FY21-JUL20-18_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

INDIAN HEAD EXPLOSIVE ORDNANCE DISPOSAL TECHNOLOGY DIVISION

3767 STRAUSS AVENUE

SUITE 201

INDIAN HEAD, MD 20640-5150

J&A Number: FY21-JUL20-18

Code: 026B

Contracts Department - Form 13 (Rev 5/18)

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center Indian Head Division (NSWC IHD), Contracts Office Code 026.

2. Description of the Action Being Approved

This action will award a Firm Fixed Price (FFP) contract on a sole source basis for the manufacturing, delivery, installation and training related to one (1) explosion proof lathe (EPL) in support of NSWC IHD R Department. The proposed awardee is:

Republic Lagun CNC 800 Sprucelake Dr.

Harbor City, CA 90710 Cage Code: 1BW56

3. Description of Supplies/Services

The NSWC IHD R Department requires a supply contract for the EPL that will be used in the machining of propellants and explosives. The R Department will also use the EPL to support specific mission requirements for the M Department’s manufacturing operations including the programs,and the E Department’s Ordnance Assessment (OA) programs including the

Due to the nature of the material being machined the lathe must have all electrical components and motors sealed and pressurized to meet the requirements of Class 1 Div. 1 and 2 Groups C, D as well as Class 2 Div. 1 Groups E, F, G environments.

“SOURCE SELECTION INFORMATION – SEE FAR 2.101 and 3.104”

The requested procurement is of an EPL, model number UTC- 2180-EXP, with a Dynapath Delta CNC control. The requested vendor, Republic Lagun, is the original equipment manufacturer (OEM).

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

Estimated Dollar Value

Total Indirect $457,757

TOTAL $457,757

4. Statutory Authority Permitting Other Than Full and Open

Competition

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1 - Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements.

5. Rationale Justifying Use of Cited Statutory Authority

Republic Lagun is the OEM and the owner of the EPL technology. As the OEM, Republic Lagun has the unique expertise and access to proprietary data needed to service and maintain the EPL. No other vendor has the knowledge or permission to manufacture and deliver these systems.

The technical requirements for an explosion proof lathe of the configuration required are not available from standard lathe manufacturers. Making the lathe explosion proof requires unique knowledge to meet the requirements of Class 1 Div. 1 and 2 Groups C, D as well as Class 2 Div. 1 Groups E, F, G environments. Republic Lagun specializes in this unique field and is a proven supplier of explosion proof machining equipment. No other manufacturers meet this requirement.

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

Offerors as Practicable

A Sources Sought notice was posted on 13 May 2021 to the beta.SAM website to satisfy requirements for Defense Acquisition Regulation Supplement 206.302-1(d). Zero (0) responses were received. The Government also synopsized the proposed contract on 6 July 2021 via the beta.SAM website.

One (1) response was received from RACER Machinery International, Inc. (RACER). However, upon conducting further market research, the technical team found that RACER does not have the capability to manufacture the lathes to meet the explosion-proof requirements.

Market research has shown that Republic Lagun is the only known source for an explosion proof lathe for use in machining energetic material. Market research has also shown that this specific item is not available under the General Services Administration (GSA), Federal Supply Schedules (FSS), or the National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) contract vehicles. Additional research on the OEM website and through email contact with the OEM representative has shown that there are no distributors available worldwide, with only Republic Lagun providing service and supply sales within the United States. The representative has verified that this version of the product is not available from distributors/resellers. It is manufacutured by and sold directly from Republic Lagun CNC.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies covered by the J&A will be fair and reasonable. Other explosion proof equipment has been purchased from Republic Lagun by the Agency and the cost for making a lathe of these specifications intrinsically safe is in line with the previous costs for similar equipment.

8. Actions to Remove Barriers to Competition

Future competition is not expected as the OEM, Republic Lagun CNC has the unique expertise and access to proprietary data needed to manufacture and deliver the EPL system.

For the reasons set forth in Paragraph 5, NSWC IHD has no plans at this time to compete future contracts for the types of supplies covered by this document. If another potential source emerges, NSWC IHD will assess whether competition for future requirements is feasible.

The circumstances surrounding the need to obtain the required supplies without providing full and open competition will be reviewed annually by the Procuring Contracting Officer (PCO).

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, including Acquisition Plan No. N/A, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Combined Technical and Requirements Cognizance:

Signature Name (Print) and Title (Code) Phone No. Date

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303-90))

I have determined this justification is legally sufficient.

