JA FY22-004 - Redacted_Redacted.pdf

J&A#

JUSTIFICATION AND APPROVAL FOR USE OF

OTHER THAN FULL AND OPEN COMPETITION

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY: The requiring activity is Naval

Supply Systems Command Weapon Systems Support (NAVSUP WSS); the contracting activity is NAVSUP Fleet Logistics Center (FLC) Norfolk, Contracting Department, Philadelphia Office.

2. DESCRIPTION OF THE ACTION BEING APPROVED: This is a sole source action to be awarded as a firm-fixed price (FFP) contract to Leidos, Inc for Redistribution Order (RDO) screening services in support of NAVSUP Weapon Systems Support (WSS) Industrial Support Department (Code N9833).

3. DESCRIPTION OF SUPPLIES/SERVICES: NAVSUP Weapon Systems Support (WSS) Industrial

Support Department (Code N9833) handles various transportation functions and tasks to support Navy operations. As part of this mission, they require additional technical support and management assistance to reduce ATAC Work-in-Process (WIP) and Stock-In-Transit (SIT) from an up-front and behind-the-scenes perspective thereby minimizing the financial impact to the Supply System and improving Fleet readiness.

The contractor will be required to monitor and process incoming RDO items at First Coast Cargo locations in Chula Vista, California; Norfolk, Virginia; and Jacksonville, Florida. Tasks included in this effort are as follows:

Open Redistribution Order (RDO) package Verify item(s) inside match exterior and interior documentation Verify quantity (RDO quantity = Actual Quantity Received) Capture RDO shipment information Record Deficiencies or No Deficiencies Submit correct packages to First Coast Cargo to be shipped.

Submit weekly reports detailing items received and any deficiencies encounter, as well as all items sent to

FCC for delivery.

Support is required for the period 01 December 2021 through 30 November 2022. The total estimated amount for the one-year period of performance is .

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.2304 (c)(2), the Agency’s need for these RDO support services is of such an unusual and compelling urgency because the sudden discontinuous and withdraw of funding that the Government would be seriously injured unless the Agency is permitted to limit the number of sources from which it solicits bids or proposals, as implemented by FAR 6.302.2.

5. RATIONALE JUSTIFYING USE OF CITED STATUTORY AUTHORITY: Leidos, Inc. is currently the only vendor with the technical expertise, system and location access and management and personnel team already in place to provide the support to the NAVSUP Weapon Systems Support (WSS) Industrial Support Department (Code N9833) beginning 01 December 2021. Any other contractor would need time to learn the systems, gain access to the various worksites and set up a new team, whereas Leidos has the capability to start performing on 01 December 2021. There is also the risk of increase cost and budgetary needs if another contractor was awarded this requirement. Leidos will be utilizing the existing management team currently in place under the TARP VI task order which will reduce much of the behind-the-scenes cost of setting up the contract, planning, coordinating with the government and hiring potential employees.

These services were most recently performed under SeaPort-NxG Task Order N00189-19-F-3042 which was awarded to Leidos, Inc. for a one year base period beginning 19 September 2019 and four one-year option periods. The task order was awarded with a combination of Firm-Fixed Price (FPP) and Cost Plus Fixed Fee (CPFF) CLINS to support the NAVSUP WSS Technical Assistance for Repairable Processing (TARP) program. One of the main functions required under the SeaPort-NxG TARP VI task order is to provide TARP Field teams to improve repairables management and to train Repairable Managers to process and correctly turn-in DLRS/SECREPs efficiently. Further, the TARP Representatives ashore work to ensure Navy Enterprise Resource Planning (NERP) record accuracy with a focus on Material Inventory.

This includes capitalization and/or recapitalization of Navy assets from vendors, Foreign Militaries and material not on the records at Navy and Marine activities. The TARP web-based IT system facilitates data collection/analysis and communication among TARP members, NAVSUP WSS and retrograde process owners. The CPFF CLIN included in the order is for emergent support including special operations projects and inventory accuracy and asset recovery/capitalization efforts.

Under Option Period I of the TARP VI Task Order, the customer allowed another group within NAVSUP WSS, the Industrial Support Department (Code N9833), to fund multiple positions under the CPFF CLIN to handle various transportation and packaging functions and tasks to support Navy operations. However, for Option Period II, the customer cannot accept the additional funding and added requirements and therefore, cannot provide for the continued support of the Industrial Support Department, due to their own need for an increase in TARP related support from the contractor. In particular, the TARP Program Team identified the emergent need for additional TARP and ATAC representatives at NAS Norfolk to account for an unexpected increase in workload and to alleviate backlogs, which are a command priority.

These services are urgently needed and Leidos, Inc. is currently the only contractor with the technical expertise, access to the systems and various workplaces and the management and personnel already in place to start the services by 01 December 2021. Any further delays in getting a contract in place will result in additional backlog of material and increased Shipments in Transit (SIT) which will negatively impact mission readiness. While Leidos was conducting this effort under the TARP VI task order, NAVSUP WSS Industrial Support Department saw a decrease of approximately $100 million of material in SIT and a reduction in repair turnaround time as a result of the RDO screening process which included Leidos ensuring that each asset was properly packaged and preserved. Since the termination of the effort in mid- September, SIT is creeping back up and causing additional delays in receiving material and increased repair turnaround time. RDOs make up 25% of aged SIT and 40% of SIT Write-offs (lost material). Improper packaging increases repair cost by between 5-8% as well as increases repair turnaround time up to 25 days.

With $31.1 Billion of material moving through the SIT pipeline yearly, RDOs have an enormous impact on decreasing SIT and SIT write-offs for the Navy. Having SIT in the pipeline delays assets from getting to commercial/organic repair facilities as well as filling Fleet requirements which in turn results in a reduction in mission readiness. Leidos has been working this effort and are experts in retrograde processing and packaging which will eliminate any learning curve and will enable NAVSUP WSS to get the effort back up and running without any additional delays. In addition, going directly to Leidos can reduce Program cost since they already have the management team and personnel in place, any other contractor would need to set up their own management team and hire personnel which could increase program cost, which could jeopardize the program as budgetary constraints are expected for much of Fiscal Year 2022.

6. DESCRIPTION OF EFFORTS MADE TO SOLICIT OFFERS FROM AS MANY OFFERORS AS

PRACTICABLE, INCLUDING A DESCRIPTION OF MARKET RESEARCH, IF APPLICABLE,

AND A LIST OF INTERESTED SOURCES, IF ANY: FAR 5.202(a)(2) relieves the Contracting Officer of the obligation to submit the notice required by FAR 5.201 when the Contracting Officer determines that the proposed contract action is made under conditions described in 6.302-2 - “When the agency’s need for the supplies or services is of such an unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals, full and open competition need not be provided for”. Since these conditions are met here, a synopsis was not published.

7. DETERMINATION OF FAIR AND REASONABLE COST: The NAVSUP FLC Philadelphia

Contracting Officer has determined that the anticipated cost to the Government of the effort covered by this J&A will be fair and reasonable.

8. ACTIONS TO REMOVE BARRIERS TO FUTURE COMPETITION: Due to the time constraint and urgent need for the RDO support services to begin 01 December 2021, as identified in Section 5 above, there is not sufficient time to release a Sources Sought Notice/Request for Information and/or a synopsis for this requirement to identify potential vendors capable of meeting the requirement. However, it is anticipated that any follow-on requirement will be competitively solicited.

9. CONTRACTING POINT OF CONTACT: The NAVSUP FLC Norfolk point of contact is who may be reached at or at