Justification_and_Approval_for_MDG_Overhaul.pdf

J&A No. 19-J&A-005

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN

COMPETITION

1. Agency and Contracting Activity.

Requiring Activity:

USS LEWIS B. PULLER (ESB-3)

Military Sealift Command Ship Support Unit, Bahrain PSC 851 Box 350

FPO AE 09834-0350

Contracting Activity:

NAVSUP Fleet Logistics Center (FLC) Bahrain DET Dubai Umm Hurair, Bur Dubai P.O. Box 1217777

2. Description of the Action Being Approved.

Award of a firm fixed price contract on a sole-source basis a 12,000HRS overhaul of the ship's Main Diesel Generator (MDG) engines and MDG turbocharger overhaul in support of USS LEWIS B. PULLER under FAR 6.302-1 (Only one responsible source and no other supplies or services will satisfy agency requirements).

3. Description of Supplies/Services.

USS Lewis B. Puller requires the Original Equipment Manufacturer (OEM), MAN DIESEL, to perform a 12,000HRS overhaul of the MDGs no. IS & 2P, and IP MDG turbocharger overhaul. Military Sealift Command Safety Management Procedures 10.6.002-All, 7.2.001-All, and 7.4.007-All dictate maintenance standards required to properly maintain and repair Critical Ships Equipment.

Proper and schedule maintenance of these engines is of utmost importance. Failure of these engines can put the ship into a C-4 status, thus becoming unable to perform its primary mission of providing service to the CTF-51 amphibious assault ships. The reduction of speed can also pose a hazard to the crew, due to limited ships maneuverability. Proper refurbishment and maintenance of the diesel engines are critical to the safe operation of ESB vessels.

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

10 U.S.C.2304(c)(l).

5. Rationale Justifying Use of Cited Statutory Authority.

MAN Diesel and Turbo Middle East, UAE is the only responsible source, and no other type of supply or service will satisfy the agency requirement.

As describe in paragraph 6, this source is the only one that responded to a Sources Sought Notice for the work. All other vendors affirmatively stated that they could not perform the required work

Additionally, this source is the only one that can meet the agency's requirement that Original Equipment Manufacturer (OEM) parts and equipment are used to fulfill this contract.

MAN Diesel is the Original Equipment Manufacturer (OEM) Representative, which is designated as the maintenance and repair authority for the MAN 6L 48/60 diesel engines. The Shipboard Automated Maintenance Management (SAMM) system requires the services of an authorized and certified MAN Diesel OEM representative and repair facility in order to perform the inspections required. The Main Diesel Generators Engines on the ESB Class are designated as Critical Ship Equipment the failure of which poses a hazard to equipment, personnel, and loss of mission. The use of other than Original Equipment Manufacturer (OEM) certified field service technicians could preclude the American Bureau of Shipping (ABS) regulatory compliance required to retain Class Certification, to attain United States Coast Guard Certificate of Inspection, pose a major risk of damage to the machinery and place the engine operators at risk of injury or death. Also, he engines are inspected annually by the American Bureau of Shipping (ABS) to verify OEM parts with valid International Maritime Organization (IMO) certification numbers have been used to replace failed parts, when needed, and that no existing parts have been modified from the original design drawing. Finally, OEM parts from the original manufacturer are required to maintain all warranties and ensure engine reliability. The engineering construction drawings for the diesel engine are proprietary to MAN Diesel.

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

On 19 June 2019, a "Sources Sought Notice" was posted on EURONECO to identify qualified and experienced sources that can satisfy the requirements of the Government. The posting was made available through 24 June 2019. At the time the notice closed, only one offeror submitted the required information in response to this sources sought.

NICO International responded via email on 20 June 2019 through Krishna Diwakar (Estimator) that NICO International will not be submitting a quote for this requirement since it is not MAN authorized workshop to perform repair works on MAN Engines.

