Exception to Fair Opportunity RCC 312N _ Redacted.pdf

Exception to Fair Opportunity Template Update AUG 2018 considered new work due to the volume of the scope of work contained with this repair. The Independent Government Estimate (IGE) for the scope of work is hours and valued at . In the award of the contract, the total growth for the entirety of the contract for all work item packages was valued at $3,473,781.33 with only 18,759 labor hours. Due to this one additional scope of work superseding all predicted growth, it would fall outside normal growth work and be considered as new work to the contract. Also, the cost of this change represents approximately 9% of the total initial contract price ($41,381,927.48), which further supports a determination of new work not anticipated at the time of bid. For all these reasons, at the time of solicitation, potential offerors could not have anticipated this scope of work being required to be accomplished within this availability. I therefore determine it to be new work rather than growth work.

This work needs to be completed to prevent further deterioration on the ships side shell and hull.

This work also affects auxiliary machine room 5 tanks. The risk without these repairs will limit the fuel capacity of the ship. If not repaired, the tanks will be limited to 60% capacity instead of 100%, which limits the ship s ability to remain underway without having to refuel. Risk to the nderway capabilities will also be impacted without this work being complete, possibly becoming a safety hazard for the entire crew onboard. If the work is not repaired during this current DSRA, this work is estimated to take about six (6) months and around five (5) million dollars. This will also have a significant overall impact to the Fleet schedule. Alternatively, a COPA, only an additional 31 days to the availability would be required to complete this scope of work during this DSRA.

Adding this work item to the existing DO under BAE is in the best interest of the Government in order to complete the scheduled availability on time with BAE support services already in place.

Introducing another contractor at this stage will create inefficiencies during execution. The ship is already in their DSRA at BAE shipyard. Opening this requirement for solicitation will result in further delays to the schedule and interfere with current contractor accomplishing the repairs.

Having another contractor or soliciting this work would delay the schedule and affect milestones putting Availability Completion due date at risk which in-turn, affects other multiple Naval Ship schedules in the fleet. The Contracting Officer reviewed the justification and has determined it to be accurate and complete to the best of his knowledge and has determined that the anticipated cost to the Government is fair and reasonable.

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.

An initial review and analysis with regard to price and scope of the COPA for RCC 312N has been conducted by the Project Manager (PM) and the Maintenance Team (MT) and verified by the Contracting Officer. Scoping of this RCC is taking place due to the higher than anticipated labor hours and clarification on the square footage of the repairs. Determination of fair and will be accomplished by price analysis, cost element analysis, and

Exception to Fair Opportunity Template Update AUG 2018 technical analysis for reasonableness of labor hours in accordance with FAR 15.404-1(b)(2)(vii) and FAR 15.404-1(e)(1). A combination of the MT technical knowledge and skills along with the awarded Section J Attachment J-3 will be used to determine the COPA to be fair and reasonable.

6. Any Other Facts Supporting the Justification.

This availability has already been solicited to MAC IDIQ contract holders and all were provided the opportunity to submit proposals. BAE was awarded the delivery order and is contracted to provide facilities, repairs and services the ship, thus inefficiencies of competing this requirement will not overcome the unacceptable delays that would accrue from waiting for a contract award for auxiliary machine room 5 repairs. Given the nature of the solicitation, the urgency and current result in serious injury to the government.

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

Upon discovery of the repairs identified required for the auxiliary machine room 5 and the fuel tanks, discussions were commenced with Government leadership to analyze the best course of action given the a when the work was to be completed to not impact the overall availability schedule and various other sequenced working events, it was determined that there was not sufficient time to solicit out the new work as this would take a minimum of 45 days to receive an awarded contract.

Between the MAC IDIQ holders, it was not guaranteed that BAE would be successful in obtaining this scope of work, which means, there would have additional time delays to get the awarded company access into set up to tear down. Cost was also a factor as BAE would provide a better price due to already having the ship in their yard and with support services already in place. Due to the high likelihood of a higher cost to the Government and unacceptable timeframes outside the awarded existing delivery order.