K CLASS YORK Refrigeration Class JA FY 24 NOOL SIG 11.23.21.pdf

Control Number N104-T-AKE CARGO REFRIGERATION

CLASS JUSTIFICATION AND APPROVAL FOR USE OF

OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity. Department of the Navy, Military Sealift Command (MSC).

2. Description of Action Being Approved. This is a brand name class justification and approval (J&A) for the procurement of replacement parts and repair services for the York Refrigeration of Hoejbjerg Denmark (York) Cargo Refrigeration System onboard MSC ships.

The authority to act under this class J&A expires 30 September 2024.

3. Description of Supplies/Services. MSC requires York Original Equipment Manufacturer (OEM) parts and repair services for the operation of the Cargo Refrigeration System, Chiller and Condensers. The only known authorized OEM distributors are Trident Marine Systems IMECO Division, Inc. (IMECO), and Johnson Controls Inc. (JCI). The actions to be executed under this class J&A have an estimated value of approximately $6,500,000.00, using fiscal year (FY) 2022, 2023 and 2024 United States Navy Working Capital Funds (NWCF).

4. Statutory Authority Permitting Other Than Full and Open Competition. The statutory authority for commercial procurements greater than $250,000.00 is 41 U.S.C. 1901(e)(2) as implemented by FAR Part 13.501(a), Simplified Procedures for Certain Commercial Items, Sole Source--including Brand Name. Section 815 of the National Defense Authorization Act of Fiscal Year 2015 makes this authority permanent. The statutory authority for simplified acquisitions less than $250,000.00 and for FAR Part 15 procurements is FAR Part 13.106-1 and 10 USC.

2304(c)(1), respectively, as implemented by FAR Part 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority. The cargo refrigeration system OEM is JCI (formerly York) for the T-AKE class dry cargo/ammunition ships and other MSC vessels. Both JCI and IMECO are York’s United States service representatives and parts distributors. Each has access to OEM proprietary information and drawings. This access includes proprietary rights to the software and programming codes essential for repair and programming of the alarm sensor set points of the T-AKE cargo refrigeration system. Only OEM and authorized OEM distributors can supply repair parts and services for the cargo refrigeration system. JCI and IMECO are the only known distributors for the cargo refrigeration system parts and services. Any deviations from OEM repair parts or services could result in personal injury or equipment failure and damage. Cargo refrigeration is critical to the Combat Logistics Force (CLF) inventory management and control of 9M Food products and 1Q Ship Store materials.

Without a fully operational cargo refrigeration system, MSC ships are unable to achieve MSC Strategic Priority 1, to ensure “ships ready for tasking.”

MSC did not acquire proprietary information and technical data rights beyond general arrangement drawings, and thus does not have the required manufacturing and technical information to evaluate and determine whether non-OEM components and replacement parts are equivalent to the OEM components and replacement parts.

6. Description of Efforts Made To Solicit Offers from as Many Potential Sources as Practicable. In accordance with Procedures, Guidance, and Information 206.302-1, the Government issued a Sources Sought on the Federal Business Opportunities (Sam.gov) website on 03 November 2021 for fourteen days, seeking eligible business that could provide OEM York parts and services. There was one response to the Sources Sought from IMECO. However, MSC has previously procured OEM parts and services from IMECO and JCI. IMECO and JCI are large businesses under the Sources Sought NAICS Code of 333415 and neither has an Active Exclusion on SAM.GOV as of 16 November 2021. The Government intends to synopsize when required and to post Requests for Quotation (RFQs) and Requests for Proposal (RFPs) on SAM.GOV for each separate procurement, with the intent of awarding a firm-fixed-price contract.

7. Market Research. Only OEM and authorized OEM distributors can supply repair parts and services for the cargo refrigeration system. JCI and IMECO are the only known distributors for the cargo refrigeration system parts and services.

8. Determination of Fair and Reasonable Cost. The Contracting Officer will determine that the price for the supplies/services is fair and reasonable pursuant to FAR Part 13.106-3 or 15.404-1, as appropriate.

9. Actions To Remove Barriers to Future Competition. For the reasons set forth in Paragraph 5, OEM parts and services are required for the T-AKE class cargo refrigeration system. MSC has no plans at this time to compete future contracts for the types of supplies covered by this document. If another potential source emerges, MSC will assess whether competition for future requirements is feasible. Should MSC determine that OEM parts and services are no longer required, this class J&A will become null and void.

http://www.sam.gov/

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS COGNIZANCE

I certify that the facts and representations under my cognizance which are included in this class J&A and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this class J&A is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this class J&A is accurate and complete to the best of my knowledge and belief.

COMPETITION ADVOCATE APPROVAL

Upon the basis of the above justification, I hereby approve as Competition Advocate, the solicitation of the proposed procurement(s) described herein using other than full and open competition.