Attachment 1 (JA_Redacted).pdf

MSC-N102-24-R-4017

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

OPEN COMPETITION

Contracting Activity:

Department of the Navy, Military Sealift Command (MSC), Engineering Services Division

(N102).

Description of Action Being Approved:

This Justification and Approval provides the basis and rationale for awarding a contract on an other than full-and-open competition basis for long-standing, recurrent part requirements covering a broad range of pump systems in support of multiple MSC class vessels including, but not limited to, T-AH (Hospital), T-AKE (Dry Cargo/Ammunition) and T-AO (Fleet Replenishment Oiler). MSC recognizes its obligation to promote competition to the maximum extent possible, Description of Supplies/Services:

MSC requires a broad range of Original Equipment Manufacturer (OEM) parts to support overhaul and repairs of pumps manufactured by Warren Pumps, LLC and IMO Industries, Inc.

currently installed aboard MSC Vessels. Both Warren Pumps Inc. and IMO Industries Inc.

operate under the parent company, CIRCOR Naval Solutions, LLC (CIRCOR). The pump models installed aboard MSC vessels include, but are not limited to: 413DVCS, 413RBCS, A3DBCS, A3DBCSX, A3DBS, A3DVCSX, C3EHCS, DA3DBCS, D3EBFS, D3EBCS, D3EHCS, D3EHFS, G3DBCS, G3DHCS, 2-1/2-DBH, 14-DBVB-16, 12-DBVB-18, 6-

DBVB-15, 5- DBVB-21, S133.66.6FGE-M060, 8-DBCN-22, 12-DTBM-14H,

DLBM-16, X 1-1/2 X 7, and 25� VP.

It is anticipated that each delivery order will be funded utilizing

The following sections show the breakdown of the requirement between Warren Pumps and IMO Pumps. Table 1 below shows the quantities and locations for each type of Warren pump. Table 2 below shows the quantities and locations for each type of IMO pump.

a. Warren Pumps LLC (2-1/2-DBH, 14-DBVB-16, 12-DBVB-18, 6-DBVB-15, 5-

DBVB- 21, S133.66.6FGE-M060, 8-DBCN-22, 12-DTBM-14H, 14-DLBM-16, 3 X

1-1/2 X 7, and 25� VP)

Table 1

Pump Quantity Per Ship

Number of Ships Containing Pump

Total Quantity of Pumps

Class of Ships Containing Pump

2-1/2-DBH 4 15 60 T-AO

14-DBVB-16 2 15 30 T-AO

12-DBVB-18 2 15 30 T-AO

6-DVBV-15 2 15 30 T-AO

5-DBVB-21 3 15 45 T-AO

S133.66.6FGE-

M060

4 15 60 T-AO

8-DBCN-22 5 15 75 T-AO

12-DTBM-14H 2 7 14 T-AO

14-DLBM-16 1 8 8 T-AO

3 X 1-1/2 X 7 2 5 10 T-AKE

25� VP 2 2 4 T-AH

b. IMO Industries Inc. (413DVCS, 413RBCS, A3DBCS, A3DBCSX, A3DBS, A3DVCSX, C3EHCS, DADBCS, DA3DBCS, D3EBFS, D3EBCS, D3EHCS, D3EHFS, G3DBCS, G3DHCS.)

Table 2

Pump Quantity Per Ship

Number of Ships Containing Pump

Total Quantity of Pumps

Class of Ships Containing Pump

413DVCS 4 15 60 T-AO

413RBCS 4 15 60 T-AO

A3DBCS 4 15 60 T-AO

A3DBCSX 4 15 60 T-AO

A3DBS 4 15 60 T-AO

property of CIRCOR and its subsidiaries, making them the only known source. The Government did not acquire rights in the above-described proprietary data.

