FY17_T-AKE_CARGO_REFRIGERATION_J&A_FBO.doc

N104-13-P-1341

J&A No.N104-TAKE CARGO REFRIGERATION

CLASS JUSTIFICATION AND APPROVAL FOR USE OF

OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of Action Being Approved. This is a brand name justification for the procurement of replacement parts and repair services for the York Refrigeration of Hoejbjerg Denmark Cargo Refrigeration System onboard T-AKE class dry cargo/ammunition ships. Authority to act under this class justification expires 28 February 2018.

3. Description of Supplies/Services. MSC requires York Refrigeration of Hoejbjerg Denmark Original Equipment Manufacturer (OEM) parts and repair services for the operation of the Cargo Refrigeration System, Chiller and Condenser Model Number VSB151LE. There are two (2) Cargo Refrigeration Systems, Chillers and Condensers on each of the T-AKE class dry cargo/ammunition ships. The only known authorized OEM distributors are IMECO Inc., and Johnson Controls Inc. The actions to be executed under this class J&A have an estimated value of approximately $X,XXX,XXX.XX, using FY 17 and FY 18 Operations and Maintenance funds.

4. Statutory Authority Permitting Other Than Full and Open Competition. The statutory authority for commercial procurement procurements greater than $150,000.00 will be 41 U.S.C. 1901(e)(2) as implemented by FAR Part 13.501(a), Simplified Procedures for Certain Commercial Items, Sole Source--including Brand Name. Section 815 of the National Defense Authorization Act (NDAA) of Fiscal Year 2015 makes this authority permanent. The statutory authority for simplified acquisitions less than $150,000.00 and for FAR Part 15 procurements will be FAR Part 13.106-1 and 10 USC. 2304(c)(1) as implemented by FAR Part 6.302-1, respectively.

5. Rational Justifying Use of Cited Statutory Authority. The cargo refrigeration system original equipment manufacturer (OEM) is Johnson Controls, Inc. (formerly York International Refrigeration of Hoejbjerg Denmark) for the T-AKE class dry cargo/ammunition ships. Both Johnson Controls, Inc. and IMECO, Inc. are York International’s United States service representatives and parts distributors. Each has access to the proprietary information and drawings. This includes proprietary rights to the software and programming codes which are essential for repair and programming of the alarm sensor set points of the T-AKE cargo refrigeration system. Only OEM and authorized OEM distributors can supply repair parts and services for the cargo refrigeration system. Johnson Controls, Inc. and IMECO, Inc. are the only known distributors for the cargo refrigeration system parts and services. Any deviations from OEM repair parts or services could result in personal injury or equipment failure and damage. Cargo Refrigeration is critical to the Combat Logistics Force (CLF) inventory management and control of 9M Food products and 1Q Ship Store materials. Without a fully operational cargo refrigeration system, T-AKE class dry cargo/ammunition ships are unable to achieve MSC Strategic Priority 1, “ships ready for tasking.”

J&A No.N104-TAKE CARGO REFRIGERATION MSC did not acquire the proprietary information and technical data rights beyond general arrangement drawings thus, MSC does not have manufacturing and technical information required to evaluate and determine whether non-OEM replacement parts offered are equivalent to the OEM components and replacement parts.

6. Description of Efforts made to Solicit Offers from as Many Offerors as Practicable.

IAW PGI 206.302-1, the Government issued a Sources Sought on Federal Business Opportunities on 23 January 2017 for fifteen days, seeking eligible business that could provide OEM York Refrigeration parts and services. There were two responses to the Sources Sought. The first response was from Trident Maritime System, IMECO Division. IMECO is a large business under the Sources Sought NAICS Code of 333415 and has no Active Exclusions on WWW.SAM.GOV as of 6 February 2017. The other response was from MacDonald-Miller Facility Solutions Inc., and is a small business under the NAICS Code 238220. The Government intends to synopsize when required and to post request for quotations (RFQ) and request for proposals (RFP) at the Government Point of Entry, the FedBizOpps website, for each separate procurement, with the intent of awarding a firm-fixed-price contract.

7. Market Research. Only OEM and authorized OEM distributors can supply repair parts and services for the cargo refrigeration system. Johnson Controls, Inc. and Trident Maritime Systems, IMECO Division are the only known distributors for the cargo refrigeration system parts and services. MacDonald-Miller Facility Solutions Inc. submitted a capability sheet for the Sources Sought. However, after technical review it was determined that MacDonald-Miller Facility Solutions did not have a licensing agreement with York Refrigeration, which was a requirement for responding to the Sources Sought. MacDonald-Miller Facility Solutions was advised of the requirement.

8. Determination of Fair and Reasonable Cost. The Contracting Officer will determine the price of the supplies/services covered by this J&A fair and reasonable pursuant to FAR Part 13.106-3 or 15.404-1, as appropriate.

9. Actions to Remove Barriers to Future Competition. For reasons set forth in Paragraph 5, MSC has no plans at this time to compete future contracts for the types of supplies covered by this document. If another potential source emerges, MSC will assess whether competition for future requirements is feasible. Should MSC determine that OEM parts and services are no longer required; this J&A will become null and void.

J&A No.N104-TAKE CARGO REFRIGERATION

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS COGNIZANCE

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Signature Name (Printed) Phone No. Date

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

Signature Name (Printed) Phone No. Date

COMPETITION ADVOCATE APPROVAL

Upon the basis of the above justification, I hereby approve as Competition Advocate, the solicitation of the proposed procurement(s) described herein using other than full and open competition.

Signature

Name (Printed) Phone No.

Date