Redacted Version NRE Genset Maintenance and Repair.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND, MID-ATLANTIC

9324 VIRGINIA AVENUE

NORFOLK, VIRGINIA 23511-3095

JUSTIFICATION & APPROVAL (J&A) FOR USE OF OTHER THAN FULL AND OPEN

COMPETITION

Genset Locomotive Maintenance and Repair

1. Contracting Activity.

Public Works Department (PWD), Naval Weapons Station Earle (NWSE), Naval Facilities

Engineering Systems Command (NAVFAC), Mid-Atlantic (MIDLANT).

2. Description of the Action Being Approved.

PWD Earle requests approval for a sole source award in the performance of maintenance and repairs for NWSE’s two National Railway Equipment Company (NRE) Genset locomotives. The services required will be accomplished by way of a combination Firm-Fixed Price (FFP) and

Indefinite Delivery Indefinite Quantity (IDIQ) type contract for recurring (FFP) and non-recurring (IDIQ) requirements, and are consistent with the FAR 37.101 definition of service contracts. Period of performance shall be for a 12-month base period, with four 12-month option periods, if exercised. Award is projected for February 2023.

3. Description of Supplies/Services.

The proposed action is to provide for all labor, equipment, material, and supervision to perform periodic recurring maintenance and other as needed non-recurring repairs on the electrical operating systems of NWSE’s two Genset railroad locomotives manufactured by NRE.

Estimated costs are as follows:

Base Period: 01 March 2023 – 29 Feb 2024 Value: $97,599.75

Option Period 1: 01 March 2024 – 28 Feb 2025 Value: $104,472.00

Option Period 2: 01 March 2025 – 28 Feb 2026 Value: $110,149.50

Option Period 3: 01 March 2026 – 28 Feb 2027 Value: $116,545.40

Option Period 4: 01 March 2027 – 29 Feb 2028 Value: $123,482.60

Total Value: $552,249.25

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

Title 10 United States Code Section 3204(a)(1), as implemented by Federal Acquisition

Regulation (FAR) 6.302-1(a)(2)(iii)(A) – “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Rationale Justifying Use of Cited Statutory Authority.

NRE is the only viable source for meeting the operational, maintenance, and sustainment mission requirements of NWSE’s Genset locomotive systems at this time. NRE has provided all electronic maintenance and repairs to NWSE’s Genset locomotives since 2013. As the sole owner of the NFORCE Microprocessors, NRE has an intricate knowledge and understanding of the system and asserts intellectual property and software rights to upgrade, modify, enhance, and maintain the application. NRE does not have affiliations or agreements in place with any other vendors for the operation, maintenance, and sustainment for the subject microprocessors.

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

Navy Munitions Command (NMC) purchased two Genset locomotives equipped with NFORCE

Microprocessors from the NRE Company via Contract DTRT5712C10056 on 15 August 2012.

The locomotives were delivered to NWSE in June of 2013 and included a two-year warranty.

During the warranty period NMC coordinated with Base Services & Vehicle Support (BSVE) and NRE for the performance of scheduled maintenance, repairs, and technical support. In early

June 2016 BSVE notified the Facilities, Engineering, and Acquisition Division (FEAD) that the locomotive mechanics at NWSE did not have the skills or training to maintain, repair, or troubleshoot the NFORCE Microprocessors within the locomotives and that a service contract would be needed with NRE after the warranty expired. NMC agreed with BSVE and submitted funding to support this new service contract. The Facilities Services Contracts Manager (FSCM) at that time researched all relevant manuals and determined that the NFORCE Microprocessor operating software was proprietary to NRE and that the company asserts all intellectual property and software rights. NFORCE Microprocessors control the various systems throughout the locomotive. NRE was contacted and verified this information. Contract N4008516D8486 was awarded sole source to NRE with a period of performance of 12-months. Contract

N4008518D4735 was competed on the FedBizOpps website under full and open competition and only one company proposed, NRE.

A Sources Sought was issued on SAM.gov from 17 November 2022 to 01 December 2022. The

Sources Sought requested responses from companies that could provide all labor, equipment, and material to perform periodic recurring maintenance and other as-needed non-recurring repairs on the electrical operating systems of two Genset railroad locomotives manufactured by NRE. The

Sources Sought stated that NRE is the Original Equipment Manufacturer (OEM) and that parts, hardware, and software from sources other than the OEM are incompatible with NRE’s proprietary electronic control systems. Additionally, the announcement stated that NWSE sought to gather information if there are sources that are able to meet this requirement. One company responded, South Eastern General Contractors, an 8(a), HUBZone, Native American small business general contractor with 10 employees from Hope Mills, North Carolina. The company submitted its capability statement as specializing in building renovations with a history of five previous Government construction contracts at Fort Bragg. These contracts were for fan installations, filling in an exterior dive well, constructing overhead cover shelters, and repair of storm drains. South Eastern General Contractors’ capability statement did not contain any language referring to the Sources Sought, the maintenance and repair of Genset locomotives, NFORCE Microprocessors, or that the company has an affiliation or agreement with NRE which would allow them to provide for the subject services. It was determined that NRE is the only contractor capable of providing for all of the Genset’s requirements as they are the sole owner of the NFORCE Microprocessor application, and do not have affiliations or agreements in place with any other contractors for the operation, maintenance, and sustainment of NFORCE

Microprocessors. The redacted J&A will be posted on SAM.gov in accordance with FAR

6.305(d)(1).

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A to be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

Currently, no other companies other than NRE can provide for any required upgrades, modifications, enhancements, sustainment, and maintenance for the NFORCE Microprocessors that enable the NRE Genset locomotives to successfully operate. NRE is the sole owner of the

NFORCE Microprocessor application, asserts all intellectual property and software rights, and is therefore the only expert for any NRE Genset electronic system work required. The Government will continue to conduct market research to ascertain if there are any changes in the marketplace which will enable future actions to be competed.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this

Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical/ Requirements Cognizance:

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.