22JAFECON0001_22D6300 J and A.pdf

J&A No. 22-JA-FECON-0001

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

I. Contracting Activity.

Naval Facilities Engineering Systems Command (NAVFAC) Far East, Facilities Engineering Acquisition Division (FEAD) Commander, Fleet Activities Sasebo (CF AS), Japan.

2. Description of the Action Being Approved.

This Justification and Approval (J&A) requests authority to award contract N40084-22-D-6301 on a sole source basis to K. I. Kogyo, with an estimated not to exceed contract value of $3,008,000.00 for Collection, Holding and Transfer (CHT) and Disposal Services for Industrial Waste from Ships and Vessels at CFAS, Japan.

3. Description of Supplies/Services.

The contract contains service for CHT and disposal services for industrial waste from all ships and vessels at CF AS, Japan.

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)(2), as implemented by Federal Acquisition Regulation (FAR) 6.302-2, the agency's need for supplies or services is of such an unusual and compelling urgency that the government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals.

5. Rationale Justifying Use of Cited Statutory Authority.

Contract N40084-20-D-6300 was awarded to Kanto Kosan on 13 February 2020 to provide CHT and disposal services until 31 March 2025 (including option periods). On 16 February 2021, the United States of America indicted three Kanto Kosan company officials. Following the indictment, the Navy Acquisition and Integrity Office suspended Kanto Kosan. United States Government contracting agencies shall not add any new work, exercise options, or otherwise extend the duration of the current contract or orders to suspended contractors.

CFAS identified an imminent critical need for CHT and disposal services. Ship Repair Facility Japan Regional Maintenance Center Detachment Sasebo has an urgent and critical need to immediately service USS New Orleans (LPD-18) in order to accomplish mission critical repairs which can only be conducted with no crew onboard. CFAS identified that LPD-18's crew members will move right away to USS Mercer (APL-39) which requires CHT and disposal services. APL-39 cannot support this embarkation if there are no CHT and disposal services as it is anticipated that there will be a need to collect, handle, dispose, and treat 15,000 gallons of waste from the APL-39 per day. Delays in repair ofLPD-18 will result in the ship's failure to supp01i the 7th Fleet.

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