JA_20R4130_Rev001_Redacted.pdf

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Attached to
OEM Propulsion System Parts and Services Federal contract opportunity
Solicitation number
N3220526D1001
Issued by
Department of the Navy Military Sealift Command

About this file

This is a Justification and Approval (J&A) document for an Indefinite Delivery, Indefinite Quantity (IDIQ) Multiple Award Contract (MAC) awarded by the Department of the Navy, Military Sealift Command (MSC) to Bird-Johnson Propeller Company, LLC (BJPC) and Kongsberg Maritime, Inc. (KMI) on an other than full and open competition basis.

The contract covers service and supply support for propulsion systems, steering gear, engines, and associated parts across five active MSC ship classes: T-AKE (Dry Cargo/Ammunition), T-AO (Fleet Replenishment Oiler), T-AKR (Large, Medium-Speed Roll-on/Roll-off), T-ESB (Expeditionary Sea Base), and T-ESD (Expeditionary Sea Dock). Specific systems include Bird Johnson Class Controllable Pitch Propellers (sole sourced to BJPC for certain classes), T-AO 187 and T-AO 205 Class CPP systems (shared between BJPC and KMI), T-AKR Class 310 and T-AKR Class 300 Tunnel Thrusters, T-ESB and T-ESD Class Azimuth Thrusters, and steering gear across multiple classes. Services include routine and annual maintenance, equipment grooming, corrective and preventive maintenance, shop work, SMART inspections, parts supply, training, and upgrade sustainment. The contract has a five-year ordering period commencing in Fiscal Year 26 with an optional six-month extension. Funding is anticipated through annual Navy Operations and Maintenance (O&MN) FY26 General Funds. The justification for single-source award cites the proprietary nature of OEM systems and procedures, with BJPC and KMI identified as the only qualified sources authorized to provide required services and parts. A Sources Sought Notice was posted July 14, 2020 with an August 4, 2020 closing date; only one non-OEM vendor responded but could not compete for the majority of requirements. The J&A was approved on September 28, 2020 by the MSC Head of Contracting Authority.

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Text version

J&A No. MSC-N3220520R4130-0001

A Sources Sought Notice (SSN) was posted to the Government-wide Point of Entry (GPE) on 14 July 2020, with a closing date of 04 August 2020. The purpose of the notice was to enhance competition among potential vendors and assess whether other small or large businesses had the capability to meet the requirements outlined in the draft scope of work and parts list included in the SSN. In addition, the following language was added to the SSN to provide a pathway to gain MSC non-OEM Qualification:

**Pursuant to COMSINST 4490.1C, vendors other than Rolls-Royce and Kongsberg 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.**

In summary, one non-OEM vendor responded to the SSN. This company was Motor Services Hugo Stamp, Inc. (MSHS). MSHS has been identified to be capable of providing OEM-equivalent diesel engine maintenance and repair services on MSC ships for Bergen diesel engines through a qualification letter from the MSC N7 Design Control Activity (DCA). However, the Bergen diesel engines were removed from this requirement and MSHS could not compete for any of the additional requirements.

Market research continued through the issuance of the solicitation. That market research includes performing web searches and communicating and reaching out to other companies that are within the same industry to find potential alternatives. The results did not identify potential alternatives at this time.

For reasons set forth in paragraph 5, MSC has no plans at this time to engage in full and open competition for this 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.

7. Determination of Fair and Reasonable Cost:

The Contracting Officer has determine the anticipated cost to the Government for the parts and services covered by this J&A will be fair and reasonable.

8. Actions to Removed Barriers to Future Competition:

For reasons set forth in section 5 of this document, MSC has no plans at this time to compete future contracts for the supplies/services covered by this J&A. 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.

J&A No. MSC-N3220520R4130-0001

, MILITARY SEALIFT COMMAND:

Upon the basis of the above justification, I hereby approve as the

, Military Sealift Command, the contract action described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).

Executive Director, MSC

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