2.2.4 21R0032 J&A Redacted.pdf

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Attached to
LPAC Service Federal contract opportunity
Solicitation number
N0040621R0032
Issued by
Department of the Navy Naval Supply Systems Command

About this file

This document is a justification and approval for a sole source award and the related federal contract opportunity. The justification document outlines plans for a sole source award to RIX Industries for replacement of programmable logic controllers, compressor management system controller assemblies, and electrical enclosures on low pressure air compressors aboard a Navy vessel in Japan. The justification cites RIX Industries as the original equipment manufacturer with proprietary technical data rights required to perform the work. The related federal contract opportunity is a pre-solicitation notice for the same requirements, with proposals due on August 30, 2021 and award anticipated shortly thereafter. The acquisition will utilize FAR Part 12 and Subpart 13.5 on a firm-fixed price basis.

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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: 2021-015

PURCHASE REQUEST NUMBER: N6275821RCUS777

Requiring Activity:

Ship Repair Facility, Japan Regional Maintenance Center (SRF-JRMC), Yokosuka, Japan.

Description of Requirement:

This is a new sole source requirement for the replacement of the Programmable Logic Controller (PLC), Compressor Management System (CMS) Controller Assembly, and CMS Electrical Enclosure of the No.1 thru 3 Low Pressure Air Compressor (LPAC) onboard a forward deployed U.S. Navy vessel in support of U.S. Naval Ship Repair Facility & Japan Regional Maintenance Center (SRF-JRMC) Yokosuka, Japan.

The contractor will provide onsite services and material required to disconnect and remove old equipment, install new equipment, and conduct operational tests in accordance with the Performance Work Statement

(PWS).

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-JRMC Yokosuka requests award of a new firm-fixed-price contract on a sole source basis with the Original Equipment Manufacturer (OEM), RIX Industries. The Government projects award for August 2021 and fiscal year 2021, funds type Operations and Maintenance, Navy funds will be used.

OEM:

RIX Industries 4900 Industrial Way Benicia, CA 94510 United States

CAGE: 28953

3. Description of Supplies/Services:

This requirement is for an on-site representative to accomplish the replacement of the PLC, CMS Controller Assembly, and CMS Electrical Enclosure of the No.1 thru 3 LPAC onboard a U.S. Navy vessel located at SRF-JRMC Yokosuka, Japan. The contractor will provide onsite services and material required to disconnect and remove old equipment, install new equipment, and conduct operational tests in accordance with the PWS.

Due to COVID-19, travel regulations must be met before the contractor will be allowed to begin work in

(b) (5)

Japan including TT/IATP and APACS approval, pre-departure screening and testing, a 14 day Restriction of Movement (ROM), and ROM exit testing with a negative test result.

Period of Performance:

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 PLC based CMS onboard this class of ship. As such, RIX Industries is the only manufacturer with access to the technical data needed to replace the PLC based CMS. 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. PLCs are complex, highly engineered units and all parts must be obtained from the OEM to ensure their proper operation as an integral part of the CMS. As the OEM, RIX Industries is the only company with the access to the technical data necessary to properly program and configure the PLCs.

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.

7. Market Research:

The required sources per FAR Part 8 were screened on 07 June 2021. The required PLC and CMS replacement parts and services are not provided by AbilityOne or UNICOR. Additional market research was conducted in May and June of 2021 to ascertain if the requirement meets the FAR definition of a commercial item as follows: review of previous acquisitions for the same and similar requirements;

discussions with the requiring activity; internet searches including Google and SAM.gov contract opportunities; and input from the Naval Supply Systems Command Fleet Logistics Center (NAVSUP FLC) Puget Sound Small Business Professional.

(b) (5)

In accordance with FAR Part 10, a determination has been made that the required supplies and services are of a type offered and sold competitively in substantial quantities in the commercial marketplace based on competitive market prices and under standard commercial terms and conditions. The required supplies and services are commercially available to the general public from private industry and meet the commercial item definition at FAR 2.101. 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 performing the required PLC and CMS replacement as they hold proprietary rights to technical data, process, specifications and material.

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.

N/A

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