J_&_A_for_posting.pdf

J&A No. 18‐J&A‐006

JUSTIFICATION AND APPROVAL

FORUSE OFOTHER THANFULL AND OPENCOMPETITION

1. Agency and Contracting Activity.

Requiring Activity:

USS Lewis B. Puller (ESB-3)

Military Sealift Command

Ship Support Unit, Bahrain

PSC 851 Box 350

FPO AE 09834-0350

Contracting Activity:

NAVSUP Fleet Logistics Center (FLC) Bahrain DET Dubai

Umm Hurair, Bur Dubai P.O.Box 1217777

2. Description of the Action Being Approved.

Negotiate and award of a firm fixed price contract on a sole-source basis for the 6000HRS overhaul of the ship’s four Main Diesel Generator engines in support of USS LEWIS B. PULLER under FAR 6.302-1 (Only one responsible source and no other supplies or services will satisfy agency requirements).The supplies or services required under this requisition are available from only one responsible source and no other type of supplies or services will satisfy the Government's need.

On 05 June 2018, a “Sources Sought Notice” was posted on EURONECO to identify qualified and experienced sources that can satisfy the requirements of the Government. The posting was made available through 07 June 2018. At the time the request for information closed, only one response was received. MAN Diesel and Turbo Middle East, UAE responded via email on 07 June 2018 that they are the only Original Equipment Manufacturer representative in the United Arab Emirates authorized to accomplish maintenance and repair for the MAN Diesel engines installed on the ESB Class vessels at Jebel Ali Port. Jebel Ali Port has been established as the place of performance for this repair requirement since the repair period coincides with the ship’s scheduled port visit. The selection of location within the FIFTH Fleet AOR for the ship’s port visit is at the discretion of Commander Task Force FIVE ONE (CTF 51) based on overall future operational commitments.

Additionally, the following vendors were contacted through phone:

1) NICO International – phone conversation with Junu John (+971 50 9557356) on June 6,2018

2) GRANDWELD – phone conversation with Sunil Mathew (+971 50 6522354) on June 6, 2018

3) AL BWARDY Marine Engineering – phone conversation with Mr. Mark Pearson (+971529061708) on

June 6, 2018

Search of the M.A.N. Diesel website disclosed the following M.A.N regional locations:

1) MAN Diesel and Turbo In Jeddah, Saudi Arabia

2) MAN Diesel and Turbo in Aqaba, Jordan

3) MAN Diesel and Turbo in Doha, Qatar

4) MAN Diesel and Turbo in Muscat, Oman

5) MAN Diesel and Turbo In Dubai, UAE

Due to MAN Diesel and Turbo ME’s territorial agreements, other authorized MAN Diesel and Turbo entities in the Gulf Cooperation Council (GCC) region will not perform work in the UAE.

NICO, GRANDWELD and ALBWARDY will not able to provide the required OEM requirement since the only authorized MAN Diesel representative in the UAE refuses to subcontract work with them. Another issue brought up by these contractors is the ordering and delivery of required parts within the allotted voyage repair period.

Since they don’t have a direct relationship with MAN Diesel in Augsburg Germany the third party contractors are unable to guarantee availability of OEM parts during the voyage repair timeframe.

Previous market research revealed of exploring the possibility of having US-based contractors compete for this requirement. However without a UAE VISA, these companies won’t be able to work in the UAE without a local business sponsoring the work permits of their personnel.

Based on the market research discussed above, only one responsible offeror is capable of performing the repairs onboard the USS Lewis B. Puller (ESB-3) at Jebel Ali Port, Dubai, UAE.

3. Description of Supplies/Services.

USS Lewis B. Puller requires the Original Equipment Manufacturer (OEM), MAN DIESEL, to perform the 6000HRS overhaul of the MDG’s #1 - #4.The estimated value of this procurement is approximately $520,000.

Working Capital Funds were provided under funding document N4044818RCN7320 with the same amount was accepted via Funding Document Management (FDM) on 05 June 2018.

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

10 U.S.C.2304(c)(1),Only one responsible source.

5. Rationale Justifying Use of Cited Statutory Authority.

ESB-3 Class Main Diesel Generator Engines are classed based on Regulatory Requirement: Nitrogen Oxide (NOx) Technical Code and Marine Pollution (MARPOL) Annex VI, Regulation 13.This means that these engines meet the Environment Protection Agency (EPA) standards set forth by the maritime governing bodies. The engines are inspected annually by the American Bureau of Shipping (ABS) to verify original equipment engine parts with valid International Maritime Organization (IMO) certification numbers which were used to replace failed parts and that no existing parts have been modified from the original design drawing.

MAN Diesel is the Original Equipment Manufacturer (OEM) Representative, which is designated as the maintenance and repair authority for the MAN 6L 48/60 diesel engines. The Shipboard Automated Maintenance Management (SAMM) system requires the services of an authorized and certified MAN Diesel OEM representative and repair facility in order to perform the inspections required. The Main Diesel Generators Engines on the ESB Class are designated as Critical Ship Equipment the failure of which poses a hazard to equipment, personnel, and loss of mission. The use of other than Original Equipment Manufacturer (OEM) certified field service technicians could preclude the American Bureau of Shipping (ABS) regulatory compliance required to retain Class Certification to attain United States Coast Guard Certificate of Inspection and pose a major risk of damage to the machinery and place the engine operators at risk of injury or death.

