted to SAM.beta.gov on 16 January 2020. No additional sources responded to the sources sought to date. In addition, market research conducted by the technical and requirements personnel and the contract specialist revealed no additional sources with the capability to perform the requirement.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated costs to the Government for the supplies covered by this J&A will be fair and reasonable. The Contractor’s will submit a formal price proposal 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 field pricing support if necessary. The Contracting Officer will use the results of this price analysis as the basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Competition

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.

TECHNICAL AND REQUIREMENTS CERTIFICATION

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

COMBINED TECHNICAL AND REQUIREMENTS COGNIZANCE:

Signature Phone No. Date

LEGAL SUFFICIENCY REVIEW (NMCAR 5206.303-90)

I have determined that 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.

APPROVAL BLOCK:

Upon the basis of the above justification, I hereby approve, as Competition Advocate of the

Procuring Activity, the solicitation of the proposed procurement(s) using other than full and open competition, pursuant to the authority of 41 U.S.C. 1901(e)(2).

CHIEF OF THE CONTRACTING OFFICE

Signature Karen Gutmaker Date

Chief of the Contracting Office