Justification for an Exception to Fair Opportunity-0155-POSTING.pdf

J&A Control Number: N32205-18-D-4902-0155

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

1. Identification of the agency and the contracting activity.

Department of the Navy, Military Sealift Command (MSC), Services Division (N102).

2. Nature and/or description of the action being approved.

This action provides the basis and rationale for awarding Task Order N32205-20-F-1488 for parts to Man Diesel & Turbo Middle East LLC also known as MAN Energy Solutions (MAN) for the USNS Mercy due to the fact that they are the only awardee that is capable of providing the required supplies and services at the level required due to MSC's requirement for Original Equipment Manufacturer (OEM), or OEM-equivalent, parts and services for critical ship safety systems, including main engines and associated equipment (COMSCINST 4490.1 series). In addition, MAN and Fairbanks Morse Engine (FME) have established a license agreement and MAN, the OEM is the sole source for this particular parts acquisition.

MSC recognizes its obligation to provide each awardee a fair opportunity under the current Diesel Engine Multiple Award Indefinite Delivery, Indefinite contracts N32205-18-D-4901 and N32205-18-D-4902.

Contractors are to be considered for each order exceeding $3,500.00 issued under multiple delivery-order contracts or multiple task-order contracts in accordance with Federal Acquisition Regulations (FAR) 16.505(b)(1)(i). However, for this requirement, fair opportunity will not be provided due to a partnership established by FME and MAN. The parts that are being procured are for a MAN 12ASV25/30 Engine, Serial Number 1-045-138. This engine was not manufactured by FME, therefore FME cannot provide a quote because this type of engine is not part their scope of supply. Therefore, the US Navy is left with no choice to contact MAN for any support needed when US Navy ships are equipped with MAN manufactured engines.

3. Description of the supplies and services required to meet the agency’s needs.

MSC is procuring is procuring various parts for that are structured for the MAN 12ASV25/30 Engine.

The performance location will take place in Augsburg, Germany and MAN is the sole source provider for the parts that are required.

The estimated total amount for this requirement is $. It is anticipated that each CLIN will be funded utilizing corresponding Fiscal Year Navy Working Capital Funds (NWCF) and/or Transportation Working Capital Funds (TWCF).

4. Identification of the exception to fair opportunity.

As stated before, fair opportunity will not be given due to the above-described OEM requirement, and due to a partnership established by FME and MAN stating that FME is only MAN’s exclusive US provider of services and parts for engines which are located in the US territory and which were built by FME.

Therefore, the US Navy is directed to contact MAN for any support needed when US Navy ships are equipped with a MAN engine that is manufactured and only provided by MAN. MAN and FME was able confirm this partnership in a letter that was sent to Naval Sea Systems Command dated 04 December

J&A Control Number: N32205-18-D-4902-0155

2019. Because of this partnership, FME is the only awardee capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

5. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

Many of the parts that will be proposed by FME for this task order were already established and pre-priced in the base contract. Any other parts, and other expenses that were not established in the base contract will be determined fair and reasonable utilizing techniques described in FAR 15.404-1.

6. Evidence that any supporting data that is the responsibility of technical or requirements personnel (e.g., verifying the Government’s minimum needs or requirements or other rationale for an exception to fair opportunity) and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

Partnership agreement letter between MAN and FME was provided as evidence that supports exception to fair opportunity rationale.