N0040618P0603_JA_2018-013_redacted.pdf

J&A Number: 2018-013

Source Selection Information - See FAR 2.101 and 3.104 Rev 10/2015

CONTROL NUMBER 2018-013

RCP – N6275818RCPS034

JUSTIFICATION AND APPROVAL

FOR SOLE SOURCE PROCUREMENT

Under Simplified Procedures for Certain Commercial Items (FAR 13.5)

1. Contracting Activity.

NAVSUP Fleet Logistics Center Puget Sound (FLCPS)

2. Description of Action Being Approved.

This is a new contract action for a firm fixed-price service type contract for sole sourced onsite technical field representative service to restore the port main reduction gear (MRG) to fully operational status of a forward deployed ship in support of the U.S. Naval Ship Repair Facility (SRF), Detachment Sasebo, Japan. This acquisition requires that all requested services be procured only from the following manufacturer or one of their subsidiary service providers:

Philadelphia Gear 12935 Imperial Highway Santa Fe, Springs, CA 90670

3. Description of Supplies/Services.

This is an urgent C-3 CASREP requirement. The repair of port MRG will be performed by SRF personnel. A field service representative from the original equipment manufacturer (OEM) will assist by providing oversight of SRF technicians during the required repairs, access to any proprietary information required to complete repairs, advice with fabrication of special tools as needed, and guidance during review and execution of repair procedures during the course of the repairs.

The estimated dollar value of this procurement is . SRF Det. Sasebo has submitted FY18 O&MN funds in support of this requirement. The required period of performance (POP) is

2018.

ADDENDUM: Further inspection of the port MRG by SRF personnel revealed more extensive repairs are needed than originally anticipated. Modification P00001 will be issued to increase the scope of work in accordance with the revised Performance Work Statement and add materials to the order. The current repairs will be performed by Philadelphia Gear utilizing two 5-person crews working around the clock for 50 days. The revised POP is 2018. The revised contract value is

DEPARTMENT OF THE NAVY

REGIONAL CONTRACTING DEPARTMENT

NAVSUP FLEET LOGISTICS CENTER PUGET SOUND

467 W STREET

BREMERTON, WASHINGTON 98314-5120

(b) (5)

(b) (5)

(b) (7)(F)

(b) (7)(F)

4. Statutory Authority Permitting Sole Source.

41 U.S.C. 1901 – A sole source acquisition under the authority of the simplified acquisition procedures for certain commercial items, as implemented by FAR 13.501(a).

5. Rationale Justifying Use of Cited Statutory Authority.

On or about 11 January 2018 during flushing operations of the port MRG it was determined that the flush was not effective because of a number of factors as follows:

• The flushing collection bag checks were UNSAT. Solid particles greater than 1/64, “non-solid particles greater than 1/16” and solid/non-solid particles greater than the size of a dime were found.

• Fifty spray nozzles were checked – a total of 19 were UNSAT. Ten nozzles had improper spray patterns. Nine nozzles had no spray pattern.

• The following sight flow indicators were UNSAT and showed improper flow: Forward Bull Gear, Main Thrust Bearing, and the Outboard Forward Pinion Bearing.

• CPP Attached Pump PTO Gear Box was UNSAT. Sludge was found in the bottom of the pump casing.

• Port MRG Attached Pump PTO Gear Box was UNSAT. Heavy rust and corrosion were noted on the gears and associated ball bearings.

The findings noted above equate to a total loss of the port power train and the forward deployed vessel is now in a restricted status and unable to carry out its primary mission. This C-3 CASREP was issued to address these mission/equipment shortfalls and request a new contract in which the OEM provides onsite technical representative services and oversight in support of this repair.

Philadelphia Gear is the OEM and the sole source of parts for the MRG systems onboard this vessel. No other sources are authorized to sell Philadelphia Gear products for naval applications. Drawings and other technical information of MRG systems are proprietary to Philadelphia Gear and they are the only known source for engineering design drawings as well as technical knowledge and expertise to accomplish in-place machining and manufacture of parts to meet form, fit, and function requirements.

There are no other known service providers capable of providing the required services. OEM equipment, parts, and expertise are therefore required to ensure system integrity.

Use of any other manufacturer’s equipment, parts, or service technicians could cause the main reduction gear to prematurely fail and risk the safety of the ship and personnel. This is critical path work for ongoing emergent repairs of the MRG onboard this vessel. Failure to complete the work by the end of the required period of performance will result in a work stoppage and delay completion of the overall repair.

Therefore, Philadelphia Gear, or one of their subsidiary service providers, is the only acceptable source for the needed repairs.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Market research indicates that only Philadelphia Gear, or one of their subsidiary services providers, is capable of providing the required services. The proposed contract will neither be synopsized nor posted to the NECO website due to the urgency of the requirement. Instead, this requirement will be solicited orally with direct award to Philadelphia Gear or one of their subsidiary service providers.

7. Determination of Fair and Reasonable Cost.

The contracting officer shall determine the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, FLCPS has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, FLCPS will assess whether competition for future requirements is feasible.

9. Contracting Point of Contract.

The contracting points of contact for this contract are Cari Burnham, NAVSUP FLC Puget Sound Contracting Officer, 360-476-4277, cari.burnham@navy.mil and Austin Carter, NAVSUP FLC Puget Sound Contracting Officer, 360-476-0844, austin.carter@navy.mil.

mailto:cari.burnham@navy.mil mailto:austin.carter@navy.mil

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

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

Technical Cognizance:

Signature Name (Printed) Phone No. Date

Requirements Cognizance:

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief. To the extent that the J&A/LSJ value is between $150K and $650K, the Contracting Officer’s signature below also represents approval of the J&A/LSJ.

CONTRACTING ACTIVITY COMPETITION ADVOCATE REVIEW

To the extent that the J&A/LSJ value is between $650K and $12.5M, the Competition Advocate’s signature below also represents approval of the J&A/LSJ.