RENKBearings_JandA.docx_Redacted.pdf

N104-18-Q-4537

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

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

Norfolk (N104-B1)(MSC).

2. Nature of Action: To procure Generator, Propulsion Motor, and Propulsion

Shaft Bearings in support of the T-AKE class of MSC vessels.

3. Description of Supplies/Services: MSC Norfolk requires parts to support overhaul and repairs to the Propulsion System Bearings for the Generator, Propulsion Motor, and Propulsion shaft installed aboard T-AKE class vessels.

The only known authorized Original Equipment Manufacturer (OEM) distributor is RENK Corporation (RENK).

4. Statutory Authority Permitting Other Than Full and Open Competition: The statutory authority for commercial procurement greater than $150,000.00 is 41

U.S.C. 1901€(2) as implemented by FAR Part 13.501(a), Simplified Procedures for Certain Commercial Items, Sole Source—Including Brand Name. The statutory authority for simplified acquisitions less than $150,000.00 and for FAR Part

15 procurements is FAR Part 13.106-1.

5. Rationale Justifying Use of Cited Statutory Authority: There are currently fourteen (14) active T-AKE class vessels in the MSC fleet, each with four (4) sets of Generator bearings, one (1) set of Propulsion Motor bearings, two (2) bearings for the Propeller Shaft. Proper refurbishment and maintenance of the engines are critical to the safe operation of the T-AKE vessels. This requirement to procure OEM refurbishment and maintenance of the

Propulsion System Bearings for the T-AKE class vessels 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 service, replacement components and parts on the Propulsion System Bearings. The OEM parts and technical data/drawings are required by U.S. Coast Guard (USCG) and American

Bureau of Shipping (ABS) regulations. OEM refurbishment and maintenance of the Propulsion System Bearings maintains all OEM warranties and ensures system reliability and crew safety, therefore precluding consideration of a product manufactured by another company. The engineering, construction drawings and technical characteristics for manufactured parts for these

Propulsion System Bearings are proprietary to RENK, and the U.S. Government did not acquire the rights to this data.

Safety Management Systems Number 10.6-002-ALL lists the Propulsion Motor system as critical equipment. Loss of the Propulsion Motor System would put the ship in a C-4 status, thus rendering the vessel unable to perform the primary mission of providing underway replenishment services to the fleet.

Any reduction of propulsion can also pose untenable risk of harm to the crew, due to the considerable hazards of limited ship maneuverability. Proper replacement parts are critical to the safe operations of T-AKE vessel

Propulsion Motor System.

MSC does not have the manufacturing and technical information required to evaluate and determine whether non-OEM service, components and replacement parts are equivalent to the OEM components and replacement parts. T-AKE

Propulsion System Bearings require special tools, specialized repair parts, and technical expertise unique to this system; only approved OEM service and parts are authorized for work on this highly sophisticated equipment. The OEM

Representative has access to provide parts and technical data / drawings from the OEM, as required to properly repair and maintain the equipment. All OEM repair parts are in compliance with USCG and ABS International Maritime

Organization (IMO) regulatory requirements.

6. Description of Efforts Made To Solicit Offers from as Many Offerors as

Practicable: In accordance with Procedures, Guidance and Information

206.302-1, the Government issued a Sources Sought on the Federal Business

Opportunities (FedBizOpps) website on 07 May 2018 for seven days, seeking eligible businesses that could provide OEM RENK Bearing parts and services.

There were no responses to the Sources Sought. However, MSC knows one company that has provided these services previously, RENK. RENK is a large business under the Sources Sought NAICS Code of 332991 and has no Active Exclusions on

WWW.SAM.GOV as of 24 May 2018. The Government intends to synopsize when required and to post Requests for Quotation (RFQs) and Requests for Proposal

(RFPs) on FedBizOpps for the 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 or 15.404-1, as appropriate.

8. Actions To Remove Barriers to Future Competition: For the reasons set forth in Paragraph 5, OEM parts and services are required for the USNS AMELIA

EARHART. If another potential source emerges, MSC will assess whether competition for future requirements is feasible.

N104-18-Q-4537

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

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.