A26_JA_Redacted.pdf

J&A No. 0231-23-429-00 Code 0231 PID No. N64498-22-RFPREQ-PD-42-0011

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

The Naval Sea Systems Command, Naval Surface Warfare Center, Philadelphia Division (NSWCPD), Code 0231.

2. Description of the Action Being Approved.

Award of a hybrid cost-plus-fixed–fee (CPFF) and firm-fixed–price indefinite-delivery indefinite-quantity type contract on a sole source basis to Fairbanks Morse, LLC, doing business as Fairbanks Morse Defense (FMD), for engineering, logistics, training and integrated program management services.

3. Description of Supplies/Services.

The overall scope of this requirement is to provide lifecycle, modernization and in-service support for the engine lines listed in Appendix 1 and related shipboard auxiliary and support systems. The proposed acquisition will provide engineering and technical services, logistics support services, engine training services, and administrative and program management services in support of the Amphibious Ships Diesels Branch (NSWCPD Code 421) and the Combat & Nuclear Ships Diesels Branch (NSWCPD Code 422) who share joint responsibility as the Engineering Manager (EM) and In-Service Engineering Agent (ISEA) for US Navy diesel engine systems.

This contract will provide EM and ISEA support services for Navy, Military Sealift Command (MSC) and United States Coast Guard (USCG) FMD engine lines to effectively address known and emergent issues. The intent of this contract is to improve the effectiveness of critical diesel engine programs such as Diesel Readiness System (DRS) and Diesel Maintenance Strategy (DMS).

MOPAS Acquisition Strategy Plan # 0231-23-429-00.1 covers this acquisition.

Budgeted funds will include FY24-28 Operation & Maintenance, Navy (OM&N) funding. The total estimated dollar value of the proposed acquisition is $32,839,893. This is based on an estimated 134,720 labor-hours of services. The Period of Performance (PoP) for this effort will be 72 months after 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.

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.

FMD is the designer and/or Original Equipment Manufacturer (OEM) for the diesel engine lines to be addressed by this contract. FMD, as the OEM, developed the technical documentation required to repair and maintain equipment to design requirements at private expense, with the exception of documentation in Government format (e.g. Government Technical Manual). The Government does not have access to FMD’s proprietary field technical services and parts support for these diesel engine lines throughout their lifecycle. Field technical services include processes, procedures, and techniques. FMD owns the rights to the proprietary design, fabrication and assembly drawings that support these diesel engine lines, as well as proprietary processes and procedures for the fabrication of engine parts, systems and sub-systems, and for the accomplishment of troubleshooting, maintenance and repair actions.

Proprietary information such as design dimensional data (measurements, tolerances, clearances, etc.), component surface finish, material composition, manufacturing procedures, component wear limits, repair specifications and engine qualification test data is the sole property of FMD, and is not available to the Government. Though the Navy does possess limited organic capability to maintain and repair the items mentioned above, problems arise periodically that cannot be properly diagnosed or repaired due to the Government’s lack of specialized knowledge and expertise with the units. A prior attempt was made to purchase the rights to this proprietary information for SSBN/SSGN 726 Class emergency diesel generator (EDG), SSN 688 Class EDG, and SSN 21 Class EDG under a previous procurement. This request was declined by FMD on 18 June 2020. The most recent request sent via email on 09 November 2023, included all the engine classes contained in Appendix 1. On 21 November 2023, FMD declined the sale of data rights. In addition to owning the rights to the proprietary information, FMD has developed unique and highly specialized repair procedures and tooling. This information is also considered the proprietary property of FMD. No other firm possesses the requisite capabilities or access to proprietary information necessary to meet the requirements of this contract.

The Government owns and has access to certain technical documentation related to the various FMD engine lines such as technical manuals, maintenance procedures, logistics provisioning information. Notwithstanding the above, the Government does not possess full capability to troubleshoot and maintain the equipment over its lifecycle. Current Navy programs, specifically the DMS and the DRS programs, require the development of complex repair and maintenance processes and procedures. Without access to the proprietary information detailed above, the Navy cannot develop these processes and procedures with the requisite level of detail and precision necessary to execute program initiatives.

Additionally, current Navy technical and logistics support documentation is lacking in sufficient detail, accuracy and comprehensiveness necessary to support effective lifecycle maintenance on the impacted equipment. The Navy’s ability to improve and expand on existing technical and logistics support documentation is significantly restricted by the lack of access to applicable proprietary information and data. The Navy’s capacity to develop and execute lifecycle product

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&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 types of supplies/services covered by this document. If another potential source emerges, NSWCPD will assess whether competition for future requirements is feasible. As this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), the prior J&A was provided to the approval authority for review. Approval of this J&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(S-70)(ii).

Appendix 1

Listing of FMD Products installed on US Navy, Military Sealift Command, and US Coast Guard Ships

Ship Class Install Equipment US Navy – Current Programs

LSD 41/49 Class 4 x MPDE (Colt Pielstick 16V-PC2.5) 4 x SSDG (FMOP 12-38ND 8 1/8)

LPD 17 Class 4 x MPDE (Colt Pielstick 16V-PC2.5 STC) LPD 17 Class – LPD 29 AF 4 x MPDE (Colt Pielstick 16V-PC2.5 STC CR) LCS 1 Class - Freedom Variant 2 x MPDE (Colt Pielstick 16V-PA6B STC) LHD 1 Class 2 x SS/EDG (Alco 16-251C) LHA 8 6 x SSDG (Colt Pielstick 12V-PA6B) LHA 6 Class 6 x SSDG (Colt Pielstick 12V-PA6B) SSN 688 Class 1 x EDG (FMOP 8-38ND 8 1/8) SSBN / SSGN 726 Class 1 x EDG (FMOP 12-38ND 8 1/8) SSN 21 Class 1 x EDG (FMOP 8-38ND 8 1/8) CVN 78 Class 4 x EDG (Colt Pielstick 16V-PA6B)

Military Sealift Command – Current Programs T-AKE 1 Class 4 x DG (FM-MAN 48/60) T-AKR 300 Class 4 x MPDE (Colt Pielstick 10V-PC4.2) T-AO 187 Class 2 x MPDE (Colt Pielstick 10V-PC4.2)

2 x SSDG (ALCO 8-251F) T-AO 205 Class 2 x MPDE (FM-MAN 12V48/60 CR)

2 x SSDG (FM-MAN 7L32/44 CR) – T-AO 211 AF ESB/MLP 1-4 4 x DG (FM-MAN 48/60-6L) ESB/MLP 5-6 4 x DG (FM-MAN 48/60-6L CR)

US Coast Guard – Current Programs 210’ Reliance Class Medium Endurance Cutters

WMEC 615

2 x MDE (ALCO 16MS-251CE)

270’ Famous Class Medium Endurance Cutters

WMEC 901

2 x MDE (ALCO 18MS-251-F)

399’ Polar Class Icebreakers

WAGB 10

6 x MDE (ALCO 18-251-F) 3 x SSDG (ALCO 8-251-F)

378’ Secretary Class High Endurance Cutters WHEC 717 2 x MDE (FM 12-38TD8-1/8)

140’ Bay Class Ice Breaking Tug WTGB 101 2 x MDE (FM 8-38D8-1/8)