JA_N3220525R2149 ERCS_Redacted_.pdf

J&A No. MSC- N3220525R2149

DEPARTMENT OF THE NAVY

MILITARY SEALIFT COMMAND

471 EAST C STREET

NORFOLK VA 23511-2419

JUSTIFICATION AND APPROVAL FOR USE

OF OTHER THAN FULL AND OPEN

COMPETITION

ENGINE ROOM CONTROL SYSTEMS MAINTENANCE AND REPAIR

ERCS R&M (collectively �ERCS� contract)

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

2. Description of the Action Being Approved. MSC anticipates awarding after re-competition, other than full and open competition, to L3 Harris Maritime Services, Incorporated (Inc.) (L3H), L3 Technologies, Inc. (L3T) and Sea Wrench, LLC. (SW) for long-standing, reoccurring requirements of repair and maintenance of the Machinery Plant Control and Monitoring System (MPCMS) and any other related power generation and distribution, automation, and control systems onboard MSC T-AO 187 Class (Fleet Replenishment Oiler) and the T-AOE USNS Supply ((T-AOE 6) PM6 Combat Support), and parts and services to maintain and support shipboard equipment onboard MSC T-AO 187 Class vessels.

3. Description of the Supplies/Services. MSC requires a broad range of services and parts to include Original Equipment Manufacturer (OEM) repair and maintenance of the MPCMS and related subsystems, and all other automation and machinery controls systems not related to the MPCMS onboard the T-AO 187 Class Vessels and the T-AOE USNS Supply. 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. L3H equipment and software is currently installed on a multitude of MSC vessels, which include the T-AO Class and T-AOE USNS Supply. Throughout the contract performance period, L3H equipment may be installed onto new ships within the MSC fleet while other ships will be retired from service. Service and support under this Performance Work Statement (PWS) may be expanded to additional ships if needed.

MSC intends to award an Indefinite-Delivery, Indefinite-Quantity (IDIQ) Multiple Award Contract (MAC) with firm-fixed-price line items and will include a five-year ordering period commencing upon the establishment of the IDIQ MAC in fiscal year (FY) 2026.

The total maximum value of this follow-on requirement is as outlined below. It is also anticipated that the contract will include an optional 6-month extension in accordance with Federal Acquisition Regulation (FAR) 52.217-8. Each issued order will utilize corresponding Fiscal Year (FY) United States Navy Working Capital Funds (NWCF) rights for the MPCMS onboard the T-AOE USNS Supply and T-AO 187 Class Vessels. At this time, the subdivisions L3H and L3T are the only companies that have access to the necessary proprietary technical data/drawings for these systems/parts as required by United States Coast Guard (USCG) and American Bureau of Shipping (ABS) regulations and are the only companies that have the capability to provide services and parts for the MPCMS and all other L3 systems to maintain these systems.

In sum, the engineering, technical characteristics, construction drawings, manufacturing procedures, tolerances, and installation procedures for these systems/items are proprietary to L3 Harris Technologies. L3 Harris Technologies does not share its proprietary data or authorize outside vendors to service or manufacture these systems, making L3H and L3T the only known sources to provide these necessary supplies and services. L3 Harris Technologies will not sell its data rights to the Government and maintains that it procured/manufactured these systems according to commercial standards, not non-commercial Government/Military standards. Therefore, MSC must obtain services and parts for these systems from L3H or L3T and these requirements will be competed amongst both companies at the task order level.

Likewise, SW is the only vendor to receive a Non-OEM certification from MSC for the Maintenance and Repair services onboard the T-AO 187 Class vessels for all other machinery and automation control systems that are not related to the MPCMS. All three companies can obtain or have access to the engineering data, technical characteristics, construction drawings, manufacturing procedures, tolerances, and installation procedures for these systems. Since L3H, L3T, and SW are the only companies at this time that can provide these parts and services for these systems, MSC will compete the requirements for the Maintenance and Repair services and parts for these systems amongst all three companies at the task order level.

Since the engineering, construction drawings, and technical characteristics for the manufactured parts and services for these systems are proprietary to L3 Harris Technologies, and SW is the only MSC certified non-OEM with the experience and expertise to maintain and service this equipment, and the Government does not own the rights to the data nor can other companies access the proprietary data, it is proper to solicit to only L3H, L3T and SW, in accordance with FAR § 6.302-1(a)(2)(iii)(A) because awarding to any other source would result in a substantial duplication of cost to the Government, which would not be recovered through competition.

The only alternative to not using OEM/Non-OEM certified vendors, would be to reverse engineer the software systems and completely replace the systems. This alternative is not practical as it would incur a substantial duplication of cost to the Government as well as provide extreme delays in performance which would not be recovered through competition. The cost for the Government to procure these systems to replace the current systems across the fleet from a different vendor and to service and provide parts for these systems is estimated about per ship for a total of

. Additional cost would include researching to locate another OEM vendor that can provide similar services, parts, and systems that are equal or exceed the capabilities of the existing installed systems and the existing quality of services that MSC is currently receiving. Design costs, and engineering costs are other important factors to take into consideration depending on the needs of MSC at that time. This estimate of replacing all the systems across the fleet relied on historical pricing data, technical advice within MSC provided by industry, and market research to obtain pricing and other information for the same or similar items that are within the same industry.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable. A Sources Sought Notice (SSN) was posted on System for Award Management (SAM.gov) on 29 April 2024 and closed on 29 May 2024 to determine if there were other small and large businesses who had the capability of performing the requirements outlined within the sources sought. A draft scope and parts list was also posted with the SSN in order to receive feedback from interested vendors.

Three (3) capability statements were received in response to the SSN from interested vendors L3H (large business), L3T (large business) and SW (small, disadvantaged business and women owned small business). Both L3H and L3T were deemed capable of performing all the required services and providing the required supplies. SW was deemed capable of performing services and providing parts for all other automation and machinery control systems onboard the MSC T-AO 187 Class that are not related to the MPCMS.

The proposed contract was synopsized on SAM.gov on 04 February 2025 and closed on 11 February 2025. No additional vendors contacted the contracting team as a result of the synopsis posting. At this time, the companies that responded to the SSN (stated above) remain the only vendors capable of competing on the proposed contract.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For reasons set forth in Paragraph 5 of this document, MSC will work to qualify and onramp other non-OEM service provides for this contract. Per the �Competition in Contracting Act (CICA, 41 U.S.

Code, Section 453,� requirement to consistently increase competition, MSC reserves the rights of having one or more �on ramp� solicitations during the five-year ordering period to seek and add MSC screened, capable contractors to this IDIQ. MSC may additionally solicit and approve non-OEM equivalent contractors, which to qualify and provide to MSC parts and services to maintain and support shipboard equipment and the following specific maintenance services:

routine/periodic/annual service; equipment grooms; corrective maintenance; shop maintenance; shop work; (Shipboard Maintenance Assessment Readiness Testing) SMART Inspections; Service Equipment Casualties; new/overhauled parts supply; training; upgrade and sustainment and; other related tasks.

Specifically, MSC will continue market surveillance to see if there are any opportunities to broaden the number of available providers and if other potential sources emerge, MSC will assess whether competition for future requirements is feasible.

As this is a re-compete for services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), �Approval of Justification,� the 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 DFARS PGI 206.304(a)(S-70)(ii).

TECHNICAL/REQUIREMENTS CERTIFICATION

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

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Signature Name (Printed) Phone No. Date

CONTRACTING OFFICER CERTIFICATION

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

Signature Name (Printed) Phone No. Date