ETFO_5N_Redacted.pdf

Exception to Fair Opportunity Template Update AUG 2018

JUSTIFICATION for an EXCEPTION to FAIR OPPORTUNITY for the placement of an order >$3,500 under a Multiple Award Contract (MAC)

Upon the basis of the following justification, as a Contracting Officer of Southwest Regional Maintenance Center (SWRMC), I 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 (SWRMC).

2. Nature/Description of Action.

This is a fair opportunity exception to place an order with prospective LOT 1 Complex Multiple Award Contract Indefinite Delivery/Indefinite Quantity (MAC-IDIQ) holder Epsilon Systems Solutions, Inc. (Epsilon) under MAC-IDIQ number N00024-22-D-4442. The delivery order number is N5523625F5025 in support of the USS STETHEM (DDG-63) Fiscal Year 2025 (FY25) Emergent Maintenance (EM) 0055, SSP: SSSD-HM&E-25-0055.

3. Description of Supplies/Services.

New Work Item 514-21-001 (RCC 5N) was created to replace the A/C Plant Condenser Tubes located in Auxiliary Machinery Room . The estimated value of this service is based on the Independent Government Estimate (IGE) from the SWRMC Project Manager. Funding will be FY25 OM&N D4 in support of the repairs.

The availability schedule is 17 APRIL 2025 � 27 JUNE 2025. 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))

Identification/Justification for Exception:

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

The original delivery order was awarded competitively in which three (3) of the six (6) LOT 1 MAC-IDIQ Contract Holders submitted a proposal. Epsilon was awarded the order for the Continuous Maintenance Availability (CMAV) SSP: TPPC-DDG63-SWRMC25-S001 on a Lowest Price Technically Acceptable (LPTA) decision basis. The repair to the A/C Plant Condenser Tubes (Work Item 514-21-001; RCC 5N) has been identified as additional work for the EM. The primary function of the A/C Plant Condenser is to reject heat from the refrigerant in the air conditioning system, allowing the system to continuously produce cool, conditioned air for mission critical combat systems, weapons systems, and crew spaces.

Currently, twelve (12) linear feet of the condenser tubing are ruptured. Due to this degradation, the current state of the overall condenser system is an operational concern

. If the repairs are not completed, the seawater will continue to contaminate the refrigerant, causing the system to trip off on high pressure and rendering the condenser inoperable. Without the condenser in operation, mission critical combat systems will fail including radar, sonar, and electronics. This poses a mission capability and survivability concern as well as a habitability concern to Ship�s Force.

Exception to Fair Opportunity Template Update AUG 2018

The required material will need to be contractor furnished and requires 2 weeks After Receipt of Order (ARO). The repair is estimated to require 4 weeks to complete upon receipt of the required material. Competitive solicitation, evaluation, and award of this work as an Emergent Maintenance Availability would take 2 weeks and potentially more. The above timeline is a total of 8 weeks assuming no delays; the availability is scheduled to last 8 weeks.

Considering the potential risk of delay and the urgency of the repair, competition would result in unacceptable delays due to the required timeline. This work must commence immediately to avoid the destruction of the A/C Plant Condenser and the endangerment of Ship�s Force.

Delaying this repair work may result in catastrophic failure of mission critical combat systems which will result in expensive time-consuming repairs rendering the ship in a grounded status. Adding this work item to the existing Delivery Order will avoid unacceptable delays and allow the ship to meet its required delivery date.

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.

Based on currently available historical cost or price information, the Independent Government Estimate, and technical experience of the maintenance team, the Contracting Officer has adequate information to ensure that the price to the government for this acquisition will be fair and reasonable. A thorough review and analysis, with regard to price and scope, of the other than certified cost and pricing data 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.

6. Any Other Facts Supporting the Justification.

All offerors under the MAC-IDIQ were given fair opportunity to submit a proposal in response to the solicitation of the availability basic work package. As this is new work there would be unrealistic contractual expectations to overcome barriers that have led to this exception.

Furthermore, if the work is not performed during this window of availability, the USS STETHEM (DDG-63) will not fulfill its current operational obligations and would thus incur mission risk to the Government.