JA DVR System_6 SEP 2024_Redacted.pdf

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J&A Number: 0243-24-339-00

BRAND NAME JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA), Naval Surface Warfare Center, Philadelphia Division (NSWCPD), .

2. Description of Action Being Approved

Award of a Firm Fixed Price (FFP), Indefinite Delivery Indefinite Quantity (IDIQ), Supply Contract and subsequent Delivery Orders for Kato Engineering, Inc. manufactured Digital Voltage Regulator (DVR) Systems, also referred to as Digital Excitation Control Panel, on a brand name basis. The ordering period for the proposed IDIQ contract will be twenty-four (24) months after the date of award.

3. Description of the Supplies or Services

Guided Missile Destroyer (DDG) 113 and follow-on DDG 51 Class Flight IIA ships utilize the DVR System to provide control of the Ship�s Service Gas Turbine Generator (SSGTG) output voltage. Whereas DDG 51 through DDG 112 utilized the Excitation Control Panel (EXCOP) to provide control of the SSGTG output voltage, the EXCOP is now obsolete, and it is being replaced with the DVR System under Ship Change Document (SCD) 13591. The DVR System, a subcomponent of the SSGTG, receives voltage and current sensing signals from the generator output to provide control of the output voltage. Maintaining control of the output voltage is a critical function of the SSGTG without which the generator cannot operate. The subject requirements provide for a FFP purchase of:

Part Manufacturer Part Number

Quantity

Kato Digital Voltage Regulator System 509-01113-00 42

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

Based on the Government�s material needs, the Contractor will fill orders to furnish the DVR System. The DVR System currently has a lead-time of twenty-four (24) months.

Budgeted funds for the DVR System will include Other Procurement, Navy (OPN) but may include other appropriation categories.

The estimated costs are based on the above quantities. The Government�s minimum needs have been verified by the certifying technical and requirements personnel

4. Statutory Authority Permitting Other Than Full and Open Competition

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), One responsible source or a limited number of responsible sources, as implemented by Federal Acquisition Regulation FAR Subpart 6.302-1(c).

5. Rationale Justifying Use of Cited Statutory Authority

The as-built configuration of the three (3) Ships Service Gas Turbine Generators (SSGTGs) installed on DDG 51 through DDG 112 utilized the Kato Engineering Inc. Excitation Control Panel (EXCOP) to provide control of the generator output voltage.

The as-built configuration of the three (3) SSGTGs installed on DDG 113 And-Follow (AF) Flight IIA ships utilize the Kato Engineering Inc. DVR System to provide control of the generator output voltage.

The DVR system utilizes the same mounting holes and the electrical interfaces utilized by the EXCOP making it a Form, Fit, and Function (FFF) replacement for the EXCOP. NSWCPD Code 441 and the respective NAVSEA 05Z Technical Warrant Holder have confirmed that there is no other FFF replacement available for the EXCOP.

The EXCOP is obsolete and is being replaced with the DVR system under SCD 13591. The EXCOP/DVR System is a critical component of the SSGTG used on DDG 51 Class ships without which the generator cannot operate. The Kato Engineering, Inc. manufactured DVR system is the only such system that will fulfill the requirements of this contract. No other product manufactured by another firm possesses the requisite capabilities to execute the tasking on this contract.

These items were previously procured under sole source Blanket Ordering Agreement (BOA) No. N00024-19-G-4108, J&A No. 41, 417 approved 3 April 2018, which was a BOA between NAVSEA and Rolls-Royce Marine North America, Inc. (RRMNA). RRMNA is the supplier for DDG 51 Class SSGTGs and the DVR System is a subcomponent of these generators. The RRMNA designated part number for the DVR system is NMM000011 whereas the OEM, Kato Engineering, Inc., designated part number is 509-01113-00.

