B03_N6449826G1002 - CPP BOA JA (REDACTED).pdf

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Controlled Pitch Propeller Procurement Basic Ordering Agreement
Solicitation number
N64498-24-RFPREQ-PD-42-0002
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This is a Justification and Approval (J&A) document for a sole-source Basic Ordering Agreement (BOA) procurement by the Naval Sea Systems Command, Naval Surface Warfare Center Philadelphia Division (NSWCPD).

The Government seeks to award a 60-month BOA to Rolls Royce Marine North America (RRMNA) for the procurement of Controllable Pitch Propeller (CPP) equipment, including Propeller Hubs, Oil Distribution (OD) Boxes, and Propeller Blades for the DDG-51, LPD-17, and LHA-6 ship classes. The BOA will replace the expiring sole-source agreement N64498Z0G0002. Specific line items include six DDG-51 Port and STBD Hubs, six DDG-51 STBD Hubs, two LPD-17 Port Hubs, three LPD-17 STBD Hubs, one LHA-6 Port Hub, one LHA-6 STBD Hub, multiple OD Boxes across all three ship classes, and one Propeller Blade Set for each applicable configuration. The estimated total dollar value is redacted, with anticipated funding from FY25-30 Navy Other Procurement (OPN) funds distributed across five years. The procurement is justified under 10 U.S.C. 3204(a)(1) based on RRMNA being the only responsible source. RRMNA holds proprietary technical data and design rights essential for manufacturing CPP components; the Government requested a data license on 20 March 2025, which RRMNA declined on 7 April 2025, citing private investment in proprietary development and competitive market considerations. A Sources Sought Notice was posted 20 December 2024 and a synopsis on 14 March 2025, with only RRMNA responding. The Contracting Officer will conduct cost and pricing analysis to determine fair and reasonable pricing, and the BOA will be reviewed annually for potential future competition if alternative sources emerge.

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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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