20200518 MOSCM J and A Form 53.6-2 Code 2370 Best & Final_Redacted.pdf

NCH 53.6-2

Omega Seal Cutting Machine

J&A Number: PL-2033

Code: 410.1

P.R. Number: N3904021RCOSCMDD1RFC983

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Portsmouth Naval Shipyard (PNS), Kittery, ME. The point of contact at the contracting activity is .

2. Description of the Action Being Approved

Request the authority to solicit, negotiate, and award a

Firm-Fixed Price contract on a sole source basis to E.H.

WACHS for the purchase of a Large Diameter, Split Frame

Cutting Machine (Model LDSF 90) as a Shipyard-Furnished

Equipment (SFE) Main Omega Seal Cutting Machine (MOSCM)

3. Description of Supplies/Services

The proposed supply contract provides equipment to purchase a second SFE MOSCM. PNS currently operates an E.H. WACHS

Model LDSF 90 SFE MOSCM. It has historically been utilized for inactivations. This purchase supports concurrent refuelings of the Service Life Extension Project in Drydocks

1 and 2. Furthermore, two SFE MOSCMs at PNS supports future capacity for concurrent inactivations in Drydocks 1 and 2.

The total value according to the quote provided from E.H.

WACHS is $409,205.00

The aforementioned value is derived from the value of:

1. (1) E.H. WACHS Large Diameter Split Frame Machine

(Model LDSF 90);

2. (1) E.H. WACHS Custom Model HPU-20GY Hydraulic Power

Unit;

3. (1) Omega Seal and Flange Refurbishment Training Mock-

Up Module; and

J&A Number:

4. (1) Consumable 303 SS Mock-Up Insert Ring for factory acceptance testing.

2275/2276 to supply funds for the Shipyard’s Capital

Investment Program. P.O.C. for funding is

The Government’s minimum needs have been verified by the certifying 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 2304 (c) (1), as implemented by paragraph 6.302-1 (Only one responsible source and no other supplies or services will satisfy agency requirements) of the Federal Acquisition Regulation (FAR) which allows for other than full and open competition when items are only available from one responsible source or only from a limited number of responsible sources and no other type of supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

The E.H. WACHS Model LDSF 90 is the only authorized SFE MOSCM of choice by NAVSEA. E.H. WACHS holds the proprietary design to this equipment. Other machines do not meet the functionality of this cutting method as this is a purpose built patented designed system that consists of a large ring that functions as the track for a rotary tool bit and “chip-less” cutting wheel. The bit cuts to a predetermined depth into the Omega Seal weld and the cutting wheel finishes the seal's separation, preventing chips and debris from entering the seal. There is no other equivalent system that is able to do equivalent work. This equipment will support the upcoming

D2W refueling program.

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

Offerors as Practicable

The proposed procurement will not be published in the

FEDBIZOPS based on the above justification that the cutting machine is a proprietary design that is not manufactured by any other sources and its unique capabilities are instrumental to the success of future work at Portsmouth

Naval Shipyard. The contract action contemplated herein is being executed to meet PNS Training and Refueling schedules.

Notice of this justification will be provided on https://www.fbo.gov/ in accordance with FAR 6.305.

7. Determination of Fair and Reasonable Costs

The Contracting Officer anticipates the cost for the cutting machine covered by this J&A will be fair and reasonable. The

Contracting Officer will use price analysis, including historical cost estimating relationships from previous procurements, to determine that the final price to the

Government is fair and reasonable. Market Research shows the previous SFE MOSCM purchase from E.H. WACHS was awarded on

06 May 2013 under contract# N00189-13-C-PC17 by Portsmouth

Naval Shipyard. Modifications made to that SFE MOSCM, to support refueling cutting methods, was awarded to E.H. WACHS on 15 Feb 2019 under Contract N39040-18-P-0365. The

Contracting Officer anticipates an increase in cost due to annual increases in materials and production from 2013.

This contract will also incorporate design changes to accommodate refueling cutting methods not included in the original contract – the 2013 purchase was for an SFE MOSCM designed exclusively for inactivation cutting methods. The

Contract Specialist reached out to E.H. Wachs and was informed that the company did not have any authorized re-sellers. Furthermore, this Omega Seal Cutting machine is not widely available and is specific to government requirements for this machine.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraphs 5, 6 and 7, PNS has no plans at this time to compete future contracts for SFE

MOSCMs covered by this document. If another potential source emerges, PNS will assess whether competition for future requirements is feasible and warranted.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (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 planning data, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

Signature Name (Print) and Title (Code) Phone No. Date

REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(b)(12))

I certify that this justification is accurate and complete to the best of my knowledge and belief.

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as

(Senior Procurement Executive of the Navy, Designee of the Head of the Procuring Activity, Designee of the Head of the

Contracting Activity, Competition Advocate for the Procuring

Activity, Contracting Officer, as appropriate) the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10

U.S.C. 2304(c)(1).

(TITLE OF APPROVING OFFICIAL)

Signature Name (Print) Date