Redacted Wartsila Water Jet Propulsion System FY21 CLASS JA.rtf

For Official Use Only

Control Number N104-FY21-TEPF

CLASS JUSTIFICATION AND APPROVAL (J&A) FOR OTHER THAN FULL AND OPEN COMPETITION

Contracting Activity: Department of the Navy, Military Sealift Command (MSC).

Nature of Action: Award of contracts on a sole source basis for Wartsila Defense Inc. (Wartsila) WLD 1400SR Water Jet Propulsion System, in support of the Expeditionary Fast Transport (T-EPF) Class of MSC vessels. The authority to act under this class justification and approval (J&A) expires on September 30, 2021.

Description of Supplies/Services: MSC requires parts and services to support OEM recommended maintenance and repairs to the 1400SR WLD Water Jet Propulsion System installed aboard T-EPF vessels. The actions executed under this class J&A have an estimated value of approximately $xxxxxxx using FY 21 Operation and Maintenance funds.

Statutory Authority Permitting Other Than Full and Open Competition: The statutory authority for commercial procurements greater than $250,000.00 is 41 U.S.C. 1901(e) (2) as implemented by FAR Part 13.501(a), Simplified Procedures for Certain Commercial Items, Sole Source. Section 815 of the National Defense Authorization Act of Fiscal Year 2015 makes this authority permanent. The statutory authority for simplified acquisitions less than $250,000.00 and for FAR Part 15 procurements is FAR Part 13.106-1, and for an exception to competition is 10 U.S.C 2304(c)(1), respectively, as implemented by FAR Part 6.302-1.

Rationale Supporting Use of Authority Cited Above: The WLD 1400SR Water Jet Propulsion system Original Equipment Manufacturer (OEM) for T-EF class vessels is Wartsila. There are currently eleven (11) active T-EPFs in the MSC fleet with four each WLD1400SR Water Jet Propulsion systems per vessel. All control systems, hydraulics, foundation, hardware and structural support for the system is built specifically for the Wartsila WLD 1400 SR waterjet. Proper refurbishment, repair and maintenance of the Water Jets are critical to the safe operation of the T-EPF vessels. All the components of this propulsion system are designated critical ship safety systems. If any other propulsion system were procured, it would result in a multi-year re-design of the propulsion, structural elements and control system of the T-EPF. The hardware, software, propulsion shafting and structural design would need to be completely re-configured at prohibitive cost. It is mission-critical and personnel safety-critical to maintain class configuration and interchangeability across the ship class. Any deviation from the OEM parts could result in personal injury, loss of life, or equipment failure and possible damage to the vessel and personnel, and through loss of vessel propulsion and maneuvering. The OEM parts and technical data/drawings are required by United States Coast Guard (USCG) and American Bureau of Shipping (ABS) regulations. Use of OEM parts and services maintains all OEM warranties and ensures engine reliability and crew safety; therefore, precluding consideration of a product manufactured by another company. The engineering, construction drawings, and technical characteristics of the manufactured parts for these propulsion engines are proprietary to MTU and the United States Government has not acquired rights in these data.

Wartsila is the only source that can provide worldwide propulsion and control system support for WLD 1400SR Water Jet systems installed on the T-EPF vessels. The services required are a unique combination of logistics, material, engineering, field support and automation control specific to T-EPF class vessels.

Only Wartsila can satisfy requirements for proprietary Wartsila WLD 1400SR Water Jet Propulsion system and control system software, material and services support critical to the ship’s propulsion and steering system. There is no other source for parts as Wartsila is the OEM. Wartsila has the data to produce the parts and retains all proprietary design rights. No other vendor has access to the T-EPF Class Wartsila WLD 1400SR Water Jet Propulsion system and associated monitoring, control and software updates. The initial Super Stable Vee (SSV) design of the ship makes it mandatory to employ Wartsila for all WLD 1400SR Water Jet system refinement, repairs, upgrades and troubleshooting. The nature and complexity of the Wartsila WLD 1400SR Water Jet Propulsion system and monitoring system is critical for mission essential propulsion. Wartsila is the only vendor that possesses the necessary expertise, access to OEM parts and access to the installed software code to upgrade and maintain supportability of the control and monitoring system.

MSC does not have manufacturing and technical information required to evaluate and determine whether non-OEM components, replacement parts and service offered are equivalent to the OEM components and replacement parts. T-EPF engines require special tools, specialized repair parts, and technical expertise unique to these engines. Only approved OEM parts are authorized to be installed on this highly sophisticated equipment. MTU has ready access to both parts and technical data/drawings as required to properly repair and maintain the equipment. Further, all OEM repair parts comply with USCG, ABS and International Maritime Organization regulatory requirements.

Description of Efforts Made to Solicit Offers from as Many Potential Sources as Practical: In accordance with Procedures, Guidance and Information 206.302-1, the Government issued a Sources Sought Notice on beta.SAM.gov website seeking eligible businesses that could provide Wartsila WLD 1400SR Water Jet Propulsion system parts and services on 13 October 2020 with a closing date of 31 October 2020. There was no responses to the Sources Sought posting other than Wartsila. Wartsila is a large business under NAICS code 811310 and has no Active Exclusions on www.SAM.gov as of 31 October 2020. The Government intends to synopsize when required and to post Requests for Quotations (RFQs) and Requests for Proposals (RPFs) on beta.SAM.gov for each separate procurement with the intent awarding a firm-fixed-priced contract.

Determination of Fair and Reasonable Cost: The Contracting Officer will determine that the price for supplies/services is fair and reasonable pursuant to Federal Acquisition Regulation FAR 13.106- 3 or 15.404-1, as appropriate.

Actions to Remove Barriers to Future Competition: For the reasons set forth in paragraph 5, OEM parts and services are required for the T-EPF class 1400 SR Water Jet Propulsion System. MSC has no plans at this time to compete future contracts for the type of service covered by this document. If another potential source emerges, MSC will assess whether competition for future requirements is feasible. Should MSC determine that OEM parts and services are no longer required, this class J&A will become null and void.