JA_AUSTAL_redacted.pdf

JUSTIFICATION AND APPROVAL (J&A) FOR OTHER THAN FULL AND OPEN

COMPETITION

N104-18-R-4190

1. Contracting Activity: Department of the Navy, Military Sealift Command (MSC), Norfolk, VA 23511-2149.

2. Nature of Action: MSC has a requirement to award a contract on a sole source basis to Austal USA of Mobile, AL (Austal). The Government contemplates award of an indefinite delivery requirements contract with issuance of firm-fixed price task/delivery orders to procure OEM parts and service required to maintain the Integrated Machinery Control System (IMCS) and Ride Control System (RCS)for the Expeditionary Fast Transport (EPF) class of vessels. The resulting contract will commence from the date of award through one year thereafter with four 1-year option periods.

3. Description of Supplies/Services: MSC has a requirement to procure brand name Austal OEM parts and service to perform management support, systems specialist support, commissioning service, training, consulting, field service and parts support for equipment associated with the IMCS, RCS and integrated systems installed on the EPFs. The requirement is also to provide replacement parts, including mechanical and electronic monitoring controls. The estimated cost of this procurement is which includes the base year and four option years.

4. Statutory Authority: The statutory authority for this sole source procurement is executed under the authority of 10 U.S.C 2304(c)(1) as implemented by FAR 6.302-1 Only One Responsible Source and No Other Services will Satisfy Agency Requirements.

5. Rational Supporting Use of Authority Cited Above: Austal is the manufacturer of the EPF vessels. Austal has proprietary rights to the technical data and software necessary to provide replacement parts and perform engineering services for all integrated components on the EPFs to include the IMCS and RCS systems. The engineering, construction, drawings, software and technical characteristics for the manufacture of OEM parts for the IMCS and RCS systems are proprietary to Austal, limiting the ability of other companies to design or manufacture EPF parts. OEM parts and services are required to ensure the functional integrity and interoperability of the IMCS, RCS and integrated components which are critical ship systems. Improper repairs by a non-OEM provider could result in improper parts and service and could incapacitate the vessels. It is mission-critical and personnel safety-critical to maintain class configuration and interchangeability across the T-EPF class. Use of Austal parts will provide form, fit and function of the systems. Maintaining IMCS and RCS configuration across the T-EPF Class will ensure required reliability and effectiveness of the IMCS and RCS systems as required by the ships’ mission requirements, America Bureau of Shipping (ABS) and Safety of Life at Sea (SOLAS) regulation.

MSC does not have the 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. OEM representatives have access to provide parts and technical data drawings, as required to properly repair and maintain the equipment. All OEM repair parts are in compliance with United States Coast Guard and ABS IMO regulatory requirements.

6. Description of Efforts Made to Solicit Offers from as Many Potential Sources as Practical: A Sources Sought Notice was posted on Federal Business Opportunities (FBO) on 8 June 2018. To date, the only vendor to respond that is able to provide required parts and service is Austal.

7. Determination of Fair and Reasonable Cost: The Contracting Officer will determine that the price is fair and reasonable pursuant to Federal Acquisition Regulation FAR 13.501 prior to issuance of task/delivery orders.

8. Actions to Remove Barriers to Future Competition: For the reason set forth in paragraph 5, MSC has no plans at this time to compete future contracts for the type of services and parts covered by this J&A.