J&A_N104A3-EPF_WART_FY_17_-_Posted.pdf

Control Number N32205-17-T-3516

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

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

Norfolk.

2. Description of the Action Being Approved: Award of a firm-fixed price contract on a sole source basis for one time procurement to provide Stern Tube & Water Jet Maintenance and Propulsion Shafting Repairs by Original Equipment Manufacturer (OEM) Wartsila Defense Inc. in support of the USNS MILLINOCKET (T-EPF 3). The service shall be accomplished in Sembawang, Singapore during Period of Performance 6 March to 10 May 2017.

3. Description of Supplies/Services: Requirement covers the procurement of parts and service to provide stern tube corrective repairs and mitigation to correct deficient parallelism and concentricity issues of the existing four (4) stern tubes onboard the USNS MILLINOCKET (E-EPF 3). The action will be funded utilizing FY17 Operations & Maintenance funds.

4. Statutory Authority Permitting Other Than Full and Open Competition: The statutory authority for commercial 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.

5. Rationale Supporting Use of Authority Cited Above: There are currently seven (7) active T-EPFs in the MSC fleet with four (4) Stern Tubes and four (4) Water Jets per vessel. The stern tube and water jet Original Equipment Manufacturer (OEM) is Wartsila Defense, Inc. for the T-EPF class ships. Proper refurbishment and maintenance of the stern tubes and water jets are critical to the safe operation of the T-EPF vessels. The OEM parts and technical data/drawings from the original manufacturer are required by USCG and ABS regulations. This maintains all OEM warranties and ensures stern tube and water jet reliability and crew safety, therefore precluding consideration of a product manufactured or serviced by another company. The engineering, design drawings and technical characteristics for the manufactured parts or service for these main propulsion water jets and stern tubes are proprietary to Wartsila Defense, and the US Government did not acquire rights to this data.

Safety Management Systems Number 10.6-002-ALL lists all stern tubes and water jets as critical equipment. Failure of any of the four stern tubes will allow water intrusion which would cause hazard to the ship, personnel and equipment. The loss of all four puts a ship in a C-4 status, thus becoming unable to perform its primary mission of providing high speed cargo and troop transport to Joint Services. Proper refurbishment and maintenance of stern tubes and water jets are critical to the safe operation of T-EPF vessels. The only means of repair requires dry docking of the ships.

MSC does not have manufacturing and technical information required to evaluate and determine whether non-OEM components and replacement parts or services offered are equivalent to the OEM components and replacement parts or services. T-EPF stern tubes and water jets require special tools, specialized repair parts, and technical expertise unique to these components. Only approved OEM parts/service are authorized to be installed or provide maintenance on this highly sophisticated equipment. The OEM has access to provide parts, service and technical data / drawings from the original manufacturer, as required to properly repair and maintain the equipment. All OEM repair parts are in compliance with USCG and ABS IMO regulatory requirements.

6. Description of Efforts Made to Solicit Offers from as Many Potential Sources as

Practicable: IAW FAR 6.302-1(2), the Government intends to solicit from only one responsible source as no other type of supplies or services will satisfy MSC requirements.

MSC will issue a Synopsis as Wartsila Defense is the original designer for the water jet and stern tubes for the T-EPF Class ships. Wartsila Defense is a large business under the NAICS Code of 333618 and has no Active Exclusions on WWW.SAM.GOV as of 7 February 2017. The Government intends to synopsize on the Federal Business Opportunities (FedBizOpps) website for only five days and then procure services using a draft award with the intent of awarding a firm-fixed-price contract.

7. Market Research. Only OEM can supply repair parts and services for the stern tubes and water jets. Wartsila Defense is the only distributor for parts and service for the stern tubes and water jets installed onboard the T-EPF Class of ships. Market research shows that during FY 14 and FY 16 that Wartsila Defense has been the only company responding to MSC T-EPF requirements for stern tube and water jet parts as they are the original designer. Under the solicited NAICS Code 333618 “Other Engine Equipment Manufacturing,” Wartsila Defense is a large business under the solicited NAICS Code.

8. 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.

9. Actions to Remove Barriers to Future Competition: For the reasons set forth in

Paragraph 5, Wartsila Defense parts and services are required. There has been no specific action planned to overcome barriers to competition in subsequent procurements, other than synopsizing the requirement. 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 Wartsila Defense emerges, MSC Norfolk will assess whether competition for future requirements is feasible. Should MSC determine that Wartsila Defense parts and services are no longer required, this J&A will become null and void.

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