N64498.20.G.0002.FOIA.CJA.pdf

J&A Number: 0231-20-004.00

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1), “Only One Responsible Source and No Other Sources and Services Will Satisfy Agency Requirements,” as implemented by Federal Acquisition Regulation (FAR) Subpart 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority

Properly operating Monobloc propellers, propeller hubs, propeller blades, and OD Boxes are essential to the propulsion of , , , , and ship classes.

Rolls Royce Marine North America (RRMNA) is the Original Equipment Manufacturer (OEM) for all equipment under this procurement. RRMNA, as the OEM is the only manufacturer that has previously manufactured Propellers, Propeller Hubs, Propeller Blades, and OD Boxes for the US Navy through shipbuilder and Navy procurement contracts. The Government did not procure the Level III drawings from RRMNA, nor does it possess the equipment/procedures to, in any certainty, ensure the material is manufactured with OEM operational specifications.

The Navy did not procure the Level III drawings from RRMNA, as it is against RRMNA’s policy to sell any data.

Justification for sole source to RRMNA is based on the following factors. These systems are currently developed, designed and solely produced by RRMNA in which they hold proprietary rights to the design drawings and technical specifications. The equipment under this procurement cannot be manufactured without the RRMNA owned, proprietary documentation.

Secondly, the Navy is not authorized to distribute RRMNA’s proprietary drawings to other vendors for manufacturing purposes. Due to this, RRMNA is the only firm with the knowledge, experience, facilities, and data to properly produce the equipment required.

In order to support Fleet change out periodicities as well as emergent Casualty Report (CASREP) demand for the equipment under this procurement, the proper inventory levels must be maintained which can only be met by direct procurements from RRMNA. Current inventory levels for the equipment in the above referenced ship classes will not support multiple CASREP situations which creates undue risk for the Warfighter in regards to operational readiness.

Without propulsion systems available, ships will not be prepared for scheduled operations deployment.

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

In accordance with DFARS PGI 206.302-1, a Request for Information (RFI) was posted on the Federal Business Opportunities (FEDBIZOPPS) website first on 21 November 2018 and again on 08 February 2019. Only one response was received, from RRMNA. A synopsis of this requirement was published to FBO in accordance with FAR 5.201 on 5 April 2019. No additional market research was conducted because it is not practicable, for the reasons discussed in Paragraph 5 above, for any company other than RRMNA to provide the required equipment.

J&A Number: 0231-20-004.00

7. Determination of Fair and Reasonable Costs

The Contracting Officer will make a determination as to whether the costs to the Government for the supplies covered by this J&A are fair and reasonable, prior to each Delivery Order award.

The Contractor will be required to submit a formal price proposal and sufficient information to support the accuracy and reliability of the estimate for each solicitation issued under this BOA.

Experienced technical analysts and contract specialists with the aid of field pricing support if necessary will review the Contractor’s proposal. The Contracting Officer will use the results of this price analysis as the basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Competition

This requirement will be reviewed annually by the Contracting Officer to ensure that RRMNA is still the only company that can satisfy agency requirements. NSWCPD will continue to monitor the marketplace and identify potential sources of the supplies identified in this Justification. Any sources discovered that could potentially satisfy this specific procurement will be taken into account for any future requirements.