26R6038 JA_Redacted.pdf

J&A No. N103-26-R-6038

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.

The purpose of this J&A is to obtain approval to award a firm fixed price contract on a sole-source basis to the incumbent contractor, Hornbeck Offshore Services, LLC (HOS) for the time charter of the U.S. flag vessel, HOS The period of performance for this contract action will be a 180-day base period from and one 150-day option period for a total period of performance of 330 days. This time charter is necessary to

The vessel is currently performing the current capability of worldwide operations. This includes support in during all periods of time, when navigable and ice breaking certification is not required. The vessel operator must also be capable of sustaining the vessel

. This is a FAR Part 12 using FAR Part 15 procedures procurement and requires a written justification (Only One Responsible Source and Other Supplies or Services will Satisfy Agency Requirements) and approval per FAR Part 6.302-1

3. Description of the Supplies/Services.

The contract provides for one (1) US flagged vessel which shall function as surface support vessel for worldwide operations. The services required include the provision of a fully crewed and operational vessel, capable of supporting towing of a passive acoustic monitoring system, between 4-6 knots, 24 hours/day for up to a 60-day event. The ship is capable of supporting towing on a directed heading within 5 degrees for extended periods at slow speed. Because of the type of acoustic system employed, the ability of the vessel to maintain heading stability is critical. The incumbent contractor, HOS, will continue to provide all necessary vessel operations, maintenance, and crew to meet the government's requirements. The vessel will need to be capable of operating worldwide.

The current 59-month time-charter contract (N3220521C2296) for this requirement was awarded on 15 March 2021 and was solicited as a full and open procurement.

The requirement is for an Offshore Supply Vessel (OSV) capable of supporting Expeditionary Surveillance Towed Array Sensor System (SURTASS-E) operations. Required vessel capabilities include:

• Launch, recovery, and handling interfaces for SURTASS-E GFE.

• Integrated power, communications, and data infrastructure.

• Deck foundations and clearances for SURTASS-E GFE

This award will allow HOS to continue SURTASS-E assigned missions from the Numbered Fleet Commanders at the conclusion of contract N3220521C2296 and to commence services under a new time charter.

The total estimated value of this time charter is , which includes a 180 day base period for the period of performance of in the amount of daily rate x 180 days)(CLIN 0001) and a 150 day option period for the period of performance of in the amount of daily rate x 150 days)(CLIN 1001). Delivery/Redelivery Bonus is estimated in the amount of

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

This procurement is conducted under the authority of 41 U.S.C. § 3304(a)(1), as implemented by FAR 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority

The SURTASS-E is a U.S. Navy acoustic monitoring system. Its mission is to tow a passive acoustic monitoring system, between 4-6 knots, 24 hours/day for up to a 60-day event. The ship will need to be able to tow on a directed heading within 5 degrees for extended periods at slow speed. Because of the type of acoustic system employed, the ability of the vessel to maintain heading stability is critical. The incumbent contractor, HOS, will continue to provide all necessary vessel operations, maintenance, and crew to meet the government's requirements.

An award to any source other than the incumbent contractor would result in unacceptable delays in fulfilling agency requirements and substantial duplication of costs not expected to be recovered through competition (FAR 6.302-1(a)(2)(iii)(A-B) for the following reasons:

UNACCEPTABLE DELAYS: The primary factor compelling this sole-source justification is the unacceptable operational gap that would result from an award to any source other than the incumbent. A transition to any vessel other than the incumbent's would require an estimated 6-8 months for demobilization, engineering & design, regulation & welding, mobilization & testing, and crew training.

