A26_DMS BOA N6449823G4000_TO 4 N6449825FX103_CJA 0231-23-059-00_Redacted.pdf

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Waterjet Shaft Assemblies
Solicitation number
42-0204
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This document is a Justification and Approval (J&A) for a sole-source Basic Ordering Agreement (BOA) issued by the Naval Surface Warfare Center, Philadelphia Division for Littoral Combat Ship (LCS-2) waterjet and impeller shaft assemblies. The Navy plans to award a 60-month BOA to Defense Maritime Solutions, Inc. (DMS) for 2 WLD 1500 SR and 2 WLD 1720 SR Waterjet Assemblies, and 12 corresponding Shaft Assemblies, with a total estimated value of $27,800,854. The procurement is being conducted under 10 U.S.C. 3204(a)(1) as DMS is the sole Original Equipment Manufacturer with proprietary technical data and the only source capable of manufacturing these critical propulsion system components for LCS-2 Class ships.

The J&A indicates that DMS is the exclusive source due to its unique design rights and technical capabilities, and that the government has been unable to obtain a license to reproduce the technical data. A Sources Sought Notice was posted on SAM.gov in October 2022 and January 2023, with no alternative contractors responding. The BOA will use FY23-28 Other Procurement, Navy funding, and delivery orders will be issued on a firm-fixed-price basis. The Navy has no immediate plans to compete future contracts for these items but will assess competition if another potential source emerges.

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J&A No. 0231-23-059-00

It is anticipated that budgeted funds for anticipated delivery orders will include FY23-28 Other Procurement, Navy funding but may include other appropriation categories. The total estimated dollar value of the proposed acquisition is $27,800,854. The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 3204(a)(1), Only One Responsible Source, and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

DMS is the designer and Original Equipment Manufacturer (OEM) for the required LCS-2 Class waterjet and impeller shaft assemblies and is the only contractor with the requisite knowledge, experience, facilities, and proprietary technical data necessary to manufacture and deliver the required supplies.

DMS’s propriety technical data is necessary to manufacture the OEM supplies in order to ensure proper manufacture, fit, function, operation, longevity, and reliability. DMS is the sole owner of the rights to the proprietary design, fabrication, and assembly drawings that is required to support and manufacture this equipment. The required OEM supplies are not available from sources other than DMS. The Government has not procured a license to the necessary technical data as DMS’s waterjet and impeller shaft assemblies are commercial items and were not developed using Government funds. In addition, NSWCPD does not have the technical capability or equipment to reverse engineer the technical data necessary to manufacture the supplies. Finally, the Government is unable to procure the necessary technical data. On 04 November 2022, the Government requested to purchase a license to the necessary technical data to manufacture the required supplies from DMS. On 07 November 2022, DMS responded directly stating “This information is still used on parts outside the scope of the US Government, and are not in a position for that information to be publishable outside of [DMS’] control.” In sum, DMS is the only responsible source available that is capable of providing the required LCS-2 Class waterjet and impeller shaft assemblies for the duration of the 60 month ordering period in order to fulfill the agency’s requirement for ship readiness and mission capability.

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

In accordance with Defense Federal Acquisition Regulation Supplement, Procedures, Guidance, and Information 206.302-1, a Sources Sought Notice was posted to SAM.gov on 18 October 2022. Additionally, a synopsis was posted on 19 January 2023. No contractors have responded to either posting as of the drafting of this J&A on 15 March 2023. Individual orders to be issued under this BOA will be published on the SAM.gov website. Any responses received will be considered.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined that the anticipated costs to the Government for the supplies covered by the CJ&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

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

J&A No. 0231-23-059-00

CERTIFICATIONS AND APPROVAL

TECHNICAL AND REQUIREMENTS CERTIFICATION

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

COMBINED TECHNICAL AND REQUIREMENTS COGNIZANCE:

Date

LEGAL SUFFICIENCY REVIEW

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.

DESIGNEE OF HEAD OF THE CONTRACTING ACTIVITY APPROVAL

Upon the basis of the above Justification, I hereby approve, as Designee of Head of the Contracting Activity, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 3204(a)(1).

Nigel C. Thijs, SES, Technical Director Date

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