Justification and Approval - MTU ENGINE OVERHAULS redacted.pdf

Justification and Approval for Other Than Full and Open Competition

This document is a Justification and Approval (J&A) for sole-source procurement under 10 U.S.C. § 3204. The Department of Homeland Security, United States Coast Guard (USCG), Surface Forces Logistics Center intends to procure four Fast Response Cutter (FRC) MTU diesel engine overhauls from Rolls-Royce Solutions America (RRSA), the Original Equipment Manufacturer, on a sole-source basis. The total estimated contract value is $8,000,000.00 for a Firm Fixed-Price Contract funded through Operations and Support funds. The solicitation number is 70Z08026Q13002B00, and this is identified as a new requirement with no historical background.

The requirement involves providing complete major overhauls for four FRC MTU diesel engines to restore them to original performance specifications and ensure continued reliability. RRSA is determined to be the only entity capable of performing compliant overhauls because it exclusively holds the proprietary engineering data, technical specifications, specialized tooling, and overhaul processes required to restore engines to OEM standards and certify performance through full-power dynamometer testing with comprehensive factory-backed warranty. Market research conducted from February through June 2026 identified no other commercial marine diesel service providers capable of meeting the 100% rated power dynamometer testing requirement while providing OEM warranty. A Sources Sought notice posted to SAM.gov in May and July 2026 yielded responses only from RRSA and an OEM distributor that checked the on-site testing requirement but did not respond, confirming the lack of competitive alternatives. The government will continue engaging with the OEM to obtain necessary technical data packages, with potential future standard maintenance acquisitions through OEM distributor networks if they do not require specialized overhaul processes.