Justification for an Exception to Fair Opportunity-0156-POSTING.pdf

J&A Control Number: N32205-18-D-4901-0156

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-1487 for parts to Fairbanks Morse Engine (FME) for the USNS Cesar Chavez 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) and due to a license agreement that was established by MAN Energy Solutions (MAN) and FME, the OEM for the subject matter of this 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 stating that FME is MAN’s exclusive US provider of services and parts for engines which are located in US territory and which were built by FME. Therefore, the US Navy is directed to contact FME for any support needed when US Navy ships with FME manufactured engines are in the US territory. US territory is defined as the United States (present 50 U.S. States plus Washington, D.C.) and all offshore United States territories and possessions, which include American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the United States Virgin Islands, Midway Islands, Wake Islands, Canton Islands, Enderbury Islands, Howland Islands, Baker Islands, Jarvis Islands, Johnson Island, Sand Island, Palmyra Island, and Kingman Reef..

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

MSC is procuring various Diesel Engine parts that are manufactured by FME for the Main Diesel Engine Med. Speed 4 Stroke Type 8L, Main Starting Valve, Shut Off Butterfly Valve, and Press Reducing Valve.

The performance location will take place in Beloit, Wisconsin and FME is the sole source provider for 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.

J&A Control Number: N32205-18-D-4901-0156

As stated before, fair opportunity will not be given due to the above-described OEM requirement, and a partnership established by FME and MAN stating that FME is 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 FME for any support needed when US Navy ships with FME manufactured engines are in the US territory. MAN and FME was able confirm this partnership in a letter that was sent to Naval Sea Systems Command dated 04 December 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.

Prices for many of the parts that will be proposed by FME for this task order were already established in the base contract. Any 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.