EFO 042-26_Redacted.pdf

CUI

CUI

to prevent catastrophic engine failure, preserve vessel operational readiness, and ensure crew safety. All four engines are currently operating well beyond their maximum recommended operational thresholds, presenting an immediate, critical threat of mechanical failure during upcoming tasking.

The Planned Maintenance Availability (PMAV) for USS STB slated to commence shortly on 4 Sep 2026 was previously competed among all eligible awardees under the SEC WEST Pt. III Multiple-Award Contract (MAC) and awarded to Epsilon on 6 Aug 2026, with a Period of Performance (POP) from 4 Sep 2026 to 3 Oct 2026.

The current inspections and overhauls for the 4 engines under SSP SING 042-26 with a POP from 11 Sep 2026 to 11 Oct 2026, directly overlaps with the ongoing PMAV. The KO determines that this critical engine work constitutes a logical follow-on to the Maintenance, Repair, and Overhaul efforts currently being executed under the competitively awarded PMAV delivery order. Awarding this logical follow-on effort on a sole-source basis to Epsilon is in the best interest of the Government for economy and efficiency, as it

-existing management team, Sembawang Wharves presence, and operational infrastructure already prepared in Singapore, eliminating substantial duplicate mobilization and facility onboarding costs. Awarding to another source under the MAC would require a separate mobilization of US-based management personnel to Singapore resulting in significant additional costs and potentially require at least two weeks additional time for planning and safety onboarding. Awarding to Epsilon eliminates these duplicate costs and avoids further extending the vessel's stay in port, which would incur port fees and unacceptably delay the vessel's deployment capabilities and national security missions. Per the SOW of the relevant IDIQ-MAC, N0002425D given first priority to submit a proposal for the work.

Epsilon is capable of executing this scope within the compressed timeline due to its established footprint and formal Original Equipment Manufacturer (OEM) partnership with Rolls Royce Solutions America (MTU).

-existing contractual relationship with the OEM enables the immediate transit and customs clearance of specialized OEM tools directly to Singapore. Furthermore, this formal alignment allows Epsilon and the OEM to collaboratively finalize and secure immediate approval for the complex, proprietary Process Control Procedures (PCPs) required for MPDE and SSDG maintenance. Epsilon -site management personnel are capable of managing both the PMAV and DEI) inspections and overhauls. Although the engine overhaul POP extends 8 days past the PMAV POP, Epsilon's management team and Sembawang Wharves footprint will remain active during this period under the administrative closeout of the PMAV, allowing a seamless transition and completion of the engine work. Therefore, the contracting officer has determined that this DEI inspection and overhaul is a logical follow-on to the PMAV and must be issued on a sole-source basis in the interest of economy and efficiency.

6. DETERMINATION OF FAIR AND REASONABLE COST: The Littoral Combat Ships (LCS) Class Sustainment Execution Contract West Coast Part III (SEC West Pt. III) Indefinite Delivery Indefinite Quantity-Multiple Award Contracts (IDIQ-MACs) has already established a fully burdened Ship Repair Labor and Material rate for the ship repair services. However, the FLC Yokosuka Site Singapore Contracting Officer will still use the procedures in FAR 15.4 to ensure that the order represents a fair and reasonable cost to meet the Government's needs.

7. DESCRIPTION OF EFFORTS MADE TO SOLICIT OFFERS FROM AS MANY OFFERORS

AS PRACTICABLE: Market research and a review of the operational timeline were conducted. Notably, this specific overhaul work was previously solicited under full and open competition under the SEC West Pt.

III contract under Fair Opportunity Notice (FON) 034-26 with a period of performance 30 Aug 2026 to 28 Sep 2026, resulting in a "no-bid" outcome from all other potential sources. This lack of market response confirms that no other MAC holders or commercial entities are capable of, or willing to, execute these requirements under the current operational parameters. Based on market research, Epsilon has demonstrated their ability to execute manage both the PMAV and this work and meet the critical constraints associated with the POP start, PCP development, and OEM technician mobilization. Therefore, soliciting only to