J&A_36K_hour_Overhaul_and_Replacement_of_Resilient_Mounts.pdf

19-J&A-002

JUSTIFICATION AND APPROVAL

FOR USE OFOTHER THAN FULL AND OPEN

COMPETITION

1. Agency and Contracting Activity.

Requiring Activity:

USNS ALAN SHEPARD (T-AKE-3)

Military Sealift Command (MSC)

Ship Support Unit, Bahrain

PSC 851 Box 350

FPO AE 09834-0350

Contracting Activity:

NAVSUP Fleet Logistics Center (FLC) Bahrain DET Dubai

Umm Hurair, Bur Dubai P.O.Box 1217777

2. Description of the Action Being Approved.

Negotiate and award a firm fixed price contract on a sole-source basis for the 36,000HRS overhaul of the USNS ALAN SHEPARD’s Nr. 1 Main Diesel Generator engine and the replacement of the engine resilient mounts for MDGs 3 and 4 under FAR 6.302-1 (Only one responsible source and no other supplies or services will satisfy agency requirements) during its port visit at Jebel Ali. Jebel Ali Port has been established as the place of performance for this repair requirement since the repair period coincides with the ship’s scheduled port visit. The selection of location within the FIFTH Fleet AOR for the ship’s port visit is at the discretion of Commander Task Force FIVE THREE (CTF 53) based on overall future operational commitments.

The supplies or services required under this requisition are available from only one responsible source and no other type of supplies or services will satisfy the Government's need.

On 7 January 2019, A Request for Information or Sources Sought Notice was posted on EURONECO to identify qualified and experienced sources that can satisfy the requirements of the Government. The posting was made available through 10 January 2019. At the time the request closed, only one offeror submitted the required information in response to the RFI that was posted in EURONECO.

NICO International responded via email on 7 January 2019 through Krishna Diwakar (Estimator) that NICO International is not MAN authorized workshop to perform repair works on MAN Engines. Therefore they declined to participate in the bid.

Duqm Naval Dockyard responded via email on 8 January 2019 through Helen Chapell (Bid Manager) that due to the place of performance of the required ship repair effort, DND is unable to participate in the effort.

Nordmarin LLC responded via email on 9 January 2019 through Ali Ashraf (General Manager for Operations) that only MAN Diesel is capable to provide the requested service and that MAN Diesel declined to offer their assistance to Nordmarin LLC as they will be quoting directly to the Government hence Nordmarin will not participate.

MAN Diesel and Turbo Middle East, UAE responded via email on 7 January 2019 through Mr. Rupesh Naik (Sales Manager) that they have no OEM representation in the Middle East other than MAN Diesel Turbo Middle East dealing with Naval vessels. As the OEM of these engines, they have the necessary facility and resources to fully undertake the work scope. This is further supported by the information obtained through contract N4033919CD001 and N4033919CD003 which was issued on 24 October 2018 and 10 January 2019 respectively. N4033919CD001 was issued to MAN Diesel & Turbo Middle East in the amount of $561,368.87 to accomplish 36,000HR overhaul on MDGs 3 and 4 for USNS ALAN SHEPARD and N4033919CD003 was issued to MAN Diesel in the a mount of $914,118.37 to accomplish 36,000HR overhaul on MDGs 3 and 4 and to replace the engine resilient mounts for MDG Nos, 1, 3, and 4 for the USNS RICHARD BYRD.

As search on MAN Diesel’s website, https://middle-east.man-es.com/about-us, revealed the following information:

MAN Diesel & Turbo Middle East is appointed as Authorized Repair Agent for MET Turbochargers, performing service, maintenance, repair, and supplying original spare parts dispatched by MHI. MAN Diesel & Turbo Middle East LLC is a 100% subsidiary of MAN Diesel & Turbo SE based in Augsburg, Germany. MAN Diesel & Turbo Middle East LLC was established in 2008 to serve its customers in the Middle East Region. MAN Diesel & Turbo Middle East deals with the sales and servicing of marine/power station engines and spare parts. It offers the full spectrum of service packages from tailor-made operations and maintenance contracts to stand-by support.

Final list of potential suppliers: MAN Diesel and Turbo Middle East, UAE

Due to MAN Diesel and Turbo ME’s territorial agreements, other authorized MAN Diesel and Turbo entities in the Gulf Cooperation Council (GCC) region will not perform work in the UAE.

Furthermore, third party vendors will not able to provide the required OEM requirement since the only authorized MAN Diesel representative in the UAE refuses to subcontract work with them. Another issue brought up by these contractors is the ordering and delivery of required parts within the allotted voyage repair period. Since they don’t have a direct relationship with MAN DIESEL in Augsburg, Germany the third party contractors are unable to guarantee availability of OEM parts during the voyage repair timeframe.

Based on the market research discussed above, only one responsible offeror is capable of performing overhaul of MAN diesel engines onboard the USNS ALAN SHEPARD at Jebel Ali Port, Dubai, UAE.

3. Description of Supplies/Services.

This procurement is to provide authorized and certified MAN Diesel OEM field service Engineer and technicians to perform 36,000HR - overhaul on Main Diesel Generator (MDG) No. 1 and replace the engine resilient mounts for MDG 3 and 4 for the USNS ALAN SHEPARD (T-AKE-3) at Jebel Ali Port, Dubai, United Arab Emirates

The estimated dollar value for the repair package is $485,878.00 and the planned period of performance is from 3 - 24 March 2019.

