J A_SUPPLY.docx

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COPETITION

(LIMITED SOURCES)

J&A No. N32205-16-T-4205

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

2. Description of Action Being Approved: This justification is for the use of other than full and open competition for commercial firm fixed price purchase order of Caterpillar original equipment manufacturer (OEM) brand name commercial purchase of Ship Service Diesel Generator (SSDG) Hydro Mechanical Shut-Off Assy materials for the USNS SUPPLY (T-AOE 6).

3. Description of Supplies/Services: Military Sealift Command (MSC) requires Caterpillar Inc. OEM brand name replacement parts to overhaul the SSDG. FY 16 O&M funds are available.

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 Justifying Use of Cited Statutory Authority: The criticality of the SSDG and the complexity of the system demands that MSC adhere to its requirement to purchase OEM brand name T-AOE Ship Service Diesel Generator materials to reduce the risk of failure or impeded operation of the Ship’s Electrical Power Generation. 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 overhaul; potential for degradation in performance through a partial or complete failure of the component; potential to cause harm to the crew or the environment.

CATERPILLAR Inc. manufactures, owns proprietary information and drawings utilized during support and parts upgrades to the T-AOE Class SSDG. This procurement is necessary to replace the existing materials on the USNS SUPPLY. Replacement and overhaul of the Diesel Generator Hydro Mechanical Shut-Off Assy is necessary. CATERPILLAR Inc. and its authorized OEM dealers are the only authorized manufacturers for these parts and authorized technical field service support.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable: In accordance with FAR 5.201(b)(1), the Government intends to issue a synopsis on FEDBIZOPPS on a brand name basis for ship’s requirement.

7. Determination of Fair and Reasonable Cost: 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: There has been no specific action planned to overcome barriers to competition in subsequent procurements, other than synopsizing the requirement. Recent Market Surveys conducted have indicated that Caterpillar and its authorized dealers are the only qualified source for the OEM parts. The OEM parts are mission critical and the use of other-than OEM parts would threaten the safe operation of the critical systems installed onboard the vessel. If another potential source other than Caterpillar brand name emerges, MSC Norfolk will assess whether competition for future requirements is feasible.