1604 JA REDACTED.pdf

Contract #: N0002422C4420 J&A# N55236250026

Code: 440A Date: 18 July 2025

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN

COMPETITION

1. CONTRACTING ACTIVITY

The Naval Sea Systems Command, Southwest Regional Maintenance Center (N55236), Contracting Department Code 440A, 3755 Brinser Street, Suite #1, San Diego, CA 92136- 5299. Contracting Point of Contact: Amanda Sullivan, at amanda.w.sullivan.civ@us.navy.mil.

2. DESCRIPTION OF THE ACTION BEING APPROVED:

This proposed contract action adds a New Work item to a firm-fixed-price contract awarded to BAE Systems San Diego (BAE) on August 29, 2022. Contract N00024- 22-C-4420 was awarded for USS ESSEX (LHD-2) Fiscal Year 2022 (FY22) Docking Selected Restricted Availability (DSRA). Work Item to be incorporated:

980-11-003 Light-Off Assessment (LOA) Discrepancy Correction Assistance;

provide.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. 980-11-003 Light-Off Assessment (LOA) Discrepancy Correction Assistance;

provide.

b. Total Value: . Funding will be FY24 OPN (TYCOM funded).

c. Light-Off Assessment (LOA) discrepancy repairs are not currently included in the work scope of the ESSEX DSRA, as the discrepancies discovered during LOA are unknowable prior to beginning LOA. Operational testing is in progress, after nearly three years of production work, which includes 40% scope of work above and beyond the basic contract. This work exponentially adds to the complexity and volume of discrepancies, most of which have been related to parts and subsystems that were not part of any work item. As the operational testing continues, a high number of unforeseen discrepancies specifically related to the main propulsion and auxiliary systems have been and will continue to be identified for repairs, especially on parts and subsystems that were not included in the scope of work, but have nevertheless been dormant for nearly three years. Many of these repairs require contract changes and are currently on track to further delay delivery of the USS ESSEX to the fleet. LOA is the current window of opportunity to address the additional unexpected discrepancies identified during operational testing, as well as any other issues that will prevent on-time delivery. The Project Manager (PM) estimates that repairs discovered during LOA will require up to 400 mandays (3,200 hours) and $200,000.00 in material and subcontractor efforts, consistent with the LOA discrepancies experienced on previous USS BOXER and USS ESSEX CNO availabilities.

J&A# N55236240034 d.

the technical and requirements personnel.

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

The statutory authority permitting other than full and open competition is 10 U.S.C.

3204(a)(1) as implemented by the Federal Acquisition Regulation (FAR) 6.302-2 this authority applies in those situations where the supplies or services required 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.

5. RATIONALE JUSTIFYING USE OF CITED STATUTORY AUTHORITY

Request for Contract Change (RCC) 1604N was generated to provide discrepancy repairs during LOA related to the main propulsion and auxiliary systems, including the main feed pumps, ships service turbo steam generators, and boilers. The ESSEX DSRA, unlike previous LHD-class CNO availabilities, did not include any work items to support the LOA milestone. If discrepancies from these systems are not promptly repaired, the ESSEX DSRA will incur additional delays. The original delivery date for the ESSEX DSRA was September 15, 2023, which has been extended seven (7) times, with an eighth extension to October 15, 2025 currently being negotiated.

Soliciting and awarding a competitive contract to conduct these repairs would lead to high risk of an additional delivery date extension, in addition to the current two year delivery delay. This risk is due to long solicitation and award timelines (minimum of 60 days), complexity of the systems involved, and the inefficiency of a new contractor setting up sufficient temporary services to support discrepancy repairs. Further, only a handful of local ship repair companies have the technical expertise and staff available to repair discrepancies in a timely manner. These companies were solicited during the initial ESSEX DSRA solicitation phase.

, and such movement would incur additional costs that would likely exceed any savings from competing the discrepancy repairs. Failure to complete this work in a timely manner would affect all remaining contractual milestones, and deployment schedules, and overall naval readiness, as the ESSEX is one of only seven (7) LHD-class ships in the Navy, and one of only nine (9) LHA/LHD-class, big deck amphibious ships. BAE currently has the institutional knowledge, staffing levels, and temporary services to complete these repairs in a timely manner, as it is currently working with the Government to complete operational testing prior to LOA.

6. DESCRIPTION OF EFFORTS MADE TO SOLICIT OFFERS FROM AS

MANY OFFERORS AS PRACTICABLE:

The original contract was awarded competitively in which BAE was the selected awardee.

J&A# N55236240034

The G proposal was technically acceptable. Given the nature of the solicitation, the urgency and and will not result in serious injury to the Government. A notice in accordance with FAR Subpart 5.2 will not be publicized based on the exception in FAR 5.202(a)(2). It is in the nce work in order to meet and support the operational schedule. This is an atypical event and could not be planned or forecasted. Accordingly, the Administrative Contracting Officer (ACO) determined that this course of action is the most prudent way forward in this unique instance. The USS ESSEX Dry Docking Selected Restricted Availability (DSRA), Contract N00024-22-C-4420, was competitively awarded through full and open competition to BAE San Diego Ship Repair to accomplish critical planned repair, maintenance, and alterations.

7. DETERMINATION OF FAIR AND REASONABLE COST:

The Contracting Officer has determined the anticipated cost to the Government will be fair and reasonable based technical analysis, to be conducted pursuant to FAR, Part 15.

Technical analysis will be performed with the Project Manager to ensure the proposed labor hours, material cost and subcontractor cost correspond with the expected cost or Independent Government Estimate (IGE). Market research beyond the above was not conducted because this complex work is currently in process, making it impractical for another company to perform with simultaneous and related occurring work.

8. ACTION TAKEN TO REMOVE BARRIERS TO COMPETITION:

While standard procedures would follow the typical competitive solicitation process, it is in interest to incorporate and award this critical maintenance work to BAE in order to meet and support Fleet operational readiness and prevent additional harm to the government by risking further delays. This is an unanticipated and atypical event and could not be planned or forecasted. Accordingly, the ACO determined that this course of action is the most prudent way forward in this unique instance.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(b)) I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE: