K TAO CLASS PM1 EMS CARGO CONTROL CONSOLE UPGRADE (22Q2176) JA N00L SIG 7.20.22_Redacted.pdf

J & A No. N104-22-Q-2176

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of the Action Being Approved: Award of a sole source firm fixed price contract for the Original Equipment Manufacturer (OEM) Electronic Marine Systems Inc. (EMS).

3. Description of Supply Services: MSC Norfolk requires the technical expertise and services of EMS:

the OEM for the T-AO Class Cargo Console System (CCS), in order to repair and groom the system to 100% operability. The total estimated amount for this requirement is , which will be funded utilizing fiscal year 2023 Navy Working Capital Maintenance and Repair Funding.

4. Statutory Authority Permitting Other Than Full and Open Competition: The statutory authority for this commercial procurement is 41 U.S.C. 1901 (e) (2) as implemented by FAR Part 13.501(a), Simplified Procedures for Certain Commercial Items, Sole Source. The statutory authority permitting other than full-and-open competition is 10 U.S.C. 2304(c) (1), as implemented by FAR 6.302-1(a) (2), whereby parts and services are considered to be only available from one responsible source.

5. Rationale Justifying Use of Cited 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.

In accordance with the MSC Safety Management Systems procedure 10.6-002-AO, the Cargo Console System is 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, 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 repair events; potential for degradation in performance through a partial or complete failure of the component; and potential to cause harm to the crew or the environment.

This system's sole purpose of the Cargo Console system is to safely monitor and transfer cargo petroleum products onboard the ship to other vessels at sea. For the T-AO class, a Cargo Console System failure could cause catastrophic harm to the environment and is a loss to the primary mission area for the vessel.

MSC did not acquire technical data rights or technical information beyond general arrangement drawings for installation of the Cargo Console System onboard the T-AO class ships, American Bureau of Shipping approval certificates and an equipment technical manual. Procurement of replacement parts do not provide sufficient information for the layman to accomplish industrial assistance type maintenance or repair without possessing additional proprietary information and current technical service bulletins. Additionally, MSC does not possess or have the rights to the manufacturer drawings and processes, OEM specifications, material, tolerances and other technical data pertaining to the Cargo Console System. MSC does not have the manufacturing and technical information required to reverse engineer/manufacturer replacement components nor provide the level of system integration required to repair the system.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable: The requirement and this justification will be posted to Government Point of Entry (GPE), Federal Business Opportunities website, as a Combined Synopsis and Solicitation Notice, as authorized by FAR 5.203(a) (2). A sources sought notice was posted to the GPE on July 13, 2022 and closed July 20, 2022 with no responses. Any prospective contractor will be required to use the OEM or OEM Authorized vendor as a subcontractor to perform the work as specified above.

7. Determination of Fair and Reasonable Cost: The Contracting Officer will determine that the cost to the Government of the supplies/services covered by this J&A is found fair and reasonable in accordance with FAR Part 13.106-3.

8. Actions to Removed Barriers to Future Competition: For reasons set forth in Paragraph 5 and 6, MSC has no plans at this time to compete future contracts for the types of supplies and services covered by this document. If another potential source emerges, MSC will assess whether competition for future requirements is feasible. If the prime contractor identifies an alternate source fully qualified by technical expertise, experience, and access to OEM parts and technical data, the prime contractor must submit its analysis and documentation supporting the alternate source to the Contracting Officer with their quotation submission package.