N0040619P0646_Revised_JA_2019-022_Redacted.pdf

J&A Number: 2019-022

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

CONTROL NUMBER 2019-022

N00406-19-Q-0218

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

NAVSUP Fleet Logistics Center Puget Sound

2. Description of Action Being Approved.

This J&A is being revised to add the requirement that the other bulkhead shaft seals be hydro tested while the contractor is hydro testing the repaired bulkhead shaft seals, previously approved under the original J&A.

Award of a firm-fixed price service contract for on-site (Yokosuka, Japan) repairs. Repair work consists of removing the shaft seal;

correcting the out of spec shaft/bulkhead and reinstalling the shaft seal onboard a Guided Missile Destroyer (DDG).

3. Description of Supplies/Services.

Requirement is for the Original Equipment Manufacturer (OEM) of the shaft seal; Mide Technology Corporation (Mide), to repair a leaking shaft seal. Repair work consists of removing the shaft seal;

correcting the out of spec shaft/bulkhead and reinstalling the shaft seal onboard a DDG. Contractor will also conduct a leak test on both sides of the seal and install foundations with emergency sealing clamps and train the Ship’s Force on their use.

The estimated dollar value of this procurement is , which will be funded with FY19 OM&N funds.

The estimated dollar value of the additional requirement for hydro testing is and the Ship Repair Facility (SRF) has submitted

FY20 O&MN funds to cover the additional cost. The total estimated value of requirement covered by this J&A is now , as original awarded price was .

4. Statutory Authority Permitting Other Than Full and Open

Competition.

DEPARTMENT OF THE NAVY

REGIONAL CONTRACTING DEPARTMENT

NAVSUP FLEET LOGISTICS CENTER PUGET SOUND

467 W STREET

BREMERTON, WASHINGTON 98314-5120

(b) (5)

J&A Number: 2019-022

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

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.

Mide is the OEM of the bulkhead shaft seals inside the ship. They are the only company with the data and trained personnel to install and repair their shaft seals. Additionally, Mide has proprietary hydro testing equipment, making them the only qualified source to perform a leak test after reinstalling the shaft seal.

Currently, there are no other known manufacturers or service providers capable of performing the required services. OEM expertise is required to ensure the bulkhead shaft seal will not leak after reinstallation. Use of another manufacturer’s technicians could result in an incorrect installation resulting in flooding of spaces in the event of collision or battle damage. Therefor Mide Marine is the only acceptable source for the needed repair service.

As discussed above Mide has proprietary data and hydro testing equipment making them the only qualified source to hydro test the other two bulkhead shaft seal units.

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

Offerors as Practicable.

The proposed solicitation will be synopsized on the NECO website.

Previously synopsized requirements for Shaft Seals have not resulted in any companies, other than the OEM Mide expressing interest. No additional market research was conducted, as it is not practicable for the reasons discussed in paragraph 5 above, for any company other than

Mide to provide the required services.

7. Determination of Fair and Reasonable Cost.

The contracting officer has determined the anticipated cost to the

Government of the supplies/services covered by this J&A will be fair and reasonable utilizing the appropriate methodology for the contract type.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAVSUP 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, NAVSUP FLCPS will assess whether competition for future requirements is feasible.