22P2141 JA signed(1)_Redacted.pdf

J&A No. N103-22-P-2141

JUSTIFICATION AND APPROVAL (J&A) FOR USE OF OTHER THAN

FULL AND OPEN COMPETITION

1. Contracting Activity.

Department of the Navy, Military Sealift Command (MSC), Ship Charter Contracts Division (N103).

2. Description of the Action Being Approved.

Award of an extension to contract N3220522P2141 on a sole-source basis to the incumbent contractor, Beyel Brothers Inc. for the time charter of the U.S. flag, Tug and Barge .

The purpose of this J&A is to obtain approval to execute an extension of services under FAR 52.217- 8, Option to Extend Services. The clause was included in the contract at the time of award; however, the value of the additional services was not competitively evaluated. The proposed action permits up to six months of service under the clause.

The period of performance of this contract consists of a 180-day charter period from 27 July 2022 to 22 January 2023, and an additional 90-day charter period from 23 January 2023 through 22 April 2023. The requested 180-day period of performance extension is to support the continuing Atlantic Undersea Test and Evaluation Center (AUTEC) Andros Island mission requirements.

3. Description of the Supplies/Services.

The contract awarded on 01 July 2022, to Beyel Brothers Inc., provides for the charter of the U.S. flag, tug/barge solution to provide the safe carriage of a minimum of 500 tons (LT) of a mix of bulk, break-bulk, or containerized cargo, and to transport explosive and hazardous cargo up to IMDG HAZMAT Class 1.1- 1.4 under a MSC dry cargo time charter. This extension encompasses the current requirement for cargo shuttle transportation for the AUTEC mission.

MSC Operations notified the contracting office of this potential urgent requirement on 29 March 2023. This action is needed to facilitate uninterrupted service while the future requirement goes through the procurement process.

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. § 3204(a)(2), as implemented by FAR 6.302-2, Unusual and Compelling Urgency.

5. Rationale Justifying Use of Cited Statutory Authority.

This J&A permits an extension of services provided under FAR 52.217-8 Option to Extend Services, for continued performance of the current Tug and Barge charter contract. A FAR 52.217-8 clause only requires a J&A for execution if the rates were not evaluated at the time of contract award (see FAR 17.207(f)), as is the instant case. However, the FAR 52.217-8 clause was still included at time of award; therefore, the Government is justified in its execution of the clause. For this and the following reasons, this J&A uses FAR 6.302-2, unusual and compelling urgency, as its justification.

In accordance with FAR 6.302-2(b), unusual and compelling urgency statutory authority applies when 1) an unusual and compelling urgency precludes full and open competition; and

2) delay in award of a contract would result in serious injury, financial or other, to the Government.

Additionally, FAR 6.302-2(c)(2) states that use of this statutory authority requires agencies request offers from as many potential sources as is practicable under the circumstances.

As detailed in para 3, supra, AUTEC provides instrumental operational areas in a real world environment to satisfy research, development, test and evaluation requirements and operational performance assessment of war fighter readiness in support of the full spectrum of maritime warfare.

AUTEC requires standard and unique supplies to support the Andros Island, Bahamas-based unit on a regular schedule to maintain their ability to meet their mission. The regular and uninterrupted service is key to sustaining the personnel and objectives.

Unexpected delays in developing the follow-on requirement as a vessel charter resulted in unanticipated and unusual delays. As noted above, the requirement was submitted to MSC on 29 March 2023, and failure to exercise FAR 52.217-8, Option to Extend Services will result in serious injury to the government. There was not enough time to process a competitive procurement between 29 March 2023, when the notification of a bridge request was received and 22 April 2023, when the current contract expires.

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

The Contracting Officer took into consideration that the market for the subject requirement is very limited, does not change frequently, and is not expected to change; therefore, competition is not impacted. Sources Sought Notice N32205-SS-N321-22-039 was completed within the last year for this Contract, and Beyel Brothers Inc.’s price for this option is well below industry market pricing.

In accordance with (FAR) 6.305, the approved Justification and Approval (J&A) will be made publicly available, and posted on the Government’s Point of Entry, Sam.gov website, Contract Opportunities, within 30 days after award of the contract modification.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer signed below, has determined the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable in accordance with FAR 13.106-3(a) (2) (ii)-comparison to prices found reasonable on previous purchases. As stated above, the FAR 52.217-8 option rates are the same rates as the existing charter for the tug/barge solution. The Contracting Officer found these rates fair and reasonable at the time of contract award on 01 July 2022.

There has been no change in the market situation or to MSC's requirement that would cause a significant change in this rate. The tug/barge solution have been on steady employment with MSC for the past eight months with consistent rates, accounting for inflation and evolving requirements.

8. Actions to Remove Barriers to Future Competition.

MSC intends to solicit a full and open solicitation and competitively awarded temporary SPOT charter supporting the AUTEC Andros Island mission in FY 2023 as the long-term charter for this mission is currently being procured with award projected in FY 2024. The awarded temporary Spot charter would assume this mission once this extension period ends.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief. I certify that the supporting data that forms the basis for this justification is complete and accurate.

Technical/Requirements Cognizance.

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

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

DIRECTOR, CONTRACTS AND BUSINESS MANAGEMENT, MILITARY SEALIFT

COMMAND

Upon the basis of the following justification, I, hereby approve, as Competition Advocate, Military Sealift Command, the contract action described herein using other than full and open completion, pursuant to the authority of 10 U.S.C. 2304(c)(1):

Per Letter of Designation