T-AO_CLASS_Oldenburg_JA_Redacted.pdf

N104-TAO

CLASS JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of the Action Being Approved: Award of contracts on a brand name basis for Oldenburg Group in support of the T-AO class of MSC vessels. The authority to act under this class justification shall expire on May 5, 2018.

3. Description of Supplies/Services: MSC has continuing requirements to procure Original Equipment Manufacturer (OEM) equipment installed aboard T-AO Class Vessels. The use of Oldenburg Group equipment is required to allow compliance with American Bureau of Shipping (ABS)/United States Coast Guard (USCG) approved drawings and systems. Parts may include gear sets, winch drums, lock pawls, seals, bearings, shafting, and motors. This J&A shall provide authority to procure all MSC material requirements for Oldenburg Group Topping Winches on T-AO Class Vessels. Accordingly, the actions executed under this J&A have an estimated value of approximately using fiscal year (FY) 2017 and 2018 United States Navy Working Capital Funds

(NWCF).

4. Statutory Authority Permitting Other Than Full and Open Competition: The statutory authority permitting other than full and open competition for FAR subpart 13.5 requirements is 41 U.S.C. 1901.

5. Rationale Supporting Use of Authority Cited Above: Use of the authority cited in FAR Subpart 13.5, specifically FAR 13.501(a), is appropriate for this acquisition as this subpart authorizes use of Simplified Acquisition Procedures (SAP) for acquisition of parts or services greater than the Simplified Acquisition Threshold (SAT) and not exceeding $7.0 million. In accordance with (IAW) FAR 13.501(a)(2)(ii), the estimated value for contract to be executed under the authority of this J&A exceed $700,000.00,but do not exceed the $13.5 million threshold ($800,000.00 estimate), thus, established IAW agency procedures, the MSC competition advocate, designated pursuant to FAR 6.501, must approve the J&A.

The US Navy's Combat Logistics Force (CLF) T-AO Class Replenishment Oilers provide direct support to US and Allied Forces at sea and support combat conflicts, War on Terrorism and disaster relief around the globe. Their primary mission is to shuttle fuel oil to support ship and aviation operations and to provide sustainment such as fresh fruits and vegetables, vital repair spares and personnel to Carrier Strike Groups and allied forces. The critical logistics support provided by the T-AO replenishment oilers enables these afloat operational groups to remain on station without disrupting wartime and/or other military defense operations. Fifteen T-AO class replenishment oilers are dispersed across the five Operational Commander's Areas of Responsibility (AOR). With limited resupply ports around the world along with limited port access for US Navy vessels, T- AO class replenishment oilers are vital to Department of Defense military operations.

In accordance with the MSC Safety Management Systems procedure 10.6-002-AO, the Underway Replenishment Winches on the replenishment oilers are categorized as critical ship equipment. Critical Ship Equipment is defined as equipment and systems that are necessary to sustain the proper operation and mission capability of the ship. Failure of these equipment and systems would pose a hazard to the ship, its crew, or the environment. This technical risk can be broken down into four subparts: potential for disruption to the ship's mission support operation schedule; potential for increased costs for emergency repair events; potential for degradation in performance through a partial or complete failure of the component; and potential to cause harm to the crew or the environment.

The components of the Unrep Winches constitute critical ship equipment because failure poses a hazard to the ship, the crew and the environment. This sole purpose of each winch is to provide the force to control the tension of a cable. In most cases, the tension on these cables is substantial. Failure to adequately control this tension could result in breaking the cable or uncontrolled detensioning which could result in a winch failure which could cause catastrophic harm to personnel, the equipment, environmental damage, and lost cargo.

MSC schedules routine maintenance and replacement parts of the winches during regular mid-term availabilities and dry-docking of the vessel.

Winch casualties require swift action and an unplanned, emergent repair. More significantly, the loss of a T-AO oiler for an emergent repair due to a failure of a Winch would disrupt MSC mission readiness and adversely impact US Navy operations supporting national defense because the loss of critical logistics support capability provided by the disabled oiler.

MSC did not acquire technical data rights or technical information beyond general arrangement drawings for installation of the winches on T-AO class ships, American Bureau of Shipping approval certificates and an equipment technical manual. The arrangement drawings and the technical manual provide schematics and cut-away views of the winches, but do not provide sufficient information for the layman to accomplish industrial assistance type maintenance or repair without possessing additional proprietary information and current technical service bulletins. Additionally, MSC does not possess or have the rights to the manufacturing drawings and processes, OEM specifications, material, tolerances and other technical data pertaining to the winches. Accordingly, the manufacturing, special tools and equipment required to manufacture the winch parts are not known and MSC does not have the manufacturing and technical information required to reverse engineer/manufacture replacement components and replacement parts. OEM parts are required; other replacements may compromise the required reliability and effectiveness.

Description of Efforts Made to Solicit Offers from as Many Potential Sources as Practicable: In accordance with FAR 5.201(b)(1)(i), the Government intends to issue a synopsis and solicitation on FEDBIZOPPS for each separate procurement, with the intent of awarding a firm fixed price contract.

6. Determination of Fair and Reasonable Cost: The Contracting Officer will determine that the price for the supplies/services is fair and reasonable pursuant to FAR Part 13.106-3 or 15.404-1, as appropriate on a per solicitation/contract basis.

7. Market Research: A sources sought (SS) notice was posted on the FBO website on March 30, 2017 and closed on April 4, 2017. The SS respondents were required to demonstrate the ability to provide the requested items or alternative solutions that are compatible with the existing Oldenburg Group equipment or associated parts installed aboard T-AO class vessels. No responses were received.

8. A Listing of the Sources, if any, that Expressed, in writing, an Interest in the Acquisition: To date, no qualified sources have expressed an interest in writing.

However, each requirement will be synopsized and solicited via the Government Point of Entry, the FedBizOpps (FBO) website.

9. Actions to Remove Barriers to Future Competition: For the reasons set forth in Paragraph 5, Oldenburg Group brand equipment provided by Oldenburg Group and their authorized distributors are required. Should MSC determine that Oldenburg Group brand equipment is no longer required; this J&A will become null and void.

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.

Legal Sufficiency Review:

I have reviewed this justification and it is deemed to be legally sufficient.

Contracting Officer Certification:

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

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