JA Redacted.pdf

J&A No. N10425Q2295

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of the Action Being Approved: Award of a purchase order on a sole source basis to the sole provider, Lake Shore Systems (Doing business as: Trident Maritime Systems Heavy Equipment Group), of the 5-Ton Cranes installed on the AS Class Ships. Oldenburg Group Inc.

is the Original Equipment Manufacturer (OEM) and Lake Shore Systems now owns their proprietary data and is the sole authorized provider of the required materials for 5-Ton Crane for the upcoming service for the USS EMORY S LAND (AS-39), using other than full and open competition.

3. Description of Supply Services: Procure the materials to repair the 5-Ton Crane for the USS EMORY S LAND (AS-39), to ensure the items are available for the upcoming repair period. The estimated dollar value is which will be funded utilizing fiscal year 2025 Navy working capital funds.

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

3204(a)(1) and FAR 6.302-1, there is only one responsible source, and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Authority: The AS Class 5-Ton Cranes are nearing end of their service life and have scheduled an upcoming maintenance period that requires replacement of all the parts for each crane. The 5-Ton Crane are designated as critical equipment that is used to provide crane services to the entire ship during missions. All 5-Ton Cranes installed onboard the AS Class vessels are required to be maintained to perform its required national defense mission. Safety Management System Number (SMS) 10.6-002-labeled these systems/items as L4 critical equipment; on a scale from L1 to L4 with L4 being the most critical. L4 critical equipment and systems are required be repaired/maintained in accordance number 10.4-001- -001-ALL technical data/drawings for these systems/parts as required by United States Coast Guard (USCG) and American Bureau of Shipping (ABS) regulations and is the only company that have the capability to provide services and manufacture parts to maintain these systems. For these systems, Lake Shore Systems does not share proprietary data or authorize outside vendors to service or manufacture these systems, making them the only known source to provide supplies and services. In sum, the engineering, technical characteristics, construction drawings, manufacturing procedures, tolerances, and installation procedures for these systems/items are proprietary to Lake Shore Systems.

Failure of these systems or associated parts would create a C-4 CASREP situation for the USS EMORY S LAND (AS-39). Lake Shore Systems will not sell their data rights to the Government and maintains that these systems were procured/manufactured via commercial standards. Requirements for services and parts for these systems will be sole sourced to Lake Shore Systems at the order level.

Lake Shore Systems is currently the only authorized source by MSC to procure parts for the AS Class 5-Ton Crane.

J&A No. N10425Q2295

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable: No sources sought was posted for this requirement as there is sufficient historical data showing that there are no other capable vendors of providing 5-Ton Crane OEM material. MSC perpetually seeks submissions from non-OEM contractors for consideration of qualification of their parts and/or services as an acceptable alternative to the OEM at https://www.msc.usff.navy.mil/Business- Opportunities/Contracts/Qualification-for-Items-Critical-to-Shipboard-Safety-on-MSC-Vessels/. The Government intends to post a sole source combined synopsis and solicitation notice along with this justification at the Government Point of Entry to award a firm-fixed-price purchase order.

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

8. Actions to Removed Barriers to Future Competition: For reasons set forth in paragraph 5, MSC has no plans at this time to allow for non-OEM suppliers in future contracts or purchase orders for the types of supplies covered by this document. If another potential source emerges, MSC will assess whether competition for future requirements is feasible.