JA_CHAMBERS_REDACTED.doc

DEPARTMENT OF NAVY

DIRECTOR

MILITARY SEALIFT COMMAND

SP64 471 EAST C STREET

NORFOLK, VA 23511-2419

N104-16-T-4664

JUSTIFICATION AND APPRQVAL (J&A) 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: This is a sole source justification to procure stern tube assembly parts under Request for Quote N32205-15-T-4664 for the USNS WASHINGTON CHAMBERS (T-AKE 11).

3. Description of Supplies/Services: MSC Norfolk requires Original Equipment Manufacturer (OEM) stern tube assembly parts in preparation for the USNS WASHINGTON CHAMBERS (T-AKE 11) Regular Overhaul/Dry Dock (ROH/DD). Funding has been provided via Purchase Request N2372652814106 from PM8 and the dollar value of the parts is estimated at <redacted>. Details of parts and quantities required for this procurement are listed in the table below:

4. Statutory Authority: The statutory authority for this sole source procurement is Section 4202 of the ClingerCohen Act of 1996 as implemented by the test program for commercial items, Federal Acquisition Regulations (FAR) 13.501.

5. Rationale Supporting Use of Authority Cited Above: The stern tube and line shaft OEM for T-AKE stern tube assembly is Wärtsilä Defense, Inc. (Wärtsilä), 3617 Koppens Way, Chesapeake, VA 23323. The requirement to procure OEM stern tube shaft seal components for the T-AKE class of dry cargo/ammunition ships relates to national defense, military mission readiness and safety at sea. The procurement’s requirements seek to achieve a continuation of the highest possible reliability and effectiveness by using only OEM replacement components and parts in the OEM stern tube shaft seal system. The stern tube shaft seal components are manufactured in accordance with the proprietary manufacturing processes, specifications, materials, and tolerances of Wärtsilä.

N104-16-T-4664

In accordance with the MSC International Safety Management Code procedure 10.6-002-AO signed by the Military Sealift Fleet Support Command Director, the stern tube seals on the T-AKE class vessels are categorized as critical ship equipment. Critical Ship Equipment signifies equipment and systems necessary to sustain the proper operation and mission capability of the ship. Failure of critical ship equipment poses a hazard to the ship, its crew, and/or the environment. This technical risk can be broken down into four subparts: potential for disruption to the ship’s mission support operating schedule; potential for increased costs for emergency dry docking events; potential for degradation in performance through a partial or complete failure of the component; and potential to cause harm to the crew and/or the environment. A failure of the stern tube seals can also result in serious damage to critical ship equipment and a partial or complete loss of propulsion which presents a potential danger to the crew and could jeopardize the seaworthiness of the ship. The loss of the stern tube seals would necessitate the ship having to be towed immediately to the nearest qualified repair facility.

Stern tube seals have a life expectancy of at least sixty (60) months. MSC schedules for routine replacement of the stern tube seals once approximately every 60 months during an ROH/DD of the vessel. Stern tube seal casualties require immediate emergency dry docking events, costing upwards of one million dollars per event to accomplish an unplanned, emergent repair. The time required to effect an emergency repair to the stern tube seals could take 2-3 weeks, and would have a detrimental effect to vessel mission requirements supporting US Navy and allied Naval forces worldwide, with a cascading effect on other ships and mission schedules.

The T-AKE Class type MD seals were part of the original outfitting for this class of ships. MSC does not own the technical data rights or technical information beyond general arrangement drawings for installation on T-AKE class ships, American Bureau of Shipping (ABS) approval certificates and an equipment technical manual. The arrangement drawings and the technical manual provide schematics and cut-away views of the stern tube seal, but do not provide sufficient information for a layman to accomplish industrial assistance type maintenance or repair to the seal system without possessing additional proprietary information and current technical service bulletins. MSC does not possess or have the rights to these manufacturing drawings and processes, OEM specifications, materials, tolerances and other technical data pertaining to the Wärtsilä stern tube seals and is unable to purchase the data rights now. Therefore, MSC does not have the manufacturing and technical information required to reverse engineer/manufacture replacement seal system components.

6. Description of Efforts Made to So1icit Offers from as Many Potentia1 Sources as Practica1: The Contracting Officer will synopsize this requirement in FEDBIZOPPS. MSC does not anticipate any additional quoters will come forward other than Wärtsilä. If another potential quoter comes forward, MSC Norfolk will assess whether competition for N104-16-T-4664 future requirements is feasible.

7. Contracting 0fficer's Determination of Fair and Reasonable Price. The Contracting officer will determine that the price is fair and reasonable pursuant to FAR Part 13.106-3(a)(2).

8. Actions to Remove Barriers to Future Competition:

For the reasons set forth in paragraph 5, MSC has no specific action planned to overcome barriers in subsequent procurements, other than synopsizing the requirements. If a similar requirement arises, every effort will be made to complete it to the maximum extent possible.