JA_20R4130_Rev001_Redacted.pdf

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Attached to
OEM Propulsion Systems Parts and Services Federal contract opportunity
Solicitation number
N3220526D1002
Issued by
Department of the Navy Military Sealift Command

About this file

This is a Justification and Approval (J&A) document for a contract award using other than full and open competition.

The Department of the Navy, Military Sealift Command (MSC), is awarding an Indefinite Delivery, Indefinite Quantity (IDIQ) Multiple Award Contract to Bird-Johnson Propeller Company, LLC (BJPC) and Kongsberg Maritime, Inc. (KMI) for long-standing, recurring requirements covering propulsion systems, steering gear, engines, and associated parts service and supply for MSC vessels, including 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) classes. The contract covers routine, periodic, and annual service; equipment grooming; corrective and preventive maintenance; shop work; SMART inspections; casualty support; new and overhauled parts supply; training; and upgrade sustainment. BJPC maintains sole rights to the Bird Johnson Controllable Pitch Propeller (CPP) system, T-AO 187 Class CPP system, and T-AKR Class 310 Tunnel Thruster, while KMI maintains sole rights to the T-AKR Class 300 and T-AKE Class Tunnel Thruster, T-ESB and T-ESD Class Azimuth Thruster, and steering gear for multiple vessel classes. Both contractors share equal rights for T-AO 205 Class CPP Systems. The contract has a five-year ordering period commencing in Fiscal Year 26 with an optional six-month extension. The contracting authority cited is 10 U.S.C. § 3204(a)(1), as these supplies and services are only available from the OEMs due to proprietary rights, regulatory requirements, and critical ship safety designations. A Sources Sought Notice was posted on July 14, 2020, with a closing date of August 4, 2020; only one non-OEM vendor responded but could not compete for the retained requirements. The estimated total ceiling value and specific funding allocations are redacted in the document. Task orders will be funded with annual Navy Operations and Maintenance (O&MN) FY26 General Funds.

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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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