20Q0305_NonComp_Redacted.pdf

DON SAP Guide Enclosure (3) 1

SWIP Tracking No. (SWXP204259)

MEMORANDUM TO THE FILE

Subj: USE OF OTHER THAN FULL AND OPEN COMPETITION FOR AN

ACQUISITION

UNDER THE SIMPLIFIED ACQUISITION THRESHOLD

IDENTIFICATION OF SOURCE:

Wärtsilä Defense Inc.

3617 Koppens Way

Chesapeake, VA 23323

Cage Code: 0EYA6

I. BACKGROUND:

1. FAR 13.106-1(b)(1)(i) states for purchases not exceeding the simplified acquisition threshold, Contracting Officers may solicit from one source if the Contracting Officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand-name or industrial mobilization).

2. As required by FAR 13.106-3(b)(3)(i), this memorandum explains the absence of competition for this acquisition, as only one source will be solicited for this requirement (or for a portion of the requirement) and the requirement is not expected to exceed the simplified acquisition threshold.

II. DESCRIPTION OF ITEM OR SERVICE:

(Provide a description of the item or service required, to include its intended use, the name of the required source or brand name, and the required delivery date/period of performance.)

The Motor Adapter Seal Assembly is a seal assembly used to retain oil in the and ). The is a component of the

), the for the System.

The Motor Adapter Seal is a critically dimensioned and critically tested component due to its necessity to be interchangeable between serial numbers, have a “sealed” fit with the and .

Wärtsilä Defense Inc. currently manufactures these assemblies for the Original Equipment

Manufacturer (OEM) of the , General Dynamics Ordinance and Tactical Systems

(GD-OTS). We have currently Exhausted our stock of these assemblies. Failure to replace will result in work stoppage.

The Estimated amount of this action is as follows;

Base Award - Options - Total Amount Estimated -

DON SAP Guide Enclosure (3) 2

III. THE DETERMINATION FOR USE OF OTHER THAN FULL AND OPEN

COMPETITION IS BASED ON THE FOLLOWING (select all that apply):

A. __X_ ONLY ONE RESPONSIBLE SOURCE (select all that apply):

1. ___ RESTRICTIVE RIGHTS. The source has established proprietary rights, limited rights in data, patent rights, copyrights or secret processes in the item or service required.

Explain what rights are restricted, why the restrictive rights make the required item or service available from only one source, and why another company could not satisfy the Government’s need.

2. ___ EXCLUSIVE LICENSING AGREEMENTS. The item or service is only available from the Original Equipment Manufacturer (OEM), or there is only one authorized distributor or technical representative for the OEM.

Identify the OEM and explain the circumstances surrounding why the item or service is only available from the OEM.

OR

Identify the distributor(s)/authorized technical representative(s) for the item or service. Provide evidence of the exclusive licensing agreement as an attachment to this document. NOTE: If there is more than one distributor/authorized technical representative for an OEM part, then Part B, BRAND NAME SOLE SOURCE, is applicable, and Part A, ONLY ONE RESPONSIBLE

SOURCE, should be left blank).

3. _X__ OTHER REASONS. Other reason not identified above. Provide details on mission impact if requirement is not solicited from only one source.

The Government possesses specification control drawings, which outline general dimensions and performance characteristics for the Motor Adapter Seal Assembly. Wärtsilä Defense is a proven source with the expertise and equipment required to manufacture and test the Seal

Assembly to the specification control drawing. The OEM and NSWC Crane have attempted to compete the manufacture of this seal assembly the past and were unable to receive quotes from other vendors due to the Rotational Life Test Requirements. These requirements are described in paragraph 3.6: “The seal shall be tested in a fixture which simulates the , for revolutions at a minimum speed of rotations per minute (rpm) using fluid with an head of oil. After cycling, the seal shall retain fluid for an additional hours. Total leakage shall not exceed .” Vendors found to be capable of producing the seal assemblies were no willing to stand up the ability to test these items due to high initial labor and manufacturing costs without confirmation of award.

In order to meet fleet requirements, must provide refurbished at a rate of to units per year. Currently the Depot will deplete the stock of these items at the conclusion of FY20 which are replaced in of overhauled . It has become

DON SAP Guide Enclosure (3) 3 apparent that additional assemblies are needed to support replacement efforts. In the event that a unit comes in with a damaged Motor Adapter Seal, there will not be an available to replacement to meet the requirement. This would leave the Depot at a work stoppage, resulting in delay . To expand, the absence of a replacement would indefinitely remove a form the rotatable pool of assets. Since the Depot operates at full capacity, each fiscal year this time lost cannot be regained until a direct replacement is acquired. This would leave a without capability making it a . This has the potential to cost dollars in schedule delays for .

The government requires quantity 30 seal assemblies to meet requirements of . Per paragraph 4.2.2 of a sample lot for testing is defined as percent of the purchase order or ~ 1 for the purchase of 30 assets. After testing, the lot sampled for testing can not be used since it has been tested for entire rotational life. To mitigate, the government is procuring

30 production assets and a separately priced quantity 1 used for fulfillment of paragraph 3.6.1 testing requirements.

These assemblies must meet form, fit and function requirements for the and must pass the extensive testing described in paragraph 3.6. It is estimated it would take a minimum of and for another source to develop a process and tooling/equipment to manufacture these seal assemblies. These seal assemblies are a non-mandatory replacement items, but are long lead material. A requirement is unknown however, based on historical overhauls; we may have to replace seal assemblies during a fiscal year. An option will be added to the procurement for an additional purchase of

30 seal assemblies to mitigate risk of stock depletion for requirements.

B. __ BRAND NAME. Item required must be a brand name product, or feature of a product, particular to one manufacturer. Discuss why you are precluding consideration of a product manufactured by another company. Describe how the particular brand name, product, or feature is essential to the Government’s requirements and why a “brand name or equal” purchase description cannot be used (see FAR 11.104). Describe how market research indicates other companies’ similar products or products lacking the particular feature do not meet, or cannot be modified to meet, the agency’s needs.

C. ___UNUSUAL AND COMPELLING URGENCY. The supplies or services are of such unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals.

Urgent requirements are supplies or services that will result in a work stoppage, or are mission critical and the routine processing time would result in injury to the Government. The determination that the procurement for the above item/service is an urgent and compelling requirement is based on the following:

1. Date on which the requirement was first identified:

DON SAP Guide Enclosure (3) 4

2. Required delivery date/period of performance:

3. Explanation of why delivery/commencement of services by the date mentioned above is required: Explain the impact to the mission if the date above is not met, any special circumstances or conditions that exist which validate the requirement as “urgent,” estimated production lead time for the item, etc.

4. If appropriate, include any additional pertinent information.

IV. CERTIFICATIONS/APPROVALS:

A. Technical / Requirements Certification: I certify that the facts and representation under my cognizance which are included in this justification are complete and accurate to the best of my knowledge and belief.