B-SSJ C4 Group - Redacted.docx

07 May 2020

MEMORANDUM

Subj: SOLE SOURCE MEMORANDUM TO PURCHASE MK–7 MOD 0 INERT DESTRUCTOR SECTION SHIP/PACK CONDITION FROM C4 GROUP, LLC (ERP No TBD)

1. Identification of the agency and the contracting activity, and specific identification of the document as a “Limited Source Justification.”

This is a sole source justification. Contracting activity is the Naval Sea Systems Command, Naval Surface Warfare Center, Panama City Division (NSWC PCD), 110 Vernon Avenue, Panama City, FL 32407-7001 (Contracts Division Code 02).

2. Nature and/or description of the action being approved.

This action will award a firm fixed price purchase order to C4 Group, LLC, 7510 Holley Circle, Panama City Beach, FL 32408, to deliver ten Mk-7 Mod 0 Inert Destructor Sections Ship/Pack Condition in direct support of the --------------------------.

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value).

The following item is being acquired:

Shipping and Handling

The estimated value of this effort is approximately $88,000.00. The minimum needs of the Government have been verified by the certifying technical and requirements personnel. This memo does not authorize acquisition for other requirements. This procurement will be funded by Navy Working Capital Funds (NWCF).

4. Identification of the justification rationale and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service. 10 U.S.C. 2304(c)(1), 10 U.S.C. 2304(d)(1)(B). Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements FAR 6.302-1(a)(2)(iii)(B).

This procurement is sole source for the following reasons. C4 Group, LLC has proven itself to build quality components for ------------- in an environment where a large majority of key system parts and components are obsolete with no logistically assigned vendor. In addition, C4 has proven the design by prototyping two Mk-7 Mod 0 Inert Destructor Sections which the -----used for Fleet ------------. The proposed time of completion by C4 Group, LLC is 6 months, where as a company without previous experience would have to incur additional cost and time of design, prototyping and testing to comply with the required military standards and the current NAVSEA drawing. The …….. is required to add the units to the ………. inventory NLT December 31, 2020 as the current stock ………. For another vendor to provide the required destructors would be a substantial increase to the Government. Initial market research established the cost of Mk-7 Mod 0 Inert Destructor Sections Ship/Pack Condition to be around $31,000 per unit for the build process for a minimum of 20 units. This process includes finding a vendor who is willing to tool up, filament-wind and build an empty shell Inert Destructor Section. Special tools, equipment and castings are required to do this. Also, the time of completion for a company that has no previous experience building Inert Destructors to our specifications, according to military standards, would be greater than the 6 months proposed by C4 Group, LLC and an increase in program costs of over $50,000. These costs are derived by the minimal $30,000 it would require for another company to develop a prototype unit for testing and an additional $25,000 for government travel and testing. It is not expected that these costs would be recouped through competition. Therefore, it is imperative that this requirement is awarded to the C4 Group immediately to meet program schedules.

5. A determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 13.106-1(b).

The Contracting Officer has determined that the order represents the best value and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government’s needs.

6. A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted.

For the reasons stated in paragraph 4, it is not feasible for any company other than C4 Group to provide the required equipment.

7. Any other facts supporting the justification.

None

8. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

As stated in paragraph 4 above C4 Group is the only company that can satisfy this requirement without a substantial cost to the Government.