JA N3220520D6714 P00009_Redacted.pdf

N32205-20-D-6714-P00009

MILITARY SEALIFT

471 EAST C STREET

23511-2419

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN

COMPETITION

Contracting Activity:

Department of the Navy, Military Sealift Command (MSC), Services and Ship Support (N102).

Description of the Action Being Approved:

The Justification and Approval (J&A) will increase the ceiling amount on Indefinite Delivery, Indefinite Quantity contract number N3220520D6714, contract holder L3 Harris Maritime Services Inc.(L3). This single source indefinite delivery, indefinite quantity (IDIQ) is used by both MSC and Naval Supply Systems Command, Fleet Logistics Centers (NAVSUP). This modification will increase the IDIQ maximum ceiling amount over the remaining five-year ordering period (01 May 2020 � 30 April 2025) from $19,479,434.78 to $30,479,434.78. All other IDIQ terms and conditions remain the same.

Description of the Supplies/Services:

This IDIQ contract requires a broad range of Original Equipment Manufacturer (OEM) systems/items and/or exclusively authorized OEM manufacturers/parts provider/service technicians to maintain the following L3 equipment contained on MSC T-AO and T-AOE class vessels:

Maine Engine Monitoring System Alarm and Shutdown Circuits Engine Room Machinery Plant Control and Monitoring Systems Machinery Centralized Control System (MCCS) Human Machine Interface (HMI)

Maintenance includes, but is not limited to appraisals, grooms, life cycle management, overhauls, refurbishment, repairs onboard vessels, in-shop repairs, reports, tests, and future upgrades. Each issued order will utilize corresponding Fiscal Year (FY) United States Navy Working Capital Funds

(NWCF).

The scope of work on the current contract will not change. The total ceiling increase for services is shown in the below table:

Estimated Dollar Value (Rounded to the nearest $1million (M))

Appropriation Original Amount (From)

Est. Amount of Increase for FY25

(By)

Requested Amount for Approval

(To)

NWCF $19M $11M $30M

4. Statutory Authority Permitting Other Than Full and Open Competition:

This contract was awarded on an other than full and open competition procurement under the statutory authority of 10 U.S.C.3204(a)(1) as prescribed by FAR 6.302-1, �Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.�

5. Rationale Justifying Use of Cited Statutory Authority:

This J&A justifies increasing the ceiling price for the current L3 contract for supplies and services previously awarded on a non-competitive basis. MSC estimated the maximum dollar value or ceiling amount for the total value of task orders that can be issued under the contract based on historical records, -- including those for the predecessor contract. However, MSC maintenance and repair activities have endured an unpredicted, very high operational tempo which means the current ceiling amount is too low. The contemplated type of parts and services for the remainder of the current contract period of performance will remain the same, meaning the ceiling increase is not for different work, but just more than expected amounts of the parts and services described in the current contract performance work statement (PWS).

As to considering a different contract with a different supplier, L3 as the OEM parts and services provider maintains the intellectual property rights on all its systems and is the only known source with access to the design information to engineer, manufacture, and service this equipment, as they have the proprietary drawings, technical manuals, and design information for this equipment. Government lacks the technical information, manpower, expertise, or time to attempt replacing L3 parts and services.

L3 has not sold or shared the technical data and training with other companies; no other company is authorized to provide services on or parts for these systems because all systems covered under this requirement are mission critical ship safety items in accordance with as the International Safety Management Code (ISM)/Safety Management System (SMS), regulations, COMSCINST 4490.1C and QMS N0750-100.00-AQ Revision 2.1. Failure of these systems would restrict the ship to port, and it would not be able to perform its required mission. Further, safe vessel operations require proper refurbishment and maintenance of these propulsion systems in accordance with United States Coast Guard (USCG) and American Bureau of Shipping (ABS) regulations. Specifically, the OEM systems and services preserve all OEM warranties, ensure equipment reliability, and ensure crew safety, therefore precluding consideration of non-OEM parts and non-OEM authorized technical services representatives.

Even if the Government contemplated replacing the L3 systems, the current contract is in mid performance and no contract vehicle would soon be in place. Moreover, the estimated cost for the Government to procure replacement systems would minimally cost $3M per ship resulting in a total duplication cost of $55M that could not be replaced. This estimate was derived from historical pricing data, market research, and technical expertise and advice provided within MSC. Delaying this procurement to identify, develop, and qualify another source would increase operational downtime, as well as safety and quality concerns, and would negatively impact the maintenance and readiness of MSC ships and the operational capabilities of the United States Navy. This would not include contract termination costs.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable:

No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than L3 to provide the required service.

MSC continues to conduct market research to maintain awareness of capabilities within the marketplace. At this time, based on the research and reasons discussed in paragraph 5 above, MSC concludes that no other sources other than L3 can provide the required supplies and services under this J&A.

7. Determination of Fair and Reasonable Cost:

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition:

For the reasons set forth in paragraph 5, MSC has no plans at this time to fully and openly compete future contracts for the types of supplies/services covered by this document. MSC will continue market surveillance and discussions with L3 to broaden the number of available providers and if other potential sources emerge, MSC will assess whether competition for future requirements is feasible.

COMPETITION ADVOCATE, MILITARY SEALIFT COMMAND

Upon the basis of the following justification, I, hereby approve, as Competition Advocate, Military

Sealift Command, the contract action described herein using other than full and open completion, pursuant to the authority of 10 U.S.C. 2304(c)(1):

Signature Name (Printed) Phone No. Date