JA_for_USNS_SPEARHEAD 2020 Redacted.pdf

J&A Control Number: Nl04-20-R-4067

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) Norfolk.

2. Description of the Action Being Approved: MSC has a requirement to award a firm fixed priced contract on an urgent & compelling sole source basis to Colonna's Shipyard Inc., a qualified ship repair facility in the Norfolk, Virginia area to repair the USNS SPEARHEAD (T-

EPF I).

3. Description of Supplies/Services: MSC requires the use of an industrial pier and capable ship repair company with dry-dock available immediately to and repair hull damage onboard the USNS SPEARHEAD (T-EPF I) in a dry-docking availability. The shipyard will conduct repairs of the vessels damaged hull using CFM aluminum plating. The repair will take place during the 80-day dry-docking availability starting on March 15, 2020. The repair is required in order to safely and reliably return the vessel to mission. The actions executed under this J&A have an estimated value of $XXX using fiscal years (FY) 2019 United States Navy Working Capital Funds (NWCF).

4. Statutory Authority Permitting Other Than Full and Open Competition: The statutory authority for this urgent and compelling, sole source procurement is executed under the authority of 10 U.S.C. 2304(c) (2) as implemented by FAR Part 6.302-2, Unusual and Compelling and 10 U.S.C (c) (I) as implemented by FAR Part 6.302-1, Only One Responsible Source and No Other

Supplies or Se1yices will Satisfy Agency Requirements.

5. Rationale Justifying Use of Cited Statutory Authority: The USNS SPEARHEAD (T-EPF I) experienced a major C4 CASREP on the Hull Shell Plating, specifically the shell plating located near Ride Control Spaces I and 2, Voids 3 and 4. The shell plating is developing through hull cracks located beneath the waterline causing the vessel to flood and sink. These hull cracks are unpredictable in nature; the cracks have increased in size and number while the vessel has changed fuel and cargo loading conditions and through typical underway operations. Due to the unpredictability of this cracking, the assigned N7 technical experts have determined that the shell plating integrity has severely degraded, the safety and seafaring capability of the vessel has been compromised and the vessel is in immediate need of replacement prior to sailing which will require the vessel to be repaired in a dry-dock. The shell USNS SPEARHEAD (T-EPF-1) will conduct temporary repairs to transit to a shipyard facility upon award of Emergency Dry Docking contract.

In order to avoid unacceptable risk to fleet readiness and critical mission capability, immediate repair and dry-docking of the USNS SPEARHEAD is required on an expedited basis to ensure the ship is available for deployment no later than June 11, 2020. Further, if MSC were required to contract the repairs for the USNS SPEARHEAD as full and open competition or on a small business set aside basis, there is no other T-EPF class vessel available to substitute for the SPEARHEAD's operational mission. If the ship missed this timeframe, the mission of the

USNS SPEARHEAD

(T-EPF-1) would be jeopardized because it is scheduled to return to mission upon its departure from the shipyard and return to a shipyard for a Regular Overhaul/Dry-Dock (ROH/DD) shipyard repair availability on October 141 \ 2020. The scheduled mission of USNS

SPEARHEAD begins on June 11, 2020 and the vessel is required to be repaired as quickly as possible in order to prepare the vessel, cargo and crew for mission.

The mission delegated Southern Partnership Station 2020 (SPS 20) is to support USSOUTHCOM maritime security operations. During SPS 20, the vessel will build and sustain partnerships with partner nation forces, counter threat networks and increase interoperability with partner nation forces to ensure the U.S. remains the maritime partner of choice in the Southern and Central American region. The vessel will provide support for local engineering projects, medical assistance, NCIS, EOD (ordinance disposal) and MDSU (Navy Divers) adaptive force packages deployed as individual detachments throughout the deployment in numerous partner nation locations including Costa Rica, Ecuador, Honduras, Jamaica, Trinidad and Tobago.

6. Description of Efforts Made To Solicit Offers from as Many Potential Sources as Practicable: Sources Sought notice was posted on the beta.SAM.gov website on 11 February 2020 and closed 14 February 2020. The Sources Sought respondents were required to demonstrate the ability to provide an industrial pier capable of performing ship repair work and have the resources capable of repairing a ship. MSC N7, with an immediate dry-dock available for the period of a 80 day ship repair availability, contacted shipyards in the East Coast/Norfolk area which could support a ship the size of a T-EPF and have the pier availability for the POP.

There was multiple responses to the sources sought but to date; only the respondent of Colonna's Shipyard Inc. has the immediate availability and meet the geographical limitations required. ABS class certificates limits the vessel to inner-river transits only unless an ABS approved permanent or temporary repair is installed on the subject failed shell plating. Any transit to a facility outside of the Chesapeake Bay sea buoy in order to execute permanent repairs would incur major expenses and time lost to effect a temporary repair prior to transit. Executing a permanent repair within the Elizabeth River and its branches eliminates the mission time lost effecting a temporary repair and eliminates the funding requirement.

7. Determination of Fair and Reasonable Cost: The Contracting Officer will determine the contract prices to be fair and reasonable using price analysis techniques described in 15.404-1, as appropriate, on a per solicitation/contract basis.

8. Actions to Remove Barriers to Future Competition: For the reasons set forth in Paragraph

5, this procurement is unusual and not a regular recurring contracting requirement. MSC has no plans at this time to compete future contracts for this type of procurement. If another potential source emerges, MSC Norfolk will assess whether full and open competition or a small business set-aside for future requirements of this nature is feasible.