MDG_AUTOMATION_ANNUALS_-_J_and_A.doc

MILITARY SEALIFT COMMAND NORFOLK

SP64 471 EAST C STREET

NORFOLK, VA 23511-2419

13 JULY 2015

N32205-15-T-3829

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

LIMITED SOURCES

1.

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

2.

Nature of Action: Award of a contract on a limited sole source basis for the ABS Annual Inspections of the main diesel engine automation system onboard the T-AKE CLASS of ships listed in paragraph (3) below. Authority to act under this justification expires on September 30th, 2016.

3.

Description of Supplies/Services: The action is submitted for the USCG/ABS/SOLAS required annual inspections of the main machinery automation systems onboard the T-AKE CLASS of ships under other than full and open competition as limited sole source. A limited sole source firm fixed price type contract is anticipated for award to Fairbanks Morse Engine (FME) (FAR 13.501(a)). This procurement is a FAR Part 12 acquisition being conducted under FAR Subpart 13.5 Test Program. The required period is 01 November 2015 to 30 September 2016, using FY16 funding.

LOCATION

PLANNED PERIOD OF

PERFORMANCE DATES

4.

Statutory Authority: The authority permitting other than full and open competition is as implemented by Federal Regulations (FAR)13.501(a)(1)(i) and (ii) under the test program for commercial items, section 4202 of the Clinger-Cohen Act of 1996.

5.

Rationale Supporting Use of Authority Cited Above: Fairbanks Morse Engine is the OEM of the T-AKE Class main diesel engines and automation and controls system. Restrictive rights include access to business sensitive technical manuals, drawings, and the ability to procure parts directly from the OEM. Technical expertise required to review and test components of the ship’s main diesel engine shutdown and safety test point to accomplish the ABS Periodic Test Procedures and Automation Surveys. Fairbanks Morse Engine holds proprietary technical data for repairs and adjustments of the automated controls systems, and proprietary technical data required to meet the Statement of Work. The 48/60L diesel engines and control systems that were provided to the shipbuilder NASSCO via contract to Fairbanks Morse Engine for design and equipment installed onboard the T-AKE Class. Only OEM can provide services as requested under Statement of Work to maintain system safety and integrity as per regulatory requirements. Similar companies do not have the required technical data and OEM repair parts to review, test, and repair these systems. 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. The OEM rep has access to provide parts and technical data / drawings from the original manufacturer, as required to properly repair and maintain the equipment.

T-AKE main diesel and automated control systems require technical expertise, and proprietary drawings unique to the T-AKE Class ships. The OEM has access to provide parts and technical data / drawings as required by USCG and ABS certification for maintenance as noted under SOW. It is essential to provide OEM evaluation as it required by ABS/SOLAS/USCG requirements. SMS Procedure 0.6-002-ALL lists all four Main Propulsion Diesel Engine (MPDE) as critical equipment. Failure of one MPDE will force the ship to reduce their speed. 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 services 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 refurbishment of engines are critical to the safe operations of T-AKE vessel main engine system.

6.

Description of Efforts Made to Solicit Offers from as Many Potential Sources as Practical: The Government intends to post a request for quote (RFQ) at the Government Point of Entry, FedBizOpps website, on or before 01 October 2014 with the intent of awarding a firm-fixed-price contract to Fairbanks Morse Engine (FME) 7.

Determination of Fair and Reasonable Price: The Contracting Officer will determine that the price is determine fair and reasonable pursuant to Federal Acquisition Regulations (FAR) Part 13.106-3(a)(2).

8.

Actions to Remove Barriers to Future Competition: For the reasons set forth in paragraph 5, MSC Norfolk has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, MSC Norfolk will assess at that time whether competition for future requirements is feasible.