Redacted_J&A.doc

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

N32205-18-Q-4101

1. Contracting Activity: Department of the Navy, Military Sealift Command ( MSC), Norfolk, VA 23511-2419.

2. Nature of Action: MSC Norfolk has a requirement to award a contract on a sole source basis to MTU America, Inc. MTU America, Inc. is the Original Equipment Manufacturer (OEM), for the Main Propulsion Diesel Engines (MPDE) for the Expeditionary Fast Transport (T-EPF) Class ships. There is no other source for parts.

3. Description of Supplies/Services: Provide the following parts: forty (40) MPDE power units with core charges, sixty (6) injectors with core chargers, four (4) starters with core chargers, and four (4) pressure reducing stations Based on market research, these parts have a lead delivery time of 10 months. Funding has been provided via Purchase Request N297847262V064.

4. Statutory Authority Permitting Other than Full and Open Competition: The statutory authority for this sole source procurement is Section 4202 of the Clinger-Cohen Act of 1996 as implemented by the Test Program for Certain Commercial Items, Federal Acquisition Regulations FAR 13.501.

5. Rationale Supporting Use of Authority Cited Above: The proper operation and maintenance of the MTU 20V8000 M71L MPDEs are critical to the safety of the T-EPF ships. MTU America, Inc. is the only source that can provide worldwide MPDE parts support for the MPDE systems installed on the T-EPF class ships. Only MTU can satisfy requirements for proprietary MTU 20V8000 M71L MPDE parts critical to the ship’s propulsion system. They have the data to produce the parts and have the proprietary rights. No other vender has access to the T-EPF class MTU 20V8000 MPDEs updates. The nature and complexity of the MTU 20V8000 M71L propulsion diesel is critical for mission essential propulsion.

The procurement of the before mentioned parts allow MSC to efficiently conduct regularly scheduled 12,000 hour maintenance on engines installed onboard all hulls of the T-EPF class. The T-EPF class is currently planned to have twelve (12) ships at the final construction completion. Each T-EPF has four (4) MTU 20V8000 MPDEs installed for a total of forty-eight (48) engines requiring maintenance. MTU America Inc. has warrantied these engines pending each engine is maintained in accordance with their scheduled maintenance recommendations.

MSC will use the subject power units as a rotating pool to replace the existing power units during each ships regularly scheduled yearly 45 day Regular Overhaul and Dry-Docking corresponding to 12,000 MPDE hours. Overhauls will be divided over 2 years, with 2 MPDEs being overhauled each year. MSC will in turn overhaul the removed power units through MTU America, Inc. for installation on the next engines. The alternative method of power unit removal, overhaul and reinstallation is estimated to take 60 days without consideration of the impact caused by delays from international shipping or additional repairs and consumables required. The method of procuring a power unit rotating pool will reduce the risk and reduce the duration of time each ship would be required to be in the shipyard, thereby increasing the ship’s Operational Readiness to the Fleet Commanders.

If any other power unit were procured, it would result in a multi-year re-design of the MPDEs system, structural elements and control system of the T-EFPs. The hardware, software, and structural design would need to be completely re-configured at an unacceptable cost. It is mission-critical and personnel safety-critical to maintain class configuration and interchangeability across the ship class. Maintaining configuration across the class will ensure required reliability and effectiveness as required by the ships mission requirements. Any deviation from OEM parts could result in personal injury, loss of life, or equipment failure. Use of MTU America, Inc. components will provide fit, form and function of the MPDE system.

MSC does not have manufacturing and technical information required to evaluate and determine whether non-OEM components and replacement parts offered are equivalent to the OEM components and replacement parts. This is proprietary information and the Government did not acquire rights in this data.

The OEM representative has access to provide parts 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 So1icit Offers from as Many Potentia1 Sources as Practica1: The Contracting Officer will continue to synopsize and solicit each requirement in FEDBIZOPPS, unless there is an urgent and compelling need for the service and/or parts. In that case, a procurement-specific J&A for unusual and compelling urgency will be executed and included in the file.

7. Contracting 0fficer's Determination of Fair and Reasonable Price: The Contracting Officer will determined the anticipated cost to the Government of the materials covered by this J&A will be fair and reasonable pursuant to Federal Acquisition Regulations (FAR) Part 13.106-3(a)(2).

8. Actions to Remove Barriers to Future Competition:

Procurement will provide sufficient assets to provide Ready for Issue (RFI) support of the EPF program. This critical equipment related items must have repair parts readily available when required by the Ship Management Team (SMT) for immediate installation. No specific action is planned to overcome barriers to competition in subsequent procurements, other than synopsizing the requirements. If another potential source emerges, MSC Norfolk will assess whether competition for future requirements is feasible.