Demobilization would require an estimated 2 weeks for removal of all vans, equipment and welded materials from the current vessel. Engineering and design would require an estimated 3-4 months for site survey, engineering analysis, American Bureau of Shipping (ABS) design/review approval, and fabrication. Regulation and Welding would require an estimated 3 months for ABS approval for NATO Sea State 5 operations and subcontracting of welders by the Contractor. Mobilization and Testing would require an estimated 5-6 weeks for welding, installation, in-port system verification, and multiple at-sea tests. Crew training would require an estimated 2 weeks for required in-port and at-sea refresher training for the crew on the new platform. With the current contract's period of performance expiring in less than that timeframe, the Government cannot entertain a transition to a new platform without causing a critical and unacceptable delay in fulfilling mission requirements for Numbered Fleet Commanders. Therefore, the incumbent is the only source capable of ensuring mission continuity at this time. The HOS is currently supporting critical and time-sensitive worldwide Expeditionary SURTASS operations. Any delay in these services would result in the inability to execute assigned missions from Numbered Fleet Commanders. Given that the current contract expires before this 6–8-month transition could be completed, the incumbent's vessel is the only source capable of continuing this mission without an unacceptable interruption in service even if a contract were awarded today off a competitive procurement.

SUBSTANTIAL DUPLICATION OF COSTS: The Government would be forced to pay for a complete, non-recurring engineering (NRE) design and certification effort to install the system on a new vessel, duplicating the significant investment already made on the incumbent platform. Transitioning the system to a new vessel would require the Government to duplicate the substantial investment already committed to the incumbent platform. Such a transition would necessitate significant redundant expenditures primarily associated with the technical redesign and formal recertifications of the mission system for a new hull. The NRE requirements include a mission system removal estimated at to cover travel for seven organizations, overtime, crane support, and materials. Furthermore, site surveys, redesign efforts, fabrication, and vessel-specific certification functions are projected to cost , while the subsequent mission system installation is estimated at for integrated labor, materials, and system grooming. The estimated cost of for the NRE requirements, site surveys, redesign efforts, fabrication, vessel-specific certification functions and subsequent mission system installation are substantial costs that the Government would have to pay again if awarding to a new vessel. These are one-time, upfront costs that were already expended by the Government to integrate the system onto the current vessel . Additional costs include for welding and gas-free services related to walkway installation, for a radiated noise analysis, and for essential crew refresher and small arms training. These costs of would be borne by a new offeror and passed to the Government through the contractor’s fixed price. Consequently, the Program Office estimates the total cost for this duplicated engineering and certification effort to be

It is not expected that these substantial costs would be recovered through competition for a short, one-year contract. A new offeror would be forced to amortize these large initial costs over a single year of performance, which would likely result in a higher overall price to the Government than the proposed sole-source action. Awarding this sole source contract to the incumbent avoids any substantial duplication of costs.

The immediate and critical requirement to provide a vessel to continue SURTASS-E operations will support the U.S. Navy’s ability to meet the mission. Additionally, the Contracting Officer knows of no other U.S. flag vessels in the vicinity, which can provide the needed service in the time required, as the availability of commercial vessels capable of performing the mission are limited. Awarding the sole source follow-on time charter contract is the most expeditious and cost-effective acquisition strategy available to prevent mission failure.

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

Due to the extensive mission-specific modifications, validated interfaces, and prior integration work on HOS no other vessel would be capable to meet the required commencing/cancelling layday of 28 February 2026.

The continued use of HOS is in keeping in the spirit of Cargo Preference Laws. Market research conducted prior to the original award determined that no other commercially available vessel could support SURTASS-E operations without significant 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 15.404-1(b)(2)(ii) comparison of the proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items, and FAR 15.404-1(b)(2)(iii) use of parametric estimating methods/application of rough yardsticks.

8. Actions to Remove Barriers to Future Competition.

To the maximum extent practicable, MSC intends to solicit and competitively award future charter requirements for vessels supporting missions worldwide on a full-and-open basis, in the appropriate PALT time required to complete the actions.

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.

757-443-2743 Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this justification is legally sufficient

757-443-5664

CONTRACTING OFFICER CERTIFICATION

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

Christopher Tomlin 757-443-5879 _________

DEPUTY DIRECTOR, N10X 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 41 U.S.C. 1901(a)(2):