14C3210 JA_Redacted.pdf

N105A-14-C-3210

SOURCE SELCTION SENSITIVE INFORMATION – SEE FAR 2.101 & 3.104

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Department of the Navy, Military Sealift Command (MSC), Prepositioning Program (PM3 & PM5) Contracting Support Branch, N105A.

2. Description of the Action Being Approved.

Award of an extension to contract N00033-14-C-3210, on a sole source basis to the incumbent contractor, Patriot Contract Services, LLC (PCS), for the ship operation and maintenance (O&M) of the eight WATSON-class Large, Medium Speed Roll-On/Roll-Off (LMSRs).

The purpose of this J&A is to obtain approval to execute an extension of services under FAR 52.217-8, Option to Extend Services, The clause was included in the contract at the time of award; however, the value of the additional services was not competitively evaluated. The proposed action permits up to six months of service under the clause.

The period of performance will consist of one 120-day period from 01 April 2021 through 29 July 2021 and one 60-day period from 30 July 2021 through 28 September 2021. The requested extension 120-day period of performance is to cover the time to address the protest and the 60-day period will be available to the extent we need to address other contingencies that may occur after GAO makes a decision on the protest.

3. Description of Supplies/Services.

The contract provides for the O&M of the eight WATSON-class LMSRs. The Army Prepositioning Ships (APS), USNS RED CLOUD, USNS CHARLTON, USNS WATKINS, USNS WATSON, and USNS SODERMAN, are employed in the worldwide prepositioning of Government cargo that includes hazardous materials, explosives & ammunition, vehicles, bulk cargo, and general cargo. The USNS DAHL and USNS SISLER are United States Marine Corps (USMC) LMSRs within the Maritime Prepositioning Force (MPF) that carry the same types of cargo as the other LMSRs, but have a slightly different configuration in support of mission requirements specific to the USMC. In the absence of a defined mission, any of these ships are available for use in support of other Government missions or put in Reduced Operating Status (ROS). In total, MSC's Prepositioning and Surge Sealift programs provide a total of five million square feet of sealift and afloat prepositioning capacity for contingency operations.

The requirement is for the Contractor to continue to operate and maintain the WATSON-class vessels from current end date of 31 March 2021 until 29 July 2021, utilizing FAR 52.217-8, Option to Extend Services. The total estimated value of this 120-day contract extension is for the fixed priced operating hire. In accordance with FAR clause 52.217-8, the current period fixed rates are to be used for the extension of the contract. Therefore, the daily rates for the current 6-month Option were used to develop the fixed portion of the estimate.

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

10 U.S.C. § 2304(c)(2), as implemented by FAR 6.302-2, Unusual and Compelling Urgency

5. Rationale Justifying Use of Cited Statutory Authority.

This J&A permits an extension of services provided under FAR 52.217-8 Option to Extend Services, for continued performance of the current WATSON Class LMSR O&M contract. A FAR 52.217-8 option only requires a J&A for execution if the rates were not evaluated at the time of contract award (see FAR 17.207(f)), as is the instant case. However, the FAR 52.217- 8 clause was still included at time of award, and therefore the Government is justified in its execution of the clause. For this and the following reasons, this J&A uses FAR 6.302-2, unusual and compelling urgency, as its justification.

In accordance with FAR 6.302-2(b), unusual and compelling urgency statutory authority applies when 1) an unusual and compelling urgency precludes full and open competition; and

2) delay in award of a contract would result in serious injury, financial or other, to the Government. Additionally, FAR 6.302-2(c)(2) states that use of this statutory authority requires agencies request offers from as many potential sources as is practicable under the circumstances. Market research conducted in January 2020 in support of the current bridge, indicated that industry has no interest in a six-month contract for this type of effort. The lack of interest is due to a six-month contract being too short for the inherit risk that the operating companies would be subjected to.

Initially, the Government awarded the follow-on contract using full and open competition, on 05 March 2021, with performance to commence 01 April 2021. However, MSC received a Notice of Protest from the Government Accountability Office (GAO) the evening of Monday, 22 March 2021. In accordance with FAR 33.104(c), the Contracting Officer issued a Notice of Protest to the apparent Awardee of the follow-on contract the morning of Tuesday, 23 March 2021. The Agency Report Due Date is 21 April 2021 and the Case Due Date is 30 June 2021.

Pursuant to 31 U.S.C. § 3554, GAO has to make a determination on the post-award protest prior to services commencing on the follow-on contract. As such, exercise of the FAR 52.217-8 option is in the best interest of the Government, due to the unusual and compelling urgency to avoid a gap in services between the current and follow-on contract for the O&M of the eight WATSON-class LMSR ships.

As detailed in section 3, supra, the vessels operated under this contract perform critical missions and any break in service presents an unacceptable risk to mission readiness, increases operational risk, and poses an increased danger to the safety and security of the vessel and crew. A gap in service poses a significant risk to national interests, military assets and lives. While other contractors may have general ship operating experience, they do not have the ability to meet the transition functions and phase-in requirements for this contract within the necessary timeframe. Furthermore, award to a contractor other than Patriot will result in an extensive duplication of costs for property inventory, crew familiarization, transition periods and ship turnover costs.

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

MSC competitively awarded the current contract, N00033-14-C-3210. This requested extension is exempt from the synopsis requirement by FAR 5.202(a)(2) ("unusual and compelling urgency precludes competition to the maximum extent practicable") because the Government would be seriously injured if the agency complies with the time periods in FAR

5.203. The WATSON-Class LMSRs are required to be continuously available to respond to real-world contingencies that include both military operations and humanitarian support. A break in service will impair the Department of Defense’s ability to respond to real-world contingencies with logistical support, which negatively affects national interests by creating substantial risk to national assets and lives.

Market research was conducted in preparation for the recent award of the current option period and during the planning phase for the follow-on procurement. Prospective sources have not expressed interest in an interim, short-term contract. In accordance with FAR 10.002(b)(1), this information is still current, accurate, and relevant.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable in accordance with FAR 15.404- 1(b)(2)(ii), “comparison of proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items”. As stated above, supra, the FAR 52.217-8 option rates are the same rates as the 6-month option rates of the current WATSON-Class LMSR O&M bridge contract. The 6-month option rates were found to be fair and reasonable by the Contracting Officer at the time of contract award and again when exercising the option year.

8. Actions to Remove Barriers to Future Competition.

Performance under a competitively awarded contract is expected to begin once GAO makes a determination and any subsequent recommendations are completed. Therefore, there are no barriers to future competition.