REDACTED Sole Source Justification.docx

DEPARTMENT OF THE NAVY NAVAL SURFACE WARFARE CENTER CARDEROCK DIVISION

9500 MACARTHUR BOULEVARD WEST BETHESDA MD 20817-5700

J&A Number: N00167-26

Code: Code

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA), Naval Surface Warfare Center, Carderock Division (NSWCCD), Contracting & Acquisitions Department (Code 02).

2. Description of the Action Being Approved

The NSWCCD Code intends to purchase a specific brand of 7322 Angular Contact Ball Bearings (ACBBs) manufactured by Schaeffler Aerospace USA (Schaeffler). The brand of ACBB required is usually sold by the manufacturer directly and through the manufacturer’s two direct purchasers: Electric Boat Corporation (EB) and the Defense Logistics Agency (DLA), manager of the Navy’s Stock System. The ACBBs required have the DLA-assigned National Stock Number (NSN) 1H 3110-01-590-6924X3.

For the reasons described in Section 5 below, the required ACBBs are being procured through Simplified Acquisition Procedures (SAP) rather than the Navy Stock System. Also, because of the reasons described in Section 5 below, the ACBBs are deemed to be available from only the one direct purchaser, EB, which meets the agency's requirements for award without providing for full and open competition. The intended contract is with EB, located at 75 Eastern Point Rd, Groton CT 06340-4905 USA.

This justification document is in accordance with RFO FAR 12.102(b). The total estimated value of the acquisition is approximately $ .

3. Description of Supplies/Services The NSWCCD Non-Metallic and Low Observable Materials Branch Code requires a supply contract for purchase of 8 pairs of Schaeffler brand 7322 ACBBs. This purchase supports work for the SEA08 MSW Anderometer Test Project.

Supply/Products:

The table below provides estimated funding amount for support of 7322 Test Bearing Procurement services by dollar value for FY26. The contract award will be in FY26, and all materials are expected to be delivered in FY26.

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

The Product Service Code (PSC) for this procurement will be 3110, Bearings, Antifriction, Unmounted.

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

10 USC 3204, “The property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.” (RFO FAR 12.102(b))

5. Rationale Justifying Use of Cited Statutory Authority

The NSWCCD Code is the responsible Navy activity for vibration-testing ball bearings made to meet MIL-DTL-17931F. Code requires 7322 ACBBs corresponding to NSN 1H 3110-01-590-6924X3 to use in specialized vibration tests that will provide data needed to develop and revise current vibration acceptance criteria.

Code market research determined that Schaeffler is currently the only Noise-Tested (NT) bearing manufacturer capable of producing 7322 sized NT bearings adhering to MIL-DTL-17931F and corresponding to NSN 1H 3110-01-590-6924X3. Since 2023, no other NT bearing vendors are producing 7322 bearings as specified in MIL-DTL-17931F due to difficulty in sourcing materials and manufacturing. Brands of 7322 ACBBs from discontinued product lines are not acceptable as Code needs consistent availability of product during the course of testing. Discontinued brands of bearings are also not feasible as discontinued manufacturers, whom are not producing these bearings anymore, are no longer capable of monitoring new manufactured 7322 bearings for acoustic attributes to be discovered over the course of testing.

Schaeffler sells its 7322 ACBB directly and through two direct purchasers: EB and DLA (for the Navy). Schaeffler in this instance is not a source for the required bearings as they have none in stock and are unable to begin manufacturing until October 2026 at the earliest due to material lead time. Per TPOC discussion with the OEM, projected lead time for delivery of ACBBs from the OEM could take up to 2 years.

EB has current availability of the ACBBs at an estimated cost of $ per set of ACBBs. Assuming $ unit cost, the total procurement cost would be $ through EB.

DLA’s Navy Stock System shows possible available quantity of 7322 ACBBS, but with a Procurement Lead Time (PLT) of 917 days (2.5 years). Price per set is $ .

In summary, although there are three usual sources for purchase of the Schaeffler brand of 7322 ACBBs, Code conclusion is that purchase of the 7322 ACBBs through SAP procedure from EB is justified due to bearings’ ready availability. Purchase of the bearings from the OEM or DLA will result in a prolonged delivery time (i.e., 18+ months) which is unacceptable to the NAVSEA SEA08 sponsor due to the critical need to revise vibration acceptance criteria for pump production testing. In addition, the DLA pricing exceeds commercial vendor EB’s pricing by more than 10%. Per NSWCCD Mandatory Source Cost Threshold Rule proposal, a mandatory source item such as the bearings may be purchased from a non-mandatory source “if the line item cost avoidance is 10% or more.”

6. Description of Efforts Made to Solicit Offers from as Many Sources as Practicable There has been no effort to solicit offers from a manufacturer other than Schaeffler for the reason described in Section 5 above. The NSWCCD Code determined that only the Schaeffler brand of 7322 ACBBs meets NSWCCD’s requirements.

Pursuant to RFO FAR 12.301(a)(2), the Government will make this justification available on the Government Point of Entry (SAM.gov). The Government will ensure that the contract file will be documented as to any responses received from making this justification available. This acquisition is determined to be sole source based on EB’s singular ability to provide the readily available brand of 7322 bearings.

7. Determination of Fair and Reasonable Costs In accordance with RFO FAR 12.204(a), the Procuring Contracting Officer (PCO) shall ensure that all items provided under the anticipated contract are procured at a fair and reasonable price. The Government will require the contractor to submit a formal price proposal and sufficient information to support the accuracy and reliability of the estimate. The PCO shall determine that the proposed order represents the best value (as defined in RFO FAR 2.101) to meet the Government’s needs.

The NSWCCD Code has not procured 7322 test bearings in the traceable past. However, for this purchase, EB provided an initial quote for 10 bearings and internet research provided 2 other price data points for these bearings. EB POC confirmed the unit quantity can be obtained by dividing that full amount by 10, then can be multiplied by number of units desired for purchase per the September 2025 quote. Later, EB provided an updated April 2026 quote from OEM with replacement price stated as NSWCCD’s cost. Based on all four, the EB provided quote was found to be reasonable price for these bearings.

8. Actions to Remove Barriers to Competition

Market research was conducted in accordance with FAR Part 10, see Section 5, above.

In their market research, Code did not solicit sources to determine expressed interest in the acquisition other than the known Schaeffler brand sources: Schaeffler, EB and DLA.

This acquisition is not a follow-on to a previously approved J&A.

The NSWCCD Code will assess and compete for future requirements depending on whether there is availability from existing or new sources for the Schaeffler brand of 7322 ACBBs, or, from emergent manufacturers making an equivalent product.

The government will continue to monitor the bearings market for emerging technologies and alternative vendors. Code is working with SEA05, SEA08, EB and all bearings vendors for mitigating elevated steel lead times in the manufacturing of precision ball bearings. Upon steel lead times reducing, which would then reduce overall bearing lead time, brand sources other than Schaeffler may emerge and can be solicited for manufacture of 7322 or other similar precision ball bearings.

CERTIFICATIONS AND APPROVAL TECHNICAL AND REQUIREMENTS CERTIFICATION - (RFO FAR 6.104(b)) I certify that the facts and representations under my cognizance that are included in this justification and its supporting data, except as noted herein, are complete and accurate to the best of my knowledge and belief.

image1.png