MTU_J&A_MTU_Class_FY_19_Redacted.pdf

Control Number N104-T-EPF MTU

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity. Department of the Navy, Military Sealift Command (MSC).

2. Description of Action Being Approved. Award of contracts on a sole source basis for MTU America Inc. (MTU) Main Propulsion Diesel Engines (MPDEs), model

20V8000M71L, in support of the Expeditionary Fast Transport (T-EPF) class of MSC vessels. The authority to act under this class justification and approval (J&A) expires on

September 30, 2019.

3. Description of Supplies/Services. MSC requires parts and services to support OEM recommended maintenance and repairs to the MPDEs installed aboard T-EPF vessels.

The actions executed under this class J&A have an estimated value of approximately using FY 19 Operation and Maintenance funds.

4. Statutory Authority Permitting Other Than Full and Open Competition. The statutory authority for commercial procurements greater than $150,000.00 is 41 U.S.C. 1901(e)(2) as implemented by FAR Part 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 $150,000.00 and for FAR Part 15 procurements is FAR Part 13.106-1 and 10 USC. 2304(c)(1), respectively, as implemented by FAR Part 6.302-1.

5. Rationale Supporting Use of Authority Cited Above. The MPDE Original Equipment

Manufacturer (OEM) for T-EPF class ships is MTU. There are currently ten (10) active T-EPFs in the MSC fleet with four each MTU Model 20V8000M71L MPDEs per vessel. All control system, propulsion shafting, reduction gears, hardware and structural support for the system is built specifically for the MTU 20V8000M71L MPDEs. Proper refurbishment, repair and maintenance of the engines are critical to the safe operation of the T-EPF vessels. The OEM parts and technical data/drawings are required by United States Coast Guard (USCG) and American

Bureau of Shipping (ABS) regulations. Use of OEM parts and services maintains all OEM warranties and ensures engine reliability and crew safety; therefore, precluding consideration of a product manufactured by another company. The engineering, construction drawings, and technical characteristics of the manufactured parts for these propulsion engines are proprietary to MTU and the United States Government has not acquired rights in these data.

Safety Management Systems Number 10.6-002-ALL lists all MPDEs as critical equipment.

Failure of one MPDE will render one corresponding waterjet inactive, will reduce the ship’s speed and will greatly reduce the ships maneuverability. The loss of two engines and corresponding waterjets puts a ship in an elevated, "C4" casualty status, rendered unable to perform its primary mission of providing logistics transportation services during mission. Any unintended reduction in available waterjet propulsion poses an untenable hazard to the crew due to limited ship maneuverability.

Control Number N104-T-EPF MTU

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. T-EPF engines require special tools, specialized repair parts, and technical expertise unique to these engines. Only approved OEM parts are authorized to be installed on this highly sophisticated equipment.

MTU has ready access to both parts and technical data/drawings as required to properly repair and maintain the equipment. Further, all OEM repair parts comply with USCG, ABS and International Maritime Organization regulatory requirements.

6. Description of Efforts Made to So1icit Offers from as Many Potentia1 Sources as

Practicable. In accordance with Procedures, Guidance and Information 206.302-1, the

Government issued a Sources Sought on the Federal Business Opportunities

(FedBizOpps) website seeking eligible businesses that could provide MTU MPDE parts and services on 8 November 2017 and 18 June 2018. There were no responses to the two

Sources Sought postings other than MTU. MTU is a large business under NAICS code

811310 and has no Active Exclusions on WWW.SAM.GOV as of 16 October 2018. The

Government intends to synopsize when required and to post Requests for Quotations

(RFQs) and Requests for Proposals (RFPs) on FedBizOpps for each separate procurement with the intent of awarding a firm-fixed-priced contract.

7. Determination of Fair and Reasonable Price. The Contracting Officer will determine that the price for supplies/services is fair and reasonable pursuant to FAR

Part 13.106-3 or 15.404-1, as appropriate.

8. Actions to Remove Barriers to Future Competition. For the reasons set forth in

Paragraph 5, OEM parts and services are required for the T-EPF class MPDEs. MSC has no plans at this time to compete future contracts for the types of supplies covered by this document. If another potential source emerges, MSC will assess whether competition for future requirements is feasible. Should MSC determine that OEM parts and services are no longer required, this class J&A will become null and void.

http://www.sam.gov/