N10426Q0080 FINAL_Redacted.pdf

J&A No. N10426Q0080

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) Norfolk

2. Description of the Action Being Approved: Award of a purchase order on a sole source basis to the Original Equipment Manufacturer (OEM), Siemens Energy Incorporated (CAGE: 1LPE6) for Power Take-Off (PTO) Power Take-In (PTI) parts for the shaft generator systems onboard T-AO 205 class vessels. Siemens Energy Inc. does not have any authorized resellers or distributors and only sells directly to the Government, therefore, the only source capable of meeting the Government needs.

3. Description of Supply Services: The parts required are for the PTO/PTI system onboard the T-AO 205 class vessels. The estimated dollar value is which will be funded utilizing fiscal year 2026 Operations and Maintenance, Navy (O&M, N), funds.

4. Statutory Authority Permitting Other Than Full and Open Competition: This acquisition is conducted pursuant to the authority of 10 U.S.C. § 3204(a)(1), as implemented by FAR 6.103-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Rationale Justifying Use of Cited Authority: MSC requires these parts from Siemens Energy, the

OEM, because it is the only source capable of providing parts that meet the Government need for the PTO/PTI system. These parts are direct replacements and are the only parts compatible with the existing systems installed on the T-AO 205 class vessels. Using OEM parts will ensure that the vessels maintain operational status and ensure their capability to complete all missions as required.

The current procurement consists of critical systems on the T-AO 205 class ships to include the PTO/PTI system. Without a properly functioning system, impacts would show up in electrical power availability, mission readiness, propulsion performance, and operational resilience. A loss in electrical efficiency would require the ships to rely entirely on standalone ship-service diesel generators (SSDGs) and impacts would include significant increase in fuel consumption, higher operating costs, not having the minimum required generators to accomplish mission and additional wear and tear on auxiliary generator sets. In addition, if the PTO/PTI is unavailable, load shifts to fewer generators and propulsion engines, which results in overloading the SSDGs, higher thermal and mechanical stress on main engineers, and increased maintenance frequency and reduced time between overhauls. If the PTO/PTI system was not operational, the vessel would enter C-4 status (CASREP 4) which would require emergency work, and if not fixed, would prevent the vessel from sailing and performing operational tasks. Lack of correct and timely procurement will impact ship readiness and assigned missions. This type of equipment is categorized as “critical equipment” as defined by Enclosure 1 of COMSCINST 4490.1C. As defined, a critical safety item is “Any ship part, mission system, equipment, assembly, or support equipment containing a characteristic, the failure, malfunction, or absence of which could cause a catastrophic or critical failure resulting in loss of or serious damage to the ship; or unacceptable risk of personal injury or loss of life.”

Because the PTO/PTI system meets the requirement for critical shipboard equipment, only qualified sources can provide required parts. For the instant requirement, Siemens Energy is the only qualified source to provide parts for the PTO/PTI System

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

Enegery is the OEM with no current authorized Government re-sellers or distributors. OEM parts are currently only available from Siemens Energy. MSC perpetually seeks submissions from non- OEM contractors for consideration of qualification of their parts and/or services as an acceptable alternative to the OEM at https://www.msc.usff.navy.mil/Business- Opportunities/Contracts/Qualification-for-Items-Critical-to-Shipboard-Safety-on-MSC-Vessels/. The Government intends to post a pre-solicitation notice along with this justification at the Government

J&A No. N10426Q0080

Point of Entry with the intent of awarding a firm-fixed-price purchase order to Siemens Energy upon submission of a technically acceptable quote.

7. Determination of Fair and Reasonable Cost: The Contracting Officer has determined the anticipated cost to the Government of the supplies covered by this J&A will be fair and reasonable.

8. Actions to Removed Barriers to Future Competition: For reasons set forth in paragraph 5, MSC has no plans at this time to allow for non-OEM suppliers in future contracts or purchase orders for the types of supplies covered by this document. If another potential source emerges, MSC will assess whether competition for future requirements is feasible.