48.JA_signed-Redacted.pdf

NMCARS Annex 1

ANNEX 1 - JUSTIFICATION AND APPROVAL

DEPARTMENT OF THE NAVY

PEARL HARBOR NAVAL SHIPYARD

AND INTERMEDIATE MAINTENANCE FACILITY

667 SAFEGUARD ST SUITE 100

JBPHH HAWAII 96860-5033

J&A No. 024124

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

Contracting Activity.

The Naval Sea Systems Command, Pearl Harbor Naval Shipyard & Intermediate Maintenance Facility (PHNSY & IMF) Contracts Division, Code 400.

Description of the Action Being Approved.

Award of a contract on a sole source basis for repair actions to 788 USS Colorado’s No.1 & No.2 CO2 Scrubbers.

Description of Supplies/Services.

a. Removal, refurbishment and re-installation of No.1 & No.2 CO2 scrubbers onboard 788 USS Colorado. Work was identified by the 788 Colorado project and deemed to be mandatory by Engineering and Planning Department (EPD).

b. The total estimated dollar value: $470,560.00

c. Funding: FY24, O&MN

d. Period of Performance: 29 AUG 2024 – 31 AUG 2025 or until work completed.

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

Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 2304(c)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

Rationale Justifying Use of Cited Statutory Authority.

Per EPD, Cepeda is the Original Equipment Manufacturer (OEM) of the CO2 scrubber system deployed on 774 Virginia Class submarines. Cepeda has designed, manufactured, tested, serviced, and refurbished the CO2 scrubber system. Cepeda owns the proprietary procedures, drawings and equipment necessary to complete the required removal, refurbishment and re-installation of the units. Cepeda has not shared their proprietary drawings, equipment and procedures with any entity, including the Government. Cepedadoes not certify or authorize any third party companies/personnel to work on the scrubbers and they do not allow contractors to provide direct labor for the scrubber system. Cepeda is the only responsible source fully capable and

NMCARS Annex 1 experienced in satisfying the agency’s requirements, and is currently the only vendor that has performed this particular repair.

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

A sources sought was posted on Sam.gov on 25 June 2024 for five (5) days that included a draft work specification and requested that interested parties submit a capabilities statement explaining how they would complete and their qualification to complete the requirement. The sources sought notice received no interest from potential contractors.

The previous and most recent award Contract N32253-24-C-0006, for a similar requirement that also involved scrubber work was solicited as a total small business set-aside and competed as one company showed interest and possible capability. However, only one bid was received from Cepeda. The interested company explained that they were unable to submit a bid due to not being able to provide an authorized technical representative as stated in the statement of work. Therefore, it was confirmed that only one source was capable to perform the repair of the CO2 scrubbers on 774 Virginia Class submarines.

Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable. The Contracting Officer’s determination of fair and reasonable price will be based on price and cost analyses in accordance with FAR 15.404-1 Proposal Analysis Techniques.

Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, PHNSY & IMF C410 has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, PHNSY & IMF C400 will assess whether competition for future requirements is feasible.