GUAM TC TUG JA 17C3517 Redacted.pdf

JUSTIFICATION AND APPROVAL (J&A) FOR USE OF OTHER

THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Department of the Navy, Military Sealift Command (MSC).

2. Description of the Action Being Approved.

Modification to extend contract N32205-17-C-3517 on a sole source basis for the time charter of the Guam Harbor Tugs to the incumbent contractor CABRAS MARINE

CORPORATION LLC.

The purpose of this J&A is to obtain approval to execute a FAR 52.217-8 extension for continued performance of the current contract. This contract action extends CABRAS MARINE CORPORATION’s time charter for up to 30 days from 1 March 2022 to 30 March 2022. The total length of the contract at that point will not have exceeded 60 months.

3. Description of the Supplies/Services.

Contract N32205-17-C-3517 provides two US flagged Harbor Tugs in support of U.S.

Navy Operations. The tugs operate at Naval Station Guam, Apra Harbor, GU.

The total estimated fixed value of this contract extension is

Estimated Dollar Value Days FY22 Days Daily Rate Bridge Total Value 30 1 March 2022 to

30 Mar 2022

Contract performance under N32205-17-C-3517 is currently under option period four that will end on 28 February 2022. The follow-on contract for the CABRAS MARINE CORPORATION is being competed and will be

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

This justification is prepared under the provisions of 10 U.S.C. § 2304(c)(1), as implemented by FAR 6.302-1(a)(2) (Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements).

FAR 6.302-1(a)(2) states:

“When the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.”

5. Rationale Justifying Use of Cited Statutory Authority.

In accordance with FAR 6.302-1(b)(1)(ii): “When there is a reasonable basis to conclude that the agency’s minimum needs can only be satisfied by -- (ii) For DoD, NASA, and the Coast Guard, unique supplies or services available from only one or a limited number of sources or from only one or a limited number of suppliers with unique capabilities.”

Not approving this FAR 52.217-8 extension to CABRAS MARINE CORPORATION will have a negative impact on the Navy’s mission by rendering it unable to conduct harbor movement of naval vessels in Apra Harbor. It would also prevent the Navy from conducting emergent repairs to naval units, forcing the Navy to provide heavy lift assets to move disabled ships to Japan or Pearl Harbor for repairs. Not meeting the mission could shut down all operations.

CABRAS MARINE CORPORATION supports Commander Naval Region Marianas, COMSUBPAC, US Pacific Fleet, USINDOPACOM and Navy Munitions Command.

Only one contractor, the incumbent CABRAS MARINE CORPORATION, responded to the RFP and Sources Sought Notice for the Guam time charter procurement. For this reason, there is only one capable contractor in Guam. The availability of only one responsible source precludes full and open competition for this contract extension. Further, delay in issuance of this contract extension would result in serious operational impacts to the Government as noted above. The current contractor, CABRAS MARINE CORPORATION, is the only source able to provide the required continuity of this mission critical service, without disruption, and at a reasonable rate, during the short period between the current contract’s expiration and the delivery of a new contract.

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

As provided in paragraph five above, CABRAS MARINE CORPORATION is the only source capable of providing the required service.

7. Determination of Fair and Reasonable Cost.

Pursuant to FAR 15.404-1(b)(2)(ii), the anticipated cost of the proposed bridge contract is fair and reasonable based on a comparison to historic prices paid.

The current contract was competitively awarded. Further, CABRAS MARINE CORPORATION’s proposed bridge rates are consistent with the rates received in response to the Sources Sought Notice.

8. Actions to Remove Barriers to Future Competition.

Performance under a competitively awarded contract is expected to