ETFO_USS TRIPOLI (LHA-7) FY25 CMAV S001_REDACTED 11.8.24_Rev 1.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 Multiple Award Contract Indefinite Delivery/Indefinite Quantity (MAC-IDIQ) holder Continental Maritime of San Diego (CMSD) under MAC-IDIQ number N00024-22-D-4451. The delivery order will support completion of numerous repairs onboard the USS TRIPOLI to complete the Fiscal Year 2025 (FY25) Continuous Maintenance Availability (CMAV) S001.

3. Description of Supplies/Services. The FY25 S001 CMAV on the USS TRIPOLI (LHA-7) was created to complete required maintenance to support long term overseas transfer

The estimated value of this work package is $4,774,729.04 based on the Independent Government Estimate (IGE) from the SWRMC Project Manager. Funding will be FY25 OM&N D8 in support of the 74 work items. The availability schedule is 06 January 2025 – 21 March 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 FY25 S001 CMAV onboard the USS TRIPOLI is to complete 74 repair work items to support the vessel’s transfer in support of Navy and Marine Corps operations in the Pacific Theater. This availability consists of numerous high impact repairs with a cumulative estimate of over 33,000 man hours, equaling approximately 75 man-days per work day during the availability, 50% higher than the SWRMC Sustainment standard of 50 man-days per day. The excessive man-day requirement places this as a high risk availability prior to start. The schedule of this requirement coincides with a high surge in workload across the port to include 10 CNO availabilities in execution along with over 20 CM/EM availabilities. Among these work items are two alterations that were started during the FY23 SRA by CMSD.

The first alteration, Work Item 588-31-001, is to complete the grease line ship alteration supporting the ship’s aircraft elevator systems. Without completion of this alteration, the ship’s operational capacity will be severely degraded with limited to no support for aviation assets onboard. This alteration originally commenced during the USS TRIPOLI FY23 Selected Restricted Availability which was completed by CMSD. As this was a first time alteration unique to the LHA class on the west coast, there came a point nearing the completion of the SRA that the Government did not have the revised drawings, LARs, and other required documentation to finish the alteration within the SRA’s established schedule.

To avoid incurring unacceptable schedule delays during execution of the SRA, the Government determined the best course of action was to defer the remaining work of the alteration to this follow-on CMAV. During execution of the SRA, CMSD was able to complete approximately 55% of the alteration successfully, leaving the remaining 45% to be completed in this CMAV. Much of the remaining work on this alteration is directly tied to the work already completed by CMSD, including installation and welding of piping in multiple locations throughout the ship and steel reinforcement of bulkheads in the vicinity of the elevators. Completion of this alteration during this repair schedule is critical to operational capabilities of the USS TRIPOLI including search and rescue among others. Without use of the elevators, deployed aviation units will not have the ability to transfer aircraft from the flight deck to the hanger bay, limiting the capability to complete required repairs on deployed assets. CMSD’s working knowledge of both the ship’s elevator systems and the current status of the repairs is critical to not only the successful completion of the remainder of the alteration, but ultimately the certification of the ship’s ability to launch, recover, and stow air assets.

Introducing another contractor at this late stage of the repairs will require the contractor to spend several weeks familiarizing themselves with the current status of the repairs, as well as the system itself, which, as noted above, is part of a first-of-its-kind alteration package.

Accordingly, CMSD’s familiarity with both the status of the repairs and the elevator system will likely result in a reduction of 7-10 days, which will in turn reduce the actual schedule by several weeks. A reduction in schedule of this magnitude helps to mitigate the risk of this already high risk CMAV and avoid unacceptable delays in returning this asset to the Fleet.

The second alteration, Work Items 551-11-001 is to complete the start air piping manifolds for the #2 and #3 engines. This repair consists of replacing 10 large HP air manifolds, completing revised piping alignment to relieve strain on the system, and completing a full system flush to ensure cleanliness throughout. In addition to this being the start air manifold for No.2 and No. 3 SSDG, this piping ties into the Lube Oil Coast-down Pump for the MRG.

Without this piping being repaired the ship will lose 33% of it electrical capabilities and it will also lose the use of one of it propulsion shafts, preventing the ship from getting underway.

