N102-12-D-8023-217-8_Final_J A.pdf

MILITARY SEALIFT COMMAND

471 EAST C STREET

NORFOLK VA 23511-2419

J&A No. N102-12-D-8023-217-8

JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Military Sealift Command (MSC), Services and Ship Support

Division (N102).

2. Description of the Action Being Approved: Extension of Contract N00033-12-D-8023 using the incorporated clause 52.217-8 “Option to Extend Services” to GE Energy Power

Conversion USA, Inc. (hereby referred to as GE) on an other than full and open competition basis for engineering services in support of the T-AKE and T-AO Class Vessels. Exercise of the option will extend the ordering period of an indefinite-delivery indefinite-quantity type contract with firm-fixed-price task orders.

3. Description of Supplies/Services: Under the option GE will continue to provide the management, supervision, personnel, labor, materials and equipment (except for government furnished items) required to maintain and support T-AKE machinery plant systems and components and the Machinery Centralized Control System (MCCS) on the MSC T-AKE Class

Vessels and the Power Take Off (PTO)/Power Take In (PTI) systems on MSC’s T-AO class vessels with GE installed systems. Support shall include periodic equipment grooms, technical representative visits, telephone consultations, remote technical support via e-mail and phone, hardware and software configuration management services, new/overhauled parts supply, assistance in accomplishing technical refresh efforts to address obsolescence issues, training, and other related tasks.

The total estimated value of this requirement is $6,110,021.25, which includes the complete six month extension.

4. Statutory Authority Permitting Other Than Full and Open Competition: This is an other than full and open competition procurement under the statutory authority of 10 U.S.C.

2304(c)(1) as prescribed by FAR 6.302-1, "Only one responsible source and no other supplies or services will satisfy agency requirements."

Rationale Justifying Use of Cited Statutory Authority: The services GE provides under contract N00033-12-D-8023 for the T-AKE class vessels are a unique combination of logistic, material, engineering, field support, and automation control, which are all specific to that class of vessel. The services require access to propriety information held exclusively by GE, the original equipment manufacturer. GE holds privileges to the data required to provide the necessary parts, and also holds all the proprietary rights for the electrical propulsion drive software and MCCS updates.

The T-AKE class vessels were constructed under contract N00024-02-C-2300, which was competitively awarded by Naval Sea Systems Command (NAVSEA) to General Dynamics

National Steel and Shipbuilding Company (NASSCO) on 18 October 2001 . NASSCO subcontracted with Converteam, Inc. (which was bought by GE) to design, integrate, and install various components of the MCCS, propulsion control system, propulsion motor, generators, J&A No. N102-12-D-8023-217-8 propulsion transformers & heat exchangers, harmonic filters, and ship's service transformers.

NAVSEA did not obtain the rights to the technical data the Government needs to compete the services GE provides under contract N00033-12-D-8023. Consequently, GE is the only contractor in a position to provide the required services.

GE also provides OEM support for the PTO/PTI systems and MCCS switchboards installed on five of MSC’s T-AO vessels. Like the T-AKEs, the Government does not have the data rights to the detailed drawings of the systems to perform maintenance or repairs or to obtain other than

OEM replacement parts. The MCCS and PTO/PTI systems are vital to the operation of the vessels and require OEM maintenance and repair support to keep the systems working properly.

Therefore, the Government has no option but to procure the required services and parts from GE.

6. Description of Efforts Made to Solicit Offers from as Many Potential Sources as Practicable:

MSC has issued numerous sources sought synopses over the history of this contract to determine if any other potential sources for the required services exist. N40442-11-R-3013 was posted on

Federal Business Opportunities (FBO) in March 2011 under NAICS 33599 with only

Converteam, Inc. responding. A follow-on synopsis was posted to FBO in May 2012 under

N00033-12-D-8023 Amend 1 with no responses being received.

For this J&A, a final synopsis was posted to FBO on 3 August 2015 under number N1023-15-

0010. The purpose of this synopsis was to provide notice of the Government’s intent to award a sole-source contract and was not a request for competitive proposals. However, all responsible sources were given the opportunity to submit a capability statement demonstrating the ability to provide the requested services and parts or to take exception to the intent to purchase them on a sole source basis. Upon the closing of the notice on 18 August 2015 no responses were received.

As described in paragraphs 4 and 5 above, the proposed contract action is executed pursuant to

FAR 6.302-1, as services were determined to be available from only one source. The lack of any response to multiple sources sought throughout the history of this requirement validates that determination.

7. Determination of Fair and Reasonable Cost: Per clause FAR 52.217-8, the extension will use the Option Period 2 rate table which was determined fair and reasonable at the time of award.

The Contracting Officer has determined the anticipated cost to the Government of the supplies and 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 above, MSC has no plans at this time to compete future contracts for the types of services covered by this document. If another potential source emerges, MSC will assess whether competition for future requirements is feasible.