MTU Sole Source Justification_Redacted.pdf

J&A No. N10425Q7042

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

Contracting Activity: Department of the Navy, Military Sealift Command (MSC) Norfolk

Description of the Action Being Approved: Award of a purchase order on a sole source basis to MTU America, the Original Equipment Manufacturer (OEM), for Main Propulsion Diesel Engines (MPDE), model 20V8000M71L.

Description of Supply Services: To provide the transportation cases required to ensure appropriate long-term storage, for 80 EA MPDE cylinder units. The estimated value for all material is $XXX.xx, which will be funded utilizing fiscal year 2025 Navy Working Capital Funds. These funds do not expire.

Statutory Authority Permitting Other Than Full and Open Competition: 10 U.S.C 3204(a)(1) Only one responsible source and no other supplies or services will satisfy agency requirements.

Rationale Justifying Use of Cited Authority: The Expeditionary Fast Transport (EPF) Class ship is built with four each MTU Model 20V8000M71L main propulsion diesel engines. All control systems, propulsion shafting, reduction gears, hardware and structural support for the system is built specifically for the MTU 20V8000M71L main propulsion diesel engines. If any other main propulsion diesel parts were procured, it would result in a multi-year re-design of the structural elements of the EPF. The hardware and structural design would need to be completely re-configured at an unacceptable cost. It is mission-critical and personnel safety- critical to maintain class configuration and interchangeability across the ship class. Any deviation from the OEM parts and maintenance requirements could result in personal injury, loss of life, or equipment failure and damage to the installed main propulsion diesel engines. Use of the MTU main propulsion diesel engines components will provide fit form and function of the main propulsion diesel engines. The use of MTU MPDE parts across the class and will ensure required reliability and effectiveness of the main propulsion diesel engines as required by ABS, Safety of Life at Sea SOLAS) and MSC COMISNT 4490.1A regulation. The manufacturer's business practice is to provide the main propulsion diesel engine parts and servicing directly to installing shipyards, ship owners and operators in the United States directly, without going through third-party vendors from its company headquarters and manufacturing facility in Detroit, Michigan through the distributor in Portsmouth, VA.

MSC does not have manufacturing and technical information required to evaluate and determine whether non-OEM components, replacement parts and service offered are equivalent to the OEM components and replacement parts. This is proprietary information, and the Government did not acquire rights in this data. OEM representatives have access to provide parts and technical data drawings from the original manufacturer, as required to properly repair and maintain the equipment.

All OEM repair parts and services are in compliance with USCG and ABS IMO regulatory requirements.

Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable: MTU has been the sole source OEM for the Model 20V8000M71L main propulsion diesel engines under the Indefinite Delivery/Indefinite Quantity (IDIQ) contract N3220520D6713, which recently expired.

MTU has performed all services and material to maintain the main propulsion diesel engines onboard all T-EPF Class vessels. The Government intends to post a sole source combined synopsis and

J&A No. N10425Q7042 solicitation notice along with this justification at the Government Point of Entry to award a firm-fixed priced order.

7. Determination of Fair and Reasonable Cost: The Contracting Officer has determined the anticipated cost to the Government of the supplies covered by this J&A will be fair and reasonable IAW FAR 13.106-3(a).

8. Actions to Removed Barriers to Future Competition: For reasons set forth in paragraph 5, MSC has no plans at this time to allow for non-OEM suppliers in future contracts or purchase orders for the types of supplies covered by this document. If another potential source emerges, MSC will assess whether competition for future requirements is feasible.