23P2030 JA_Redacted.pdf

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Attached to
90-DAY EXTENSION RED HILL Federal contract opportunity
Solicitation number
N3220523P2030
Issued by
Department of the Navy Military Sealift Command

About this file

This document contains a Justification and Approval (J&A) and details of a related federal contract opportunity. The J&A provides a sole source justification for a 90-day extension to an existing contract with an unknown vendor awarded on April 20, 2023 by the Department of the Navy Military Sealift Command. The contract extension is for continued charter of a U.S.-flagged tanker vessel to provide emergency storage capacity and rapid response capabilities for the Red Hill Bulk Fuel Storage Facility in Pearl Harbor, Hawaii, until a vessel under a newly awarded long-term contract delivers in July 2023. The J&A cites unusual and compelling urgency due to unacceptable increases in operational risk and danger if the critical mission services experience any break before the new contract begins. Pricing was determined fair and reasonable based on market rates for comparable daily charter hire.

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Text version

J&A No. N10323P2030 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 section 3, supra, the vessel provided through this extension performs a critical mission ensuring environmental and personnel safety. Any break in service presents an unacceptable increase in operational risk, and poses an increased danger to the safety and security of the environment and personnel in the JBPH area.

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

MSC issued a request for proposals for the long term procurement N3220523R0008 which will assume this mission, and was posted on the SAM.gov website on October 2022. Responses to the this requirement showed that all commercial tankers are limited and need time to sail to Pearl Harbor and time to modify their vessels to meet this requirement.

This requested extension is exempt from the synopsis requirement by FAR 5.202(a)(2) ("unusual and compelling urgency precludes competition to the maximum extent practicable") because the Government would be seriously injured if the agency complies with the time periods in FAR 5.203.

The request for the extension was received on March 6, 2023 which was not enough time to do a competitive spot charter before the PoP end date of April 24, 2023. In addition, commercial tankers need time to modify vessels and sail to Pearl Harbor, HI and there aren’t other sources that are going to be able to meet the requirement prior to April 24, 2023. The chartered emergency storage tanker is required to be continuously available, within a 5-hour call back window, to respond to real-world emergencies at RHBFSF. Any break in service presents an unacceptable increase in operational risk, and poses an increased danger to the safety and security of the environment and personnel in the JBPH area.

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 comparison to the current long term procurement daily charter hire rates.. Provided below is a summary of the price analysis.

J&A No. N10323P2030

Based on the above analysis, the current daily charter hire rate for the is in line with the rates available in the market. We do want to include that the newly awarded long-term contract will carry more equipment than the , which explains the price difference in the offerors above.

8. Actions to Remove Barriers to Future Competition.

MSC has awarded a long-term contract for a tanker to support JBPH that will assume this mission upon delivery in July 2023.

File details come from the government source that posted it. Updated .