20-NGS-005_JA_Redacted.pdf

J&A Number: 0223-20-190-00 Code: 0223 P.R. Number: 20-NGS-005

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center, Philadelphia Division (NSWCPD), Code 0223

2. Description of Action Being Approved

This action is to award a Firm-Fixed-Price (FFP) contract on a sole source basis to Pietro Carnaghi USA Inc. (Carnaghi) for preventive and corrective maintenance services of the Carnaghi Vertical Turret Lathe (VTL) milling machine located at the Naval Foundry and Propeller Center (NFPC).

3. Description of the Supplies or Services

NFPC recently installed a Carnaghi VTL, Serial # 47750 machine that will require maintenance to keep the machine running at an optimal condition. The Government requires quarterly preventive and emergent corrective maintenance service to keep it running at this condition.

The scope of work comprises of the Original Equipment Manufacturer (OEM) to provide on-site visits for the Carnaghi VTL, Serial # 47750 machine to conduct either preventative or corrective maintenance services, overall machine positioning, alignment checks and adjustments.

MOPAS Acquisition Strategy Plan Number 0223-20-190-00.1 covers this acquisition.

The total estimated price is for the entire Period of Performance (PoP). A breakout of the funding to be used by fiscal year is provided below.

Year Estimated Amount Appropriation

FY20 OM&N FY20

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

IN REPLY REFER TO:

The PoP for this effort will be one (1) year from the date of award. The Government’s minimum needs have been verified by certifying technical and requirements personnel.

4. Statutory Authority Permitting Other Than Full and Open Competition

41 U.S.C. 1901(e)(2), a sole source acquisition under the authority of Simplified Procedures for Certain Commercial Items, as implemented by Federal Acquisition Regulation (FAR) Subpart 13.501(a).

5. Rationale Justifying Use of Cited Statutory Authority

Unlike smaller and simpler milling machines, the machine under this requirement is highly complex and utilizes cutting-edge technology to make cuts with precise tolerances. Although Carnaghi produces many different sizes and types of machines, NFPC utilizes machines that are customer specific to produce the desired finished product. This machine consists of thousands of intricate moving parts, which must work in unison to function properly and ensure all end products are milled correctly and within tolerance.

Carnaghi is the OEM of this machine, which is specially customized for the unique production needs of NFPC. Like most custom-made machinery, Carnaghi designed and produced milling machines using off-the-shelf parts for a majority of the effort.

While the Government acquired the rights to data for operation and maintenance (O&M) of the machines, the Government often cannot support the repairs, nor has the necessary expertise to diagnose and/or perform the repairs. While the O&M data is essential for day-to-day operation of the machine, they contain insufficient information to determine the root cause(s) of errors encountered.

Carnaghi is the only source that has the level of expertise and trained personnel necessary to perform the required services on this machine. Carnaghi’s technicians have intimate knowledge of machine components to ensure machine downtime will be at a minimum. Additionally, Carnaghi does not subcontract their work to a 3rd party vendor, nor does Carnaghi use authorized distributors for service or repair. Without the level of expertise, qualified personnel, or hands on knowledge to perform these services, there is significant risk that any 3rd party vendor could do serious damage to the machine and/or increase machine downtime. The undue risks of grave damage and increased machine downtime is unacceptable and could cause serious harm to the Government.

This machine is an integral part of NFPC’s production. All of the produced machine parts and components are destined for the Navy’s marine surface and submarine vessels. This machine currently provides all of the intricate and highly precise metal removal for crucially developed NFPC parts and components. This machine is vital production component utilized to meet critical deadlines for the production and repair of the Navy’s propellers. Any delays due to equipment downtime will have a significant impact on the Navy’s ship acquisition and repair programs beyond NFPC, including project delays with naval ship manufacturers.

Carnaghi is the only source that has the capabilities and resources to ensure maximum reliability and functionality of the machines to meet the NFPC mission. Carnaghi is the only source that can provide the services that meet the needs of the Government.

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

A Sources Sought Notice was published on beta.SAM.gov on 14 January 2020 to determine the availability of open market sources willing and able to provide the preventive and corrective maintenance services. No sources responded to the Sources Sought Notice within the specified time frame of ten (10) days. Additionally, market research was conducted to determine whether Carnaghi utilizes subcontractors or distributors that could perform this work; finding, that Carnaghi does not utilize subcontractors or distributors. Therefore, for the reasons discussed in Paragraph 5 above, market research and the results of the Sources Sought Notice, Carnaghi is the only source that can satisfy this requirement. To conclude, NSWCPD plans to issue a combined synopsis/solicitation per FAR 5.203(a)(2).

7. Determination of Fair and Reasonable Costs

The Contracting Officer will make a determination as to whether the costs to the Government for the services covered by this J&A are fair and reasonable, prior to award. The Contractor’s proposal will be reviewed by experienced technical analysts and contract specialists with the aid of necessary field pricing support. The Contracting Officer will use cost and price analysis as the basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Competition

NSWCPD will continue to monitor the marketplace to identify potential sources of the services identified in this Justification. Any sources discovered that can potentially satisfy this specific procurement will be taken into account for any future requirements.

TECHNICAL AND REQUIREMENTS CERTIFICATION REQUIRED BY FAR 6.303-2(c))

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition data, including MOPAS No. 0223-20-190-00.1, except as noted herein are complete and accurate to the best of my knowledge and belief.

COMBINED TECHNICAL AND REQUIREMENTS COGNIZANCE:

Date

LEGAL SUFFICIENCY REVIEW (NMCAR 5206.303-90)

I have determined that this justification is legally sufficient.

Date

APPROVAL BLOCK (FAR 6.304 for Approving Official):

Upon the basis of the above justification, I hereby approve as Contracting Officer, the solicitation of the proposed procurement(s) using other than full and open competition, pursuant to the authority of 41 U.S.C. 1901.

CONTRACTING OFFICER

Andrea Tomeo, Contracting Officer Date