GE JA redacted.doc

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE SE

WASHINGTON NAVY YARD DC 20376-0001

In Reply Refer To

J&A No.: 42,868 Code: SEA 02413 PR No: N0002423NR25566

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity:

The Naval Sea Systems Command (NAVSEA), Fleet Support Contracts Division, NAVSEA 024.

2. Description of the Action Being Approved:

Award of firm-fixed-price commercial contract on a sole source basis to General Electric (GE) Aviation-Marine. This Justification and Approval (J&A) covers the procurement of LM2500+G4 Gas Turbine (GT) and associated equipment from GE Aviation as the Original Equipment Manufacturer (OEM). This is to support PMS 460 DDG(X) Integrated Power System (IPS) efforts at the US Navy Land Based Test Site, in Naval Surface Warfare Center (NSWC) Philadelphia, PA.

3. Description of Supplies/Services:

LM2500+G4 Gas Turbine (GT) Package 2500-SD-MLG01:

Total

The source of funding for the work described above is Research Development Test and Evaluation, Navy RDT&EN. The period of performance is projected to be between FY 23 – FY26 with a total funding of $ Million. This contract will be subject to negotiation by the Contracting Officer.

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

10 U.S.C. 2304(c)(1), as implemented under FAR Part 6.302-1. Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority:

The DDG(X) program’s mission is to replace the DDG51 program as the primary large surface ship combatant for the US Navy. The DDG51 class utilizes the GE LM2500 Gas Turbine (GT), with 4 GE LM2500s installed per ship. The DDG 51 Class has an inventory of 70 active ships currently, with 13 ships in construction and 7 additional ships on order, totaling 360 LM2500’s delivered, or on order.

The DDG(X) program has elected to down select the trade space for Gas Turbine Generators to the GE LM2500 Family of Generators and incorporated this decision into the baseline ship design with DDG(X) Design Decision Memorandum DDM-POG-0014, which was approved by the Ship Design Manager on 08 May 2022. This memorandum limits the gas turbine hardware to one of three GE variants, the LM2500, LM2500+ and LM2500+G4. The LM2500+G4 is an evolutionary improvement over the existing LM2500 models installed aboard the DDG51 class, and provides improved performance compared to the other models in the LM2500 family. The DDG(X) program has a need to maximize the available power generation capacity, and minimize fuel consumption. These requirements drive the program toward selecting the LM2500+G4 over the other available variants. As this variant has not yet been installed and integrated aboard any active Navy vessel, land based testing is required to mitigate integrating risks. Therefore one (1) unit must be procured and delivered to the DDG(X) Land Based Test Site in Philadelphia.

There is no GE LM2500+G4 available in the US Navy inventory, nor is it available to be purchased via current existing US Navy contracts/Military Interdepartmental Purchase Requests (MIPR). The current FFG(X) program has on order estimated at 40 GE LM2500+G4 engine, and there has been no FFG(X) ship deliveries to date. GE is the sole manufacturer and distributor of the GE LM2500+G4 engine.

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

The proposed requirement was synopsized on the SAM.GOV website on 01/23/2023 as required by FAR 5.201(b)(1). The notice included a Request for Information (RFI) as defined in FAR 15.201(e) and as required by the Defense Federal Acquisition Regulation Supplement (DFARS) and Procedures, Guidance, and Information (PGI) 206.302-1. While to date no responses have been received to the combined synopsis/solicitation notifications, any responses obtained will be evaluated.

7. Determination of Fair and Reasonable Cost:

The Contracting Officer has determined that the anticipated cost to the Government for the supplies covered by this J&A will be fair and reasonable. The Contracting Officer will use price analysis to determine that the final price is fair and reasonable. The Government has procured these types of engines in the past and has sufficient historical price data.

8. Actions to Remove Barriers to Competition:

For the reasons set forth in paragraph 5 above, NAVSEA Fleet Support Contracts Division (SEA 024) has no plans at this time to compete future contracts for the types of supplies covered by this document. If another potential source emerges, NAVSEA Fleet Support Contracts Division (SEA 024) 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 APPROVALS

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE (FAR 6.303-2(b)):

Signature PMS460 Technical Representative

REQUIREMENTS COGNIZANCE:

Signature

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

Signature Attorney Advisor CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(a)(12)) I certify that this justification is accurate and complete to the best of my knowledge and belief.

Signature Contracting Officer APPROVAL BLOCK (FAR 6.304 for Approving Official) Upon the basis of the above justification, I hereby approve, as Designee of the Head of the Contracting Activity the solicitation of the proposed procurements described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).

Signature