N3220518P4067_JA_Redacted.pdf

N104-18-Q-4067

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 a firm-fixed price contract to Vulkan Group (Vulkan) for Original Equipment Manufacturer (OEM) Clutch and Coupling parts in support of the T-AO class of MSC vessels.

3. Description of Supplies/Services: MSC has a requirement to procure Vulkan brand parts for the T-AO class if vessels, specifically Power Take Off (PTO) Clutch and Coupling Parts. MSC normally acquires these as long lead time repair components and provides them as Government Furnished Material (GFM) for installation during regularly scheduled ship repair availabilities. The action executed under this J&A has an estimated value of approximately using fiscal year (FY) 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.

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 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 spare and personnel to Carrier Strike Groups and allied forces. Fifteen T-AO class replenishment oilers are dispersed across the five Operational 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-ALL, the PTO Clutch and Couplings 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 either of the hull’s two (2) PTO Clutches and Couplings will reduce the vessel’s power producing capability by 25% which puts a vessel in a C-3 status. Failure of both the PTO Clutches and Couplings will reduce the vessels power producing capability by 50% which puts the vessel in a C-4 status, thus becoming unable to perform its primary mission of providing underway replenishment services to the fleet. The reduction of power producing capability poses a hazard to the crew and environment due to limiting the operation of critical and auxiliary equipment. Proper refurbishment and maintenance of the PTO Clutch and Couplings are critical to the safe operation of Kaiser (T-AO) Class vessels. Failure of these equipment items and systems would pose a hazard to the ship, its crew, or the environment.

Vulkan Group of Herne, Germany is the OEM for the PTO Clutch and Coupling systems.

Proper refurbishment and maintenance of the PTO is critical to the safe operation of the Kaiser Class Vessels. The OEM parts and technical data/drawings from the OEM are required by USCG and ABS regulations. This maintains all OEM warranties, ensures power producing reliability and crew safety, therefor precluding consideration of the product manufactured by another company. The engineering, construction drawings, and technical characteristics for the manufactured parts are proprietary to Vulkan Group.

The US Government did not acquire rights to this data. MSC does not have the manufacturing and technical information to evaluate and determine whether non-OEM components and preplacement parts offered are equivalent to the OEM components and replacement parts. Kaiser Class PTO Clutches and Couplings require special tools, specialized part and technical experience unique to the PTO clutch and coupling; only approved OEM parts are authorized to be installed for this highly sophisticated equipment.

The OEM representative has access to provide parts and technical data/drawings for the original manufacture, as required to properly repair and maintain the equipment. All OEM 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: In accordance with FAR 5.201(b)(1)(i), the Government intends to issue a synopsis the solicitation on FEDBIZOPPS for this contract, 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: Market research was performed by contacting the US branch of Vulkan Group which confirmed that Vulkan does not have distrubitors and sells directly to their customers.

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

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

10. Actions to Remove Barriers to Future Competition: For the reasons set forth in Paragraph 5, parts provided by Vulkan are required. Should MSC determine that Vulkan compatible parts 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.

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.