FY16-051_J A.pdf

MILITARY SEALIFT COMMAND NORFOLK

SP64 471 EAST C STREET

NORFOLK, VA 23511-2419

March 28, 2016

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Department of the Navy, Military Sealift

Command.

2. Nature of Action:

Award of a firm fixed pride contract on a sole source basis for repair services required to repair the USS Emory S Land, # 3 High Pressure Air

Compressor (HPAC) from Dresser-Rand Company.

3. Description of Supplies/Services:

This requirement is for Dresser-Rand Company to perform onsite Equipment

Manufacturer (OEM) Air End overhaul, dis-assemble/re-assemble all HPAC parts, ship top-end components to OEM factory for cleaning, inspections and refurbishment. OEM shall return all components and re-assemble HPAC top-ends shipboard in the engine room. Work to be performed onsite onboard USS Emory S Land, Guam.

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). Section 815 of the National Defense

Authorization Act (NDAA) of Fiscal Year 2015 makes this authority permanent. The statutory authority for simplified acquisition procedures is 13.106-1 and 10 USC. 2304(c)(1).

5. Rationale Justifying Use of Cited Statutory Authority:

Dresser-Rand Company is the authorized Original Equipment Manufacturer

(OEM) and the only source capable of providing the required proprietary parts and technical services to repair the HPAC units. The existing installed HPAC units are complex and engineered for submarine applications. All components/parts of the HPAC’s are proprietary to the

OEM. Therefore, Dresser-Rand Company is the only contractor with the required knowledge, experience and technical data that can provide the required replacement parts and technical representative services for these air compressors.

Safety Management Systems Number 10.6-002-ALL lists HPAC’s. Failure of the HPAC’s will result in a C-4 CASREP. The loss of two or more HPAC’s puts a ship in a C-3 CASREP, thus reducing its ability to perform its primary mission of providing high pressure air to submarines being tended alongside.

MSC did not purchase the proprietary technical data rights to this equipment when it was installed on the AS-39 Class vessels. MSC does not have manufacturing and technical information required to evaluate and determine whether non-OEM components and replacement parts offered are equivalent to the OEM components and replacement parts. The HPAC’s installed aboard the AS-39 Class vessels require special tools, specialized repair parts, and technical expertise unique to these compressors; only approved OEM parts are authorized to be installed on this highly sophisticated equipment. The OEM Representative has access to provide parts and technical data / drawings from the original manufacturer, as required to properly repair and maintain the equipment.

All OEM repair parts are in compliance with USCG and ABS IMO regulatory requirements.

No additional market research was conducted because it is not practicable, for the reasons discussed above, for any other company other than Dresser-Rand to provide the required services, repair parts, installation and operational testing

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

The Government intends to synopsize and to post a request for quotations

(RFQ) at the Government Point of Entry, the FedBizOpps website, for the procurement, with the intent of awarding a firm-fixed-price contract.

7. Determination of Fair and Reasonable Cost:

The Contracting Officer will determine that the price for the supplies/services is fair and reasonable pursuant to FAR Part 13.106-.

8. Actions to Remove Barriers to Future Competition:

For the reasons set forth in Paragraph 5, Dresser-Rand parts and services are required.