Redacted_-_Arctic_Top_End_Overhaul_JUSTIFICATION_AND_APPROVAL.pdf

MILITARY SEALIFT COMMAND NORFOLK

SP64 471 EAST C STREET

NORFOLK, VA 23511-2419

N104-16-T-4207

JUSTIFICATION AND APPROVAL (J&A) OTHER THAN FUL L AND OPEN

COMPETITION

(UNUSUAL AND COMPELLING URGENCY)

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

2. Description of the Action Being Approved: MSC proposes award of contract on a brand name basis for supplies and services as described below required on USNS ARCTIC (T-AOE 6).

3. Description of Supplies/Services: MSC requires a Caterpillar Original Equipment Manufacturer (OEM) authorized dealer to provide supplies and services to accomplish overhaul of the four each Ship Service Diesel Generators (SSDG) onboard the USNS ARCTIC. The estimated value of the supplies and services for SSDG overhaul is which will be funded utilizing FY 16 Operation & Maintenance funds.

4. Statutory Authority: The statutory authority for this commercial procurement is Section 4202 of the Clinger Cohen Act of 1996 as implemented by FAR Part 13.501 (a)--URGENCY.

Section 815 of the National Defense Authorization Act (NDAA) of Fiscal Year 2015 makes this authority permanent. Also, excluding the synopsis as authorized in FAR 5.202 (a)(2) on the basis of unusual and compelling urgency as defined in FAR 6.302-2(b).

5. Rationale to Support Use of Authority Cited Above:

The over speed casualty of the USNS ARCTIC Nr 4 SSDG, in April 2014, and subsequent lengthy repair, has resulted in an accelerated accumulation of hours on the remaining diesel generators. SSDGs 2, 3 and 5 have accumulated 20,000 hours faster than usual and the operational parameters are edging up to the higher end of operational parameters for the CAT 3608 Model Diesel Engine. The three diesels are in need of a top end overhaul. The top end overhauls are required by the OEM and will improve the fuel efficiency.

The USNS ARCTIC will be available for the top end overhaul during the Mid-Term Availability (MTA) scheduled for March 8 to May 18, 2016. The ship will then be deploying in support of the USS EISENHOWER in June of 2016. The ship will be operating during the heart of the Persian Gulf summer. The average day time temperature is between 110 to 120 degrees in the daytime. The ship will need to operate all four air conditioning plants and will be engaging in underway replenishments. The ship will need to spread that much larger electrical load between three generators.

Each generator shall be carrying a minimum of 1000 to 1300 Kw. The challenge for keeping exhaust temperatures controllable with a fully maintained, top efficiency engine is a struggle by itself. Place these high loads in this harsh environment on diesel engines with worn top end components and failure of the injectors and elements of combustion is inevitable.

The standard configuration for cargo operations is for three SSDGs to operate in parallel. If one diesel suffers a casualty, the second generator, and sometimes the third will often shut down while attempting to absorb the electrical load. This has occurred on the USNS Arctic on previous deployments. The loss of power throughout the ship regardless of in port or underway is dangerous. The recovery from cascading power outages subjects the engineers to a length repair, subjecting them to twelve to fourteen hours, in excessive heat. This service order is for an authorized Caterpillar dealer to provide the parts and technical oversight for the overhaul process.

The purchase of the repair parts from the dealership will provide the government with the full one year warranty for any failures due to parts failure. If the parts were purchased from the stock system, there would be no such warranty.

The use of an authorized Caterpillar technical representative is in compliance with the MSC model to have OEM support for major repairs of critical main propulsion and electrical distribution equipment per SMS Number 10.6.002-All. OEM technical representative services shall be necessary due to the complexity and criticality of the SSDGs. Caterpillar has proprietary drawings and parts that a technical representative must have access to.

6. Description of Efforts made to Solicit Offers from as Many Potential Sources as Practical: The statutory authority for this commercial procurement is Section 4202 of the Clinger Cohen Act of 1996 as implemented by FAR Part 13.501 (a)--URGENCY. Section 815 of the National Defense Authorization Act (NDAA) of Fiscal Year 2015 makes this authority permanent. Due to the Urgent nature of the requirement and the request for the OEM supplies and service sufficient time does not exist to synopsize this procurement of SSDG overhaul for 15 days and then post a solicitation for 30 days. A combined synopsis/solicitation will be posted to Federal Business Opportunities for vendors to quote.

7. Contracting Officer’s Determination of Fair and Reasonable Price: Subsequent to receipt of pricing proposals, the Contracting Officer will evaluate the offer and, pursuant to and in accordance with Federal Acquisition Regulation (FAR) Part 13.106-3, determine whether the offeror’s price is fair and reasonable prior to making an award.

8. Action Taken to Remove Barriers to Future Competition: No actions to remove the barriers to full and open competition can be instituted at this time. Similar requirements, procured under normal circumstances will be considered for full and open competition in the future.