A16 50990410 Sole Source Justification_05 Jun 2025.pdf

SSJ No.: 25-35JA

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FEDERAL

ACQUISITION REGULATION (FAR) 13.5

On the basis of the following justification, I hereby approve the use of a sole source proposed contractual action pursuant to the authority of 41 U.S.C. 3304(a)(2).

Procurement Request Number: N4523A25RC06Q81

1. Agency and Contracting Activity

Naval Sea Systems Command contracting activity Northwest Regional Maintenance Center/Puget Sound Naval Shipyard and Intermediate Maintenance Facility, Bremerton, WA proposes to enter into a sole source contract with Tacoma Hydraulics, Inc., 2101 S. Tacoma Way, Tacoma, WA 98409 using simplified procedures for certain commercial services included in FAR subpart 13.5.

2. The nature and/or description of the action being approved.

Puget Sound Naval Shipyard (PSNS) needs the refurbishment of an Elwell Parker R334 Main Lift Cylinders and Side Shift Cylinder. Services include all reconditioning described in Section 5 of the Performance Work Statement (PWS) to restore the equipment to function as intended. The manufacturer no longer makes these units and parts have become harder to acquire. Refurbishing the cylinders will allow PSNS & IMF to continue utilizing this equipment to meet its mission.

The ELPAR R-334 is being used to support the shafting evolutions on the USS Ronald Regan’s service. During its use for a planned revolution, major components failed causing the work to halt. This repair is needed to ensure the planned maintenance on the USS Ronald Regan can be completed.

The usual competitive process will not work in this instance. This action is not for scheduled maintenance but emergency repair. The major components of the equipment failed in the middle of a planned evolution. The normal competitive process would require a minimum of 90 days to complete. A CVN availability is under way and this equipment needs to be repaired in order to finish the availability. A sole source acquisition will help the shipyard deliver a CVN on time to the fleet.

3. A description of the supplies and/or services required, including the delivery schedule and/or the period of performance (inclusive of all option periods), and the estimated dollar value of the acquisition.

The required services include the rebuild of two (2) main lift cylinders and one (1) side shift cylinder to include sandblasting, disassembly and inspection, reassembly and epoxy paint. An

Independent Government Estimate (IGE) was developed using pricing data from the most recent contract, N4523A24P4801, and informational quotes received from two (2) different contractors.

Adequate FY25 funding is available for the requirement. The funding document, N4523A25RC06Q81, was approved on 03 June 2025. The Period of Performance for this action is the date of award plus 6 weeks.

4. The statutory authority permitting sole source.

The statutory authority for this action is FAR 6.302-2(b), Unusual and Compelling Urgency.

This authority applies in those situations where an unusual and compelling urgency precludes full and open competition and delay in award of the contract would result in serious injury, financial or other, to the Government.

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring use of the authority.

The ELPAR R-334 was being used to support the shafting evolutions on the USS Ronald Regan’s service and maintenance. During its use for a planned revolution, major components failed causing the work to halt. This repair is needed to ensure the planned maintenance on the USS Ronald Regan can be completed as this equipment is integral to meeting the availability requirement Failure to complete these repairs in a timely manner will result in a work stoppage until they are complete, or a suitable piece of equipment can be leased/purchased.

This would cause financial injury to the Government and impact fleet readiness and National Security. Failure to award this contract quickly will result in the availability of the USS Ronald Reagon being pushed outside the scheduled maintenance timeframe and delay its return to active duty. It will also affect the maintenance schedule of follow on ships as the USS Ronald Regan would be forced to stay in dry dock.

6. A description of efforts made to ensure offers/quotes are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized in FEDBIZOPPS (as required by FAR 5.2) and, if not, which exception under 5.202 applies.

The requirements generator contacted two different local contractors and requested informational quotes. The first contractor, Eagle Hydraulics, Inc., quoted a total cost . This quote was used to secure funding for the contract. The second contractor, Tacoma Hydraulics, Inc., quoted a total cost of Additionally, Tacoma Hydraulics, Inc., successfully completed the contract mentioned above, N4523A24P4081, with a total cost of $27,736.00.

These contractors were chosen due to the close proximity to PSNS & IMF. The repair work needs to be completed as quickly as possible to ensure the availability of the USS Ronald Regan.

Tacoma Hydraulics, Inc. was contacted due to past performance and location. The previous maintenance/repair contract for this type of equipment was successfully performed by this contractor. Eagle Hydraulics, Inc. was contacted due to its close proximity to PSNS & IMF. The proposal shows they are capable of completing the work and was used to establish a cost range for the action.

7. The anticipated dollar value of the proposed acquisition, including options if applicable, and a determination by the contracting officer that the anticipated cost to the government will be fair and reasonable.

The previous contract, N4523A24P4801, was awarded with a total value of $27,736. This contract did the same work as outlined in the Performance Work Statement (PWS) for this action. The current quote of from Tacoma Hydraulics, Inc., is

The average price inflation for the Seattle and Tacoma area over the last year is 3.18%.

This, coupled with the 10% flat tariffs on all imported goods, sets the increased cost at 13.18%.

By signing the justification, the Contracting Officer makes a determination that the costs/prices to the Government are expected to be fair and reasonable.

8. A description of the market research conducted and the results or the reason market research was not conducted.

Per FAR 10.002(b)(1); the contracting officer may use market research conducted within 18 months before the award of any task or delivery order if the information is still current, accurate and relevant. The research for N4523A24P4081 was completed on 29 August 2024 which is within the 18-month requirement. This contract was for the repair of the same item and related directly to this sole source action.

9. Any other facts supporting the use of sole source.

The contractor is in Tacoma, WA which decreases the overall cost of the contract due to no shipping cost.

A CVN availability is under way and this equipment needs to be repaired in order to finish the availability. A sole source acquisition will help the shipyard deliver a CVN on time to the fleet.

CVNs are national assets and a central part of the US national and international defense strategy.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

There were two contractors who provided quotes to the requirement generator. They are as follows:

1. Eagle Hydraulics, Inc., CAGE: 0N1R5, 7651 S. 190th St Kent, WA 98302-1029

2. Tacoma Hydraulics, Inc., CAGE: 762R3, 2101 S Tacoma Way, Tacoma, WA 98409-