N6449823G4001_B1_Redacted_CJA _N64498_02312228300.pdf

J&A Number: 0231-22-283-00

5. Rationale Justifying Use of Cited Authority

Rolls-Royce (RR) is the designer and Original Equipment Manufacturer (OEM) of the MT/501 Series MGTE that was developed exclusively at private expense. RRMNA is the division of RR that interfaces with the U.S. Navy for the subject requirement. The Government does not have sufficient data rights to allow for competition. The MT/501 Series MGTEs, associated DVR System Assemblies, associated Kits, shipping containers and transport stands are commercial items that have been developed, designed, and produced solely by RR. The MT/501 series family of commercial engines is comprised of unique parts and subassemblies governed by specific engineering drawings and manufacturing processes. These drawings and process controls were developed by the engine OEM, RR, based on pre-existing aviation engines. The data rights to these engines are the intellectual property of RR and to date, the data rights to the original aviation engines have not been procured by the U.S. Navy. It is estimated based on a quote provided by RR and the cost of such data rights for other gas turbine engines in military use, that procurement of full data rights would be expected to be in excess of $500 million (nearly five (5) times the value of the orders expected to be placed under the resultant BOA) if RR were willing to sell sufficient data rights to its commercial engines, assemblies, and major subassemblies to the Government.

However, RR has previously stated that it is unwilling to sell or license necessary data rights to any engine within the MT/501 family. The latest communication with RR pertaining to the prospective U.S.

Government procurement of data rights was on 20 April 2022. As a result, RR is the only firm with the knowledge, experience, facilities, and data necessary to provide this material.

The articles to be acquired are required to serve as stock rotating spares, as well as unique engine components both in support of ship modernization and in support of engine Repair and Overhaul.

Lacking the prerequisite technical data described above, any other firm interested in developing an equivalent spare MT/501 series MGTE would be required to effectively reverse engineer the MT/501 series MGTE. Experience with other gas turbine engine families such as the LM2500 series MGTE indicates that this endeavor would require approximately .

Further, award to any other source would result in unacceptable delays in fulfilling the agency’s requirements. The need date for this requirement is 31 December 2022 to allow for continued spares support, as the current BOA expires on 30 December 2022. NSWCPD has planned procurements in FY23 that would be jeopardized if there were to be a lapse in coverage.

As a result, RR, the original designer and manufacturer of the MT/501, is the only source available that is capable of providing the supplies in an acceptable time to fulfill the agency’s requirement for ship readiness and mission capability, for the duration of the 60-month ordering period.

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 to SAM.gov on 10 November 2021, and closed on 25 November 2021. Additionally, a synopsis was posted 30 November 2021 with a closing date of 15 December 2021. No responses were received to either notice (other than from RRMNA) as of the closing date of the notices, or the drafting of this CJ&A. Individual orders to be issued under this BOA will be published on the SAM.gov website. Any responses received will be considered.

J&A Number: 0231-22-283-00

7. Determination of Fair and Reasonable Cost

The Contracting Officer has determined that the anticipated cost to the Government for the supplies covered by the CJ&A will be fair and reasonable. The Contractor will submit a formal price proposal with sufficient information to support the accuracy and reliability of the estimate. Experienced Technical Analysts and Contract Specialists with the aid of necessary field pricing support will review the Contractor’s proposal. The Contracting Officer will use cost and pricing analysis as the basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Section 5, the Government has no plans at this time to compete future contracts for the items covered by this document. If another potential source emerges, the Government will assess whether competition for future requirements is feasible. The circumstances surrounding the need to obtain the required supplies without providing full and open competition will be reviewed annually by the Contracting Officer. As this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(i), the prior CJ&A was provided to the approval authority for review. Approval of this CJ&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(ii).