20260902 DF_Consol_SEC West_Redacted.pdf

DEPARTMENT OF THE NAVY

PORTFOLIO ACQUISITION EXECUTIVE MARITIME

1333 ISAAC HULL AVE SE

WASHINGTON NAVY YARD DC 20376-0001 IN REPLY REFER TO

Source Selection Information – See FAR 2.101 and 3.104

CD&F No.: 26-43,182.0 Code: 025

CLASS DETERMINATION AND FINDINGS

Upon the basis of the following findings, I, as the Executive Director of Acquisition & Contracts, Portfolio Acquisition Executive Maritime, hereby determine that the consolidation of existing surface ship maintenance, repair, and modernization requirements under an Indefinite Delivery Indefinite Quantity Multiple Award Contract (IDIQ-MAC) is necessary and justified.

FINDINGS

1. Identification of Agency and Contracting Activity

Portfolio Acquisition Executive Maritime, Modernization & Sustainment Contracts Division, Maritime 025

2. Nature/Description of Action

This action seeks approval to consolidate the scope of short-term Chief of Naval Operations (CNO) Availabilities, Continuous Maintenance Availabilities (CMAVs), and Emergent Maintenance (EM) under the LCS Sustainment Execution Contract (SEC) West IDIQ-MAC with the San Diego homeport IDIQ-MAC for other surface ship classes.

From FY2015 through the present, the contracting strategy for Deputy Portfolio Acquisition Executive Modernization and Sustainment (DPAE M&S) has been to utilize IDIQ-MACs for short-term Availabilities (restricted within a ship’s homeport in accordance with 10 U.S.C.

8669a) and stand-alone contracts for long-term Availabilities that are not restricted to the vessel’s homeport. The LCS short-term Availabilities for ships homeported in San Diego, specifically, have been completed using a separate LCS SEC administered by Southwest Regional Maintenance Center (SWRMC.) Tables 1a-1b shown below are the previous IDIQ- MACs awarded by NAVSEA Headquarters and administered by SWRMC.

Table 1a: SWRMC Homeport IDIQ-MACs Awarded Contract Number Awardee CLIN Types Description/Lot Type Ordering Period Ceiling Price

N0002422D4442 Epsilon Systems Solutions Inc.

FFP CRUDES - Lot 1 Critical 11/30/2021-11/29/2026 $

N0002422D4443 BAE Systems FFP CRUDES - Lot 1 Critical 11/30/2021-11/29/2026 $

N0002422D4444 East Coast Repair & Fabrication

FFP CRUDES - Lot 1 Critical 11/30/2021-11/29/2026 $

N0002422D4445 Continental Marine of San Diego

FFP CRUDES - Lot 1 Critical 11/30/2021-11/29/2026 $

N0002422D4446 Pacific Ship Repair & Fabrication

FFP CRUDES - Lot 1 Critical 11/30/2021-11/29/2026 $

N0002422D4447 General Dynamics -

NASSCO

FFP CRUDES - Lot 1 Critical 11/30/2021-11/29/2026 $

N0002422D4448 Epsilon Systems Solutions Inc.

FFP AMPHIBS - Lot 2 Critical 11/30/2021-11/29/2026 $

N0002422D4449 BAE Systems FFP AMPHIBS - Lot 2 Critical 11/30/2021-11/29/2026 $

N0002422D4450 East Coast Repair & Fabrication

FFP AMPHIBS - Lot 2 Critical 11/30/2021-11/29/2026 $

N0002422D4451 Continental Marine of San Diego

FFP AMPHIBS - Lot 2 Critical 11/30/2021-11/29/2026 $

N0002422D4452 Pacific Ship Repair & Fabrication

FFP AMPHIBS - Lot 2 Critical 11/30/2021-11/29/2026 $

N0002422D4453 General Dynamics -

NASSCO

FFP AMPHIBS - Lot 2 Critical 11/30/2021-11/29/2026 $

N0002422D4454 Epsilon Systems Solutions Inc.

