Amend_J A_12-R-20141.doc

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DEPARTMENT OF THE NAVY

MILITARY SEALIFT COMMAND

471E. C STREET NORFOLK, VA23511

CONTROL NUMBER: N104-12-R-2014-0001

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Department of the Navy, Military Sealift Command (MSC), Norfolk, Virginia 23511.

2. Description of Action Being Approved: This is a justification to issue a brand name sole source commercial contract to procure OEM parts and service required to maintain the Isotta Fraschini V1312C2ME HPCR Ship Service Diesel Generators from Fincantieri Marine Systems North America, Inc. of Chesapeake, VA. The government contemplates award of an indefinite delivery-requirements type contract with issuance of firm-fixed price task/delivery orders for parts and service anticipated from the date of award through one year thereafter with four 1 year option periods.

3. Description of Supplies/Services: MSC requires OEM parts and services to support Joint High Speed Vessel (JHSV) equipment associated with the Isotta Fraschini V1312C2ME-HPCR Ship Service Diesel Generators installed on the JHSVs. The requirement is also to provide replacement parts, including mechanical and electronic monitoring controls.

4. Statutory Authority Permitting Other Than Full and Open Competition: The statutory authority for commercial procurements greater than $150,000.00 will be Section 4202 of the Clinger Cohen Act of 1996 as implemented by FAR Part 13.501 (a). The authority to issue solicitations under this subpart expires on January 1, 2015. The statutory authority for simplified acquisitions less than $150,000.00 and for FAR Part 15 procurements will be FAR Part 13.106-1 and 10 U.S.C.2304(c) (1) as implemented by FAR 6.302-1 respectively.

5. Rationale Justifying Use of Cited Authority: The proper operation of the Vl312C2ME-HPCR Ship Service Diesel Generators (SSDGs} and associated control system is critical to the safety and operation of the JHSV ships. The nature and complexity of the V1312C2ME-HPCR SSDG control and monitoring system is critical for mission essential electrical power generation. The services required to maintain the SSDGs are a unique combination of logistics, material, engineering, field support and automation control specific to JHSV class ships. Isotta Fraschini Motori, located in Bari, Italy, is the OEM of the V1312C2ME-HPCR SSDG and control system. Isotta Fraschini alone has the data and proprietary rights to produce the required SSDG parts and associated monitoring, control and software updates. Through market research, Fincantieri Marine Systems North America, Inc. (FMSNA} has been found to be the only source authorized by the OEM that can provide worldwide SSDG and control system support for Isotta Fraschini systems installed on the JHSV class. FMSNA is the only vendor that possesses the necessary expertise and access to the installed OEM software code to upgrade and maintain supportability of the control and monitoring system. All task orders will be placed with FMSNA’s office in Chesapeake, VA, and facilitated through the Ingleside, TX office. FMSNA has offices in the United States and internationally that will be able to provide on-site services.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable: A sources sought was posted on FEDBIZOPPS on 09 Apr 2012 stating the requirements for the Isotta Fraschini V1312C2ME-HPCR Ship Service Diesel Generators and electrical monitoring and control support. The sources sought remained open until 23 Apr 2012. Fincantieri Marine Systems North America Inc was the only vendor to respond in accordance with FAR 5.201(b} (1}, The Government issued a synopsis on FEDBIZOPPS and a solicitation on MSC procurement page on a sole source basis for this requirement.

7. Determination of Fair and Reasonable Cost: The Contracting Officer will determine that the price is fair and reasonable pursuant to FAR Part 13.106-3 or 15.404-1, as appropriate on each individual procurement.

8. 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 type of service covered by this document. If another potential source emerges, MSC Norfolk will assess whether competition for future requirements is feasible.