Attachment I.pdf

J&A No. N10225Q2259

DEPARTMENT OF THE NAVY

MILITARY SEALIFT COMMAND

471 EAST C STREET

NORFOLK VA 23511-2419

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity:

Department of the Navy, Military Sealift Command (MSC), Services and Ship Support (N102).

2. Description of the Action Being Approved:

MSC anticipates awarding one (1) Firm-Fixed Price (FFP) purchase order to Rolls Royce Marine North America, Inc. (RRMNA) on an other than full and open competition basis for propeller and hub replacement parts in support of the T-AO 187 class vessels USNS John Lenthall, USNS Leroy Grumman and USNS Henry J. Kaiser.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

MSC requires the following Original Equipment Manufacturer (OEM) propeller and hub replacement parts onboard the T-AO 187 USNS John Lenthall, USNS Leroy Grumman and USNS Henry J. Kaiser.

PART NUMBER DESCRIPTION UOI QTY

115735005 BLADE BOLTS EA 192

115752001 HUB ASSEMBLY L.H EA 3

115752000 HUB ASSEMBLY R.H EA 3

The total estimated value of award is and the anticipated contract will be funded utilizing Fiscal Year (FY) 25 United States Navy Working Capital Funds (NWCF).

This government estimate was calculated independently utilizing historic prices paid.

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

10 U.S.C. § 3204(a)(1), only one responsible source or only a limited number of responsible sources and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Authority:

The Controllable Pitch Propeller (CPP) systems installed onboard all T-AO 187 Class vessels must be maintained for the vessels to perform their required national defense mission.

Safety Management System Number (SMS) 10.6-002-ALL “Identification of Critical Equipment” has labeled these systems/items as L4 “critical equipment;” on a scale from L1 to L4 with L4 being the most critical. L4 critical equipment and systems must be repaired/maintained in accordance with regulatory body requirements, MSC Policy, and OEM designation. Failure of these systems or associated parts would allow water to penetrate the ship’s hull and/or its lubrication system causing mission failure and would leave the propulsion and/or steering systems inoperable. Such catastrophic failure would be incredibly costly, from both the necessary repairs and the ship downtime.

To comply with SMS 10.4-001-ALL “Preventive Maintenance (PM)” and SMS 10.7-001- ALL “Corrective Maintenance,” MSC must contract with RRMNA because all CPP equipment onboard the T-AO 187 Class vessels are proprietary to RRMNA. At this time, RRMNA is the only company able to provide the necessary proprietary technical data/drawings for these systems/parts as required by United States Coast Guard (USCG) and American Bureau of Shipping (ABS) regulations and is the only company that has the capability to provide manufactured parts to maintain these systems.

All OEM repair parts must comply with USCG, ABS, and International Maritime Organization (IMO) regulatory requirements. At this time, MSC does not have manufacturing and technical information for these systems/items required to evaluate and determine whether non-OEM systems/items potentially offered as equivalent to the OEM components and replacement parts are technically acceptable. These systems/items require special tools, specialized repair parts and technical expertise unique to these systems. Only approved OEM parts are authorized to be installed for these highly sophisticated systems unless other non- OEM parts/components are recommended by Rolls-Royce who are technical experts and the technical data owners for these systems. RRMNA are parts providers and service technicians who have access to provide parts and technical data/drawings for manufacture, and to properly repair and maintain the equipment. Using any other company would require the installation and use of an entirely different propulsion and steering system, which is simply unfeasible from a shipbuilding and ship design standpoint. The complete redesign, testing, installation, and maintenance of new propulsion and steering systems for this class of ships is an unreasonable and wildly substantial cost, duplicating the sunk costs of these systems already in place, and such costs are not expected to be recovered through competition.

In sum, the engineering, technical characteristics, construction drawings, manufacturing procedures, tolerances, and installation procedures for these systems/items are proprietary to Rolls-Royce. Rolls-Royce does not share its proprietary data or authorize outside vendors to service or manufacture these systems, making RRMNA the only known source to provide the required supplies, to the exclusion of all others.

Since the engineering, construction drawings, and technical characteristics for the manufactured parts for these systems are proprietary to Rolls-Royce and the Government does not own the rights to the data nor can other companies access the proprietary data, it is proper to award to only RRMNA, in accordance with FAR § 6.302-1(a)(2)(iii)(A) because awarding to any other source would result in a substantial duplication of cost to the Government, which would not be recovered through competition.

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

A Sources Sought Notice (SSN) was posted on 10 February 2025 on System for Award Management (SAM.gov) that included a response date of 15 February 2025 to determine if there were other small and large businesses who had the capability of performing the requirements outlined within the sources sought. RRMNA was the only company that responded to the sources sought.

In accordance with FAR 13.105, a combined synopsis solicitation will be posted to SAM.gov for this requirement. MSC continues to conduct market research to maintain awareness of capabilities within the marketplace.

7. Determination of Fair and Reasonable Cost:

The Contracting Officer has determined the anticipated cost to the Government of the supplies and services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition:

For reasons set forth in paragraph 5, MSC has no plans at this time to allow for non-OEM suppliers in future contracts or purchase orders for the types of supplies covered by this document. MSC will continue to issue SSN’s for future similar requirements to ensure an active and competitive source selection remains ongoing. If another potential source emerges, MSC will assess whether competition for future requirements is feasible.

The contracting officer has retained and reviewed the previous sole source award for this requirement. In accordance with DFARS PGI 206.304(a)(S-70)(i), “Approval of Justification,” 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). The previous J&A’s actions to remove barriers to future competition was reviewed and determined to have been followed.

CERTIFICATIONS AND APPROVAL

TECHNICAL/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.

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Signature Name (Printed) Phone No. Date

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.