E15- FM Class JA_Redacted.pdf

J&A Number: 0231-20-194-00 Code: 0231 P.R. Number: 20-AJP-063

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

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

2. Description of Action Being Approved

Award of a Basic Ordering Agreement (BOA) and a Time and Material (T&M) Indefinite- Delivery Indefinite-Quantity (IDIQ) contract is anticipated. The BOA will include commercial Firm-Fixed Price (FFP) services and supplies. The T&M IDIQ will include non-commercial services and supplies. These two actions will be processed on a sole source basis to Fairbanks Morse, LLC (Fairbanks Morse) for the provision of US Navy Submarine Emergency Diesel Generator (EDG) Global Repair Services, and supplies required to complete those services.

Authority to act under this CJ&A expires on 07 February 2026.

3. Description of the Supplies or Services

The planned acquisition will provide failure analysis and repair services in support of NSWCPD Code 422’s mission as In-Service Engineering Agent (ISEA) for US Navy submarine EDG systems. This contract will provide the ability to respond quickly and efficiently to emergent submarine EDG failures that render the EDG non-operational. The EDG is a critical piece of submarine damage control equipment, and an operational EDG is required for both reactor safety and ship safety.

Due to high rates of failure of Fairbanks Morse Opposed Piston (FMOP) engines in submarine EDG applications and the need of the fleet to restore the engines to reliable service as quickly as possible, a contract to procure repairs on an emergent basis is required. The ISEA manages diesel engine programs by ship class and engine type.

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

The scope of the work will include the following support for submarine EDGs, including the prime mover (engine), generator, and associated auxiliary and support systems, with integrated program management support:

∗ Failure Analysis / Root Cause Determination and Damage Assessment Services ∗ Development of Repair Plans ∗ Repair / Maintenance Services ∗ Parts and materials in support of Repair & Maintenance Services

The Governments minimum needs have been verified by the certifying technical and requirements personnel.

ISTRAP Acquisition Strategy Plan #0231-20-194-00.1 covers this acquisition.

The total estimated dollar value of the proposed acquisition is $74,832,624 as indicated below.

Estimated Dollar Value

Funding Year 1 Year 2 Year 3 Year 4 Year 5 Total

O&MN $74,832,624

TOTAL $74,832,624

The Ordering Period for this effort will be sixty months after the date of award. The Period of Performance (POP) will be seventy-two months after date of award.

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1), Only One Responsible Source and No Other Sources and Services Will Satisfy Agency Requirements, as implemented by Federal Acquisition Regulation (FAR) Subpart 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority

Fairbanks Morse is the designer and Original Equipment Manufacturer (OEM) for the required Submarine EDG equipment, which were developed exclusively at private expense. Fairbanks Morse provides proprietary field technical services and aftermarket parts support for this equipment throughout its lifecycle. In cases of submarine diesel engine repairs resulting from equipment or component failure, OEM proprietary procedures and technical data are required to fully determine the root cause of the failure and the extent of repairs required. Further, OEM proprietary procedures are required to identify and correct non-conformances that cannot be identified with existing Navy technical documentation. Additionally, only the OEM can execute repairs required to effectively and rapidly return EDGs back to operational status to meet the U.S.

Navy’s mission critical needs. Lastly, having a contract in place with Fairbanks Morse to address emergent repair requirements in a timely manner ensures that disabled submarine EDGs return to service as quickly as possible.

Fairbanks Morse’s field service technicians are uniquely trained and certified to specific engine lines. In this case, technicians are required to be certified as FMOP master mechanics. The training and certification these individuals receive, coupled with their access to proprietary repair procedures, techniques, tools and technical information, is what makes field services personnel of Fairbanks Morse uniquely qualified to perform the required tasks. Fairbanks Morse does not offer this training and certification to non-Fairbanks Morse employees. OEM parts must be used to ensure proper manufacture, fit, function, operation, longevity, and reliability. Since all of this information is proprietary, the OEM parts are considered proprietary and not available from sources other than the Fairbanks Morse or their designated small business distributors. As such, Fairbanks Morse is the sole owner of the rights to the proprietary design, fabrication, and assembly drawings that support this equipment. Additionally, the company is the sole owner of proprietary processes and procedures for the fabrication of engine parts, systems and sub-systems, as well as the sole owner of proprietary processes and procedures for the accomplishment of critical 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 Fairbanks Morse and is not available to the Government or other potential vendors or contractors without a contractual agreement involving Fairbanks Morse. Though the Navy does possess limited organic capability to maintain and repair the items mentioned above, problems arise that cannot be properly diagnosed or repaired due to the Government’s lack of specialized knowledge and expertise with the units. Numerous attempts by the Government regarding purchasing the rights to this proprietary information have been declined by Fairbanks Morse. Fairbanks Morse declined a recent request for purchasing the rights to proprietary information on 18 June 2020. In addition to owning the rights to proprietary design, fabrication, assembly, repair and test information, Fairbanks Morse has developed unique and highly specialized repair procedures and tooling as a result of their extensive field service experience and expertise. This information is also considered the proprietary property of Fairbanks Morse.

The Government does own and has access to certain technical documentation related to the equipment addressed by this contract (i.e. technical manuals, maintenance procedures, logistics provisioning information), and only possesses some limited capabilities to maintain the equipment over its lifecycle. Without access to the proprietary information detailed above, the Navy cannot develop processes and procedures with the requisite level of detail and precision necessary to plan and execute complex repairs to submarine EDG systems.

Fairbanks Morse, as the OEM, is the sole designer and fabricator of the equipment to be addressed by this contract, and as such, is the only contractor with the background, technical knowledge and expertise, design familiarity, and access to proprietary information and processes necessary to comply with the requirements of this contract. No other firm possesses the requisite capabilities or access to proprietary information necessary to execute the tasking that will be promulgated on this contract.

because it is not practicable, for the reasons discussed in paragraph 5 above, for any other contractor than Fairbanks Morse to provide the required supplies and services. Individual or classes of orders to be issued under the BOA will be published on the FEDBIZOPS website.

Any responses received will be considered.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the services covered by the J&A will be fair and reasonable. The contractor will submit a formal price proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. The contractor’s proposal will be reviewed by experienced technical analysts and contract specialists with the aid of necessary field pricing support. The PCO will use cost and pricing analysis as the basis for negotiating a fair and reasonable price. Additionally, the PCO will determine the contractor’s pricing submitted on future BOA and T&M IDIQ orders fair and reasonable.

8. Actions to Remove Barriers to Competition

All orders issued will be reviewed annually by the Procuring Contracting Officer to ensure that Fairbanks Morse is still the only company that can satisfy agency requirements. Orders will only be placed to support US Navy Submarine Emergency Diesel Generator (EDG) Global Repair Services provided by Fairbanks Morse. NSWCPD will continue to monitor the marketplace and identify potential sources of the services identified in this Justification. Any sources discovered that can potentially satisfy this specific procurement will be taken into account for any future requirements.