JA N32205-20-R-4113-0001

DEPARTMENT OF THE NAVY

COMMANDER MILITARY SEALIFT COMMAND

471 EAST C STREET

NORFOLK VA 23511-2419

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity. Department of the Navy, Military Sealift Command (MSC), Engineering Services (N102).

2. Description of the Action Being Approved. Military Sealift Command’s (MSC) Indefinite- Delivery, Indefinite-Quantity (IDIQ) Contract N3220521D4113 ordering period is set to expire on 30 September 2026. To mitigate the risk of a lapse in required services or schedule disruption, a contract modification is required to extend the current contract’s ordering period.

This justification supports approval of a modification to the existing sole-source IDIQ contract, N3220521D4113, to extend the current five (5) year ordering period up to an additional six (6) months. This modification is necessary due to delays in awarding the follow-on sole-source IDIQ contract and will provide MSC adequate time to complete the longer-term follow-on contract action. All other IDIQ terms will remain the same.

3. Description of Supplies/Services Required to Meet the Agency’s Needs. The objective of this action is to ensure the continued and uninterrupted performance of long-standing, recurring requirements encompassing a broad range of automation systems, equipment, and services in support of Military Sealift Command (MSC) vessel classes, including, but not limited to: T-AKE (Dry Cargo/Ammunition), T-AO 187 (Fleet Replenishment Oiler), T-ESB (Expeditionary Mobile Base), T-ESD (Expeditionary Transfer Dock), T-AK (Kocak Class), and LCC-20 (Command Ship Class).

MSC requires a broad range of GE Original Equipment Manufacturer (OEM) systems and items and exclusively authorized OEM parts and service technician services to maintain the automation systems onboard multiple MSC ship classes. Specifically, the required parts and services are for the following automation systems: Machinery Plant Systems and Machinery Centralized Control Systems (MCCS), CoGen Power Take Off Systems (PTO), Power Take-In Systems (PTI), Assured Power Modification Systems, and other associated items onboard MSC vessels. These automation systems are critical ship safety items in accordance with Commander Military Sealift Command Instruction (COMSCINST) 4490.1C and MSC Quality Management System (QMS) N0750-100.00-AQ Revision 2.1 policy for maintenance, repair, parts procurement, and related technical services for such items. Maintenance services requirements include appraisals, groom, inspections, life cycle management, overhauls, refurbishment, repairs, reports, tests, and upgrades.

The current single source IDIQ contract ceiling is at $125,000,000.00 and will remain unchanged.

This contract action is being established as an out-of-scope modification to the existing IDIQ vehicle in order to provide the Government with the operational and contractual flexibility necessary to support evolving mission requirements, fleet operational demands, emergent tasking, and variable ordering needs that may arise during the bridge performance period. The stated ceiling amount represents the maximum potential ordering capacity available under the entire contract’s ordering period, to include the three (3) month extension and three (3) month option, and is not a guarantee, commitment, or obligation that the full ceiling value will be ordered or expended by the Government. Actual task orders issued and funds obligated under the contract will be based solely on validated mission requirements, availability of funding, and authorized Government needs throughout contract performance.

The original ordering period of performance for this effort is a five-year ordering period; of which commenced on 01 October 2021 and ends on 30 September 2026. This contract action extends the ordering period an addition three (3) months; commencing 01 October 2026 and ending 31 December 2026 and will include the option to extend an additional three (3) months, through 31 March 2026, to be exercised at the Governments’ discretion if the follow-on IDIQ has not been awarded. Each order during this extended three-month ordering period, and if applicable, the subsequent three-month option period, will utilize Fiscal Year (FY) 2027 Operations & Maintenance, Navy (O&M,N) appropriated funds.

4. Statutory Authority Permitting Other Than Full and Open Competition. 10 U.S.C. §

3204(a)(1), only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Authority. Pursuant to 10 U.S.C. § 3204(a)(1), as implemented by RFO 6.103-1(b), the supplies and services are available from only one source, the OEM, for the continued delivery of specialized parts and services and it is likely that award to any other source would significantly delay mission requirements. Additionally, GE is the only qualified source with the unique capabilities to fulfil this requirement, and no other type of supplies or services will satisfy the needs of the agency, with no other authorized providers for this

OEM.

