FAR 13.5 Sole Source Justification-hot oil flush_Redacted.pdf

Revised June 29, 2022

J&A No.: 24-13JA

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FEDERAL

ACQUISITION REGULATION (FAR) 13.5 IAW 41 U.S.C. 1901

On the basis of the following justification, I hereby approve the use of a sole source proposed contractual action pursuant to the authority of �10 U.S.C. 3204(a)(2).

1. Contracting Activity.

Puget Sound Naval Shipyard and Intermediate Maintenance Facility (PSNS&IMF), Industrial Management Department (Code 400), Bremerton WA

2. Description of the Action Being Approved.

Award a Firm-Fixed Price contract out of scope modification due to the Original work requirement having a lack of defined requirements for the KTR to complete the work.

The contemplated action for approval is the issuance of an out of scope contract change under contract N4523A24P0801 for a Hot Oil Flush on the external piping system on the on an unusual and compelling urgency basis IAW FAR 6.302-2. This will support critical and controlling path work on the . The resulting action would incorporate the out of scope contract change and extend the period of performance from

. The required changes to the contract are considered to be growth work within the original intent of the contracted requirements, however due to the significance of the changes and associated anticipated value of said changes, the Contracting Officer has made the determination that the totality of the changes constitute an out of scope change from what was initially competed competitively. The is currently undergoing critical lifecycle repairs in dry-dock at Point Loma Naval Base, and this work is required in order for the vessel to be returned to the fleet.

3. Description of Supplies/Services.

PSNS requires the contractor to complete the technical requirements of flushing the external piping system and shall ensure the flushing unit and equipment has the ability to achieve pressures, temperatures, and flow rates as specified in Section 3.7.1 through 3.7.8 of the corrected Statement of Work. The period of performance for contract action is

. The Government�s minimum needs have been verified by the certifying technical and requirements personnel. The estimated dollar value is . The funding for this requirement is FY 24 Operation and Maintenance, Navy (OMN) funds.

4. Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority permitting other than full and open competition is 10 U.S.C.

3204(a)(2): the agency's need for the property or services is of such an unusual and compelling urgency that the United States would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals.

5. Rationale Justifying Use of Cited Authority.

CASREP# 23030 applies. The ship�s external hydraulic system is in a reduced status due to the issues identified in the CASREPs reported in May 2023. In order to not create a cascading effect of shuffling numerous Navy assets to fulfill critical missions, the flushing of the external hydraulic system onboard must be accomplished in the most expeditious manner possible. Any delays in the repair schedule could cascade into future availability schedules of other United States Navy Submarines. These delays would cause a detriment to the readiness of the United States Naval Fleet and that reduction of readiness is a serious threat to the overall National Security of the United States. Awarding a contract modification for this substantial growth work is the most expeditious path forward and minimizes the impact to mission schedules throughout the entire United States Naval fleet.

High Purity Northwest, Inc. was working in accordance within the requirements of the contract, but when the Government was requesting requirements outside the scope of the contract, contractor put a stop to the flushing until contract modification. By not sole sourcing to the awarded contractor, removing all equipment and personnel and re-establishing new equipment and personnel will take about three weeks or more, will delay this vessel from getting underway and continuing their mission, and will incur additional costs associated with a new contractor having to mobilize and establish equipment setup.

6. Description of Efforts Made to Solicit from as Many Offerors as Practicable.

No other sources have been contacted for this additional work. There were five other contractors that submitted a proposal in response to the original requirement. Four out of the five vendors were determined to be technically acceptable during the award evaluation phase.

A synopsis for this action will not be publicized IAW FAR 5.202(a)(2), unusual and compelling urgency precludes competition to the maximum extent practicable and the Government would be seriously injured if the agency complies with the time periods specified in FAR 5.203.

No market research was conducted based on the rationale presented in paragraph 5 above, it is not practicable to solicit offers outside of contract N4523A24P0801.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

Circumstances permitting, PSNS&IMF C/400 will strive to publicize similar requirements and conduct market research into the hot oil flush industry to identify vendors capable of performance. PSNS&IMF C/400 intends to compete similar requirements in the future to the greatest extent possible.

Certification

Requirements Generator:

I certify that the facts and representations under my cognizance that are included in this justification and that form a basis for this justification are complete and accurate.

Date

Reviewed by & Concur:

I certify that the facts and representations under my cognizance that are included in this justification and that form a basis for this justification are complete and accurate.

Legal Review:

I reviewed this justification and find it to be legally sufficient.

Contracting Officer:

I certify that this justification is accurate and complete to the best of my knowledge and belief.