N102-18-Q-7105__T-AO_LOP_1.pdf

Sole Source Control #

Date: 4-26-18

From:

MEMORANDUM FOR SIMPLIFIED ACQUISITIONS (<$150K)

Bradley S. White N722

To: Contracting Officer, Military Sealift Command

Subj: USE OF OTHER THAN FULL AND OPEN COMPETITION (SOLE OR LIMITED SOURCE)

Ref: (a) Procurement Request No(s) N322058150N7M0

(b) Federal Acquisition Regulation 13.106-1

The supplies or services required under this requisition are available from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy the Government's need. There is a reasonable basis to conclude that the Government's minimum needs can only be satisfied by unique supplies or services available only from one or a limited number of suppliers with unique capabilities. The following justification applies.

An acquisition that uses a brand name (Furuno, Motorola, Vidmar) or other description to specify a particular brand name, product or feature of a product peculiar to one manufacturer does not provide for full and open competition regardless of the number of sources solicited. Beyond that, if you choose to limit the number of sources of a particular brand name/OEM, the procurement is “sole/limited source,” which is more difficult to justify. However, if the specification is brand name or equal, then the procurement is competitive.

Describe the item and/or services required:

Background: Since replacement of the T-AO Class Ship’s Lube Oil Purifiers from the Westfalia OSB 35-02-066 to Westfalia OSE20-91, there has been an increased number of heat exchanger failures reported. To date, MSC N7 has documented at least nine (9) heat exchanger failures since the first class installation of the new lube oil purifier started in 2015. Originally supplied with the Westfalia OSB 35-02-066 units were shell and tube type, however the new Westfalia OSE20-91 purifiers utilize a plate type heat exchanger.

Task: The Contractor shall provide engineering services to complete the inspection, analysis and testing of four (4) lube oil purifier heat exchangers which failed in service in order to determine any possible casual factors resulting in their failure.

Known Source(s) for the item or services: List the source(s) (offeror(s)/vendor(s)) who are known to be able to provide the above described item and/or services.

Kelvion Inc, PHE 4915 Hwy 90 East Broussard, LA 70518

OEM for Heat Exchangers is Kelvion (Westfalia is the OEM for the Lube Oil Purifier in which the Kelvion designed and manufactured heat exchanger is installed).

Check which of the following applies:

"ONLY ONE RESPONSIBLE SOURCE" (example: OEM technical representative)

"LIMITED SOURCE" (example: multiple OEM authorized technical representatives)

"BRAND NAME SOLE SOURCE" (example: OEM replacement part)

"BRAND NAME LIMITED SOURCE" (example: multiple OEM authorized part distributors)

N32205-18-Q-7105

1. This determination for single/limited source procurement for this requirement is based on one or more of the following. Select all that apply:

A. X RESTRICTIVE RIGHTS. The existence of proprietary rights, limited rights in data, patent rights, copyrights or secret processes make the required item or service available from only one source.

Explain what is subject to restrictive rights such as proprietary rights, limited rights in data, patent rights, copyrights or secret processes:

As shown on the drawings, who is identified as "owning" the drawing:

Explain why the restrictive rights make the required item or service available from only one source, i.e., why another company still couldn’t satisfy the Government’s need:

B. EXCLUSIVE LICENSING AGREEMENTS. Due to exclusive licensing agreements and arrangements, the required repair/spare parts and/or technical representative services are only available from the Original Equipment Manufacturer (OEM) or ONLY ONE authorized distributor or technical representative.

Identify the OEM (i.e., Motorola; Schat Harding):

C. X Attach evidence of the exclusive licensing agreement.

CRITICAL SHIP EQUIPMENT. The required item is critical ship equipment the failure of which poses a hazard to the ship, the crew and/or the environment.

X Provide the SMS procedure number: SMS 10.6-002 ALL

D. STANDARDIZATION. In accordance with MSC's standardization initiative, only the specified make and model of equipment/parts will satisfy the Government's needs for additional units or replacement items, and only one source is available. (i.e., ship currently has 10 Motorola radios onboard and five more need to be purchased to bring onboard allowances up to 15). Provide the following information:

Identify the Make: and Model Number: Identify other ships that have this same Make and Model Number:

E. FORM, FIT AND FUNCTION. The required items are direct replacement parts/components for existing equipment and must be compatible in terms of form, fit and function with existing equipment/configurations. Provide the following information:

Identify the Make: and Model Number:

Describe how new equipment must be compatible with existing ship's configurations (i.e., piping, cabling, etc.):

F. UNIQUE FEATURES. Similar products lack features that are necessary to meet the Government's minimum needs (i.e., Furuno radar vs. Raytheon radar). Provide the following information:

Identify the required features that are lacking from the competitor's product:

G. X OTHER REASONS. Other reasons not identified above (i.e., statutory requirement such as harbor pilot services):

Kelvion has extensive experience both with metallurgical analysis testing as it relates to their heat exchangers but also how the heat exchangers could be potentially failing as a result of their utilization in the design itself. If MSC uses a standard failure analysis lab the second portion of this analysis (which is the most vital) would not be provided.

2. Anticipated dollar value of the procurement: $_22k

$30,000.00