PATUXENT_N21857-9235-4028_SSJ_Redacted.pdf

1 Ver 2.0 (01 July 2018)

Date: 22 August 2019

MEMORANDUM

Subj: USE OF OTHER THAN FULL AND OPEN COMPETITION FOR AN ACQUISITION UNDER

THE SIMPLIFIED ACQUISITION THRESHOLD

Ref: (a) PR Number(s):

I. BACKGROUND:

1. In considering the references, FAR 13.106-1(b)(1)(i) states for purchases not exceeding the simplified acquisition threshold, Contacting Officers may solicit from one source if the Contracting Officer determines that, under the circumstances of the contract action, only one source is reasonably available (e.g., urgency, exclusive licensing, brand-name, or industrial mobilization).

2. As required by FAR 13.106-3(b)(3)(i), this memorandum explains the absence of competition for this acquisition because only one source will be solicited for this requirement (or for a portion of the requirement) and the requirement is not expected to exceed the simplified acquisition threshold.

II. DESCRIPTION OF ITEM OR SERVICE:

1. Procurement of Airguard 4AS Stern Tube Seal System Parts. Prior to award Contractor shall provide to MSC Contracting Officer documentation that all parts being provided are new OEM certified Parts.

These parts are required for the 2020 ROH Overhaul of the Airguard 4AS Stern Tube Seal System onboard USNS PATUXENT.

a) the name of the required source or brand name

Wartsila Defense, Inc.

3617 KOPPENS WAY

CHESAPEAKE, VA

b) the required delivery date/period of performance and

Required Delivery Date: 6 April 2020

c) its intended use.

The repair parts are required for the overhaul of the Airguard 4AS Stern Tube Seal System and is critical equipment aboard the T-AO vessels and essential to the mission of the T-AO vessels.

Failure of these equipment and systems could pose a hazard to the ship, its crew, and/or the environment. This technical risk can be broken down into four subparts: potential for disruption to the ship's mission support operation 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.. Each T-AO is required by ABS and USCG to have this equipment operational in order to leave port.

2. List the source(s) or known vendor(s) who are able to provide the above described item or service.

N21857-9235-4028

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Wartsila Defense, Inc.

3617 KOPPENS WAY

CHESAPEAKE, VA

III. THE DETERMINATION FOR USE OF OTHER THAN FULL AND OPEN COMPETITION IS BASED

ON THE FOLLOWING (select all that apply):

A. __X___ Only one responsible source (select all that apply):

1. ___X__ RESTRICTIVE RIGHTS: the source has established proprietary rights, limited rights in data, patent rights, copyrights, or secret processes in the item or service.

a. Explain what is subject to the restrictive rights.

Wartsila is the OEM for the Airguard 4AS Stern Tube Seals aboard the T-AO vessels. The technical drawings, process and data necessary to manufacture these repair parts is proprietary to Wartsila. The parts are manufactured and patented with proprietary rights by the OEM.

Repair and replacement parts are required to be OEM parts. No other manufacturer will serve the required repair needs and to procure from other than OEM could be catastrophic to the equipment, crew, environment and ultimately limit mission capability.

b. If drawings are included, who is identified as “owning” the drawings.

Wartsila; The engineering, construction, drawings, and technical characteristics for the manufacture of parts and services for these seals are proprietary to Wartsila. Wartsila Defence of Chesapeake, VA is the only US Distributer for these Parts and are the only licensed U.S.

authorized distributor and service center. _

2. _____ EXCLUSIVE LICENSING AGREEMENTS: The item or service is only available from the Original Equipment Manufacturer (OEM), or there is ONLY ONE authorized distributor or technical representative for the OEM.

a. Identify the OEM and explain the circumstances surrounding why the item or service is only available from the OEM.

b. Identify the distributor / authorized technical representative for the item or service.

Provide evidence of the exclusive licensing agreement as an attachment to this document.

(NOTE: If there is more than one distributor / authorized technical representative, then use Part B – Brand Name.)

3. __X___ OTHER REASON:

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

i. SMS Procedure Number: ____10.6-002-ALL____

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b. __X___ STANDARDIZATION / BRAND NAME: Per MSCs standardization initiative, only the specified make/model of the equipment/parts will satisfy the Government’s needs for additional units or replacement items.

i. Identify Make / Model Number(s):

Make: Wartsila Defense / Model #: Airguard 4AS Stern Tube Seal. ___

ii. Identify other vessels with this Make / Model:

Fifteen of the T-AOs are fitted with the Wartsila Defense Airguard 4AS Stern Tube Seals___

c. _____ FORM, FIT, AND FUNCTION: Item is direct replacement parts / components for existing equipment and must be compatible in terms of form, fit, and function with existing equipment / configurations.

i. Identify Make / Model of existing equipment:

ii. Describe how the equipment must be compatible with the existing configuration.

d. __X___ OTHER:

MSC competitively awarded the Wartsila 4AS stern tube seal system as a commercial item under MSC Contract N31980-00-C-0242. Under the contract, MSC did not acquire technical data rights or technical information beyond general arrangement drawings for installation on T-AO class ships, American Bureau of Shipping approval certificates, and an equipment technical manual. The arrangement drawings and the technical manual provide schematics and cut-away views of the stern tube seal, but do not provide sufficient information for the layman to accomplish industrial assistance type maintenance or provide parts for the seal system without possessing additional proprietary information and current technical service bulletins. Additionally, MSC does not possess or have the rights to the manufacturing drawings and processes, OEM specifications, material, tolerances and other technical data pertaining to the Wartsila stern tube seals and is unable to purchase the data rights now due to fiscal constraints and proprietary reasons. Accordingly, the manufacturing, special tools, and equipment required to manufacture the Wartsila stern tube seal is not known to MSC. Therefore, MSC does not have the manufacturing and technical information required to reverse engineer/manufacture replacement seal system components, and replacement parts will compromise the required reliability and effectiveness of the stern tube seal system as a whole. Wartsila of Japan, a subsidiary of Wartsila of Helsinki, Finland is the OEM for the stern tube seal components. Wartsila Defense of Chesapeake, VA is the only US distributor for these parts..

4. _____ UNUSUAL AND COMPELLING URGENCY: The supplies or services are of such unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits. Urgent requirements are supplies or services that will result in work stoppage, or are mission critical and the routine processing time would injure the Government. The determination that the procurement for the above is an urgent and compelling requirement is based on the following:

a. Date on which the requirement was identified:______________________

b. Required delivery date / Period of Performance: Required Delivery Date: 6 April 2020

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c. The reason for the large difference in the number of days

d. Estimated production lead time: 5 months

e. Explanation of why delivery / commencement of services by the date required is needed: (explain the impact to the mission, any special circumstances or conditions, etc.)

f. CASREP Number: _______________________________________

IV. ANTICIPATED DOLLAR VALUE OF PROCURMENT:

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V. CERTIFICATIONS AND APPROVALS:

Technical / Requirement Certification: I certify that the facts and representation under my cognizance which are included in this justification are complete and accurate to the best of my knowledge and belief.