JA 7m Brand Name Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE SE IN REPLY TO

WASHINGTON NAVY YARD DC 20376-0001

J&A Number: 21,428

Code: 02221

P.R. Number: N00024-19-NR-53066

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA) Shipbuilding Contracts

Division, SEA 022.

2. Description of the Action Being Approved

The 7 meter Rigid Inflatable Boat Mk4 (7m RIB Mk4) solicitation will be competed among all eligible small business contractors and may result in two Indefinite Delivery

Indefinite Quantity (IDIQ) contracts; however, the requirement specifies that these items must be built and delivered to exactly the following configuration: Steyr (brand name) for the inboard diesel engine, Mercury (brand name) for the stern drive, and BriarTek (brand name) for the Man Overboard

Indicator (MOBI); which necessitates this J&A in accordance with FAR 6.302-1(c)(1).

3. Description of Supplies/Services

NAVSEA has a requirement to procure the equipment listed above to support the acquisition of up to two hundred and seventy-eight (278) 7m RIB Mk4s. There will be one (1) stern drive, one (1) inboard diesel engine, and one (1) MOBI per vessel.

The estimated dollar values per boat of these brand name items are as follows:

Estimated Dollar Value of Equipment per Boat

SWBS Component/System Price/

Each

Qty/ boat

Inboard Diesel Engine

(Steyr)

245 Stern Drive (Mercury) 1

455 MOBI (BriarTek) 1

Totals

J&A Number: 21,428

The Government’s minimum needs have been verified by the certifying technical and requirements personnel. In accordance with Financial Management Comptroller policy, a two percent escalation factor was used to determine out year costs. Estimated dollar values and quantities per fiscal year for these brand name items is as follows:

Estimated Dollar Value by Fiscal Year

FY20 FY21 FY22 FY23 FY24 FY25 Totals

OPN

SCN

Totals

Estimated Quantities by Fiscal Year

FY20 FY21 FY22 FY23 FY24 FY25 Totals

OPN 28 25 25 30 39 30 177

SCN 29 10 15 16 16 15 101

Totals 57 35 40 46 55 45 278

4. Statutory Authority Permitting Other Than Full and Open

Competition

In accordance with 10 U.S.C. 2304(c)(1) and FAR 6.302-1, the supplies required by NAVSEA are available from only one responsible source (brand name) and no other type of supplies will satisfy the requirements.

5. Rationale Justifying Use of Cited Statutory Authority

The 7m RIB Mk4s are key pieces of safety gear, serving as the man-overboard Ready Service Life Boat for multiple classes of

US Navy surface combatants, amphibious ships and aircraft carriers. With few exceptions, each ship in the fleet is assigned one or more of these versatile, multi-mission boats and cannot sail without their 7m RIB Mk4 onboard. The following details why the Steyr engine, BriarTek MOBI, and

Mercury stern drive are the only parts that will meet the

Government’s requirements:

a. A key operational constraint for the 7m RIB Mk4 engine is to have a 24v system. Currently Steyr is the only engine that can meet this requirement. Changes to the engine would have significant logistics and training impacts.

b. Currently the BriarTek MOBI system is the only Man Overboard system that has been installed on US Navy ships and boats for man overboard detection. As a critical piece of safety equipment it is required that the 7m RIB

Mk4 continue to use the BriarTek MOBI system for commonality and familiarity. Changes to the MOBI would have significant logistics and compatibility impacts across the fleet.

c. Currently the Mercury stern drive is the standard stern drive installed on all previous 7m RIBs, dating back to

FY04. As a significant piece of machinery, it is critical the 7m RIB Mk4 have the same outdrive for commonality and familiarity. Changes to the outdrive would have significant logistics and training impacts.

Additionally the use of the brand name equipment is essential to achieve the standardization and commonality required by the

Navy. The rationale for this requirement is to standardize the equipment (brand name) on the incoming 7m RIB Mk4s to what is currently on the in-service fleet deployed worldwide.

Changes to these items could result in substantial duplication of cost that is not expected to be recovered through competition. The following describes examples where maintaining commonality of these components/systems provides substantial cost savings to the Government:

a. Logistics Support, Naval Surface Warfare Center Carderock Division Detachment Norfolk (NSWCCDDN). Standardization and commonality leverages the existing logistics support products developed for use on existing 7m RIBs. Examples of typical approximate NSWCCDDN logistics costs to update/create new logistics packages are listed below:

Supply

Support

Technical

Manuals*

Preventative

Maintenance**

Training

Inboard Diesel

Engine

Stern Drives

MOBI - -

TOTAL

*Cost estimating considerations vary based on; Technical Manual

(TM) type, whether tasking is to develop a new paper-based TM, develop a revision, complexity and size. The overall cost is the same for an individual or multiple pieces of equipment. In addition, an existing TM would be updated with any Boat

Alterations, Technical Manual Deficiency Evaluation Reports

(TMDERs) affecting the manual.

