JA_SSDG_Alarm_Testing_Tool.doc

DEPARTMENT OF NAVY

DIRECTOR

MILITARY SEALIFT COMMAND

SP64 471 EAST C STREET

NORFOLK, VA 23511-2419

N32205-15-P-4007

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Department of the Navy, Military Sealift Command MSC), Norfolk, VA 23511-2419.

2. Nature of Action: MSC Norfolk has a requirement to award a contract on a sole source basis to Fincantieri Marine System North America (FMSNA), the Original Equipment Manufacturer (OEM), for Ship Service Diesel Generators as a sole source buy for a Joint High Speed Vessel (JHSV) Class Buy.

3. Description of Supplies/Services: Provide the following parts: 10 EA SSDG Alarm Testing Tool, 10 EA Dry Block Calibrator and 10 EA Joystick and Buzzer.

4. Statutory Authority Permitting Other than Full and Open Competition: The statutory authority for this procurement is as implemented by FAR Part 13.501, Title 41 U.S.C 1901 Test Program for Certain Commercial Items. Section 815 of the National Defense Authorization Act makes the authority permanent.

5. Rationale Supporting Use of Authority Cited Above: The JHSV Class ship is furnished with the FMSNA Ships Service Diesel Generator (SSDG) Sets. This system is MSC JHSV Critical Equipment. The testing tool requisitioned is required to be OEM to maintain the integrity of the engines. Testing the engine with any other testing tool would be concern for operational reliability and safety to the operator and environment. The reliability of the SSDGs is mission-critical. Class configuration and interchangeability across the ship class are requirements for use of OEM replacement components. Any deviation from the OEM parts could result in personal injury, loss of life, or equipment failure and damage to the vessel. The manufacturer's business practice is to provide the Generator Sets directly to installing shipyards, ship owners and operators in the United States directly, without going through third-party vendors from its company headquarters and manufacturing facility. Headquarters is the North American distributor in Chesapeake Virginia.

MSC does not have manufacturing and technical information required to evaluate and determine whether non-OEM components and replacement parts offered are equivalent to the OEM components and replacement parts. This is proprietary information and the Government did not acquire rights in this data.

The OEM representative has access to provide parts and technical data drawings from the original manufacturer, as required to properly repair and maintain the equipment. All OEM repair parts are in compliance with USCG and ABS IMO regulatory requirements.

6. Description of Efforts Made to So1icit Offers from as Many Potentia1 Sources as Practica1: The Contracting Officer will continue to synopsize and solicit each requirement in FEDBIZOPPS, unless there is an urgent and compelling need for the service and/or parts. In that case, a procurement-specific J&A for unusual and compelling urgency will be executed and included in the file.

7. Contracting 0fficer's Determination of Fair and Reasonable Price. 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 pursuant to Federal Acquisition Regulations (FAR) Part 13.106-3.

8. Actions to Remove Barriers to Future Competition:

Procurement will provide sufficient assets to provide Ready for Issue (RFI) support of the JHSV program. JHSV vessels are scheduled for annual ROH/00 and these critical propulsion related items must be available when required by the Ship Management Team (SMT) for immediate installation. No specific action is planned to overcome barriers to competition in subsequent procurements, other than synopsizing the requirements. If another potential source emerges, MSC Norfolk will assess whether competition for future requirements is feasible.