FFP CRUDES - Lot 3 Non-Critical 11/30/2021-11/29/2026 $

N0002422D4455 Colonna's Shipyard FFP CRUDES - Lot 3 Non-Critical 11/30/2021-11/29/2026 $

N0002422D4456 East Coast Repair & Fabrication

FFP CRUDES - Lot 3 Non-Critical 11/30/2021-11/29/2026 $

N0002422D4457 Gulf Copper & Manufacturing

FFP CRUDES - Lot 3 Non-Critical 11/30/2021-11/29/2026 $

N0002422D4458 Integrated Marine Services

FFP CRUDES - Lot 3 Non-Critical 11/30/2021-11/29/2026 $

N0002422D4459 Pacific Ship Repair & Fabrication

FFP CRUDES - Lot 3 Non-Critical 11/30/2021-11/29/2026 $

N0002422D4460 Propulsion Control Engineering

FFP CRUDES - Lot 3 Non-Critical 11/30/2021-11/29/2026 $

N0002422D4461 Southcoast Welding & Manufacturing

FFP CRUDES - Lot 3 Non-Critical 11/30/2021-11/29/2026 $

N0002422D4462 Advanced Integrated Technologies

FFP CRUDES - Lot 3 Non-Critical 11/30/2021-11/29/2026 $

N0002422D4463 Epsilon Systems Solutions Inc.

FFP AMPHIBS - Lot 4 Non- Critical

11/30/2021-11/29/2026 $

N0002422D4464 Colonna's Shipyard FFP AMPHIBS - Lot 4 Non- Critical

11/30/2021-11/29/2026 $

N0002422D4465 East Coast Repair & Fabrication

FFP AMPHIBS - Lot 4 Non- Critical

11/30/2021-11/29/2026 $

N0002422D4466 Gulf Copper & Manufacturing

FFP AMPHIBS - Lot 4 Non- Critical

11/30/2021-11/29/2026 $

N0002422D4467 Integrated Marine Services

FFP AMPHIBS - Lot 4 Non- Critical

11/30/2021-11/29/2026 $

N0002422D4468 Pacific Ship Repair & Fabrication

FFP AMPHIBS - Lot 4 Non- Critical

11/30/2021-11/29/2026 $

N0002422D4469 Propulsion Control Engineering

FFP AMPHIBS - Lot 4 Non- Critical

11/30/2021-11/29/2026 $

N0002422D4470 Southcoast Welding & Manufacturing

FFP AMPHIBS - Lot 4 Non- Critical

11/30/2021-11/29/2026 $

N0002422D4471 Advanced Integrated Technologies

FFP AMPHIBS - Lot 4 Non- Critical

11/30/2021-11/29/2026 $

N0002422D4472 Southcoast Welding & Manufacturing

FFP CRUDES - Lot 3 Non-Critical 05/12/22-11/29/2026 $

N0002422D4473 Southcoast Welding & Manufacturing

FFP AMPHIBS - Lot 4 Non- Critical

05/12/22-11/29/2026 $

Table 1b: SWRMC LCS SEC West IDIQ-MACs Awarded Contract Number

Awardee CLIN Types

Description Ordering Period Ceiling Price

N0002425D4212 Austal USA FFP/CPFF MAC Tier I 05/23/2025-05/22/2030 $

N0002425D4213 BAE Systems FFP/CPFF MAC Tier I 05/23/2025-05/22/2030 $

N0002425D4214 General Dynamics - NASSCO FFP/CPFF MAC Tier I 05/23/2025-05/22/2030 $

N0002425D4215 Continental Marine of San Diego FFP/CPFF MAC Tier II 05/23/2025-05/22/2030 $

N0002425D4216 Fincantieri Marine Repair FFP/CPFF MAC Tier II 05/23/2025-05/22/2030 $

N0002425D4217 Delphinus Engineering FFP/CPFF MAC Tier II 05/23/2025-05/22/2030 $

N0002425D4218 East Coast Repair & Fabrication FFP/CPFF MAC Tier II 05/23/2025-05/22/2030 $

N0002425D4219 Epsilon Systems Solutions Inc. FFP/CPFF MAC Tier II 05/23/2025-05/22/2030 $

N0002425D4220 Pacific Shipyards International FFP/CPFF MAC Tier II 05/23/2025-05/22/2030 $

N0002425D4221 Southcoast Welding & Manufacturing

FFP/CPFF MAC Tier II 05/23/2025-05/22/2030 $

N0002425D4222 Standard Inspection Services FFP/CPFF MAC Tier II 05/23/2025-05/22/2030 $

N0002425D4223 Propulsion Control Engineering FFP/CPFF MAC Tier II 05/23/2025-05/22/2030 $

N0002425D4224 Bay City Marine FFP/CPFF MAC Tier III 05/23/2025-05/22/2030 $

N0002425D4225 Life Cycle Engineering FFP/CPFF MAC Tier III 05/23/2025-05/22/2030 $

N0002425D4226 Integrated Marine Services FFP/CPFF MAC Tier III 05/23/2025-05/22/2030 $

