JA N102-22-Q-0072 MK27F Class-Buy (Signed) - Redacted1_.pdf

N102-22-Q-0072

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Department of the Navy, Military Sealift Command (MSC), Norfolk, VA.

2. Description of Action Being Approved:

a. Award of a purchase order on an other than full-and-open competition basis for long-standing, recurrent requirements covering a broad range of Sperry Marine/Northrop Grumman navigation systems/items and services for REPLACEMENT GYRO-COMPASS SYSTEM for the Lewis and Clark class of dry cargo underway replenishment class of vessels.

b. MSC recognizes its obligation to further competition to the maximum extent possible, which it routinely does and will continue to do. However, as further described below, the decision to procure these items via limited sources is based on a significant amount of MSC experience purchasing the very systems/items listed in paragraph 3, using previously related J&As. Specifically, contracting history shows consistently procuring parts and services for these systems/items utilizing other than full-and-open competition for at least the past ten (10) years. Rather than duplicate a J&A each time the covered systems/items are required, this J&A consolidated the previous relevant J&A’s for efficiency. This supportive requirement will be executed utilizing Simplified Acquisition Procedure (SAP) type contract with firm-fixed price purchase orders.

3. Description of Supplies/Services:

Military Sealift Command (MSC) has a requirement to support fleet upgrade to the MK27F Gyro Compass system approved under T-ALT 348. Accordingly, the actions executed under this J&A have an estimated value of approximately $ . MSC requires a broad range of Original Equipment Manufacturer (OEM) parts and technical services to maintain the following Sperry Marine/Northrop Grumman systems and equipment on the Lewis and Clark class of dry cargo underway replenishment class of vessels. These systems/items and related parts/services include, but are not limited to:

a. Dual MK37 D/E/VT, Mod 0, and Mod 1 Systems

b. Model SR 2100 and SR 3000 Systems

c. MK27 F Gyro Compass

Maintenance may include, but is not limited to, appraisals, grooms, inspections, life cycle management, overhauls, refurbishment, repairs, reports, tests, and upgrades. The total maximum value of this requirement is $ , which covers a quantity (4) sets of material for the GYRO Retrofit required for this TRANSALT. It is anticipated that the purchase order will be funded utilizing corresponding Fiscal Year (FY) United States Navy Working Capital Funds (NWCF) and/or Transportation Working Capital Funds (TWCF).

4. Statutory Authority Permitting Other than Full and Open:

The statutory authority for this commercial procurement is 41 U.S.C. 1901(e)(2) as implemented by FAR Part 13.501(a), Simplified Procedures for Certain Commercial Items, Sole Source-Brand Name. The statutory authority permitting other than full-and-open competition is 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(b), whereby parts and service sources are unique or available from a limited number of sources. Competition will be limited to OEMs and/or exclusively OEM-authorized parts providers/service technicians providing name parts.

5. Rationale Justifying Use of Cited Statutory Authority:

This is not a new requirement. MSC has acquired the Sperry Marine/Northrop Grumman systems/items and service identified in section 3 for decades on an Other than Full-and-Open Competition basis using a series of J&A’s.

Sperry Marine/Northrop Grumman GYROCOMPASS system was introduced for use on the T-AKE class by MSC and the Navy at the time of construction of the T-AKE hulls and designed utilizing proprietary software and hardware. This MK27F GYRO System includes a GYRO Binnacle, bulkhead mounted equipment, and ancillary equipment which all combine to make up the MK27F GYROCOMPASS equipment suite system. Only authorized vendors may gain access to this data. Sperry Marine/Northrop Grumman is the Original Equipment Manufacturer (OEM) of the MK27F GYROCOMPASS System. It is also the OEM of the MK37VT GYROCOMPASS System currently installed on T-AKE ships that require modernization. Sperry Marine/Northrop Grumman will only sell parts and complete systems to OEM authorized vendors. Due to exclusive licensing agreements and arrangements, the required repair/spare parts and/or technical representative services are only available from the Original Equipment Manufacturer (OEM) or ONLY ONE authorized distributor or technical representative.

The engineering, construction drawings, and technical characteristics for Sperry Marine/Northrop Grumman systems items in section 3 and related repair service techniques are proprietary to authorized Sperry Marine/Northrop Grumman original equipment manufacturer (OEM) representatives, making them the only known sources.

Authorized Sperry Marine/Northrop Grumman original equipment manufacturer (OEM) representatives provide OEM parts and technical data/drawings as required by the United States Coast Guard (USCG) and American Bureau of Shipping (ABS) regulations. This mandatory regimen maintains all OEM warranties, ensures equipment reliability, and ensures crew safety, therefore precluding consideration of non-OEM parts and non-OEM authorized technical representative services.

