JA_Splash_Oil_mod_parts.doc

N104-13-P-1341

MILITARY SEALIFT COMMAND NORFOLK

SP64 471 EAST C STREET

NORFOLK, VA 23511-2419

J&A No. N104-15-T-3619

JUSTIFICATION AND APPROVAL 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: MSC Norfolk has a requirement to award a firm-fix contract on a sole source basis to Fairbanks Morse Engines (FME), the Original Equipment Manufacturer (OEM), of the MDG Splash Oil and Test Circuits kits in support of the T-AKE Class Ships, as approved under T-ALT 381.

3. Description of Supplies/Services: MSC Norfolk requires Original Equipment Manufacturer (OEM) parts to accomplish the requirements of approved Trans-Alt 381 shipboard engine modification.

4. Statutory Authority Permitting Other Than Full and Open Competition: FME is the only recognized “Responsible Source” that has the proprietary information of the rights for replacement, repair and refurbishment of the MDG Splash Oil and Test Circuits kits under 10 USC 2304(c)(1). The statutory authority for this sole source procurement is Section 4202 of the Clinger-Cohen Act of 1996 as implemented by the test program for commercial items, Federal Acquisition Regulations (FAR) 13.501.

5. Rationale Justifying Use of Cited Authority: The Splash Oil and Circuit Mod utilizes the Fairbanks Morse Engine (FME) manufactured 8L & 9L FM-MAN 48//60 engines. The Original Equipment Manufacturer (OEM) FME designed, developed, and built the Splash Oil and Circuit Mods to improve engine safeties and splash oil monitoring. FME has the proprietary rights to all drawings, technical manuals, and repair parts for servicing the systems. FME owns the only ABS approved design drawings and procedures for this modification. The material is confidential and contains proprietary information and other rights which are the sole and exclusive property of FME. Possession of this material does not convey or transfer any rights thereto and any reproduction, use, copying or disclosure to others is forbidden without the prior written consent of a duly authorized representative of FME. All four Main Engines are listed as critical equipment. Modification of the Main Diesel Engine Splash Oil and Circuit Mod will eliminate erroneous alarm and engine shutdown problems, thus making the system more reliable. The loss of two engines puts the ship in a C-4 status, thus becoming unable to perform the primary mission of providing underway replenishment service to the fleet, which will result in a CASREP. The reduction of speed can also pose a hazard to the crew, due to limited ship maneuverability. Proper repair of engines and the Splash Oil and Circuit Mod are critical to the safe operation of T-AKE vessel main engine system.

MSC does not have the 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. OEM Representatives have 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 Solicit Offers from as Many Offerors as Practicable: FME has the proprietary rights to all drawings, technical manuals, and repair parts for servicing the systems and there are no specific action planned to overcome such 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.

7. Determination of Fair and Reasonable Cost: The Contracting officer will determine that the price is fair and reasonable pursuant to FAR Part 13.106-3(a)(2).

8. Actions to Removed Barriers to Future Competition: For the reasons set forth in paragraph 5, only the described OEM parts will suffice. If another potential source emerges, MSC Norfolk will assess at that time whether competition for future requirements is feasible.