B03_N6449826G1002 - CPP BOA JA (REDACTED).pdf

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CPP BOA Award Notice
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N6449826G1002JA
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This is a Justification and Approval (J&A) document for a sole source procurement by the Naval Surface Warfare Center Philadelphia Division (NSWCPD).

The Navy intends to award a Basic Ordering Agreement (BOA) to Rolls Royce Marine North America (RRMNA) for propeller equipment on a sole source basis. The procurement covers Controllable Pitch Propeller (CPP) system components—specifically Propeller Hubs, Oil Distribution (OD) Boxes, and Propeller Blades—for the DDG-51, LPD-17, and LHA-6 ship classes. The BOA will have a 60-month ordering period and may be renewed annually. The scope includes 24 line items with specific National Stock Numbers (NSNs) and quantities, ranging from DDG-51 Port Hubs (quantity 6) to propeller blade sets for various ship classes (quantity 1 each). The estimated total dollar value is redacted in the document. Budgeted funding will derive from FY25-30 Other Procurement, Navy (OPN) appropriations, with costs distributed across five years.

Sole source justification rests on RRMNA's exclusive ownership of proprietary technical data and design rights necessary to manufacture OEM hubs, OD boxes, and blade assemblies. The Government lacks the technical capability to reverse engineer these components and cannot obtain unrestricted data rights, as RRMNA declined a data license request on April 7, 2025, citing private investment and competitive considerations. Competition was attempted through a Sources Sought Notice posted December 20, 2024, and a synopsis posted March 14, 2025, with no other contractor responses. Authority for this non-competitive procurement derives from 10 U.S.C. 3204(a)(1). The Procuring Contracting Officer will conduct annual reviews to assess whether future competition becomes feasible. Fair and reasonable pricing will be determined through cost and pricing analysis of the contractor's formal proposal.

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J&A No. 0231-25-072-00 war reserve minimum of one (1) ship set of “A” condition spares at all times, and operational sparing levels to support the dry dock change-out schedule.

RRMNA’s proprietary technical data is necessary to manufacture the OEM Hubs, OD Boxes and

Propeller Blades in order to ensure proper manufacture, fit, function, operation, longevity, and reliability. RRMNA is the sole owner of the rights to the proprietary design, fabrication, and assembly drawings that is required to manufacture this equipment. The required OEM supplies are not available from sources other than RRMNA. The Government has not procured a license to the necessary technical data as RRMNA’s CPP Hub and OD Box 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 20 March 2025, the Government requested to purchase a license to the necessary technical data to manufacture the required supplies from RRMNA. On 07 April 2025, RRMNA declined the Government’s request to obtain unrestricted data rights for CPP Hubs, OD Boxes, and

Blades. RRMNA stated that they have invested considerable amounts of private funds in developing this proprietary data. Furthermore, RRMNA stated that maintaining these data rights is crucial to uphold their competitive posture in this market.

In sum, RRMNA is the only responsible source available that is capable of providing the required CPP Equipment for the duration of the 60-month ordering period to fulfill the agency’s requirement to 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 20 December 2024.

Additionally, a synopsis was posted on 14 March 2025. On 31 March 2025, RRMNA provided a response to the synopsis. No other contractors have responded to these postings as of the drafting of this J&A. 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 the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable. The Contractor will submit a formal price proposal with sufficient information to support the accuracy and reliability of the estimate. Experienced Technical Analysts and Contract Specialists with the aid of necessary field pricing support will review the Contractor’s proposal. The Contracting Officer will use cost and pricing analysis as the basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in paragraph 5, the Government has no plans at this time to compete future

BOAs for the items covered by this document. If another potential source emerges, the Government will assess whether competition for future requirements is feasible. The circumstances surrounding the need to obtain the required supplies without providing full and open competition will be reviewed annually by the Procuring Contracting Officer (PCO).

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).

Signature: Nigel C. Thijs, SES, Technical Director

Naval Surface Warfare Center Philadelphia Division, TD

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