CMSD has completed this repair for the No. 1 and No. 4 engines successfully, accumulating valuable lessons learned of this highly complicated, in-depth repair. CMSD is uniquely placed to proceed immediately with these repairs given their knowledge of the intricate piping alignment and proven success with the No. 1 and No. 4 SSDG. As with the above alteration, the Project Manager and C300 Leadership estimate that awarding this DO to CMSD, versus another contractor without the same unique familiarity with the Tripoli’s current system, will result in a seven day reduction in schedule. This reduction further allows the Government to avoid any unacceptable delays at a time when there will be a highly-pressurized workload across the waterfront and little room for error.

Accordingly, due to CMSD’s unique familiarity with these very specific, highly complicated alterations and the Government’s need for these highly specialized repairs to be completed in a reduced time line, this exception to fair opportunity allows the Government to avoid unacceptable delays and provides optimal support to the Pacific Fleet in accordance with the

Fleet’s operational requirements.

Lastly, with the challenges of the volume of remaining work items within the USS TRIPOLI work package, including work items on 5 diesel engine generators and work item 123-11-001 repairing 27 fuel tanks and voids, the manning resources available to CMSD significantly reduce risk to schedule in the event there are any manpower surges that may occur during the execution of this availability. The growth risk presented in the repairs of 27 tanks and voids alone is extremely high with anticipated growth hours of 9,134 calculated in the level of effort.

This anticipated growth requires the contractor be able to provide manpower surge capabilities to complete the estimated growth work within the established schedule. As the USS TRIPOLI will be forward deployed for several years, the ship must leave San Diego in its most optimal condition to support numerous operation commitments within calendar year 2025. There are no maintenance opportunities remaining prior to deployment to correct discrepancies.

If the work is not performed during this availability, the USS TRIPOLI (LHA-7) will not fulfill its current operational obligations, after five years of overseas operations. Any delays in this transfer will not only have significant impacts to the Fleets operational schedule, but it will have severe negative impacts to thousands of service members stationed aboard the two vessels.

Additionally, without an available LHA in the Pacific theater, numerous Marine Corps ground and aviation units will lose valuable deployment opportunities within a highly contested AOR.

The potential mission and personnel risk to the Government is not acceptable. Awarding to CMSD will provide the Government with the highest chance of success and significantly reduce risk of incurring unacceptable delays.

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

CMSD 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 Suppo1ting the Justification. Of the available MAC-IDIQ contractors to support this requirement, CMSD provides the best overall chance of success considering the number of available tradesman, experience with the critical path alterations, and familiarity with Ships Force. The importance of the USS TRIPOLI being forward deployed, and therefore the success of this availability, cannot be overstated. This one availability has the potential to impact thousands of service members in addition to suppo1ting operational commitments of both ships and providing a strong deterrence to unprovoked actions in a highly tense operating environment.

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

While standard procedures would follow the typical solicitation process providing fair opportunity to the MAC-IDIQ contract holders, it is in the Government's best interest to inco1porate this critical maintenance work in order to meet and support the USS TRIPOLI's operational readiness. The completion of a ship alteration during a follow-on CMAV is an atypical event and could not be planned or forecasted, especially on a first time install. 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:

Signature: WELLER.SCOTT.EARL

Printed/Typed Name and Title Code Phone Date

LEGAL REVIEW (SWRMCINST 5430.tB): (>$250,000)

Signature: HULLEY.MARTHA.E

APPROVAL:

CONTRACTING OFFICER CERTIFICATION (FAR 16.505(b)(2)): (>$3,500 to S$700K) I ce1tify that this justification is accurate and complete to the best of my knowledge and belief. BENOIT.JAMES.PATRICK.

Signature:

REVIEW:

2.0 BRANCH HEAD (FAR 16.505(b)(2)): (>$700K)

Signature= ------------------------ =-

COMPETITION ADVOCATE (FAR 16.505(b)(2)) (>$700K to $13.SM):

Signature: SOPP.DEREK.J

HEAD OF THE CONTRACTING ACTIVITY (FAR 16.505(b)(2)) (>$13.SM to $93M):

Signature: N/A