FOUO E23.0 Justification and Approval Redacted.pdf

J&A Number: 20-16JA Code: 440.24

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(2), as implemented by FAR 6.302-2,Unusual and Compelling Urgency.

5. Rationale Justifying Use of Cited Statutory Authority

A requirements package for an Indefinite Delivery, Indefinite Quantity (IDIQ) contract to provide LN2 and tank leases to support freeze seal operations was received on December 19, 2019. Due to the criticality of the supply and the large volume of LN2 required, the solicitation was established for full and open competition. The solicitation was drafted and solicited on February 6, 2020 with a due date of March 10, 2020. The immediate need for the of June 1 was established as the minimum guarantee under this solicitation.

On March 10, no proposals were received. Interested parties were contacted to determine why no proposals were received. One respondent indicated intent to propose, however were not able to prepare the proposal due to preparation of proposals for other solicitations at this time.

Based on this response, the solicitation was extended to March 20, 2020. No proposals were received by this date and interested parties were again contacted. One respondent again indicated intent to propose, but were not able to prepare the proposal due to COVID19 impacting their proposal team.

Based on this response, the solicitation was extended to April 6, 2020. No proposals were received by this date. When interested parties were contacted for the third time, the respondents indicated the fundamental structure of the IDIQ rendered the solicitation untenable. Specifically, the requirement to maintain an indeterminate quantity and size range of tanks in reserve to support adhoc freeze operations with no guaranteed revenue represented a significant capital outlay with little to no return on investment.

Based on this information, the IDIQ requirement would not be fulfilled in time to meet immediate needs of June 1, 2020.

Delay in award of these contracts would result in serious injury to the Government. Failure to acquire these LN2 requirements by the need by date would impact the repair schedule of critical systems, impact critical path of the vessel, and ultimately delay vessel completion date. This would delay scheduled downstream dry docking work on other vessels which would negatively impact the nation’s overall strategic defense plan and security.

Based on the lack of responses received from the IDIQ solicitation and the immediate needs to support the freeze seal operations scheduled for June 1, 2020, this requirement can only be met by other than full and open competition due to unusual and compelling urgency.

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

A sources sought for the IDIQ solicitation was posted on December 23, 2019. The results of this sources sought were the establishment of full and open competition for the IDIQ solicitation.

When the IDIQ solicitation resulted in no proposals, additional market research was conducted from April 7 through April 17 to determine the ready availability of LN2 tanks. Thirteen companies were identified as potential sources and contacted. Of these thirteen companies, only six responses were received. Of these six responses, two were from the interested parties on the IDIQ solicitation and indicated that no tanks were available to support the immediate need. One response was from a tank manufacturer that indicated manufacturing lead times would require a minimum of weeks to accomplish which exceeds the minimum need date.

Of the remaining four respondents, one of the four acted as a retailer while the remaining three worked through this one respondent. These respondents confirmed they had approximately five tanks available that could be converted to meet the Government’s need.

A synopsis for the IDIQ requirement was posted to beta.sam.gov on January 27, 2020. A revised synopsis to address LN2, LN2 Tanks, or LN2 Ancillary services will not be posted due to restricted timelines under exception 5.202(a)(2) as the proposed contract actions are made under the conditions described under unusual and compelling urgency.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by the J&A will be fair and reasonable. Market pricing is readily available for LN2, LN2 tanks, and LN2 ancillary services to establish fair and reasonable determinations.

8. Actions to Remove Barriers to Competition

After meeting the immediate need laid out in paragraph 5 above, the Government intends to procure LN2 tanks and establish an IDIQ for LN2 supply on a competitive basis to support freeze seal operations on a competitive basis.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(c))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(b)(12))

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Competition Advocate for the Procuring Activity, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(2).

Competition Advocate