N0002425D4227 Neal Technical Innovations FFP/CPFF MAC Tier III 05/23/2025-05/22/2030 $

N0002425D4228 QED Systems, Inc. FFP/CPFF MAC Tier III 05/23/2025-05/22/2030 $

The Government intends to solicit for and award an IDIQ-MAC that includes the LCS class with the rest of the surface ship portfolio rather than stand-alone. This is an administrative streamlining of contracts. The consolidated MAC will include two levels, based on the qualifications and capabilities of the Contractors, as described below. The performance requirements for efforts required to maintain, modernize, and repair ships homeported in San Diego, CA will be defined in the Statement of Work of the solicitation, and in the competed work packages. Contractors performing effort under both MAC categories, as described below, must have a Master Ship Repair Agreement (MSRA) in place.

The Government intends to award the IDIQ-MAC based on the qualifications and capabilities of the Contractor in the following two (2) categories: MAC A, where all holders can complete all requirements, and MAC B, where all holders can complete work associated with CMAVs and EM on non-critical systems.

and interest in performing short-term CNO Availabilities, CMAVs, and EM Availabilities executed in the San Diego homeport area.

The market research conducted for the San Diego homeport area revealed a strong and diverse pool of interested contractors. The solicitation attracted eleven respondents, including a broad range of small businesses such as minority-owned, HUBZone, and woman-owned firms, alongside larger companies. This diverse mix of contractors demonstrated extensive experience with CNO Availabilities, CMAVs, and EM across various surface ship classes. Many respondents currently support ship repair requirements in the San Diego homeport area under existing MAC contracts, reflecting a well-established local industrial base with proven capabilities to meet technical and management requirements.

The consolidation of these requirements will not materially increase the size, scope or complexity of individual delivery orders such that they would become unsuitable for small business participation. Although the requirements will be awarded under a single consolidated IDIQ-MAC, the Navy will issue delivery orders that are comparable in scope and value to those historically performed under the predecessor contract vehicles. Under the LCS SEC West IDIQ- MAC, CMAVs and EM contract holders were solicited and awarded under full and open competition with a mix of large and small businesses. Under the San Diego homeport IDIQ- MAC, CMAVs and EM for non-critical systems for all surface ships including LCS will be set-aside for small businesses. This will ensure the consolidated structure provides meaningful opportunities for small business participation. This consolidation determination has been coordinated with PAE Maritime’s Office of Small Business Programs (SEA00K).

Consolidation of the scope of short-term CNO Availabilities, CMAVs, and EM Availabilities under the LCS SEC West IDIQ-MAC with the San Diego homeport IDIQ-MAC for the other surface ships would result in the following benefits:

Reduction in Acquisition Cycle Time - Each IDIQ-MAC has a lead time of approximately twelve

(12) months from planning to award. Combining the LCS class within the SWRMC IDIQ-MAC that already covers the majority of non-nuclear surface ship class vessels will reduce the contract cycle time by eliminating the need for a recompete/follow-on of the current stand-alone LCS SEC West IDIQ-MAC.

Increased Administrative Efficiencies - A single IDIQ-MAC will reduce the administrative burden of managing separate contract vehicles without reducing competitive opportunities for small business as discussed above. Under the proposed MAC, ship repair and overhaul execution requirements for all classes of surface ships can now be covered under these central vehicles in which prequalified contractors compete for work. The objective of the IDIQ is to provide the Fleet with timely mission-ready ships for a reasonable price, maximizing innovation and cost reduction initiatives.

Enhanced Performance - This structure represents a partnership between the Navy and industry to provide for a Navy-wide, consistent procurement process which allows the Navy to leverage quality control and manage work requirements efficiently. Establishing long-term relationships with industry and standardizing the processes for homeport surface ship availabilities will facilitate industrial learning and enable efficiencies that would drive cost savings and schedule improvement.

5. CD&F Expiration Date

The authority under this CD&F expires 31 December 2027, which affords sufficient time to award the IDIQ-MAC contract vehicle for the San Diego homeport.

DETERMINATION

Pursuant to the requirements of 15 U. S. C. 657q, and implementing regulation and policy, and based upon the findings above, I hereby determine that benefits of the consolidation of existing surface ship maintenance, repair, and modernization requirements under an IDIQ-MAC substantially exceed the benefits of the other identified alternative contracting approach discussed, and that the consolidation is necessary and justified.

APPROVAL BLOCK

Signature Date Ms. Cristina Covalt Executive Director of Acquisition & Contracts Portfolio Acquisition Executive Maritime

9/2/2026