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J&A Number: N5523616R0006

DEPARTMENT OF THE NAVY

SOUTHWEST REGIONAL MAINTENANCE CENTER

3755 BRINSER ST STE 1

SAN DIEGO, CA 92136-5299

J&A Number:N55236160006 Code:410B P.R. Number: N55236-16-R-0013

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Southwest Regional Maintenance Center (SWRMC)(N55236)

2. Description of Action Being Approved.

Award of an Indefinite Delivery Indefinite Quantity (IDIQ) contract on a sole source basis for preventive and corrective maintenance in support of the MCM-3, MCM-4, and MCM-6 through MCM-14 vessels to be awarded to Fincantieri Marine Systems North America (FMSNA), Inc. Negotiated Firm fixed priced delivery orders will be issued against the IDIQ based on the specific needs of the MCM being serviced. Performance will be for one year from the date of the contract award with four one-year options.

3. Description of Supplies/Services.

The proposed acquisition is to provide preventive and corrective maintenance support including engineering and technical services and associated supplies and materials including consumables, repair parts, and replacement parts for the Isotta Fraschini (IF) ID36SS6V-AM engines on MCM-3, MCM-4, and MCM-6 through MCM-14 hulls. Support will be provided in the homeports of San Diego CA, Sasebo Japan, Manama Bahrain, and ports-of-call as required. This acquisition includes requirements for material that must meet specific requirements relating to magnetic signature and requires maintenance practices specific to unique magnetic signature requirements. The total estimated dollar value of this acquisition is XXXXXXXX (O&MN). The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

The immediate availability of parts for the MCM’s mission is especially critical in the forward deployed theatres. In the current MCM Diesel Engine IDIQ, FMSNA provisions and stocks all necessary components in their respective facilities (San Diego, Sasebo, and Manama) and does not obtain parts from the Navy Supply System which enables the immediate support of installation and repair requirements. Ship’s Force will provide all consumables for the preventative maintenance services and, if available, for emergent work on repair-type delivery orders. The Government is responsible for confirming the immediate availability of parts through the Navy Supply System which will subsequently be provided to FMSNA as needed. Parts that are not readily available will be provided directly by FMSNA.

Estimated Dollar Value

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

10 U.S.C. 2304(c)(1), One source or limited sources.

5. Rationale Justifying Use of Cited Statutory Authority.

The performance of the services under this procurement requires detailed design knowledge, access to manufacturer’s drawings, manufacturing history, and readily available factory parts, which can only be provided by the original equipment manufacturer (OEM), FMSNA, since the technical data is proprietary. Accordingly, FMSNA is the only company with the requisite expertise, technical information, and capability to meet the Government’s need.

A technical data package suitable for the competition is not available since manufacturing information on the IF engine is proprietary and the goal of this procurement is to upgrade the engines with the OEM engine improvements and provide continued engineering and technical services.

The unique requirements of these non-magnetic engines, replacement parts, and manufacturing processes combined with the scarcity of these particular engines in the world inventory limits the available suppliers to the OEM. Based on the above information, FMSNA is deemed the only responsible source.

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

The proposed contract was synopsized in the Federal Business Opportunities (FEDBIZOPS) website as a sources sought notice on May 5, 2016 and no other potential sources expressed an interest in this requirement. No additional market research was conducted because it is not practicable, for reasons discussed in paragraph 5 above, for any company other than FMSNA to provide the required supplies and services.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined that the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable. The SWRMC contracting office will use cost and price analysis to determine that the final price is fair and reasonable. Assistance from the Defense Contract Audit Agency (DCAA) and/or the Defense Contract Management Agency (DCMA) will be requested along with offeror’s certificate of current cost and pricing to support the fair and reasonable cost determination.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in paragraph 5, SWRMC has no plans at this time to compete future contracts for the type of supplies/services covered by this document. If another potential source emerges, SWRMC will assess whether competition for future requirements is feasible.

TECHNICAL AND REQUIREMENTS CERTIFICATION (FAR 6.303-2(c)) I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, including Acquisition Plan No. 16-0006, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW (NMCAG 5206.303(90))

I have determined this justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(a)(12)) I certify that this justification is accurate and complete to the best of my knowledge and belief.

DIRECTOR, FLEET SUPPORT CONTRACTS DIVISION

Upon the basis of the above justification, I hereby approve, as Senior Procurement Executive of the Navy, the solicitation of the proposed procurement described herein using other and full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).

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