COMSC Instruction 4490.1, Original Equipment Manufacturers and Non- Original Equipment Manufacturers Use Policy, and associated Safety Management System procedure 10.6-002-ALL, Identification of Critical Equipment, identify steering gear, radars, fathometers, external radio communications, and GMDSS as critical equipment.

COMSC Instruction 4490.1 dictates use of OEM parts and service for the maintenance and repair of critical systems and equipment.

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

For all systems/items identified in section 3, and in accordance with FAR 5.201(b)(1)(i), MSC intends to issue a synopsis of proposed contract action (solicitation) on the System for Award Management, SAM.gov web portal. The stated intent will be to award a purchase order with firm fixed price supporting the requirements. MSC conducted a prior previous market survey under NAICS code 541330 “Engineering Services”, which allowed for extensive responses from industry. The market research yielded four (4) qualified responses all of which have in the past provided OEM parts and services and are currently capable of providing such. The market survey was posted on previous GPE FEDBIZOPPS before being changed to SAM.gov for all GPE requirements, the previous awarded Navigational Bridge MAC IDIQ contracts N3220518D4863 – Nav Systems Inc., N3220518D4864 – NavTech Marine Electronics, N3220518D4865 – Northrop Grumman Systems Corp. and N3220518D4866 – NGSC Sperry Marine Division which period of performance ended 30 September 2021.

A new supportive Navigational Bridge MAC IDIQ contract source selection procedure process was initiated to continue the efforts under solicitation N3220521R4115 which will support future efforts once awarded. Per the approved Market Research Memorandum dated 02 October 2021 for solicitation N3220521R4115, A Sources Sought/Market Survey N32205-20-R-7007 was posted on Beta.SAM.gov on 24 July 2020 to determine sources capable of providing services referencing the PWS. NGSC/Sperry Marine, Navtech Marine, and Nav Systems responded to the sources sought and provided capability statements and other information that they are capable of meeting the requirements set forth in the PWS. These companies were on the pervious multiple award Indefinite Delivery, Indefnite Quantity (IDIQ) Navigational Bridge contract (N32205-18-D-4863, Nav Systems; N32205-18- D-4864, Navtech Marine; N32205-18-D-4865, NGSC; N32205-18-D-4866, Sperry Marine). Furthermore, NGSC/Sperry Marine confirmed via email on 18 September that Nav Systems and Navtech were authorized service providers for NGSC/Sperry Marine equipment. The Government did not receive any responses from Non-OEM companies who would be considered unauthorized OEM service providers.

MSC does not have manufacturing and technical information required to evaluate and determine whether non-OEM systems/items potentially offered as equivalent to the OEM components and replacement parts are technically acceptable. These systems/items require special tools, specialized repair parts and technical expertise unique to these systems/items; only approved OEM parts are authorized to be installed for this highly sophisticated equipment.

Authorized OEM representatives and authorized parts providers and service technicians have access to provide parts and technical data/drawings for manufacture, and as required to properly repair and maintain the systems/items. All OEM repair parts are therefore to be in compliance with USCG, ABS, and International Maritime Organization (IMO) regulatory requirements.

7. Contracting Officer’s Determination of Fair and Reasonable Price:

The Contracting Officer will determine that the price is fair and reasonable pursuant to Federal Acquisition Regulations (FAR) Part 13.106-3.

8. Actions to Remove Barriers to Future Competition:

For reasons set forth in paragraph 5 and 6, MSC has no plans 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, MSC will assess whether additional competition for future requirements is feasible. A sources sought notice was posted to SAM.gov requesting market research information from industry, including interested and capable sources.

To date four (4) responses were received as follows: (1) Nav Systems Inc., (2) Barney A Cagle Doing Business As (DBA) Navtech Marine Electronics, (3) Northrop Grumman Systems Corporation (Maritime Systems), and (4) Northrop Grumman Systems Corporation DBA Sperry Marine Division. All four (4) respondents demonstrated their capability to provide systems/items and services as either the OEM or OEM authorized parts/service provider. The Government will continue to monitor the market and conduct market research to identify additional authorized sources and solutions. Any additional timely sources will be afforded an opportunity to respond to this related Request for Quote (RFQ).

9. A Listing of the Sources, if any, that Expressed, in writing, an Interest in the Acquisition:

To date, no additional sources other than those mentioned in paragraph 8 above, have expressed interest. Similar contract actions for supportive Navigational Bridge supportive services were posted to SAM.gov utilizing Simplified Acquisition Procedures (SAP) per approved Use of Other Than Full and Open Competition for an Acquisition under the Simplified Acquisition Threshold Source Selection Justification (SSJ) which only the OME and approved OEM associated companies provided offers supporting the Government requirements. No Non-OEM companies had responded to the Combined Synopsis and Solicitations. However, this requirement will be synopsized and solicited via the Government Point of Entry, the SAM.gov website, to afford maximum visibility and competition.