ConOps_West_-_JOFOC_SAFR_Hercules_Boat_Haul_Out_Signed_-Redacted_Redacted_1.pdf

Last updated 6/2/2016

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION

Over SAT (FAR 6.303-2)

PR Number 0040655933

1. Identification of the Agency and the Contracting Activity:

Identification of Agency: Department of Interior, National Park Service

Contracting Activity: Golden Gate National Recreation Area, Building 201, Fort Mason, California, 94123

2. Nature and/or Description of the Action Being Approved:

The National Park Service (NPS), previously awarded a contract in FY2022 for routine preservation, maintenance and limited restoration work to the National Historic Land (NHL) steam tugboat Hercules at San Francisco Maritime National Historical Park (SAFR) located in San Francisco County, CA. Under the current contract (140P8622C0006) the Hercules is at dry dock (vessel is out of the water) and is at the contractor facility shipyard since transit from Hyde Street Pier on July 11th, 2023, at Bay Ship &Yacht, Alameda, California. The ship has been hauled out at this location since August 23rd, 2023.

The scope of the current haul out contract (140P8622C0006) includes the vessel being cleaned, steel plate and rivets repaired, wood components replaced, tanks and piping repaired and coatings applied. Underwater hull fittings shall be repaired, and valves serviced. Vessel systems inspected and repaired. The project concludes with the vessel returned to the Hyde Street Pier berth with the gangway and all support systems reinstalled. Significant aspects of the work include: structural stabilization and rehabilitation of the existing hull plating longitudinal stringers, deck plating, and rivet fasteners throughout the vessel, upgrade of the existing coatings system, and alteration to the active steam plant’s fuel supply, including the tanks, piping, valves and pumps. This contract scope is in compliance with the Secretary of the Interior’s Standards for Historic Vessel Preservation Projects (https://www.nps.gov/maritime/ref/HistoricVesselPreservation.pdf) and is intended to perform work necessary to maintain the National Historic Landmark steam tugboat Hercules afloat and operational.

The project status currently has seen some of the work items completed, some items in progress and others pending approval of additional steel repairs. All told, work completed to date accounts for approximately 46% of the contract scope. The steel repairs are a “critical path” work item which prevent other work items from being performed until they have been completed. To date the ship has been hauled out of the water, cleaned, sand blasted, the hull has been ultrasonically thickness gauged and all rivets have been inspected, demolition of specified structural elements have been nearly completed, the deck house superstructure, pilot house, and stack have been prepared and painted, the main steam line has been replicated and installed, the existing heavy fuel oil has been removed, that tank space cleaned and the new tanks fabricated with their installation imminent.

The hull preparation by sand blasting, ultrasonic thickness gauging, and rivet inspections have all indicated that the condition of the rivet connections, steel shell plate, and structural framing are in worse condition than anticipated and are in need or renewal to return the vessel’s structural stability and ensure continued preservation afloat. The existing contract 140P8622C0006 specification is not sufficient and on its own would not allow the vessel to be returned to the water.

The work proposed under this sole source justification includes remedying those structural deficiencies identified through inspections and reporting performed by the contractor per the original specification and by NPS and AE Title III engineers. The greatest concern is specifically focused in the area of and adjacent to the ship that supports the steam boiler. This area has been identified as structurally critical to the overall hull integrity and without repair would condemn the National Historic Landmark vessel as a floating or operational object. Specific work items are of the same type contained within the original specification but for additional quantities and locations. These are steel shell plate renewal, structural framing renewal, and structural floor renewal. All proposed repairs follow the Secretary of the Interior’s Standards and shall include the original builder’s fit and finish, as does the existing contract.

The work items contained within the proposed contract scope are to address necessary repairs that were not contained within the original contract (140P8622C0006). These items were not included in the original scope due to the majority of the vessel’s hull being underwater, the extent of damage unknown. These items include preparation and coating of “appurtenances,” features that are located on or within existing specified painted structures but were not specifically called out, filling of voids found in deck plating following sandblasting, coating the interior of the heavy fuel oil tank with preservative, it is currently bare steel that had been preserved by the heavy fuel oil contained within the tank which has been removed, (the tanks previously unsafe to enter for inspection due to the toxic heavy fuel oil present), changes the wood species specified for rub rail replacement based on what was found during demolition, changes a structural steel shape specification from flat bar to angle to match the as-found construction, changes the vessel delivery destination based on SAFR’s temporary relocation from Hyde Street Pier to leased berthing space at Mare Island Naval Shipyard resulting from the Great American Outdoors Act Legacy Restoration Fund project to rehabilitate the Hyde Street pier, and option items to account for possible growth of steel repairs as work progresses, additional haul out period at the shipyard and for temporary berthing at the shipyard following launching to allow NPS time to prepare the vessel for transit to Mare Island.

3. A Description of the Supplies or Services Required to Meet the Agency’s Needs, Including the Estimated Value:

The work under this contract will include Commercial Shipyard Services to:

1. Provide Additional Haul Out and Blocking and Temporary Services. This work item includes the use and encumberment of shipyard vessel cradle components for the period of performance where they cannot be used by another project, and the support services required to maintain the vessel while hauled at the shipyard.

2. Perform Additional Steel Repairs to:

a. Structural Floors: This work item includes replacing plate steel between angle iron frame members which strengthen the hull structure in the bilges (the lowest area of the hull which is subject to stress). Structural floor replacement is specified in the original work scope, but 4 additional floors have since been identified.

Repairs specified in the original contract could not be properly performed without inclusion of the additionally identified repair areas. To do otherwise would require rework of original specification items to affect the additional repairs, would result in additional welded connections and components made of multiple segmented smaller pieces, (rather than full length component renewal as currently proposed), and would not remedy the structural condition of the vessel.

