J&A_N3220519Q6779_MTU_Power_Units_(Redacted).pdf

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

COMPETITION

N104-19-Q-6779

1. Contracting Activity: Department of the Navy, Military Sealift Command (MSC), Norfolk, VA 23511-2419.

2. Nature of Action: MSC Norfolk has a requirement to award a fixed firm price contract on a sole source basis to MTU America (MTU). MTU is the Original Equipment Manufacturer (OEM) for MTU Main Propulsion Diesel Engines (MPDE), model 20V8000M71L, for the Expeditionary Fast Transport (T-EPF) class vessels.

3. Description of Supplies/Services: Provide the parts and services required to Overhaul forty (40) power units for OEM recommended 12,000 hour MPDE maintenance onboard the USNS SPEARHEAD. Funding executed under this J&A has an estimated value of XXXXXXXX using FY19 Operation and Maintenance funds.

4. Statutory Authority: The statutory authority for commercial procurements greater than XXXXXXXX is 41 U.S.C. 1901(e)(2) as implemented by FAR 13.501(a), Simplified Procedures for Certain Commercial Items, Sole Source. Section 815 of the National Defense Authorization Act of Fiscal Year 2015 makes this authority permanent. The statutory authority for simplified acquisitions less than XXXXXXX and for FAR Part 15 procurements is FAR 13.106-1 and 10 U.S.C. 2304(c)(1), respectively, as implemented by FAR 6.302-1.

5. Rationale Supporting Use of Authority Cited Above: The MPDE OEM for T-EPF class vessels is MTU. Each EPF vessel is built with four (4) each MTU Model 20V8000M71L MPDEs. All control system, power packs, propulsion shafting, reduction gears, hardware and structural support for the system is built specifically for the MTU 20V8000M71L MPDEs. If other than MDPE components were procured, it would result in a multi-year redesign of the structural elements of the T-EPF vessel. The hardware and structural design would need to be completely reconfigured at an unacceptably high cost. MSC does not have manufacturing and technical information required to evaluate and determine whether non-OEM components, replacement parts and service 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 from the original manufacturer, as required to properly repair and maintain the equipment.

Additionally, use of MTU MPDE components will provide form, fit and function of the MPDEs. The use of MTU MPDE parts across the class will ensure required reliability and effectiveness of the MPDEs as required by ABS, Safety of Life at Sea SOLAS and MSC COMISNT 4490.1A regulation. It is mission critical and personnel safety critical to maintain class configuration and interchangeability across the T-EPF vessel class. Any deviation from the OEM parts and maintenance requirements could result in personal injury, loss of life, or equipment failure and damage to the installed MPDEs. All OEM repair parts and service are in compliance with USCG and ABS IMO regulatory requirements.

6. Description of Efforts Made to So1icit Offers from as Many Potentia1 Sources as Practica1: The Contracting Officer will continue to synopsize and solicit each requirement in FEDBIZOPPS, unless there is an urgent and compelling need for the service and/or parts. In that case, a procurement specific J&A for unusual and compelling urgency will be executed and included in the file.

7. Contracting 0fficer's Determination of Fair and Reasonable Price. The Contracting officer will determine that the price is fair and reasonable pursuant to FAR Part 13.106-3(a)(2).

8. Actions to Remove Barriers to Future Competition: Procurement will provide sufficient assets to provide Ready for Issue (RFI) support of the T-EPF program. T-EPF vessels are scheduled regular maintenance overhauls and these critical propulsion related items and service must be available when required by the Ship Management Team (SMT) for immediate installation. No specific action is planned to overcome barriers to competition in subsequent procurements other than synopsizing the requirements. If another potential source emerges, MSC will assess whether competition for future requirements is feasible.