JA OEM _WARTSILA_Redacted.pdf

CUI

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

Southwest Regional Maintenance Center (SWRMC), San Diego, California, Contracts Department (Code 400).

2. Description of the Action Being Approved

Award an Indefinite Delivery, Indefinite Quantity (IDIQ) contract on a sole source basis to Wartsila Defense Inc, 3617 Koppens Way, Chesapeake, VA, 23323 as the Original Equipment Manufacturer (OEM) for the global engineering and technical assistance, emergent repairs, parts and training related to the support of the Littoral Combat Ship (LCS) INDEPENDENCE (LCS-2) Variant class of Ship’s Water Jets, Shafts, and Seals.

3. Description of Supplies/Services

SEA 21/Commander, Navy Regional Maintenance Center (CNRMC) is tasked with ensuring that individual ship systems are maintained at the highest operational readiness and to sustain the ships at peak capability through their service life. One of the critical systems onboard the US Navy’s LCS-2 Variant is the Wartsila Defense Inc. – Water Jets, Shafts, and Seals.

This mission essential equipment is crucial to meet fleet schedules and operational readiness objectives for deployment and performance of the LCS mission. The proposed contract action will acquire engineering/technical assistance, emergent repairs, parts, and training related to Wartsila Water Jets, Shafts, and Seals on LCS Independence class ships by the Original Equipment Manufacturer (OEM), Wartsila Defense.

The ordering period shall consist of one (1) three month period plus four (4) 12-month option periods.

DEPARTMENT OF THE NAVY

SOUTHWEST REGIONAL MAINTENANCE CENTER

3755 BRINSER ST STE 1

SAN DIEGO, CA 92136-5299

J&A Number: N55236220014 Code: SWRMC 410B P.R. Number: N5523622R0001

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

The estimated value of this procurement is

The procurement will be funded using Operations and Maintenance, Navy (O&MN) and/or Other Procurement, Navy (OPN), if available.

Estimated Dollar Value

Type Funds

Total

O&MN

and/or

OPN

4. Statutory Authority Permitting Other Than Full and Open

Competition

10 U.S.C. 3204(a)(1) (formerly 10 U.S.C. 2304(c)(1)), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

10 U.S.C. 3204(a)(1) (formerly 10 U.S.C. 2304(c)(1)), as implemented in FAR 6.302-1, provides that full and open competition is not required when only one source or a limited number of responsible sources is available to satisfy agency requirements.

Although the Navy’s LCS maintenance strategy is currently undergoing a transformation, this contract will enable the maintenance community to quickly conduct emergent repairs, remote support, necessary parts, and provide training to better familiarize crew and technicians on the Wartsila Water Jets, Shafts, and Seals systems. The future full transition of the LCS maintenance requirements to Navy Government personnel requires substantial long-term investment from the Navy to provide personnel, tooling, spare parts and software necessary to perform the duties and technical services that are currently provided by this OEM.

Wartsila Defense Inc. is the OEM, and thus maintains the in-depth technical knowledge and detailed design and operation information, which includes drawings, procedures, specifications, and replacement parts required for repair, refurbishment, maintenance, and training on the Water Jets, Shafts, and Seals.

Water Jets, Shafts, and Seals are mission critical systems that are essential to the propulsion system of the LCS-2 class ships. Without these systems operating properly, these ships will not be available for deployment. While the Navy possesses limited technical data necessary to contract with another source to perform basic repairs and maintenance, only Wartsila Defense possesses the specialized expertise and complete technical data necessary to provide the full scope of repairs and training on the Water Jets, Shafts, and Seals. Obtaining support directly from the OEM with access to its replacement components and parts on the Water Jets, Shafts, and Seals is required for repair, refurbishment, and maintenance of the Water Jets, Shafts, and Seals to allow for the continuation of the highest possible reliability and effectiveness.

