Army Watercraft West Coast MATO IDIQ J&A - Redacted.docx

CMO Control Number: 2020-019

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command-Warren (ACC-WRN) is the contracting activity responsible for this action.

2. Description of Action: ACC-WRN proposes to award a modification to increase the dollar value of each base contract under the Firm Fixed Price, Indefinite Quantity Indefinite Delivery, Multiple Award Task Order Contracts (MATOC) for maintenance, modernization and repair support on the U.S. Army vessel fleet. This MATOC covers current and future maintenance, modernization and repair requirements on the west coast, and includes delivery orders W911S0-16-D-0001 through 0008 (ordering period of 21 December 2015 – 20 December 2020)). During this five year ordering period, the U.S. Army and U.S. Army Reserves have experienced higher than anticipated operations. Approval of this request enables the Army Watercraft Inspection Branch (WIB) and Army Watercraft System (AWS) to obtain On Condition Cycle Maintenance (OCCM) and Emergency and Repair tasks for the U.S. Army vessel fleet, as well as Service Life Extension Program (SLEP) Engineering Change Proposals (ECPs) and Modification Work Orders (MWOs) efforts for the Landing Craft Utility (LCU). This modification to increase the ceiling is necessary to allow for continued support as the Government prepares a competitive follow-on contact. Fiscal Year (FY) 2020 Army Operations and Maintenance (OMA) and Other Procurement, Army (OPA) funds will be used for this action.

3. Description of Supplies/Services: This action is to increase the ceiling amount under the current west coast MATOC in an effort to apply the SLEP ECPs/MWOs on the Landing Craft Utility (LCU) vessels, continue OCCM tasks and the continuation of Emergency Repair tasks for the U.S Army vessel fleet. The contract ceiling for the MATOC will increase for the following contractors, Bay Ship & Yacht, Co; Foss Maritime, Co; Mare Island Dry Dock, LLC; Marisco, LTD; Platypus Marine, Inc; Puglia Engineering, Inc; Vigor Alaska, LLC; Vigor Marine, LLC.

The SLEP effort includes the repower and technology insertion on LCU vessels to include:

· Incorporating Government ECPs/MWOs for three Air Conditioning Unit Replacements; Forward Anchor Winch & Aft Controls; Bow Thruster Compartment Bilge/Ballast Valves; Passive Force Protection Device Power Supply; Galley/Mess and Equipment; Dry Storage and Refrigeration Equipment; Head Refurbishment and Equipment Replacement; Salt Water Flush System Installation; and Remote Motor Controller Replacement.

· Repowering the main propulsion diesel engine; diesel generators and Bow Thruster engine.

The OCCM efforts performed on the vessels include a series of inspections and maintenance service actions that are designed to ensure the watercrafts’ internal and external structure, piping, main and auxiliary engines, electrical installations, lifesaving appliances, fire detecting, and extinguishing equipment, and pollution prevention equipment.

Emergency Repairs include any incidental effort that could occur on any vessel. The emergency repairs can occur in forward operating areas away from the vessels home port or the contractor's plant. These repairs are considered mission essential when the contractor is required to move personnel and materials to the vessel and conduct repairs at remote sites.

The contractors will also perform dock and sea trial testing following completion of the work on each vessel. An Acceptance Test Plan will be developed and will include all required inspections, tests, and trials required for vessel acceptance and Load Line approval.

To successfully perform its mission the U.S. Army Vessel Fleet needs to be mission capable, ready to respond at any moment. In order to ensure mission capable status, the WIB and AWS must have the ability to perform maintenance, modification and repairs on the vessel fleet.

This modification will increase the ceiling value by $38M, from $77M to $115M. The total dollar value of this modification is $38,000,000.

4. Authority Cited: The statutory authority permitting other than full and open competition for this action is 10 U.S.C. 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2) “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements,” which states “When the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.” Specifically, FAR 6.302-1(a)(2)(ii)(B) which states “ Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in (B) Unacceptable delays in fulfilling agency requirements.

5. Reason for Authority Cited: Due to the emergent need and unanticipated circumstances (see below), an award to any other source for these critical tasks would result in unacceptable delays in fulfilling ongoing requirements.

Upon the original award of contracts W911S0-16-D-0001-0008, the west coast MA IDQ contractors were tasked to provide SLEP, OCCM and emergency repairs on the US Army Vessel Fleet. Due to the age of the vessels in the fleet additional maintenance and repairs items were needed to maintain fully mission capable status. These additional requirements will lead to reaching the ceiling sooner than anticipated. The Department of the Army Headquarters (HQDA) issued an Execution Order (EXORD) 077-19) on 30 May 2019, which would have reduced the fleet from 134 vessels to 62. This reduction would have allowed the Government to complete required repairs while staying under the contract ceiling. On 23 July 2019, the Government received a directive from G3/5/7 to cease and desist all Exchange and Sales and divestment activities involving Army Watercraft. This included direction to postpone three (3) pending sales, which were executed by the General Services Administration (GSA), but had not been transferred to the sellers. On 26 July 2019, HDQA published an EXORD 077-19, Fragmentary Orders (FRAGO) 1 suspending the Exchange and Sales of the U.S. Army’s fleet. The suspension of the Exchange and Sales left a number of vessels which were scheduled for divestment, to now require SLEP and OCCM in FY20.

