JnA 25Q2238_Redacted.pdf

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N3220525Q2238 USNS KAISER Distillation Plates
Solicitation number
N3220525Q2238
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This Justification and Approval (J&A) document details a sole-source purchase order for Aqua Chem Inc. to provide Original Equipment Manufacturer (OEM) distiller/evaporator cooling plate parts for the USNS HENRY J. KAISER (T-AO 187). The Military Sealift Command (MSC) requires two complete OEM Evaporator Plate cooler packs to support repair of the ship's distiller/evaporator units under work item 0510_A Kaiser Distilling plant maintenance, with a total of 10 different part numbers and quantities ranging from 2 to 76 units per part number.

The procurement is a single Firm-Fixed Price (FFP) purchase order with a performance period of up to 12 months, funded by Fiscal Year 25 United States Navy Working Capital Funds. The justification for sole-source award is based on Aqua Chem Inc. being the only company with proprietary technical data, drawings, and manufacturing capabilities that meet United States Coast Guard (USCG), American Bureau of Shipping (ABS), and International Maritime Organization (IMO) regulatory requirements. MSC has determined the cost to be fair and reasonable and will continue to seek potential alternative sources through ongoing Sources Sought Notices, though currently no non-OEM alternatives are deemed acceptable.

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MSC intends to award a single Firm-Fixed Price (FFP) purchase order to commence upon award with a period of performance no longer than 12 months. The total estimated maximum value of award is $ and the anticipated contract will be funded utilizing Fiscal Year (FY) 25 United States Navy Working Capital Funds (NWCF).

4. Statutory Authority Permitting Other Than Full and Open Competition:

10 U.S.C. § 3204(a)(1), only one responsible source or only a limited number of responsible sources and no other supplies or services will satisfy agency requirements

5. Rationale Justifying Use of Cited Authority:

The AQUA CHEM evaporator systems installed onboard the USNS HENRY J. KAISER T- AO 187 is a stand-alone one-off evaporator system that is nearing obsolesce and must be maintained for the vessel to perform their required national defense mission.

MSC QMS N0750-100.00-AQ Revision 2.1 identify these systems as ship critical safety items. According to the QMS, ship critical safety items are defined as any ship part, mission system, equipment, assembly, or support equipment containing a characteristic, the failure, malfunction, or absence of which could cause a catastrophic or critical failure resulting in loss of or serious damage to the ship; or unacceptable risk of personal injury or loss of life. These systems must be repaired/maintained in accordance with regulatory body requirements, MSC Policy, and OEM recommendations.

To comply with regulatory body requirements, MSC policy, and OEM recommendations, MSC must contract with AQUA CHEM INC. because at this time, AQUA CHEM INC. is the only company able to provide 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 manufactured parts to maintain these systems.

All OEM repair parts must comply with USCG, ABS, and International Maritime Organization (IMO) regulatory requirements. At this time, MSC does not have manufacturing and technical information for these systems/items 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

ASSY - SPD 3

032-11121-000 GSKT, COV, FULL,

FOLLOWER PL, SPD35-

EACH 2

853-08991-000 GSKT, DOOR, PLATE

EVAPORATOR

EACH 2

special tools, specialized repair parts and technical expertise unique to these systems. Only approved OEM parts are authorized to be installed for these highly sophisticated systems unless other non- OEM parts/components are recommended by the OEM, who are technical experts for these systems. AQUA CHEM INC. is the OEM parts provider and service technicians who have access to provide parts and technical data/drawings for manufacture, and to properly repair and maintain the equipment, to the exclusion of all others.

In summary, the engineering, technical characteristics, construction drawings, manufacturing procedures, tolerances, and installation procedures for the systems/items manufactured parts are proprietary to AQUA CHEM INC. To date AQUA CHEM INC.

does not share proprietary data or authorize outside vendors/manufactures, making them the only known sources to provide the required supplies. It is proper to award to only AQUA CHEM INC., 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.

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

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-forItems-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 with the intent of awarding a firm-fixed-price purchase order to the lowest price technically acceptable quoter.

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 Remove 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 or services covered by this document. MSC will continue to issue SSN�s for future similar requirements to ensure an active and competitive source selection remains ongoing. If another potential source emerges, MSC will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

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