JA_SOR_JEC_SEMBCORP_MARINE_LAY-UP_PERIOD.Redacted_Redacted.pdf

DEPARTMENT OF THE NAVY

DIRECTOR

MILITARY SEALIFT COMMAND NORFOLK

471 E. C STREET

NORFOLK, VA 23511

JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Department of the Navy, Military Sealift Command-Norfolk (MSC), 471 East C. Street Norfolk, Va. 23511.

2. Description of Action Being Approved: Award of contract on a sole source basis for the services of a commercial pier to provide pier space and minimal ships services to allow temporary berthing at facility until vessel is able to reinstall Port Main Engine Reduction Gear Pinion/Quill Shaft/Kopflex Coupling due to a C4 CASREP.

3. Description of Supplies/Services: This requirement covers Sembcorp Marine Repairs & Upgrade Pte Ltd Sembawang Facility to provide commercial pier space and minimal services for berthing for the John Ericsson T-AO 194 following completion of the 2018 FY Mid Term Availability (MTA) in Singapore. The scheduled Period of Performance (POP) of berthing is from: no less than 1 August 2018 – 31 January 2019, but not more than 1 August 2018 – 31 March 2019. The John Ericsson T-AO 194 requires temporary berthing due to the C4 CASREP and having locked port propeller shaft which results in reduced maneuverability and inability to do required mission. The impacted equipment is identified as critical ship equipment per SMS Procedure 10.6-002-AO.

4. Statutory Authority Permitting Other Than Full and Open Competition: The statutory authority for this procurement is 41 U.S.C 1901(e)(2) as implemented in FAR 13.5 Simplified Procedures for Certain Commercial Items, more specifically FAR 13.501 and FAR 13.106-1(b).

5. Rationale Justifying Use of Cited Statutory Authority: In accordance with MSC Safety Management Systems procedure 10.6-002-AO, the ship’s Propulsion Machinery and 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 systems and equipment would pose a hazard to the ship, its crew, or the environment. This technical risk can be broken down into three subparts: potential for disruption to the ship’s mission support operation schedule; potential for degradation in performance through a partial or complete failure of the component; and potential to cause harm to the crew or the environment. The systems to be maintained and repaired are vital contributors to the operations of the vessel. The procurement of other than approved repair services in these systems could result in catastrophic damage and loss for the vessel to accomplish its intended mission.

Sembcorp Marine Repairs & Upgrade Pte Ltd Sembawang Facility has completed the John Ericsson T-AO 194 FY 2018 MTA. The Data/Drawings from the Original Equipment Manufacturer are required by USCG and ABS regulations. The Sembcorp Marine Repairs & Upgrade Pte Ltd Sembawang Facility competed with an OPEN bid to win the contract.

Following the

The total estimated amount of this requirement is .

identification of required temporary berthing, two (2) other potential bidders were contacted and both declined to consider providing temporary berthing for the identified timeline, therefore precluding consideration of the services by another company within Singapore.

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 and 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 is fair and reasonable pursuant to Federal Acquisition Regulations (FAR) Part 13.106-3.

8. Market Research: Market research was performed by reviewing historical service orders (both government and shipyard orders) for similar requirements for Sembcorp Marine Repairs & Upgrade Pte Ltd Sembawang Facility. These requirements for Cincinnati Gearing were historically solicited on an open bid source basis. Market research revealed that no other local commercial piers would consider providing berthing as required.

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 and solicited 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, services provided by Sembcorp Marine Repairs & Upgrade Pte Ltd Sembawang Facility are required. Should MSC determine that Sembcorp Marine Repairs & Upgrade Pte Ltd Sembawang Facility services are no longer required; this J&A will become null and void.