DE T-AKE Class Buy JA (final signed) 07DEC2020_Redacted.pdf

N10-Diesel Engine

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity:

Department of the Navy, Military Sealift Command (MSC), Services Division (N102).

2. Description of the Action Being Approved:

This action provides the basis and rationale for awarding of at least one (1) contract on an other than full and open competition basis for propulsion system service and supply in support of the T-AKE (Ammunition/Dry Cargo). This system and associated parts are critical equipment defined by Safety Management Systems (SMS) Number 10.6-002-ALL, “Identification of Critical Equipment”, as L4 critical equipment; on a scale from L1 to L4 with L4 being the most critical. Failure of these systems or associated parts would allow water to penetrate the hull and/or lubrication system, and vessel would not be able to perform its required national defense mission.

MSC recognizes its obligation to further competition to the maximum extent possible, which it routinely does and will continue to do. However, as further described below, the decision to procure these items via limited source is based on a significant amount of MSC experience with systems listed in paragraph 5.

3. Description of Supplies/Services:

MSC requires a broad range of Original Equipment Manufacturer (OEM) systems/parts and/or OEM manufacturer/parts providers to maintain the following systems/parts and associated systems contained within the multiple MSC classes of Vessels stated in paragraph 2.a. The required parts and services are necessary to maintain MAN 48/60 Main Diesel Engine.

. The period of performance will be for less than one (1) year. It is anticipated that contract will be funded utilizing corresponding Fiscal Year (FY) United States Navy Working Capital Funds (NWCF).

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

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2), When the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.

5. Rationale Supporting Use of Authority Cited Above:

There are currently fourteen (14) active T-AKE vessels in the MSC fleet with MAN 48/60 MDE and associated parts. These systems are required for propulsion and steering and failure of which would result in the vessel not being able to perform its required national defense mission. SMS Number 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. It is required “To ensure that vessel equipment is repaired/maintained in accordance with regulatory body requirements, MSC Policy, and OEM recommendations.” as stated in SMS number 10.4-001- ALL “Preventive Maintenance (PM)” and SMS Number 10.7-001-ALL “Corrective Maintenance”. FME and MAN proprietary technical data/drawings for these systems/parts as required by United States Coast Guard (USCG) and American Bureau of Shipping (ABS) regulations and are the only authorized manufacturer and distributor of these OEM required supplies and services or have obtained the rights from the OEM to provide the supplies and services. Competition will be limited to FME and MAN who are the respective OEM’s of the required supplies and services or have obtained the rights from the OEM to provide the required supplies and services.

The OEM for the engine listed above are MAN and FME. MAN, and its U.S. representative and OEM-authorized service and parts provider, FME, are the only sources with access to the design information to engineer, manufacture, and service this equipment as they own the proprietary drawings, technical manuals, and design information for this equipment. Parts and services provided by the OEM maintain all OEM warranties, ensure equipment reliability, and ensure crew safety, therefore precluding consideration of non-OEM parts and non-OEM authorized technical representative services. The engineering, construction drawings, and technical characteristics for the manufactured parts for these engines are proprietary to FME and MAN;

the Government does not own rights for this data, thus must utilize the OEM for FME and MAN required parts and services (FAR 6.302-1(b)(2)). In accordance with FAR 6.302-1(a)(2)(ii)(A), it is likely that award to any other source would result in both Substantial duplication of cost to the Government that is not expected to be recovered through competition, and Unacceptable delays in fulfilling the agency’s requirements, as no other company owns the proprietary data necessary to provide the required parts and services, and such data is not obtainable by any party outside MAN and FME. In order for another company to fulfill the fleet’s requirement for main engine parts and services without such data, the Command would have to replace the subject engines with equipment for which the Government or another party could purchase data rights.

6. Description of Efforts made to Solicit Offers from as Many Potential Sources as

Practical:

In accordance with FAR 13.105(b), MSC intends to issue a combined synopsis/solicitation on the https://beta.sam.gov/ website. The stated intent will be to award as a firm-fixed-price Purchase Order. MSC will continue to work with its contracting, engineering support and program manager offices to identify potential manufacturing and authorized service providers.

Further, MSC constantly communicates with the industrial base to assure that all potential alternatives are identified and receive consideration for these requirements. In sum, the OEM(s) has been found to be capable of the manufacturing and servicing of the systems in paragraph 5;

however, these are limited to FME and MAN.

MSC does not have manufacturing and technical information for these systems 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 this highly sophisticated equipment. The OEM parts providers and service technicians have access to provide parts and technical data / drawings for manufacture, and as required to properly repair and maintain the equipment. All OEM repair parts are therefore to comply with USCG, ABS, and International Maritime Organization (IMO) regulatory requirements.

7. Determination of Fair and Reasonable Cost:

A fair-and-reasonable determination will be made using the techniques described in FAR 15.404-1. The Contracting Officer will ensure that the rates on the resulting Purchase Order are commensurate with the historical pricing and adjusted for changed market conditions and/or inflation. The Contracting Officer will determine that the price to the Government for the parts and services covered under this J&A will be fair and reasonable.

8. Actions to Removed Barriers to Future Competition:

For reasons set forth in paragraph 5, MSC has no plans at this time to engage in full and open competition for this entire requirement. If another potential source emerges, with authorization from the OEM to provide parts and services for these systems, MSC will assess whether additional competition for future requirements is feasible.

Pursuant to COMSINST 4490.1C, vendors other than FME and MAN that are not certified by the OEM (ex. Letter from OEM on OEM Letterhead delineating that said Vendor is a certified parts and labor provider) can seek Qualification from MSC. Vendors are encouraged to visit https://procurement.msc.navy.mil/qualification.htm in order to gain Non-OEM Qualification which is only to be used on MSC Vessels.

The Government will continue to monitor the market and conduct market research to identify additional authorized sources and solutions. Any additional timely sources will be afforded an opportunity to respond to this related Request for Quotation (RFQ) and any interested vendor will also be afforded an opportunity to submit a request to be qualified by the Design Control Activity (DCA) in accordance with COMSCINST 4490.1C.

9. A Listing of the Sources, if any, that Expressed, in writing, an Interest in the Acquisition:

To date, no additional sources other than FME and MAN, mentioned above have expressed interest in the instant requirement. However, this requirement will be synopsized and solicited via the (GPE).

Chris Lundquist 757-513-6457

CERTIFICATION AND APPROVALS

Technical/Requirements Cognizance:

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.

Digitally signed by

LUNDQUIST.CHRISTOP

HRISTOPHER. HER.J.1553514971 12/4/20201 Date: 2020.12.04

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Signature Name (Printed) Phone # Date

Legal Sufficiency Review:

I have reviewed this justification and it is deemed to be legally sufficient.

MAYETTE.PA Digitally signed by

MAYETTE.PATRICK.M.1

TRICK.M.1247 247030278 Patrick M. Mayette 757-443-1169 12/7/2020

030278 Date: 2020.12.07

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Signature Name (Printed) Phone # Date

Contracting Officer Certification:

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

Digitally signed by

MCNAIR.MARY.L.10493

Date: 2020.12.08

Mary L. McNair 757-443-5884 Y.L.10493176 17618 12/8/2020

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Signature Name (Printed) Phone # Date

LUNDQUIST.C

MCNAIR.MAR