FY_19-20_TAO_EATON_JA_Redacted.pdf

J&A Control Number: N104-TAO-PTO CLUTCH PARTS

CLASS JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of the Action Being Approved: Award of contracts on a brand name basis for technical representative services and materials from Eaton Airflex or any of its authorized distributors in support of the T-AO class of MSC vessels. The authority to act under this class justification expires on May 09, 2020.

3. Description of Supplies/Services: MSC has a requirement to procure Eaton Airflex brand parts and repair services on board the T-AO class vessels, specifically for the power take-off (PTO) clutches. MSC normally acquires these as long lead time repair components and provides them as Government Furnished Material (GFM) for installation during regularly scheduled dry dock ship repair availabilities. Accordingly, the actions executed under this class J&A have an estimated value of approximately using fiscal year (FY) 2019 and 2020 United States Navy Working Capital Funds (NWCF).

4. Statutory Authority Permitting Other Than Full and Open Competition: The statutory authority for commercial procurements greater than $250,000.00 is 41 U.S.C. 1901 as implemented by FAR Part 13.501(a), sole source (including brand name) acquisitions. The statutory authority for simplified acquisitions less than $250,000.00 is FAR 13.106-1(b).

5. Rationale Justifying Use of Cited Statutory Authority: The US Navy's Combat Logistics Force (CLF) T-AO Class Replenishment Oilers provide direct support to US and Allied Forces at sea and support combat conflicts, War on Terrorism and disaster relief around the globe. Their primary mission is to shuttle fuel oil to support ship and aviation operations and to provide sustainment such as fresh fruits and vegetables, vital repair spares, and personnel to Carrier Strike Groups and Allied Forces. The critical logistics support provided by the T-AO replenishment oilers enables these afloat operational groups to remain on station without disrupting wartime and/or other military defense operations. Fifteen T-AO class replenishment oilers are dispersed across the five Operational Commander's Areas of Responsibility (AOR).

With limited resupply ports around the world along with limited port access for US Navy vessels, T-AO class replenishment oilers are vital to Department of Defense military operations.

Eaton Airflex is the Original Equipment Manufacturer (OEM) for the PTO Clutch System. In accordance with the MSC Safety Management Systems procedure 10.6-002-AO, the main propulsion and PTO clutches, and shaft brakes are categorized as critical ship equipment. Critical Ship Equipment is defined as equipment and systems that are necessary to sustain the proper operation and mission capability of the ship. Failure of these equipment and systems could pose a hazard to the ship, its crew, and/or the environment. The systems to be maintained and repaired under this contract are vital contributors to the operations of the vessels. The procurement of other than OEM components from Eaton Airflex in these systems could result in catastrophic damage to these critical propulsion and auxiliary systems and loss of use of the vessel for its intended mission. Factory authorized suppliers provide parts, technical data/drawings, and technical representative services from the OEM as required by USCG and ABS regulations. This maintains all OEM warranties, ensures equipment reliability and crew safety, therefore precluding consideration of a product manufactured and serviced by another company.

MSC does not possess or have the data rights to the manufacturing drawings and processes, OEM specifications, material tolerances, and other technical data pertaining to the parts, and is unable to purchase the data rights due to proprietary reasons.

Accordingly, the manufacturing, special tools, and equipment required to manufacture the OEM parts is not known to MSC. MSC does not have the manufacturing and technical information required to reverse engineer, manufacture the parts, or hold the technical information to be able to evaluate non- OEM parts. Procuring alternative replacement parts could compromise the required reliability and effectiveness of the PTO elements installed on the T-AO Class ships.

6. Description of Efforts Made to Solicit Offers from as Many Potential Sources as Practicable: In accordance with (IAW) FAR 5.201(b)(1)(i), the Government intends to issue a synopsis and solicitation on FEDBIZOPPS for each separate procurement with the intent of awarding a firm fixed price contract or purchase order.

7. Determination of Fair and Reasonable Cost: The Contracting Officer will determine the contract prices to be fair and reasonable using price analysis techniques described in FAR 13.106-3 or 15.404-1, as appropriate on a per solicitation/contract basis.

8. Description of Market Research Conducted: A sources sought (SS) notice was posted on the FBO website on 03 April 2019 and closed on 12 April 2019. The SS respondents were required to demonstrate the ability to provide the requested items or alternative solutions that are compatible with the existing power-take off clutches or associated parts installed aboard T-AO class vessels.

9. List of Sources that Expressed Interest in Writing: To date, no qualified sources have expressed an interest in writing. However, when applicable, requirements will be advertised through FEDBIZOPPS.

10. Actions to Remove Barriers to Future Competition: For the reasons set forth in Paragraph 5, MSC has no plans at this time to compete future contracts for the types of supplies/services covered by this document, and there are no actions planned to remove or overcome the brand name requirement. If another potential source emerges, MSC will assess whether competition for future requirements is feasible.