CIRCOR provides OEM parts and technical data/drawings that meet the requirements established by the United States Coast Guard (USCG) and American Bureau of Shipping (ABS) regulations. This mandatory regimen maintains and requires all OEM warranties and ensures equipment reliability and crew safety, therefore precluding consideration of non- OEM parts at this time. Safety Management Systems (SMS) number 10.6-002-ALL lists the propulsion and mission and safety systems as critical equipment. Failure to utilize OEM pumps would affect operation of the propulsion and auxiliary and safety equipment and restrict the ship�s mobility, precluding the ship from meeting mission. Utilizing OEM pumps are critical to the safe operations of these vessels.

c. MSC does not have manufacturing and technical information required to evaluate and determine whether non-OEM systems/items potentially offered as equivalent to the OEM components and replacement parts are technically acceptable at this time. These systems/items require special tools, specialized repair parts, and technical expertise unique to these pumps; only approved OEM parts are authorized to be installed for this highly sophisticated equipment. The OEM, CIRCOR is the only vendor who has access to provide parts and technical data/ drawings to manufacture pumps that are required for this procurement.

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

For all systems/items identified in section 5, and in accordance with FAR 5.201(b)(1)(i), MSC contracting department posted a sources sought notice to the government wide point of entry (SAM.GOV). This sources sought notice was posted on 20 NOV 2023 and closed 01 DEC 2023. The sources sought notice was re-posted to SAM.gov on 11 DEC 2023 and closed on 18 DEC 2023. This was intended to allow more time for potential industry vendors to respond, but also provide information to non-OEM vendors that a process exists to become OEM certified by MSC. If the certification is pursued, then non-OEM vendors may be able to compete for this IDIQ award and become a supplier for the underlying requirement. No written or electronic responses were received, but the current incumbent and known sole source provider Circor did provide a verbal affirmative response that they are interested and capable with regards to the instant requirement. MSC will continue to work with its contracting, engineering support, and program manager offices to identify potential manufacturing sources. Further, MSC frequently communicates with the industrial base to assure that all potential sources are identified and receive consideration for these requirements.

MSC intends to issue a synopsis of proposed contract action (solicitation) on the SAM.gov web portal to elicit suitable responses. The stated intent will be to award one (1) single award IDIQ contract with firm-fixed price delivery orders.

7. Determination of Fair and Reasonable Cost:

The IDIQ contract will include pre-negotiated part prices. A fair and reasonable determination will be made using the techniques described in FAR 15.404-1. The Contracting Officer has surveyed the history of acquisitions for the above pumps, for which fair and reasonable determinations were individually established. The Contracting Officer will ensure that the base contract as well as any subsequent delivery orders utilizing other than pre-negotiated pricing is commensurate with the historical pricing, adjusted for current market conditions and inflation. In this way, the Contracting Officer will determine that the price to the Government for the parts covered under this J&A will be fair-and-reasonable.

8. Actions to Remove Barriers to Future Competition:

For reasons set forth in section 5, MSC has no plans at this time to engage in full-and-open competition for this requirement as the requirement for the OEM pump support remains in accordance to ABS requirements. If another potential source emerges with authorization from the OEM to provide parts for these pumps or is certified by MSC to provide Non-OEM parts, MSC will assess whether additional competition for future requirements is feasible. A sources sought notice was posted to the government point of entry SAM.gov requesting market research information from industry, including interested and capable sources, as well as suggested solutions to maintain these pumps, yet no competition was identified. Previous market research on the previous IDIQ yielded only one (1) received response from the sources sought which was BAE Systems; CIRCOR was the only interested party that responded to the solicitation. However, there is no evidence that BAE Systems can support these OEM pumps as they are not an authorized servicer. BAE Systems did not demonstrate that the company possessed the requisite access to proprietary data/drawing and manufacturing and repair process rights to produce replacement parts for these pumps. Should BAE Systems, or any other firm, acquire authorization from the OEM to provide parts for these pumps, MSC will evaluate such source accordingly. The engineering, construction drawings, and technical characteristics for the above-described systems are proprietary to CIRCOR and its subsidiaries, making them the unique and only source for OEM parts. Again, the Government did not acquire rights in the above described matters. The Government will continue to monitor the market and conduct market research to identify additional authorized sources and solutions, should they arise in the marketplace. MSC will also continue to give potential Non-OEM offerors the opportunity to be certified by MSC to provide qualified Non-OEM parts. In the future should these pumps are replaced by another brand, additional opportunities for competition may arise and be evaluated at that time.