T-AO_Class_JA_Wartsila_expire_2018_Redacted.pdf

FOUO

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 the Action Being Approved: Award of contracts on a sole source basis for technical representative services and materials from Wartsila Defense of Chesapeake, VA in support of the T-AO class of MSC vessels. The authority to act under this class justification expires on April , 201 .

3. Description of Supplies/Services: MSC has continuing requirements to procure Original Equipment Manufacturer (OEM) forward and aft stern tube shaft seals manufactured by Wartsila Corporation for installations as replacement/repair components onboard all T-AO class MSC vessels. MSC normally acquires these stern tube shaft seal components as long lead time repair components and provide them as Government Furnished Material (GFM) for installation during regularly scheduled dry dock ship repair availabilities. This class J&A shall provide authority to procure all MSC material requirements for stern tube seal components manufactured by Wartsila for the T-AO class vessels. Accordingly, the actions executed under this class J&A have an estimated value of approximately using fiscal year (FY) 201 and FY 201 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 . In accordance with (IAW) FAR 13.501(a)(2)(ii), the estimated class value for contracts to be executed under the authority of this J&A exceed , but do not exceed the threshold 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 stern tube seals 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 dry docking events; potential for degradation in performance through a partial or complete failure of the component; potential to cause harm to the crew or the environment.

The components of the T-AO stern tube seal system constitute critical ship equipment because failure of the stern tube system poses a hazard to the ship, the crew and the environment. Stern tube seals are installed on either end of the propulsion shaft stern tube, which is filled with oil to lubricate the installed stern tube bearings. The seals keep the lubrication oil in and the sea water out of the stern tube. For the T-AO class stern tube seals, a seal system failure could cause catastrophic harm to the environment and international embarrassment through the leakage of up to 3400 gallons of oil per stern tube into the sea. An oil spill from the propulsion shaft stern tubes would also potentially violate environmental laws such as the Oil Pollution Act of 1990.

The stern tube seals have a life expectancy of at least 60 months. MSC schedules for routine replacement of the stern tube seals once approximately every 60 months during a regular overhaul and dry-docking of the vessel.

A failure of the stern tube seals can also result in serious damage to critical ship equipment and a partial or complete loss of propulsion, which presents a potential danger to the crew. Sea water intrusion into the stern tube bearing assembly could jeopardize the effectiveness of the stern tube bearing lubrication with a likely outcome being bearing failure and loss of propulsion. The failure of a stern tube seal would require an emergent repair due to impacts to the environment and the propulsion capability of the ship. T-AO replenishment oilers have two shafts. The loss of one stern tube seal would not prevent the ship from making an emergency transit to a repair facility. The loss of both stern tube seals however, would necessitate the ship having to be towed immediately to the nearest qualified repair facility.

Stern tube seal casualties require immediate emergency dry-docking event, costing upwards of one million dollars per even to accomplish an unplanned, emergent repair. More significantly, the loss of a T-AO oiler for an emergent repair due to a failure of a stern tube seal 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. The time required to effect an emergency repair to the stern tube seals could take 2-3 weeks, and would have a detrimental effect to vessel mission requirements supporting US Navy and allied Naval forces worldwide, with a cascading effect on other ships and mission schedules. The T-AO class vessels suffered several casualties as described in the 1990's due to stern tube seal failure. To preclude similar failures in the future, MSC conducted extensive market research and a reliability study on evolving stern tube sealing technologies. The study was based upon commercially available, proven systems and included correspondence with commercial operators to determine the reliability of the sealing system being used on their ships. Based on the results of these studies and a trial period on two T-AO replenishment oilers, MSC conducted a competitive procurement of the stern tube seal system for the T-AO class vessels in 2000. The particular Wartsila 4AS stern tube seal offered the most reliable sealing system and incorporated anti- pollution features that provided back-up sealing capability to our ships. The Wartsila 4AS stern tube seal system incorporates a differential air pressure system along with a compartmentalized housing and four (4) lip seal arrangement to ensure the integrity of the stern tube seal. The Wartsila 4AS stern tube sealing system was the winning stem tube seal system. By 2002, MSC had installed the Wartsila 4AS anti-pollution stem tube systems on all the T-AO class replenishment oilers.

The Wartsila Viton lip seal ring is the replacement part/component of the more complex Wartsila 4AS stern tube sealing system comprised of many integral components. This Viton seal ring is a wear item, meaning that it wears out through operation and must be replaced as part of normal maintenance requirements. Wear comes from the exposure to both oil and water and through the design of the sealing system where the Viton rubber seal "lip" rides on a rotating tungsten coated seal liner to maintain a continuous seal as the propulsion shaft rotates. The manufacturer controls the wear of this seal through innovative and complex chemical composition design, with a goal of extending the life expectancy of this seal. They also employ innovations in the shape, orientation and tension of this lip ring to ensure a tight seals without accelerating the wear of the soft components.

Since the installation of the Wartsila 4AS stem tube seal system on the T-AO class replenishment oilers, MSC has used only OEM parts and components to maintain the reliability of the OEM stern tube seal system. This is a complex seal system which to date has proven to be effective and oil leak free. The T-AO class replenishment oilers have not experienced a single casualty arising from the failure of a Wartsila 4AS stern tube seal system. The criticality of the stem tube seals and the complexity of the system demands that MSC adhere to its requirement to purchase only OEM stem tube seal components for the T-AO replenishments oilers to reduce the risk of failure of the stern tube seal components or the seal system.

MSC competitively awarded the Wartsila 4AS stern tube seal system as a commercial item under MSC Contract N31980-00-C-0242. Under the contract, MSC did not acquire technical data rights or technical information beyond general arrangement drawings for installation 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 stern tube seal, but do not provide sufficient information for the layman to accomplish industrial assistance type maintenance or repair to the seal system 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 Wartsila stern tube seals and is unable to purchase the data rights now due to fiscal constraints and proprietary reasons. Accordingly, the manufacturing, special tools and equipment required to manufacture the Wartsila stern tube seal is not known to MSC. Therefore, MSC does not have the manufacturing and technical information required to reverse engineer/manufacture replacement seal system components and replacement parts will compromise the required reliability and effectiveness of the stern tube seal system as a whole.

Wartsila of Japan, a subsidiary of Wartsila of Helsinki, Finland is the OEM for the stern tube seal components. Wartsila Defense of Chesapeake, VA is the only US distributor for these parts.

6. 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.

7. 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.

8. Market Research: A sources sought (SS) notice was posted on the FBO website on 1 201 and closed on 1 201 . The SS respondents were required to demonstrate the ability to provide the requested items or alternative solutions that are compatible with the existing stern tube assemblies or associated parts installed aboard T-AO class vessels.

9. A Listing of the Sources, if any, that Expressed, in writing, an Interest in the Acquisition:

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

Paragraph 5, Wartsila services and materials are required. Should MSC determine that Wartsila services and materials are 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.

Signature Name (Printed) Phone No. Date

Legal Sufficiency Review:

I have reviewed this justification and it is deemed to be 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:

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

Signature Name (Printed) Phone No. Date

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