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

10 U.S.C.2304(c)(1),Only one responsible source.

5. Rationale Justifying Use of Cited Statutory Authority.

The Military Sealift Command’s (MSC) Ship Repair and Maintenance Process are unique. Unlike the US Navy ships, which uses organizational, intermediate and depot levels for maintenance, MSC ships are only supported at the organizational (shipboard) and depot (industrial) levels (e.g., voyage repairs, overhauls, maintenance and repair upgrades (MARUPs)). MSC's unique maintenance philosophy is driven by the austere, commercial type manning of its ships, absence of complex weapons or electronics systems, and reliance on commercial repair facilities. For these and other reasons, MSC ships are generally on a 410-day phased maintenance and overhaul cycle, with typically short (4-6 weeks) but frequent (annual or bi-annual) ship availabilities. MSC industrial availabilities are planned, developed and scheduled by the MSC Central Technical Activity (MSCCENTACT) or the ship's Area Command Engineering Director's Type Desks. The execution and coordination of all industrial availabilities is the responsibility of the Area Command Port Engineer, assigned to support a particular ship.

The current requirement of USNS ALAN SHEPARD is to accomplish the 36,000HR overhaul of its Main Diesel Generator Engine (MDG) No.1 and the replacement of the engine resilient mounts for MDGs 3 and 4.

Failure of one diesel engine will require the ship to reduce speed. The loss of two diesel engines puts the ship in a CASREP-3 status with limited speed. Failure of a third engine at sea would require tug boats to move the ship from sea to a pier fleet. The reduction of speed can also pose a hazard to the crew, due to limited ships maneuverability. Therefore, proper refurbishment and maintenance of the diesel engines are critical to the safe operation of the vessel.

MAN Diesel &Turbo Middle East LLC (MAN Diesel) is the OEM Representative, which is designated as the maintenance and repair authority for the MAN 6L 48/60 diesel engines. The Shipboard Automated Maintenance Management (SAMM) system requires the services of an authorized and certified MAN Diesel OEM representative and repair facility in order to perform the inspections required.

The Main Diesel engines on the T-AKE Class are designated as Critical Ship Equipment, the failure of which poses a hazard to equipment, personnel, and loss of mission. Similarly, the use of OEM parts from the original manufacturer is required to maintain all warranties, ensure engine reliability and crew safety.

The engine tolerances must be set as per the OEM specifications and drawings. Since the engineering construction drawings for the diesel engine are proprietary to MAN Diesel, non-OEM authorized/certified entities do not have access to MAN Diesel proprietary drawings nor have access to MAN Diesel engineering support/consultation to perform in-depth troubleshooting and intricate field repair that only OEM authorized and certified technicians and repair facility are authorized to accomplish. Therefore, the use of other than OEM authorized and certified field service technicians, repair facility, and/or replacement parts could preclude the American Bureau of Shipping (ABS) regulatory compliance required to retain Class Certification to attain United States Coast Guard Certificate of Inspection and pose a major risk of damage to the machinery and place the engine operators at risk of injury or death.

Based on market research, MAN Diesel &Turbo Middle East LLC is the only responsible source in the 5th Fleet who is able to provide and accomplish the repairs of MAN Diesel Engines and all MAN

Diesel Engines components on the USNS ALAN SHEPARD (T-AKE 3) in the United Arab Emirates (UAE) for the following reasons:

Due to MAN Diesel and Turbo ME’s territorial agreements, other authorized MAN Diesel and Turbo entities in the Gulf Cooperation Council (GCC) region will not perform work in the UAE.

Furthermore, third party vendors will not able to provide the required OEM requirement since the only authorized MAN Diesel representative in the UAE refuses to subcontract work with them. Another issue brought up by these contractors is the ordering and delivery of required parts within the allotted voyage repair period. Since they don’t have a direct relationship with MAN DIESEL in Augsburg, Germany the third party contractors are unable to guarantee availability of OEM parts during the voyage repair timeframe.

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

A member of Military Sealift Command (MSC) and NAVSUP FLC Bahrain DET Dubai conduct market research on a continual basis. Based on information gathered from the OEM representative and third party contractors, MSC and NAVSUP FLC Bahrain DET Dubai have determined that only MAN Diesel& Turbo Middle East is still the only authorized OEM representative in the region. Other third party contractors are still unable to find an alternate OEM representative that is capable of meeting the Navy's requirements in the United Arab Emirates (UAE). A synopsis of these planned contracts has not been published. In accordance with FAR 5.202(a)(12), a synopsis is not required when the contract action is by a Defense agency and the proposed contract action will be made and performed outside the United States and its outlying areas, and only local sources will be solicited.

7. Determination of Fair and Reasonable Cost.

The contracting officer will determine the total anticipated price to the Government for the repairs covered by this J&A to be fair and reasonable in accordance with FAR 15.404(1)(b).

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAVSUP has no plans at this time to compete future contacts for the types of supplies/services covered by his document. If another potential source emerges, NAVSUP will assess whether competition for future requirements is feasible. Meanwhile, MSC and the Contracting Office will communicate with the OEM and third party contractors on a regular basis in an attempt to have more than one certified MAN Diesel contractor certified in the UAE.

9. Contracting Point Of Contact

The contracting point of contact is Ms. Cheryl Geneciran - Paulino, who may be contacted via telephone on +97150 4566178 or via e-mail at Cheryl.Geneciran.PH@me.navy.mil.