1.2.23 N6275822RCUS799 Sole Source_Redacted.pdf

Source Selection Information (with content) – See FAR 2.101 and 3.104 For Official Use Only

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS – SOLE SOURCE JUSTIFICATION AND APPROVAL

CONTROL NUMBER: 2022-028

SOLICITATION NUMBER: N00406-22-R-0039

Requiring Activity:

Ship Repair Facility and Japan Regional Maintenance Center – Yokosuka Japan (SRF)

Description of Requirement:

Requirement is for the Top-End Overhaul of Number 1 and 2 High Pressure Air Compressors (HPACs) and 5,000-hour maintenance of Number 1-3 Low Pressure Air Compressors (LPACs) onboard a US Naval Guided Missile Destroyer (DDG) located in Japan.

Authority:

Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 as implemented by FAR Subpart 13.5.

Amount:

1. Agency Contracting Activity:

N00406 – Naval Supply Fleet Logistics Puget Sound

2. Description of Action:

SRF requests a Firm-Fixed Price service contract with RIX Industries, the Original Equipment Manufacturer (OEM) of the HPACs and LPACs. The Government projects award in September 2022 and Fiscal Year (FY) 2022 Operations and Maintenance, Navy funds will be used. While onsite work is estimated to begin 21 November 2022 due to the lead-time for the required materials needed to perform the overhauls and maintenance, FY22 funds are appropriate.

OEM:

RIX Industries 4900 Industrial Way Benicia, CA 94510 United States CAGE: 28953 (small business)

(b) (6)

3. Description of Supplies/Services:

The requirement is for the top end overhaul of Number 1 and 2 HPACs and the 5,000-hour maintenance of Number 1-3 LPACs onboard a DDG. Contractor will provide all materials required to provide onsite maintenance and repairs to include post overhaul/maintenance testing of the HPACs and LPACs.

Period of Performance: 11/21/2022 to 12/12/2022 Total Value:

4. Basis for Sole Source

a. Authority Cited:

Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 (or 41 U.S.C. 1903 for Special Emergency Procurement) as implemented by FAR Subpart 13.5:

Unusual and compelling urgency Exclusive licensing agreements Industrial mobilization

Brand Name (Note approval level requirements are applicable only to this portion

FAR 13.501(2)

Other: Sole Source

b. Reason for Authority Cited:

RIX Industries is the OEM owning the rights and design specifications for the 5R5-75A model HPACs onboard this class of ship. While the US Navy owns the design rights to the STAR-200 model LPACs, this is not true of the HPACs. The required technical data includes proprietary information including drawings, material composition, dimensions, and machine tolerances, which are held by RIX industries and affect the installation and compatibility. Additionally, RIX Industries is the only company with the access to the technical data necessary to properly repair and test the required HPACs.

5. Efforts to Obtain Competition:

The Contracting Officer shall publish the notices required by FAR 5.201 via sam.gov.

6. Actions to Increase Competition:

Market research indicates that only RIX Industries is capable of providing the required supplies and services. There are no steps being taken at this time to increase competition beyond posting the solicitation to sam.gov.

7. Market Research:

(b) (6)

The required mandatory sources per FAR Part 8 were screened on 5 July 2022. The required services are not provided by AbilityOne, GSA, nor UNICOR. The required maintenances are widely available in the commercial market place. The demand for HPAC and LPAC overhaul and maintenance is recurring and supporting businesses are available in the commercial market place.

Currently there is only one provider for the overhaul for this HPAC model. The other OEM for the LPACs; Curtiss-Wright, confirmed that they were incapable of doing maintenance on the 5R5-75A model HPACs.

Additionally, the same and similar requirements have been solicited as commercial items and awarded as Firm Fixed Price contracts with standard commercial terms and conditions. The market research conducted indicates that only RIX Industries is capable of providing the required HPAC and LPAC maintenance, as they hold proprietary rights to technical data, process, specifications and material on the HPACs.

8. Actions to Remove Barriers to Future Competition

For the reasons set forth in Paragraph 4, NAVSUP FLC Puget Sound has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, NAVSUP FLC Puget Sound will assess whether competition for future requirements is feasible.

9. Any Other facts supporting the use of other than full and open competition.

Not applicable.