E2FOM LCS-6 26P3 26P4_Redacted.pdf

Exception to Fair Opportunity Template Update DEC 2025

JUSTIFICATION for an EXCEPTION to FAIR OPPORTUNITY for the placement Of an order > $15,000 under a Multiple Award Contract (MAC)

Upon the basis of the following justification, I, the assigned Contracting Officer of Southwest Regional

Maintenance Center, hereby approve the Justification for an Exception to Fair Opportunity Pursuant to

FAR 16.505(b)(2).

JUSTIFICATION

l. Agency and Contracting Activity. Department of the Navy, Southwest Regional Maintenance Center.

2. Nature/Description of Action. This is a fair opportunity exception to place an order with prospective

Multiple Award Contract (MAC) holder under LCS SEC WEST PT. III MAC number N00024-25-D-4219, Epsilon Systems Solutions (Epsilon). The Delivery Order Number will be N55236-25-F-8046 for the USS

JACKSON (LCS-6) FY26 Planned Maintenance Availabilities (PMAVs) 26P3 and 26P4 and Facilities

Maintenance Availabilities (FMs) 26P3 and 26P4.

3. Description of Supplies/Services. The procurement is for the 26P3 and 26P4 PMAVs and 26FM3 and

26FM4 FMs in support of the USS JACKSON (LCS-6). The estimated value of this work is based on the Independent Government Estimate (IGE) from the SWRMC Project Manager. Funding will be FY26 Mission Support funding in support of the PMAV and FY26 D8 IL Funding in support of the FMs.

The availability schedule is for 26P3/26FM3 and for

26P4/26FM4. The Government's minimum needs have been verified by the certifying technical and requirements personnel.

4. Identification of the Exception to Fair Opportunity. (FAR 16.505 (b)(2)(i)(C))

Identification/Justification for Exception:

a. The agency need for services is of such urgency that providing fair opportunity would result in unacceptable delays.

The 26P3 and 26P4 PMAVs and 26FM3 and 26FM4 FMs in support of the USS JACKSON (LCS-6) were initially competitively solicited as DO RFP 0027 under the LCS SEC WEST III Small Business

Lot II and Lot III MAC-IDIQ Holders. The Government received two (2) proposals in response to the

DO RFP, from and Epsilon. While both proposals were found fair and reasonable, proposal was found to be the lowest price technically acceptable offer and on 26 January 2026 was awarded Delivery Order N5523626F8027.

On 9 February 2026, the Government received notice that could no longer perform the

Delivery Order and the Government commenced the process of terminating the Delivery Order.

PMAVs require extensive logistics and planning to support, with planning typically starting no later than A-30. Due to the Government receiving notice at approximately A-28 that the initial awardee contractor could not longer support the requirement, there is not sufficient time to prepare another

DO RFP, competitively solicit for 30 days, conduct source selection, and award. If the Government were to competitively award the requirement, the awardee contractor would also not have sufficient time to order materials and conduct logistic planning to support a successful completion of the

PMAVs. Competing would create a high risk to the Government of unsuccessful performance and deferred checks, impacting the Ship’s mission readiness and potentially resulting in duplicative costs for the Government.

Epsilon, having already submitted a fair and reasonable, technically acceptable, proposal for these availabilities as part of the competitive DO RFP 0027, is fully prepared to take on the work in the timeline provided, despite the shorter than usual contract award timeline. Epsilon communicated to the Contracting Officer verifying that they can still support the 26P3 and 26P4 PMAVs and 26FM3 and 26FM4 FMs and they will continue to honor the proposal submitted in response to DO RFP 0027.

b. Only one such awardee is capable of providing such services required at the level of quality required because the services ordered are unique or highly specialized.

c. The order must be issued on a sole-source basis in the interest of economy and efficiency as a logical follow-on to an order already issued under the MAC, provided that all the awardees were given fair opportunity to be considered for the original order.

d. It is necessary to place an order to satisfy a minimum guarantee.

e. For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source.

5. Determination of Fair and Reasonable Cost.

Epsilon’s proposal in response to DO RFP 0027 was submitted in a competitive environment. Epsilon’s proposal was evaluated and was found to be balanced and reasonable.

A thorough review and analysis, with regard to price and scope, of the pricing information provided by

Epsilon will be conducted by the Project Team (PT) and verified by the Contracting Officer. Determination of fair and reasonable costs will primarily be accomplished by use of parametric methods used to determine reasonableness of labor hours, materials, and times proposed by Epsilon, in accordance with FAR 15.404-

1(b)(2)(iii). Furthermore, application of rough yardsticks will be utilized for significant inconsistencies that warrant additional pricing inquiries in addition to review of any historical pricing information for Epsilon that is available, as well as similar work accomplished by other contractors. This analysis will be accomplished in conjunction with comparison of all proposed labor hours and material by the PT with verification by the Contracting Officer.

The Contracting Officer has determined that to the Government for this Acquisition will be fair and reasonable based on FAR 15.404-1(e)(1), technical analysis from the PM, FAR 15.404-1(b)(2)(i) – comparison of proposed prices of labor and material burden rates received in response to the solicitation, and FAR 15.404-1(b)(2)(v), comparison with the IGE.

6. Description of Efforts Made to Solicit Offers From as Many Offerors as Practicable:

All offerors under the LCS SEC WEST PT. III MAC were given fair opportunity to submit a proposal in response to the solicitation of the availability basic work package. As this is work that was terminated at

A-28, and within days after a competitive award was made,, it would be unrealistic to resolicit this requirement. Furthermore, if the work is not performed during this window of availability, the USS

JACKSON (LCS-6) will not fulfill its current operational obligations and would thus incur mission risk to the Government.

7. Actions Taken to Remove or Overcome Barriers that Led to the Exception to Fair Opportunity:

As noted above, the termination of Delivery Order N5523626F8027 was requested at A-28, and within days after a competitive award was made. While standard procedures would follow the typical solicitation process providing fair opportunity to the LCS SEC WEST PT. III MAC IDIQ contract holders, it is in the

Government’s best interest to award this critical maintenance work to Epsilon in order to meet and support the USS JACKSON (LCS-6) operational readiness. This is an atypical event and could not be planned or forecasted, accordingly, the ACO determined that this course of action is the most prudent way forward in this unique instance.

TECHNICAL AND REQUIREMENTS CERTIFICATION (FAR 16.505(b)(2)) I certify that the facts and representations under my cognizance, which are included in this Justification and which form a basis for this justification are complete and accurate.

Technical Cognizance/or COR:

Printed/Typed Name and Title Code Phone Date

LEGAL REVIEW (SWRMCINST 5430.1B): (>$350,000)

Signature:__ ________________

APPROVAL:

CONTRACTING OFFICER CERTIFICATION (FAR 16.505(b)(2)): (>$15,000 to <$900K) I certify that this justification is accurate and complete to the best of my knowledge and belief.

Signature:

REVIEW:

2.0 BRANCH HEAD (FAR 16.505(b)(2)): (>$900K)

Signature:_________________N/A______________________________________________

COMPETITION ADVOCATE (FAR 16.505(b)(2)) (>$900K to $20M):

Signature:_________________N/A______________________________________________

HEAD OF THE CONTRACTING ACTIVITY (FAR 16.505(b)(2)) (>$20M to $150M):

Signature:_________________N/A_______________________________________________