Completion of the originally specified items would not permit launching and delivery to NPS of the vessel without additional work to mitigate the structural deficiencies found in the structural floors and frames and shell plate. The original specification called for renewal of approximately 21 structural steel floors and 417 linear feet of angle iron across 35 frames and 290 square feet of insert repairs to the shell plate. Insert repairs require wasted steel to be cut out and new steel welded in but require sound existing material to weld to. All steel repairs were specified to be riveted as per the original construction but likewise require sound existing material to receive the rivets.

The work to mitigate the structural deficiencies would be welded steel stiffeners for structural floors and frames and welded steel plate over the wasted and holed shell plates. In both mitigations, structural steel angle iron and plate steel are required but both would be considered temporary repairs by the AE and USCG. The cost to perform the mitigations is less than the proposed additional work but would require future repair and project remobilization (which would duplicate nearly all costs of the current contract). Mitigating repairs can only be performed while the ship is hauled out in a commercial shipyard and Bay Ship &Yacht do not allow competitors into their facility as the competitor would benefit financially by being relieved of the expansive overhead costs of operating a shipyard, thus allowing them to undercut Bay Ship &Yacht.

6. A Description of Efforts Made to Ensure That Offers Are Solicited From as Many Potential Sources as is Practicable, Including Whether a Notice Was or Will Be Publicized as Required by FAR Subpart 5.2 and, If Not, Which Exception Under FAR 5.202 Applies:

A Notice of Intent to Award will be posted on SAM.gov for 15 days before awarding the contract.

7. A Determination By the contracting officer That the Anticipated Cost to the Government Will Be Fair and Reasonable:

a. The IGE was compared to the original bid/award pricing that had been determined to be fair and reasonable at time of award. Utilizing the contractor furnished bid breakdown, labor hours, overhead, G&A and profit percentages, an equivalent was found between the IGE and contractor pricing. Approximately 1.45 contractor hours are equivalent to 1 NPS hour. This allows comparison between the labor hours proposed by the contractor and those estimated by the COR.

b. The original solicitation and award were competed as total small business set-aside.

c. The IGE utilized an averaged unburdened general labor rate of $60 per hour. The labor hours estimated were for the work specified and did not include support trades or services. A 120% overhead markup was applied to the labor to account for fringe benefits and support hours for each work item, (ie a forklift operator and helper in the shipyard receiving department to take delivery of project materials were not included in the labor hours but accounted for by the percentage add-on) as well as shipyard overhead for O&M of their equipment and facility. Subcontractor costs were estimated based on previous government acquisition and market research. Materials were estimated for the specific work items. This would include the weight of steel specified for renewal, the fasteners (rivets), consumables (gloves, sandpaper, etc), and built staging or structural supports (welded bracing to support the ship as it is disassembled and repaired). Delivery charges were incorporated into the materials estimate. A 15% markup was applied to the material and subcontractor cost to account for “back of house” services such as accounting, estimating, purchasing, etc. A 15% profit add-on was applied and the subtotal of the above accounts for the gross estimated cost.

d. One CLIN is specific to the cost associated with occupying the space within the shipyard, called “laydays.” The IGE used a cost of $855.13 per day which was the original contract cost escalated at 3.6% for the two years between bid and preparation of this project’s IGE. The “laydays” account for the cradle components used to haul and support the ship for the duration of the project and the square footage of yard space occupied – neither of which can be used on other jobs within the shipyard while this project is ongoing.

e. Percent add-ons were applied to the gross estimated cost per typical AE derived estimates. 5% was added to the subtotal as “General Conditions” and another 8% to that for “Historic Preservation Factor.” These add-ons account for the difficulties and unforeseen challenges that arise during projects on SAFR National Historic Landmark vessels.

f. The total IGE is the gross cost plus the add-ons.

g. Below are the Base Specification Sections, which define the broader categories of work to be performed.

i. Cradling and Temporary Services

ii. Underwater Hull Systems Maintenance

iii. Structural Repairs and Installation

iv. Structural Shell Plate Renewal

v. Non-Structural Repairs, Weldments and Coatings

h. Below are the Optional Specificaiton Sections, which define the broader categories of work to be performed.

i. Transportation, Cradling And Temporary Services

ii. Underwater Hull Systems Maintenance

iii. Non-Structural Repairs, Weldments And Coatings

iv. Structural Component Repairs And Installation

8. A Description of the Market Research Conducted (see FAR Part 10) and the Results or a Statement of the Reason Market Research Was Not Conducted:

In accordance with FAR 10.002, Market Research was conducted through a sources sought notification and (140P8624Q0012) was posted on SAM.gov with NAICS 336611 - Ship Building and Repairing and PSC J020 - MAINT/REPAIR/REBUILD OF EQUIPMENT- SHIP ANDMARINE EQUIPMENT on January 28, 2024 with a response due by February 9, 2024. The notice included a general description of the requirements and requested responses from interested potential offerors, including general information

RV Global Solutions Inc, who does not have the NAICS code listed in their capability statement for Ship Building for 336611. All NAICS for RV Global Solutions are:

541712 561720 561730 561740 561790 561990 562910 611430 519190 541690 561320 541511 541512541513 541514 541330 541519 541611 541618 541690 541990 561210 561990 238220 238290332710 333517 511210 517311 517410 517919, 518210 519130 541612 541614 541620 611420811213 811219 811310. Additionally, in reviewing the company’s capability statement the work that RV Global does is Information Technology & Management Consulting Solutions and Infrastructure and Engineering Logistics which is not what the work of this requirement.

11. A Statement of the Actions, If Any, the Agency May Take to Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisition for the Supplies or Services Required:

A modification to the existing contract is not feasible as the work has excessively exceeded from the scope of the original award. This work covered in this sole source is all new work and therefore, a new requirement.