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

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

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Contracting Officer 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)( ).

(TITLE OF APPROVING OFFICIAL)

Signature Name (Print) Date Julie Greaves-Jacko 8/4/2021

CERTIFICATIONS ON JUSTIFICATIONS AND APPROVALS (J&As) The following signatures for technical/requirements certifications in J&As are required under the stated circumstances.

Dollar Level Signature Authority

Technical Cognizance

>$700K to $93M Program Manager (PM), Deputy Program Manager (DPM), Assistant Program Manager, or Equivalent

>$93M PM, DPM, Equivalent, Deputy

Commander/Executive Director for Directorate or Flag Officer/SES

Requirements Cognizance

>$700K to $93M PM, DPM or Equivalent

>$93M, or *2nd bridge Deputy Commander/Executive Director to existing contract for Directorate or Flag Officer/SES

Very Important Notes:

1. If a single individual within the approval authority listed above has cognizance over both technical and requirements information included in the J&A, use of only one signature line is appropriate and therefore should be communicated to the PCO or Contract Specialist prior to their drafting of the J&A [“Technical Cognizance:” and “Requirements Cognizance:”

should be deleted and replaced with “Combined Technical and Requirements Cognizance:”.]

2. If anything within the J&A is not in strict accordance with the data and/or information cited in the AP, then the differences must be fully explained in the J&A and have the Deputy Commander/Executive Director for Directorate or Flag Officer/SES sign for Requirements Cognizance.

3. For all acquisitions that do not require written APs per DFARS 207.103(d)(i) or when the APs are written so generic as to not address specific acquisitions, the thresholds are $10M development and $25M for production or services to have the Deputy Commander/Executive Director for Directorate or Flag Officer/SES sign for Requirements Cognizance.

4. Bridge contracts are defined as sole source actions entered into with the incumbent contractor in order to maintain support when competitive procurement cannot be processed in time to meet the required award date. The following applies to all types of services contracts with the exception of contracts under the cognizance of the Naval Nuclear Propulsion Program.

a. J&As for all bridge contracts, regardless of value, will include PEO/Directorate Head/Field Activity Commanding Officer/Technical Director signature under Requirements Cognizance. Bridge J&As will also include a schedule for award of follow-on competition with in Section 8 “Actions to Remove Barriers to Competition”.

b. J&A’s for ALL bridge contracts require HCA approval per Vice Admiral Moore’s memo dated 7 February 2017 on Bridge Contracting.

c. J&As for any subsequent bridge contracts (i.e., 2nd, 3rd bridge), regardless of value or period of performance, will be forwarded to SEA 00 for notification/review prior to approval by the cognizant SEA 02 SES or DASN (RD&A).

This J&A must include rationale as to why the schedule in the initial bridge J&A was not achieved.

JUSTIFICATIONS AND APPROVAL (J&A) AUTHORITIES

Up to $700K Contracting Officer

>$700K to $13.5M Competition Advocate for the Procuring Activity

>$13.5M to $93M Designee of the Head of the Procuring Activity (See note.)

Acquisitions over $93M Navy Senior Procurement Executive

Very Important Note:

J&As drafted at NAVSEA Headquarters that fall within the Competition Advocate for the Procuring Activity threshold authority shall be prepared for submittal to the Designee of the Head of the Contracting Activity and approved by a SEA 02 SES Division Director or SEA 02 IAW FAR 6.304(a)(2).

*In accordance NCH 1.601(92) FY 2017 NDAA Section 233 Pilot Program (applicable to WFC Divisions only) revised approval threshold for J&As that are effective for duration of the Pilot Program (30 SEP 2022) unless otherwise amended as follows:

>$13.5M < $93 M – permits WCD SES TD’s approval.

Sole Source 8(a) Awards above the 8(a) competition threshold

>$7M to $13.5M (Mfg NAICS) SEA 02B as Competition Advocate or >$4M to $13.5M (all other SEA 02/02B, SEA 02 SES Division NAICS) Directors as designee of the HCA or FPO appointed Competition Advocates*

>$13.5M to <$93M SEA 02/02B when the individual is a flag officer or a member of the SES Division Directors as designee of the HCA

>$93M Navy Senior Procurement Executive

(NPSE)

*Note: Unless SEA 02/02B designates otherwise, the field activity CCO/Deputy is the competition advocate of the activity.

This designation is not re-delegable and, if other than the CCO/Deputy, must be equivalent or highter organizational level.