J A_Redacted.docx

N102-14-D-8009-01

MILITARY SEALIFT COMMAND

471 EAST C STREET

NORFOLK VA 23511-2419

N102-14-D-8009-01

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF 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.

This action will result in the award of contract N32205-16-D-2009 to Rolls-Royce Marine North America, Inc. (Rolls-Royce) on an other than full and open competition basis for engineering services in support of the T-AO 187 Class vessels, T-AKE Class vessels, and T-ESB Class vessels. This will be an indefinite-delivery, indefinite-quantity type contract with firm-fixed price task orders.

3. Description of the Supplies/Services.

MSC requires authorized Rolls-Royce Original Equipment Manufacturer (OEM) technical representative services and parts for the T-AO 187 Class vessels, T-AKE Class vessels, and T-ESB Class vessels. These services and parts include appraisals, inspections, reports, overhauls, repairs, and tests for Rolls-Royce manufactured systems which include, but are not limited to the following:

a. Rolls-Royce Bergen Model KVGB-16 engine

b. Rolls-Royce Bird Johnson T-AO Class Controllable Reversible Pitch Propeller (CRP) system

c. Rolls-Royce T-AO Class CPP system

d. T-AKE Type TT2200 bow thrusters

e. Model RV 2150-3 rotary vane steering gear

f. T-ESB Type UL 255/P30 FP bow thruster

g. T-ESB Type RV 2700-2 steering gear

The total estimated value of this requirement is $XXXXXX, which includes the base period of one year and four, one-year option periods. The total estimated dollar value is outlined below:

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."

5. Rationale Justifying Use of Cited Statutory Authority.

This requirement is a follow-on to contract N40442-08-D-1011, which was not competed. Since the expiration of that contract, the required services have been procured through individual, sole-source purchase orders; an inefficient and administratively burdensome process. MSC operates Rolls-Royce engines, propellers, steering, and bow thruster equipment on many of its T-AO, T-AKE, and T-ESB Class vessels. The OEM rights for these systems are owned by Rolls-Royce. Accordingly, the engineering, construction drawings, and technical characteristics for the manufacture of parts for these systems are proprietary to Rolls-Royce. Further, the only licensed U.S. authorized distributor for these systems is Rolls-Royce.

The systems to be maintained and repaired under this contract are vital contributors to the operation of the vessels. Rolls-Royce, as the OEM, holds privileges to the data required to manufacture the necessary repair parts, and also holds all the proprietary rights and technical documents for service on the systems described above. The Government does not have rights to the construction drawings and technical characteristics pertaining to those systems, nor is Rolls-Royce willing to sell the Government such rights.

The vessels involved are classed by the American Bureau of Shipping (ABS). The use of OEM parts and service ensures the vessels remain in class and in a material condition acceptable to the U.S. Coast Guard. The systems described above are unit certified by ABS, which is based on the use of OEM parts. Use of non-OEM parts will void the certification, requiring MSC to expend time and funds to obtain re-certification. Further, use of non-OEM parts and service generally precludes obtaining OEM warranted work, should OEM service be later required. Rolls-Royce possesses all needed technical data to properly service the above described systems. MSC does not possess the resources to verify whether non-OEM parts are equivalent. The use of non-OEM parts and service compromises vessel safety and places the vessel and crew at greater risk. Therefore, Rolls-Royce is deemed to be the only responsible source capable of providing these services and parts.

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

The proposed contract was synopsized on the FedBizOps website on 5 March 2014. No companies expressed interest in the procurement. Another synopsis was posted on FedBizOps under number N1023-15-0011 from 4 August 2015 to 18 August 2015. The purpose of the synopsis was to act as a notice of intent to award a sole-source contract and was not a request for competitive proposals. However, all responsible sources were invited to submit a capability statement demonstrating an ability to provide the requested supplies and service or to take exception to the intent to purchase on a sole source basis. Upon the closing of the notice on 18 August 2015, no responses were received.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable. This determination will be made using the techniques described in FAR 15.404-1, specifically FAR 15.404-1(b)(2)(iv). Rolls-Royce has commercially published prices for labor categories and an audited and approved purchasing system for parts and materials. These rates and audits will be reviewed as part of this determination.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, MSC has no plans at this time to compete future contacts for the specific services covered by this J&A. However, MSC will continue to monitor the market and conduct research to identify any potential new, authorized sources for this requirement. If another potential source emerges, MSC will assess whether competition for future requirements is feasible.

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