**Communication and navigation equipment does not typically receive Preventative Maintenance. General care for these items is included in the technical manual pre-operation procedures.

Logistics support products which may be impacted by changes to the configuration include: maintenance planning and analysis; training and training support, including training equipment, curricula, and instruction materials; supply support; support equipment such as special tools and test equipment; technical documentation, such as Operations and

Maintenance Manuals, Planned Maintenance System, Allowance

Parts List, Product Technical Description, Technical Repair

Standards, and software documentation; computer resource support; facilities for maintenance and training; unique packaging, handling, storage, and transportation requirements; and human engineering considerations.

b. End User Supportability and Maintainability Fleet Forces Command (FFC). 7m RIBs are operated and maintained worldwide supporting FFC operations in each location within the various regions to include Navy Region Southwest, Navy

Region Northwest, Navy Region Southeast, Navy Region Mid-

Atlantic, Navy Region Japan, Navy Region Europe, Africa and

Southwest Asia, and Navy Region Joint Region Marianas

(Guam). The cost impact to change the configuration of the systems specified above can vary with each location or region; however, the cumulative effect of cost impacts of all locations would significantly impact FFC’s ability to fund and support operation and maintenance of these boats.

Cost impacts to the entire FFC enterprise include development of operator training and training materials, Standard Operating Procedures, etc. Cost impacts to each location impacted by a configuration change include tuition and travel for maintainer training and certifications, additional tooling/workshops, diagnostic software and licensing, spare systems and spare parts for availability requirements, and development of local supply/support/maintenance agreements and/or contracts.

Per Region Total

(8 regions)

Operator Training / Training

Materials

Maintainer Training and

Certification

Additional tooling/workshops/diagnostic software/licensing

Spare Engines and Parts

Development of Local

Supply/Support/Maintenance

Agreements and/or Contracts

TOTAL

c. Acquisition and In-Service Engineering Support.

Standardization and commonality leverages the lessons learned on prior 7m RIBs throughout the Lifecycle. The major attributes of form, fit, function, interface, reliability, and/or material to achieve a specific performance of the system within which it is used and the boat as a whole are well understood. Input and output power, capacity, and other operating requirements for the integration of these items into existing boats have been selected based on requirements of the boat’s mission.

Changes to the existing configuration nullify any existing operational data and lessons learned while increasing the risk of not meeting requirements and/or new issues occurring. These issues would require additional resources to resolve which would increase total ownership costs.

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

Offerors as Practicable

The proposed contract for the 7m RIB Mk4 Engine was synopsized on the Federal Business Opportunities (FEDBIZOPPS) website on

June 28, 2018. Responses were received from five (5) vendors that are interested in and capable of performing the requirements, including Steyr. After review of the responses it was determined that the Steyr engine was the only response that met the Government’s requirements. No additional market research was conducted for the stern drive or MOBI system because it is not practicable for any company other than

Mercury and BriarTek to provide the required supplies, as discussed in Paragraph 5 above. In accordance with FAR 5.102

(a)(6), the Contracting Officer will include a redacted version of this J&A with the 7m RIB Mk4 solicitation when publicized on the FEDBIZOPPS website.

7. Determination of Fair and Reasonable Costs

This requirement is for commercial items. The Contracting

Officer has determined that the anticipated cost to the

Government for the supplies/services covered by the brand name

J&A will be fair and reasonable. Price Analysis will be utilized to determine the fair and reasonable price prior to award. Furthermore, the 7m RIB Mk4 contract award will be based on competition and these systems have multiple distributors which enables competitive pricing. Therefore, the prices of the inboard diesel engine, stern drive, and MOBI contributing to the total price is expected to be determined fair and reasonable based on adequate price competition.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, NAVSEA intends to specify the Steyr (brand name) for the inboard diesel engine, Mercury (brand name) for the stern drive, and Briar Tech

(brand name) for the MOBI for the related contract. The solicitation will be posted on FEDBIZOPPS and will be open to all interested and capable small businesses. The Navy will continue to have interaction with companies that desire to supply their equipment, to include reviewing test and evaluation data against requirements and parameters in paragraph 5c above, which may provide more opportunities for competition of these items in future procurements. In an effort to further remove barriers to competition the 7m RIB contract will have a separate Contract Line Item Number for the engine in the event that other engine suppliers are capable of meeting the Government requirements during the period of performance, the winning contractor(s) may provide the Government with Request for Variance allowing them to compete the engines. The contract will be awarded as a result of a competitive small business set-aside contract for up to two hundred and seventy-eight (278) boats.