66N_JA_Redacted.pdf

J&A Number:

N55236210102

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND

OPEN COMPETITION

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304 (c)(2) as implemented by the Federal Acquisition Regulation (FAR) 6.302-2 – this authority applies in those situations where the supplies or services required by the agency are available from only one responsible source, or, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for. This availability is the last opportunity to complete this upgrade prior to deployment and this work is needed to fulfill required operational capability.

5. RATIONALE JUSTIFYING USE OF CITED STATUTORY AUTHORITY.

RCC 66N is for the replacement of the Number 4 Ship’s Service Diesel Generator (SSDG) opposite drive end (ODE) and drive end (DE) bearings. Both generator bearings require replacement due to excessive wear, which is degrading the ship’s electrical system operability and impacts the ship’s ability to fight fires. The replacement of the ODE and DE bearings requires the disassembly of the entire generator, which must be repaired or the ship is without one of its five power sources and is unable to get underway. The USS SOMERSET will not be able to meet its mission requirements without this repair done.

The scope of work includes replacing the ODE and DE bearings and conducting operational testing.

The bearings require repair by the Original Equipment Manufacturer (OEM). The work will require rigging of items from and to the ship, which requires cranes to be on the pier. Continental Maritime San Diego (CMSD) already supports the current, ongoing availability and has the means to incorporate the scope of work without significant delays or duplication of costs. Additionally, due to the size of the crane required, it is not feasible for another contractor to complete the scope of work using the required equipment.

This work was not included in the basic contract because the ODE and DE bearings, internally located within the generator, had not been discovered prior to 100% package lock. The damage was discovered after the availability had started, when ship’s force was conducting operational checks.

The estimated duration for completion of repairs is 137 days, including 125 days of production and 8 days of testing. For every day this RCC is not authorized on contract, it has the potential to cause a day-to-day delay in the established milestones and potentially the delivery date. This availability is the last opportunity to complete this work prior to deployment and is needed to fulfill required operational capability. Because the period of performance totals 137 days, repairs could not be completed with a standard follow-up availability.

The work is tentatively set to to ensure the Government further reduces the risk in impacting schedule and cause delay to milestones and potentially the delivery date. Work must be completed than to ensure PCD is met. Delay in awarding RCC 66N would result in serious financial costs and day for day slip in placing the Government in substantial risk for an extension at per day the availability is extended.

The RCC was sent to the Contractor , and a proposal has not yet been received.

6. DESCRIPTION OF EFFORTS MADE TO SOLICIT OFFERS FROM AS

MANY OFFERORS AS PRACTICABLE:

J&A Number:

N55236210102

The original contract was awarded competitively in which three (3) contractors submitted proposals: , CMSD, and CMSD was the selected awardee.

During this window of maintenance availability no other source can satisfy the Agency’s requirements without a significant impact to the availability completion schedule. An impact to the availability completion schedule would pose a serious risk to mission readiness. It also poses a risk for financial injury to the Government due to additional costs with the duplication of support services such as the Project Management Office (PMO) and temporary services. CMSD is uniquely positioned to perform the work as the ship is currently in their yard undergoing a major dry docking repair period, and it is impracticable for another company to perform these support services in CMSD’s dry dock concurrently with other ongoing repairs. Notice will not be published as the work is issued in support of an unusual and compelling urgency, in accordance with FAR 5.202(a)(2).

7. DETERMINATION OF FAIR AND REASONABLE COST:

The Contracting Officer has determined that the anticipated cost to the Government of this acquisition will be fair and reasonable based on cost and price analysis to be conducted pursuant to FAR Part 15. In addition, technical analysis will be performed with the Project Manager to ensure the proposed labor hours, material cost, and subcontractor cost correspond with the expected cost or Independent Government Estimate (IGE). The basis of estimate for the IGE was developed utilizing the SWRMC Estimating Guide and the Ship Build Specialist’s knowledge of the requirements. The ship repair market is well known to the contracting officer based on his in-depth experience in the field. That said, additional market research beyond the above was not conducted due to the fact that the ship is already in CMSD’s shipyard undergoing a major repairs and it is impracticable for another company to perform the work.

8. ACTION TAKEN TO REMOVE BARRIERS TO COMPETITION:

It was unanticipated that a discovery of this work would become immediately necessary during this maintenance availability. However, during the next maintenance availability, the contract will be awarded by providing for full and open competition. Any lessons learned will be implemented to ensure Requiring Activities become more pro-active in modifying solicitations prior to award to mitigate issuing new work under a sole source environment.