Awarding to anyone other than the current MATO contractors would constitute an unacceptable delay in satisfying current Army Watercraft FY20 requirements. This effort will enter into the fifth and final year in December 2019. PD AWS requires SLEP and OCCM efforts to begin no later than June 2020. This action will bridge the gap while the Government is conducting the competitive acquisition to procure additional SLEP and OCCM requirements for FY21-25.

Award to any other source would require at least 12 months to make a competitive award. This would present an unacceptable delay in meeting the Army Watercraft requirements. A competitive procurement would result in a contract award approximately 12 months later which will not meet the scheduled requirements for SLEP and OCCM and Emergency Repairs on the AWS vessels beginning 3QFY20. A Modification to the base MATOC will allow immediate use to perform SLEP, OCCM and Emergency Repair efforts. The expected timeline for a competitive procurement is as follows:

Competitive Action

This 12 month delay is unacceptable to the Government because it will negatively impact critical Army Watercraft operational readiness and mission requirements. Without the requested ceiling increase, significant risk will be introduced, reducing or eliminating heavy sealift capability. LSVs and LCUs are the only tools able to provide critical supplies from heavy lift ships to shore. The warfighter would lose the ability to counter threats such as piracy, low and high intensity conflicts, and attacks at sea or at landing sites. In addition, without the modernization and modification efforts the Army’s vessels will have reliability, maintainability, and obsolescence issues. Failure of timely implementation of this award will result in the unacceptable delays in performing the OCCM portion of this effort which is mandated by ATP 4-33 Maintenance Operations, dated July 2019, AR 750-1, and 46CFR.

6. Efforts to Obtain Competition:

a. Effective Competition: There are no plans to increase competition for this modification for current MATO contractors. Current contacts W911S0-16-D-0001-0008 were awarded utilizing Full and Open competition. The Government will compete TOs under this contract among all IDIQ contractors. The Government is currently working on a competitive requirement.

b. Subcontracting Competition: The current contract was competed as a partial small business set-aside. All necessary subcontracting clauses are included in the base contract.

7. Actions to Increase Competition: The Government is in the process of working on a competitive action.

8. Market Research: A sources sought notices was posted on FedBizOps from 23 – 31 October 2019. No sources have submitted a statement of capability for this requirement.

9. Interested Sources: Market research conducted in October 2019 supported the determination that no additional sources are capable of meeting the Governments’ requirements.

10. Other Facts:

a. Procurement History: On 18 December 2016, W911S0-16-D-0001 -0008 were awarded as a partial small business set aside, firm-fixed price IDIQ with a five year ordering period for a total value of $77M.

1. Contract: W911S0-16-D-0001 Contractor: Bay Ship & Yacht Co

Contract: W911S0-16-D-0002 Contractor: Foss Maritime Company

Contract: W911S0-16-D-0003 Contractor: Mare Island Dry Dock, LLC

Contract: W911S0-16-D-0004 Contractor: Marisco, LTD

Contract: W911S0-16-D-0005 Contractor: Platypus Marine, Inc.

Contract: W911S0-16-D-0006 Contractor: Puglia Engineering, Inc.

Contract: W911S0-16-D-0007 Contractor: Vigor Alaska, LLC

Contract: W911S0-16-D-0008 Contractor: Vigor Marine LLC

b. Follow-on: An initial planning meeting with ACC-WRN was held on 11 September 2018 to discuss the follow-on requirement. The Government intends to compete the follow-on requirement as a partial small business set-aside. The Government estimated an award date in August 2020.

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name: Joseph M. Keusch Title: Project Manager, PM Transportation Systems Engineering Division Chief Date: 19 November 2019 Signature: s //JMK//

12. Requirements Certification: I certify that the supporting data under my cognizance, which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name: Wolfgang A. Petermann Title: Project Manager, PM Transportation Systems Date: 19 November 2019 Signature: S//WAP

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based on price/cost analysis. As part of this basis, certified cost or pricing data is not required based on FAR 15.403-1(b)(3).

Name: Jared J. Chambers Title: Contracting Officer Date: 21 November 2019 Signature: //s// JJC

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Jared J. Chambers Title: Contracting Officer Date: 21 November 2019 Signature: //s// JJC

APPROVAL

Based on the foregoing justification and as the Senior Contracting Official pursuant to Army Materiel Command Head of the Contracting Activity Delegation of Authority #18-52, I hereby approve the contract ceiling increase modification for the MATOC contracts that support the U.S. Army vessel fleet maintenance effort as well as emergency repairs, on an other than full and open competition based pursuant to the authority of 10 USC 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(ii)(B), “Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements”. This approval is subject to the availability of funds and provided that the tasks described herein have otherwise been authorized for acquisition. The total estimated value of this acquisition is $38,000,000.

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