B2 Sole Source Under SAT Memorandum - Signed_Redacted.pdf

MEMORANDUM FOR THE RECORD

Subj: USE OF OTHER THAN FULL AND OPEN COMPETITION FOR AN

ACQUISITION UNDER THE SIMPLIFIED ACQUISITION THRESHOLD

I. BACKGROUND: PSNS & IMF awarded a firm-fixed price contract to American Compressor Company for lease of two (2) High Pressure Air Compressors (HPACs) in support of the project availability at Naval Base Point Loma (NBPL) on 3 July 2024. The contract number is N4523A24P1324 awarded for that was found reasonable in accordance with FAR 13.106-3(a)(1). The contract period of performance is 5 July 2024- 18 October 2024.

The project availability has been re-baselined numerous times and is now facing significant delays. The HPACs in place currently are providing high pressure air to the vessel, while the high pressure air system was being repaired. There are two (2) valves, AHP-88 and AHP-512 that cannot be repaired within the current period of performance. A modification will need to be completed to extend the period of performance while the valves are being repaired.

1. FAR 13.106-1(b)(1)(i) states for purchases not exceeding the simplified acquisition threshold, Contracting Officers may solicit from one source if the Contracting Officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand-name or industrial mobilization).

2. As required by FAR 13.106-3(b)(3)(i), this memorandum explains the absence of competition for this acquisition, as only one source will be solicited for this requirement (or for a portion of the requirement) and the requirement is not expected to exceed the simplified acquisition threshold.

II. DESCRIPTION OF ITEM OR SERVICE: A lease for Two (2) High Pressure Air Compressors (HPACs) are currently in place for the availability of the . The modification (P00001) of contract N4523A24P1324 will extend the period of performance from 5 July 2024 – 18 October 2024 to 5 July 2024 – 27 November 2024.

The modification will be achieved through a sole-source out-of-scope modification. The requirements generator requested a estimate from American Compressor Company to formulate the Independent Government Estimate (IGE). The total estimate cost of the extension is , increasing the contract total from Although the contract was awarded in Fiscal Year (FY) 24, the modification will be executed using FY25 Operations and Maintenance Navy (OM&N) funds, as the modification is determined to be out-of-scope, barring the use of execution year funds. Funding for the requirement has been requested, received and approved. The changes being made in Modification P00001 to Contract N4523A24P1324 extend beyond the general description/intent of the contract and increases the value of the contract. This modification is increasing the required level of service performance by requiring additional deliverable services which is considered a change in scope IAW DoD FMR Vol. 3 Ch. 8.

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

III. THE DETERMINATION FOR USE OF OTHER THAN FULL AND OPEN

COMPETITION IS BASED ON THE FOLLOWING (select all that apply):

A. ONLY ONE RESPONSIBLE SOURCE (select all that apply):

1. RESTRICTIVE RIGHTS. The source has established proprietary rights, limited rights in data, patent rights, copyrights or secret processes in the item or service required.

2. EXCLUSIVE LICENSING AGREEMENTS. The item or service is only available from the Original Equipment Manufacturer (OEM), or there is only one authorized distributor or technical representative for the OEM.

3. OTHER REASONS. Other reason not identified above. Provide details on mission impact if requirement is not solicited from only one source.

B. BRAND NAME. Item required must be a brand name product, or feature of a product, particular to one manufacturer.

C. _ _ UNUSUAL AND COMPELLING URGENCY. The supplies or services are of such unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals.

Urgent requirements are supplies or services that will result in a work stoppage or are mission critical and the routine processing time would result in injury to the Government.

The determination that the procurement for the above item/service is an urgent and compelling requirement is based on the following:

1. Date on which the requirement was first identified: 8 October 2024

2. Required delivery date/period of performance: 18 October 2024

3. Explanation of why delivery/commencement of services by the date mentioned above is required:

FY23 DRSA project team was informed on 3 October 2024 that SF cannot repair two (2) valves, AHP-88 and AHP-512, and PSNS must accomplish the work. The full extent and impact of this work was determined early morning on 8 October 2024. Repair of these valves and restoration of the system will take longer than the current POP end date of 18 October 2024. The project team has provided a conservative date of 27 November 2024 based on the repair work for AHP-512. Removal of the current HPACs prior to having ship high pressure air restored will impact EMBT capabilities which is safety of ship and reactor valve operations which is safety of reactor. If the HPACs do not remain in service to the ship and reactor valve, the safety to the shipmates, civilian personnel, the mission and naval fleet are at risk.

4. If appropriate, include any additional pertinent information.

IV. CERTIFICATIONS/APPROVALS:

A. Technical / Requirements Certification: I certify that the facts and representation under my cognizance which are included in this justification are complete and accurate to the best of my knowledge and belief.

Signature Name(Printed) / Phone# Date

David Morgan/36047640 10/16/24MORGAN.DAVI D.B.1460097289

Digitally signed by

MORGAN.DAVID.B.1460097

Date: 2024.10.16 07:44:39 -07'00'

B. Certification/Approval.

________________________ Jesse Schimke / (360) 517-5112 _______________ Signature Name(Printed) / Phone# Date

10/16/24

SCHIMKE.JESSE

.EDWIN.1385396

Digitally signed by

SCHIMKE.JESSE.EDWIN.13

85396070 Date: 2024.10.16 08:22:42 -07'00'