Abu Dhabi Ship Building (ADSB) responded via email on 20 June 2019 through Rajesh Kumar (Sales Specialist) that ADSB will not be submitting a quote for this requirement since it is not MAN authorized workshop to perform repair works on MAN Engines.

Nordmarin LLC also responded via email on 20 June 2019 through Ali Ashraf (General Manager Operations) that Nordmarin will not be submitting a quote for this requirement since it is not MAN authorized workshop to perform repair works on MAN Engines.

MAN Diesel and Turbo Middle East, UAE responded via email on 20 June 2019 through Mr.

Rupesh Naik (Sales Manager) that there aren't any other OEM representatives in the Middle East.

As the OEM of these engines, they have the necessary facility and resources to fully undertake the work scope. They provided supporting information by providing previous contract references.

-N4033919CD001 was issued to MAN Diesel & Turbo Middle East on 24 Oct 2018 to accomplish 36,000HR overhaul on MDGs 3 and 4 for USNS ALAN SHEPARD

-N4033919CD003 was issued to MAN Diesel on 10 January 2019 to accomplish 36000HR overhaul on MDGs 3 and 4 and to replace the engine resilient mounts for MDG Nos, 1,3 and 4 for the USNS RICHARD BYRD.

-N4033919CD005 was issued to MAN Diesel on 14 February 2019 to accomplish 36000HR overhaul on MDG 1 and to replace the engine resilient mounts for MDGs 3 and 4 for the USNS RICHARD BYRD.

A search on MAN Diesel's website, https://middle-east.man-es.com/about-us, revealed the following information:

MAN Diesel & Turbo Middle East is appointed as Authorized Repair Agent for MET Turbochargers, performing service, maintenance, repair, and supplying original spare parts dispatched by MHI. MAN Diesel & Turbo Middle East LLC is a 100% subsidiary of MAN Diesel & Turbo SE based in Augsburg, Germany. MAN Diesel & Turbo Middle East LLC was established in 2008 to serve its customers in the Middle East Region. MAN Diesel & Turbo Middle East deals with the sales and servicing of marine/power station engines and spare parts. It offers the full spectrum of service packages from tailor-made operations and maintenance contracts to stand-by support.

Final list of potential suppliers: MAN Diesel and Turbo Middle East, UAE

Due to MAN Diesel and Turbo ME's territorial agreements, other authorized MAN Diesel and Turbo entities in the Gulf Cooperation Council (GCC) region are not able to perform work in the

UAE.

Furthermore, third party vendors will not able to provide the required services since the authorized MAN Diesel representative in the UAE prefers to utilize its own resources to perform this type of work. Another issue brought up by these third party contractors is the ordering and delivery of required parts within the allotted voyage repair period. Since they don't have a direct relationship with MAN DIESEL in Augsburg, Germany the third party contractors are unable to guarantee availability of OEM parts during the voyage repair timeframe.

Based on the market research discussed above, only one responsible offeror is capable of performing overhaul of MAN diesel engines onboard the USS LEWIS B. PULLER at Jebel Ali Port, Dubai, UAE.

A member of Military Sealift Command (MSC) and NAVSUP FLC Bahrain DET Dubai conducts market research on a continual basis. Based on information gathered from the sources sought issued, from the OEM representative and third party contractors, MSC and NAVSUP FLC Bahrain DET Dubai have determined that only MAN Diesel& Turbo Middle East is the only authorized OEM representative in the region.

7. Determination of Fair and Reasonable Cost.

The contracting officer will determine the price for the repairs covered by this J&A to be fair and reasonable in accordance with FAR 15.404(1)(b).

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAVSUP has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, NAVSUP will assess whether competition for future requirements is feasible.

Meanwhile, MSC and the Contracting Office will communicate with the OEM and third party contractors on a regular basis in an attempt to have more than one certified MAN Diesel contractor certified in the UAE.

9. Contracting Point Of Contact

The contracting point of contact is Ms. Shiela Cruz-Castro, who may be contacted via telephone on +97150 6005633 or via e-mail at Mashiel.Cruz.PH@me.nayy.mil.