There are currently Indefinite Delivery, Indefinite

Quantity Multiple Award Contracts (IDIQ-MACs) for LCS maintenance and modernization that provide life-cycle support using the private shipyard as the prime contractor and the OEM as a subcontractor. Although these vehicles are in place, there continues to be a need for a direct contract vehicle to the OEM for specific engineering/technical assistance, and equipment and components that would provide greater accountability, flexibility and rapid responsiveness to time sensitive emergent maintenance (EM) repairs required outside of a planned repair availability, in order to meet operational readiness.

required

OEM assistance vice internal technical assistance from an ISEA or other government personnel. The support, training, and material provided through this effort will be performed only when OEM assistance is required. The support provided by the OEM is vital to ensuring timely and expert technical response to critical equipment failures and providing necessary training required to support future maintenance/repair strategies.

Establishing support contracts directly with the OEM is expected to reduce EM repair response (remote or on-site) from by eliminating the private shipyard as the intermediary and setting EM response requirements not currently stated in the life-cycle support contracts. This contract structure will incorporate negotiated labor and material prices, resulting in faster estimates and analyses to support execution and increasing fidelity of costs. This will significantly reduce processing time between CASREP notification and OEM support. Current “As Is” contracting processes do not support the Navy’s deployment mission requirements. The timeline provided represents historical data from numerous LCS deployments from 2013 through 2021. These contracting methods to obtain the required OEM support average from CASREP notification to technician on the deck plate.

The ship platforms on which Wartsila Defense, Inc. Water Jets, Shafts, and Seals are currently installed are either currently deployed or will be part of upcoming surge deployments. Fleet deployments include the LCS-2 class ships to perform a vital role as a fast, agile, mission-focused platform designed for operation in near-shore environments, yet capable of open-ocean operation.

As designed, its missions include the ability to defeat asymmetric threats such as mines, quiet diesel submarines and fast surface craft. When the LCS platform is unavailable due to failed Water Jets, Shafts, and Seals, any independent, local operations or deployed missions must be re-assigned to other platforms resulting in multi-tasking of those platforms which may not have the requisite capabilities to adequately perform LCS missions, thereby degrading the Fleet capabilities. A contract with Warstilla Defense will reduce response time for emergent repairs and will enable LCS-2 class ships to deploy faster.

For the reasons discussed above, only Wartsila Defense, Inc. can provide the necessary support.

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

The proposed contract was synopsized on the SAM website on 03 Dec 2021 and no other companies expressed an interest in this requirement. No additional market research was conducted because it is not practicable, for the reason discussed in paragraph 5 above, for any other company other than Wartsila Defense to provide the required supplies and services.

A waiver of the sources sought notice requirement set forth under DFARs PGI 206.302-1 was approved on 14 September 2021. A request for information (RFI) was sent to the OEM prior to the sources sought notice waiver being approved.

7. Determination of Fair and Reasonable Costs

The Contracting Officer will ensure the anticipated cost to the Government for the supplies/services covered by this J&A will be fair and reasonable. The Contracting Officer's determination of fair and reasonable price will be based on price and cost analyses in accordance with FAR 15.404-1 Proposal Analysis techniques.

8. Actions to Remove Barriers to Competition

The Water Jets, Shafts, and Seals are mission critical systems that require support directly from the OEM. For the reasons set forth in Paragraph 5, the Southwest Regional Maintenance Center has no plans at this time to compete future contracts for the types of supplies/services covered by this document.

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CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(c))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, including Acquisition Plan No. SWRMC- 22-0003, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, including Acquisition Plan No. SWRMC- 22-0003, except as noted herein, are complete and accurate to the best of my knowledge and belief.

REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

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CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(b)(12))

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

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Designee of the Head of the Contracting Activity, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 3204(a)(1).

Director, Fleet Support Contracts Division

Scott S. Anderson, NAVSEA 024 Date

Digitally signed by

ANDERSON.SCOTT.S.

Date: 2022.09.20 14:19:29 -04'00'