25C0001_JA_240039_HALSEY_Redacted.pdf

DEPARTMENT OF THE NAVY

CHIEF OF THE CONTRACTING OFFICE

SOUTHWEST REGIONAL MAINTENANCE CENTER

3755 BRINSER STREET, SUITE 1

SAN DIEGO CA 92136-5299

J&A Number: N55236240039 Code: 410B Sol Number: N5523624R0007 Date: 20 July 2024

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING ACTIVITY

The Naval Sea Systems Command, Southwest Regional Maintenance Center (SWRMC) (N55236), Contracting Department Code 410B, 3755 Brinser Street, Suite #1, San Diego, CA 92136. Contracting Officer and SWRMC Competition Advocate: Derek Sopp, Chief of the Contracting Office, derek.j.sopp.civ@us.navy.mil.

2. DESCRIPTION OF THE ACTION BEING APPROVED:

This justification seeks approval for a sole source procurement for direct replacement material parts in support of the USS HALSEY (DDG 97) Aft Warping Capstan to be provided by the original equipment manufacturer (OEM), Superior Lidgerwood Mundy Corporation.

3. DESCRIPTION OF SUPPLIES/SERVICES:

SWRMC requires direct replacement parts for the USS HALSEY’s (DDG 97) Aft Warping Capstan which allows Naval combat ships to multiply the pulling force of sailors when hauling ropes, cables, and hawsers.

The repairs to the ship’s Aft Warping Capstan are scheduled to be accomplished during the upcoming FY24 Depot Modernization Period (DMP) Availability scheduled to take place from

. The material parts must be compatible in all aspects (form, fit, and function) with the existing system presently installed. SWRMC’s Maintenance Team requires the parts to be received no later than 18 August 2025 to ensure all items are accounted for and turned over as Government furnished property (GFP) to the prime contractor who will prepare for and accomplish the FY24 DMP Availability.

Only the OEM equipment can meet the ship’s Aft Warping Capstan requirements. The items are manufactured by Superior Lidgerwood Mundy Corporation, 302 Grand Avenue, P.O. Box 39, Superior, WI 54880.

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

The total estimated value of this acquisition is $1,000,000.00 using FY24 Other Procurement, Navy (OPN) funds.

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETION

The statutory authority permitting other than full and open competition for this effort is 10 U.S.C.

3204(a)(1), from only one responsible source or only from a limited number of responsible sources and no other supplies or services will satisfy agency requirements. Only one responsible source and no other supplies or services will satisfy agency requirements in accordance with Federal Acquisition Regulation

(FAR) 6.302-1.

5. RATIONALE JUSTIFYING USE OF CITED STATUTORY AUTHORITY

In accordance with FAR 6.302-1(b)(1)(i) Superior Lidgerwood Mundy Corporation is the only source that can satisfy the Navy’s minimum needs because the replacement parts are unique supplies that are only available from this OEM vendor. In addition, the existence of limited rights in data, patent rights make Superior Lidgerwood Mundy the only source capable of providing compatible parts. Superior Lidgerwood

J&A Number: N55236240039

Mundy Corporation is the OEM for the specific Aft Warping Capstan and related equipment. Per the sole source nature of this request, replacement materials through any other vendor requires procurement from the OEM. Superior Lidgerwood Mundy Corporation holds the proprietary rights to all drawings and equipment for the required parts and only their equipment is compatible with the existing Aft Warping Capstan on board the USS HALSEY (DDG 97).

The direct replacement parts are not carried by the Navy Stock System.

The estimated long lead time for the required parts is sixty-four (64) weeks from date of award based on past procurements. To ensure the long lead time material (LLTM) meets the required delivery date of 18 August 2025, in support of the USS HALSEY (DDG 97) FY24 DMP Availability, it is imperative that the contracting activity procures the LLTM from the OEM to meet the mission. Not receiving these parts and components will significantly impact the availability schedule and ship’s deployment mission. The materials for the contemplated work are critical to support on-time completion of the USS HALSEY (DDG 97).

6. DESCRIPTION OF EFFORTS MADE TO SOLICIT OFFERS FROM AS MANY OFFERORS AS

PRACTICAL:

In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance and Information (PGI) 206.302-1(d), this requirement was posted as a Sources Sought announcement on SAM.gov on 27 June 2024; no responses were received. Additional market research was conducted by contacting the OEM, Superior Lidgerwood Mundy Corporation, and requesting a list of the authorized distributors for their equipment. Per OEM letter, dated 01 July 2024, Superior Lidgerwood Mundy confirmed they own the proprietary right to the Aft Warping Capstan and all associated parts, and therefore do not have any authorized distributors. A public notice will be posted in accordance with FAR 5.101(a).

7. DETERMINATION OF FAIR AND REASONABLE COST:

The contracting officer will determine that the anticipated cost of this acquisition to be fair and reasonable based on price analysis to be conducted pursuant to FAR Part 15. The contractor shall provide prior sales history for identical material parts so that a review of historical pricing can be performed to ascertain the reasonableness of the current offered pricing.

8. ACTION TAKEN TO REMOVE BARRIERS TO COMPETITION:

This requirement is a sole source request due to the proprietary nature of the direct replacement parts. The OEM, Superior Lidgerwood Mundy Corporation, is the only source capable to provide and they do not have any authorized distributors.