Only GE OEM parts and services can fulfill MSC’s requirement for optimal vessel safety and operational reliability in terms of form, fit, and function and adherence to current standards and publications for these ship classes. GE is the OEM and maintains intellectual property rights on all its automation systems and components. GE is the only source with access to design information to engineer, manufacture, and service this equipment, as it has proprietary drawings, technical manuals, and design information for this equipment. No other company currently has rights to purchase and distribute GE parts or provide service on the subject automation systems. MSC owns limited commercial license rights to this technical data and cannot utilize such data to certify or train another vendor.

The OEM parts and technical data/drawings that satisfy the ship inspection and certification requirements are mandated by the United States Coast Guard (USCG) and American Bureau of Shipping (ABS) regulations. Specifically, the OEM parts and services preserve all OEM warranties, ensure equipment reliability, and ensure crew safety, therefore precluding consideration of non-OEM parts and non-OEM authorized technical services representatives. Additionally, GE automation systems onboard MSC vessels are critical equipment for operations as outlined by the International Safety Management Code (ISM)/Safety Management System (SMS) regulations. No other company is authorized to provide services on, or parts for, GE automation systems because all systems and components covered under this requirement are mission critical ship safety items in accordance with COMSCINST 4490.1C and QMS N0750-100.00-AQ Revision 2.1. Failure of these automation systems would restrict the ship to port, and it would not be able to perform its required mission. Safe vessel operations require proper refurbishment and maintenance of these systems in accordance with USCG, ABS, and MSC requirements.

The engineering, construction drawings, and technical characteristics for the manufactured parts for these automation systems are proprietary to GE, and the Government did not acquire greater than commercial license rights for this data. Notwithstanding USCG and ABS regulatory mandates, as stated earlier, awarding to any other source would result in significant duplication of cost to the Government that is not expected to be recovered through competition. This is because utilization of any GE competitor would require procurement, installation, and training of a different OEM system for all affected automated systems on all affected MSC ship classes. For example, an automation system that allows a vendor outside of GE to service and provide parts for is $70M per ship resulting in a total duplication cost of $4.9B. This estimate was derived from historical pricing data, market research, and technical expertise and advice provided within MSC.

Switching to an alternative automation system to the existing GE system would have significant negative consequences. The time required to identify, develop, and qualify an alternative source would cause extended operational downtime, potentially taking a vessel out of service for three years or longer. This delay, coupled with potential safety and quality concerns associated with a new system, would negatively impact the maintenance and overall readiness of MSC ships and ultimately reduce the operational capabilities of the United States Navy.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable. In accordance with PGI RFO Deviation 206.103-170, a Request For Information /Sources Sought Notice was publicized on the Government Point of Entry (GPE), System for Award Management (SAM.gov), on 21 September and closed on 24 September 2026. The notice detailed the Government’s interim requirement for GE OEM parts and services from 1 October 2026 through 31 March 2027. MSC asked that any capable and interested parties submit a capability statement;

no responses were received from industry. Additionally, MSC’s market research did not identify any additional capable providers for GE OEM parts and services.

7. Determination of Fair and Reasonable Cost. The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition. For the reasons set forth in paragraph 5, MSC has no plans at this time to conduct full and open competition for future contracts for the technical requirements covered by this document and does not anticipate that the technical requirements will be capable of changing to accept non-OEM parts and labor in any upcoming IDIQ procurement. The anticipated follow-on IDIQ requirement was solicited under other than full and open competition as a sole-source requirement to GE and is in the post-solicitation, pre-award phase. MSC will continue market surveillance and discussions with GE to broaden the number of providers available; and if other potential sources emerge, MSC will assess whether competition for future requirements is feasible. MSC will also continue examining its requirements for brand-name, GE parts and labor to ensure such limitations are maximally tailored to mission requirements.

In accordance with NMCARS 5206.104-1(S-92)(b), this is a new justification approval after contract award for new procurement work. As this is an out-of-scope modification to extend the ordering period for supplies and services previously awarded on a non-competitive basis, in accordance with PGI RFO 206.104-71(a) prior J&A was provided to the approval authority for review. Approval of this J&A signifies the approval authority has made the determination required by PGI RFO 206.104-71(b).