JA_RENK_18P4083_Redacted_.pdf

J&A No. N3220518Q4083

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of Action Being Approved: Award of a firm-fixed price contract on a brand name basis for Original Equipment Manufacturer (OEM) brand name parts to be acquired from Renk Corporation (CAGE: 0BAS3) or an authorized distributor for the USNS

TIPPECANOE (T-AO 199).

3. Description of Supplies/Services: Military Sealift Command (MSC) has a requirement to procure Liners, Inboard and Outboard Seals for the Power Take-Off (PTO) Generator, Synchronies Compensator Motor(SCM) and Ship Service Diesel Generator(SSDG) for the upcoming Regular Overhaul/Dry-Docking (ROH) onboard the USNS TIPPECANOE (T-AO 199). The action executed under this J&A has an estimated value of $193,784.72, utilizing FY 2018 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 13.501(a)(1)(ii) requirements is 41 U.S.C. 1901.

5. Rationale Justifying Use of Cited Statutory Authority: 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 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 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 (15) T-AO class replenishment oilers are dispersed across five (5) Operational Commander’s Area 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 ship’s PTO Generator, SCM, SSDG associated parts 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 sip’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 ship, its crew, or the environment.

MSC schedules for routine maintenance and replacement parts of the SSDG, PTO and SCM Liners during regular Mid-Term Availabilities (MTA) and Routine Overhaul dry-docking(ROH) of the vessel.

A failure of one liner could result in serious damage to critical ship equipment, partial or complete lose of ships power generation, or emergent repair due to impacts, all of which present a potential danger to the crew. T-AO replenishment oilers have two (2) SSDG’s, two (2) PTO’s and two (2) SCM’s per vessel.

The Renk precision Liners are sub assembly of the Siemens Generator. These precision Liners are not associated with any other company other than Renk Cooperation. Renk is the only authorized manufacture for these precision Liners component that makes up the part of the Siemens Generators Sub assembly. Proper knowledge and skill from the OEM is required to provide the proper repair parts for the ABS approved generators. Any deviations from OEM repair parts could result in personal injury or equipment failure and damage.

MSC does not have manufacturing and technical information required to evaluate and determine whether non-OEM service and replacement parts offered are equivalent to the OEM components and replacement parts. Only the OEM and authorized distributors can provide repair parts for this sophisticated equipment.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable: The Government intends to synopsize and to post a request for quotations (RFQ) at the Government Point of Entry, FedBizOpps website, with the intent of awarding a firm-fixed-price contract to Renk Corporation or an authorized distributor.

7. Determination of Fair and Reasonable Cost: The Contracting Officer will determine that the price is fair and reasonable pursuant to Federal Acquisition Regulations (FAR) Part 13.106-3.

8. Market Research: A sources sought (SS) notice was posted on the FBO website on 18 January 2018 and closed on 25 January 2018. The SS respondents were required to demonstrate the ability to provide the requested items or alternative solutions that are compatible with the existing Renk brand parts.

9. A Listing of the Sources, if any that Expressed, in writing, an Interest in the Acquisition: Two companies responded to the SS notice: S&G Trading LLC. and Euclid Infotech. Both companies that responded to the sources sought notice explained that they were able to provide the Renk brand name parts.

10. Actions to Remove Barriers to Future Competition: For the reasons set forth in paragraph 5, only parts procured under the brand name will suffice. If another potential source emerges, MSC Norfolk will assess at that time whether competition for future requirements is feasible.

CERTIFICATION AND APPROVALS

Technical Cognizance:

I certify that the facts and representations under my cognizance which are included in this justification and which form a basis for this justification are complete and accurate to the best of my knowledge and belief.

24 FEB 2018 N751 757-443-0884

Signature Date Code Phone

Requirements Cognizance:

Signature Date Code Phone

Legal Sufficiency Review:

I have determined this justification is legally sufficient.

Signature Date Code Phone

Contracting Officer Certification:

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

Signature Date Code Phone

RICHARDSON.GEORGE.R.13

64985122

Digitally signed by RICHARDSON.GEORGE.R.1364985122 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USN, cn=RICHARDSON.GEORGE.R.1364985122 Date: 2018.02.24 12:07:14 +08'00' nicolle.vasquez Typewritten Text nicolle.vasquez Typewritten Text 4/5/2018 N00L (757) 341-5528 ronald.e.schubert Typewritten Text 10 Apr 2018 ronald.e.schubert Typewritten Text N751 ronald.e.schubert Typewritten Text 757-443-0890