N104-TAO_ABB_TURBO_Redacted.pdf

J&A No. N104-TAO ABB TURBO

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of the Action Being Approved: Award of contract on a sole source basis for four (4) Asea Brown-Boveri (ABB) turbochargers in support of the T-AO class of MSC vessels.

3. Description of Supplies/Services: MSC has a requirement to a procure four (4) Original Equipment Manufacturer (OEM) ABB VTR 454 TURBO COMPLETE turbochargers, model number VTR454-11-

10100 for installation on the upcoming Mid-Term Availability (MTA) for the USNS LEROY

GRUMMAN (T-AO 195). MSC intends to provide the turbochargers as Government Furnished Material (GFM) for installation during the upcoming FY 18 MTA. The estimated value of the subject turbochargers is $363,528.00 each, a total of $1,454,112.00.

4. Statutory Authority Permitting Other Than Full and Open Competition: The statutory authority permitting other than full and open competition for FAR subpart 13.5 requirements is 41 U.S.C. 1901.

5. Rationale Supporting Use of Authority Cited Above: Use of the authority cited in FAR subpart 13.5, specifically FAR 13.501(a), is appropriate for this acquisition as this subpart authorizes the use of

Simplified Acquisition Procedures (SAP) for the acquisition of commercial parts or services greater than the Simplified Acquisition Threshold (SAT) but not exceeding $7 million. In accordance with (IAW) FAR 13.501(a)(2)(ii), the estimated value of this acquisition does not exceed the aforementioned threshold.

The US Navy’s Combat Logistics Force (CLF) T-AO Class Replenishment Oilers provide direct support to United States and Allied Forces at sea and support combat conflicts, the War on Terrorism, and disaster relief around the globe. Their primary mission is to shuttle fuel oil to support ship and aviation operations and to provide sustainment such as fresh fruits and vegetables, vital repair spares and personnel to Carrier Strike Groups and allied forces. The critical logistics support provided by the T-AO replenishment oilers enables these afloat operational groups to remain on station without disrupting wartime and/or other military defense operations. T-AO class replenishment oilers are dispersed across five (5) Operational

Commander’s Areas of Responsibility (AOR). With limited resupply ports around the world along with limited port access for United States Navy vessels, T-AO class replenishment oilers are vital to

Department of Defense military operations.

In accordance with the MSC Safety Management Systems procedure 120.6-002-AO, the Main Engine and

Ship Service Diesel Generator (SSDG) turbochargers on the replenishment oilers are categorized as critical ship equipment. Critical ship equipment is defined as equipment and systems that are necessary to sustain the proper operation and mission capability of the ship. Failure of these equipment and systems would pose a technical risk. This technical risk can be broken down into four (4) subparts: potential for disruption to the ship’s mission support operation schedule; potential for increased costs for emergency repair events; potential for degradation in performance through a partial or complete failure of the component; and potential to cause harm to the ship, its crew, or the environment.

The components of the turbocharger system constitute critical ship equipment because failure to either the Main Engine or SSDG turbocharger poses a hazard to the ship, the crew and the environment. The sole purpose of the turbocharger is to provide compressed combustion air to the Diesel Engine. For the T-AO class, a turbocharger failure could cause catastrophic harm to the environment and loss of Main Engine Propulsion which may cause a collision leading to an oil spill. MSC schedules for routine maintenance and replacement parts of the turbochargers during routine ship repairs such as the aforementioned upcoming FY 18 MTA.

The procurement of other than OEM certified components could result in catastrophic damage, lead to loss of warranties, damage to connected equipment, and injury to the crew. Factory authorized parts are required by USCG and ABS regulations. This maintains all warranties, ensures equipment reliability, and crew safety therefore precluding consideration of a product manufactured by another company.

ABB is the only authorized manufacturer/distributer and the only authorized source to ensure fit, form, function, and quality of the subject requirement. The engineering, construction, proprietary drawings, and technical characteristics are proprietary to ABB. MSC does not possess or have the rights to the manufacturing drawings and processes, OEM specifications, material, tolerances and other technical data pertaining to the subject turbocharger. MSC does not have the manufacturing and technical information required to reverse engineer nor manufacture the subject turbocharger, and procuring an alternative part will compromise the required reliability and effectiveness of the system onboard the USNS LEROY

GRUMMAN (T-AO 195). No other manufacturer is able to fulfill this requirement. Accordingly, the subject OEM turbochargers must be procured from ABB.

6. Description of Efforts Made to Solicit Offers from as Many Potential Sources as Practicable: In accordance with FAR 5.201(b)(1)(i), the Government intends to synopsize this requirement on the

Governmentwide Point of Entry (GPE) located at www.FBO.gov with the intent of awarding a firm fixed price contract.

7. Determination of Fair and Reasonable Cost: The Contracting Officer will determine that the price of the aforementioned supply is fair and reasonable pursuant to FAR 13.106-3.

8. Market Research: The Contract Specialist called ABB sales representative Michael Panko to inquire about the availability of ABB parts through authorized distributers on 18 October 2017. The Contract

Specialist was informed that ABB is the only authorized distributer of ABB parts, as ABB does not authorize the resale of their parts through third party distributors.

9. A Listing of the Sources, if any, that Expressed, in writing, an Interest in the Acquisition: No sources aside from ABB expressed interest in the subject acquisition.

10. Actions to Remove Barriers to Future Competition: If another potential source emerges, MSC will assess whether competition for future requirements is feasible. Market research will be conducted for all future ABB turbochargers requirements.

http://www.fbo.gov/

CERTIFICATION AND APPROVALS

Technical/Requirements Cognizance:

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:

Signature

Name (Printed) Phone No. Date

Legal Sufficiency Review:

I have reviewed this justification and it is deemed to be legally sufficient.

Signature Name (Printed) Phone No. Date

Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief:

Signature Name (Printed) Phone No. Date

Competition Advocate:

Signature Name (Printed) Phone No. Date

Matthew S. Matson 7574432771 11/7/2017