The Government did not procure the equipment design drawings from Kato Engineering, Inc. As per the Kato Engineering, Inc. technical manual, the technical data for the DVR System is property of Kato Engineering, Inc. Assets cannot be manufactured without the Kato Engineering, Inc. owned, proprietary documentation. The government does not have any rights to the technical data required to produce the required supplies. In addition, NSWCPD does not have the technical capability or equipment to reverse engineer the hardware or software.

The Government reached out to Kato Engineering, Inc. about purchasing the technical data and a license to the data rights, inclusive of intellectual property, to this proprietary information. The Government sent an e-mail request on 23 February 2024 to Kato Engineering, Inc. asking if it would be willing to sell data and drawings for the DVR system assembly. To date, Kato Engineering, Inc. has not responded to that request.

Utilization of another voltage regulation system is not feasible as there are no other FFF voltage regulation systems available for the DDG 51 Class SSGTGs. It is estimated that it would take an additional eight (8) to ten (10) years to perform engineering, prototyping, conducting functional and environmental testing, and manufacturing production units to be able to manufacture this equipment competitively without OEM support. The aforementioned time is based on past history of work done on similar equipment such as the Full Authority Digital Control Local Operating Panel for SSGTGs.

Development of a new voltage regulation system for the DDG 51 Class SSGTG will also result in lack of adherence to NAVSEA established commonality initiatives.

Thus, the Kato Engineering, Inc. brand is essential to the Government�s requirements. Market research also indicates that other companies� similar products or products lacking particular features, as described above, do not meet or cannot be modified to meet the agency�s needs.

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

This Justification will be posted along with the synopsis and solicitation on the SAM.gov website in accordance with FAR 6.305. Any responses received will be evaluated.

Market research was conducted through an analysis of alternative equipment brands that are available in industry. The thorough analysis conducted reviewed the available brands to see if there were any possible alternatives. At this time, no other brand name equivalents exist to satisfy the need.

The Contract Specialist contacted Kato Engineering, Inc. on 3 April 2024. Kato Engineering Inc.

advised that they currently do not sell these parts directly to the Government and referred the Government to Triman Industries, Inc.

Through market research it was determined that there are two (2) potential sources for the procurement of the Kato Digital Voltage Regulator (PN: 509-01113-00):

Resellers / Direct Sales Triman Industries, Inc.

Rolls-Royce Marine North America, Inc.

A Sources Sought was posted to SAM.gov on 31 May 2024 and no responses were received. The Contract Specialist reached out directly to Triman Industries, Inc. as well as Rolls-Royce Marine North America, Inc. Triman Industries, Inc. responded expressing interest and requested that they be notified when a solicitation is posted. To date, Rolls-Royce Marine North America, Inc has not responded.

7. Determination of Fair and Reasonable Costs

The Contracting Officer will make a determination as to whether the costs to the Government for the supplies covered by this J&A are fair and reasonable, prior to award. Similar quantities of this requirement have been purchased from one of these manufacturers in the past and cost/pricing information was received on those past procurements. This information should be sufficient to support the fair and reasonable cost determination of this procurement. Technical analysts and contract specialists will perform analysis of the proposal, with assistance, as needed, from the Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA). The Contracting Officer will utilize cost and pricing analysis as the basis for determining a fair and reasonable price.

8. Actions to Remove Barriers to Competition

NSWCPD will continue to monitor the marketplace and identify potential sources of the supplies identified in this Justification. Any sources discovered that can potentially satisfy this specific procurement will be taken into account for any future requirements.

CERTIFICATIONS AND APPROVAL

TECHNICAL AND REQUIREMENTS CERTIFICATION

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

COMBINED TECHNICAL AND REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

DESIGNEE OF HEAD OF THE CONTRACTING ACTIVITY APPROVAL

Upon the basis of the above Justification, I hereby approve, as Designee of Head of the Contracting Activity, the solicitation of the proposed procurement(s) described herein for procuring items from one responsible source or a limited number of responsible sources, as implemented by FAR Subpart 6.302-1(c).

Signature Date Mr. Nigel C. Thijs

Technical Director, NSWCPD