T-AOE_Sole_Source_JA_Mission_Critical_Parts-ARCTIC_FBO.doc

CLASS JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (BRAND NAME) OF T-AOE STERN TUBE SEAL COMPONENTS

N104-18-R-4341

Upon the basis of the following class justification, I, as Competition Advocate for Military Sealift Command-Norfolk, hereby approve the use of other than full and open competition for the proposed acquisitions described below, pursuant to the authority cited herein.

Contracting Activity: Department of the Navy, Military Sealift Command Norfolk

Description of Action Being Approved: This is a class justification for the use of other than full and open competition to procure brand name stern tube seal components from Wartsila Defense of Chesapeake, Virginia, for the T-AOE class of USN/MSC vessels. The authority to act under this justification expires September 30, 2018.

Description of Supplies/Services: Military Sealift Command (MSC) has a requirement to procure brand name shaft seal components manufactured by Wartsila Corporation for installation as replacement/repair components onboard all T-AOE class of USN/MSC vessels. MSC normally acquires these shaft seal components as long lead time repair components and provides them as Government Furnished Material (GFM) for installation during regularly scheduled drydock ship repair availabilities. Based on historical data, the total cost of each of these required components is approximately $132,000 per ship set. During the effective period of this class J & A, MSC anticipates procuring two sets of shaft seal repair components for the T-AOE class vessels. Accordingly, the actions executed under this J & A have an estimated value of approximately $262,600. However, this class J & A shall provide authority to procure all MSC requirements for shaft seal components for T-AOE class vessels during the effective period. Wartsila Japan, a subsidiary of Wartsila in Helsinki, Finland is the Original Equipment Manufacturer (OEM) for the shaft seal components. Wartsila Defense of Chesapeake, VA is the only US distributor for these parts.

Statutory Authority Permitting Other than Full and Open Competition: The statutory authority for this commercial procurement 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. The statutory authority for simplified acquisitions less than $150,000.00 and for FAR Part 15 procurements will be FAR Part 13.106-1 and 10 U.S.C. 2304(c)(1) as implemented by FAR Part 6.302-1, respectively.

Rationale Justifying Use of Cited Statutory Authority: As detailed below, this requirement to procure OEM shaft seal repair components for the T-AOE class relates to national defense, military mission readiness and safety at sea. The solicitation’s requirements seek to achieve a continuation of the highest possible reliability and effectiveness by using only OEM replacement components and parts in the OEM shaft seal system. The shaft seal components manufactured in accordance with the proprietary manufacturing processes, specifications, materials, and tolerances of Wartsila have successfully provided the highest level of reliability and effectiveness required by MSC to meet national defense, military mission readiness and safety at sea requirements.

The U.S. Navy's Combat Logistics Force (CLF) T-AOE Class provide direct support to U.S and Allied Forces at sea and support Combat conflicts/operations, War on Terrorism and disaster relief efforts around the globe. Their primary mission is to shuttle fuel oil to support ship and aviation operations and provide sustainment such as fresh fruits and vegetables, vital repair spares and personnel to Carrier Strike Groups (CSG), Amphibious Readiness Groups (ARG) and allied forces. The critical logistics support provided by the T-AOE enables these afloat operational groups to remain on station without disrupting wartime operations. With limited re-supply ports around the world along with limited port access for U.S. Navy vessels, the T-AOE class is vital to Department of Defense military operations.

In accordance with the MSC International Safety Management Code procedure 10.6-002-AOE signed by the Military Sealift Fleet Support Command Director, the shaft seals on the T-AOE class are categorized as “critical ship equipment.” Critical Ship Equipment means equipment and systems necessary to sustain the proper operation and mission capability of the ship. Failure of critical ship equipment 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 operating 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.

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 through the seal assembly, especially in Main Machinery Space Number 2, if not controllable, can result in the total loss of equipment on the lower level of the engine room. The price tag for replacing all equipment on the lower level alone can be estimated in hundreds of millions of tax payer dollars. 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 events, costing upwards of one million dollars per event to accomplish an unplanned, emergent repair.

More significantly, the loss of a T-AOE 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 of the loss of critical logistics support capability provided by the vessel. 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.

Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable: In accordance with FAR 5.201(b)(1), the Government intends to issue a combined synopsis- solicitation on FEDBIZOPPS on a sole source basis for each ship’s requirement.

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.

Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, MSC has no plans at this time to compete future contracts for the type of supplies covered by this document.

CERTIFICATIONS AND APPROVAL TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations included in this Justification are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

BOLAN.JOHN.EDWIN.1093537250

Digitally signed by BOLAN.JOHN.EDWIN.1093537250 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USN, cn=BOLAN.JOHN.EDWIN.1093537250 Date: 2017.12.13 14:06:01 -05'00' file_0.wmf

Signature Name (Printed) Phone No. Date

Requirements Cognizance:

PALANDRO.ROBERT.JR.1006082099

Digitally signed by PALANDRO.ROBERT.JR.1006082099 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USN, cn=PALANDRO.ROBERT.JR.1006082099 Date: 2017.12.13 15:13:01 -05'00' file_1.wmf file_2.wmf file_3.wmf file_4.wmf

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW:

I have determined this Justification is legally sufficient.

THORNLEY.DONALD.J.1049265405

Digitally signed by THORNLEY.DONALD.J.1049265405 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USN, cn=THORNLEY.DONALD.J.1049265405 Date: 2017.12.13 13:21:57 -05'00' file_5.wmf

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.

JONES.JEFFREY.DOUGLAS.105

Digitally signed by JONES.JEFFREY.DOUGLAS.1050477726 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USN, cn=JONES.JEFFREY.DOUGLAS.1050477726 0477726 Date: 2017.12.13 14:20:51 -05'00' file_6.wmf file_7.wmf

Signature Name (Printed) Phone No. Date