Proper refurbishment and maintenance of the engines by the OEM is critical to the safe operation of the ESB ships.

OEM parts from the original manufacturer are required to maintain all warranties, ensure engine reliability and crew safety. The engineering construction drawings for the diesel engine are proprietary to MAN Diesel. Military Sealift Command Safety Management Procedures 10.6.002-All, 7.2.001-All, and 7.4.007-All dictate maintenance standards required to properly maintain and repair Critical Ships Equipment.

Failure of Main Diesel Generator Engines can put the ship into a C-4 status, thus becoming unable to perform its primary mission of providing service to the CTF-51 amphibious assault ships. The reduction of speed can also pose a hazard to the crew, due to limited ships maneuverability. Proper refurbishment and maintenance of the diesel engines are critical to the safe operation of ESB vessels.

Similarly, the use of OEM parts from the original manufacturer is required to maintain all warranties, ensure engine reliability and crew safety. Additionally, the engine tolerances must be set as per the Original Equipment Manufacturer (OEM) specifications and drawings. Since the engineering construction drawings for the diesel engine are proprietary to MAN Diesel, non-OEM authorized/certified entities do not have access to MAN Diesel proprietary drawings nor have access to MAN Diesel engineering support/consultation to perform in-depth troubleshooting and intricate field repair that only OEM authorized and certified technicians and repair facility are authorized to accomplish. Therefore, the use of other than Original Equipment Manufacturer (OEM) authorized and certified field service technicians, repair facility, and/or replacement parts could preclude the American Bureau of Shipping (ABS) regulatory compliance required to retain Class Certification to attain United States Coast Guard Certificate of Inspection and pose a major risk of damage to the machinery and place the engine operators at risk of injury or death.

Failure of one diesel engine will require the ship to reduce speed. The loss of two diesel engines puts the ship in a C-3status with limited speed. Failure of a third engine at sea would require tug boats to move the ship from sea to a pier fleet. The reduction of speed can also pose a hazard to the crew, due to limited ships maneuverability.

Therefore, proper refurbishment and maintenance of the diesel engines are critical to the safe operation of the vessel.

Based on market research, MAN Diesel &Turbo Middle East LLC is the only responsible source in the 5th Fleet who is able to provide and accomplish the repairs of MAN Diesel Engines and all MAN Diesel Engines components on the USS LEWIS B. PULLER in the United Arab Emirates (UAE) for the following reasons:

Due to MAN Diesel’s territorial agreements, other authorized MAN Diesel entities in the GCC region will not perform work in the UAE.

Additionally, MAN Diesel will not subcontract to any of the third party contractors (i.e. NICO, GRANDWELD, ALBWARDY, etc.) for any OEM requirements. Therefore, there is no third party vendors qualified to perform the OEM requirement in the SOW.

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

A member of Military Sealift Command (MSC) and NAVSUP FLC Bahrain DET Dubai conducts market research on a continual basis. Based on information gathered from the OEM representative and third party contractors, MSC and NAVSUP FLC Bahrain DET Dubai have determined that only MAN Diesel& Turbo Middle East is still the only authorized OEM representative in the region. Other third party contractors are still unable to find an alternate OEM representative that is capable of meeting the Navy's requirements in the United Arab Emirates (UAE). A synopsis of these planned contracts has not been published. In accordance with FAR 5.202(a)(12), a synopsis is not required when the contract action is by a Defense agency and the proposed contract action will be made and performed outside the United States and its outlying areas, and only local sources will be solicited.

7. Determination of Fair and Reasonable Cost.

The contracting officer will determine the total anticipated price to the Government for the repairs covered by this J&A to be fair and reasonable based on historical data, MAN Diesel's tariff rates, comparison with Independent

Government Estimate and market research.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAVSUP has no plans at this time to compete future contacts for the types of supplies/services covered by his document. If another potential source emerges, NAVSUP will assess whether competition for future requirements is feasible. Meanwhile, MSC and the Contracting Office will communicate with the OEM and third party contractors on a regular basis in an attempt to have more than one certified MAN Diesel contractor certified in the UAE.

9. Contracting Point Of Contact

The contracting point of contact is Ms. Irene Pamfilo, who may be contacted via telephone on +97150 5502219 or via e-mail at Irene.Pamfilo.PH@me.navy.mil.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

Signature Name (Printed) Phone No. Date

Requirements Cognizance:

(If a single individual has cognizance over both technical and requirements information included in the J&A/LSJ, use of only one signature line is encouraged ["Technical Cognizance:" and Requirements Cognizance:" may also be deleted]).

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief. To the extent that the J&A/LSJ value is between $150K and $650K, the Contracting Officer’s signature below also represents approval of the J&A/LSJ.

CONTRACTING ACTIVITY COMPETITION ADVOCATE REVIEW

To the extent that the J&A/LSJ value is between $650K and $12.5M, the Competition Advocate’s signature below also represents approval of the J&A/LSJ.