JA FY23-027-signed_Redacted.pdf

J&A# FY23-027

Source Selection Information – See FAR 2.101 and 3.104

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.

Post Screening

a. For RDO Shipments with no deficiencies or discrepancies, provide to FCC to process to final destination

b. For RDO Shipments with packaging deficiencies, correct packaging to comply with P700-CNP Level 1, then provide to FCC to and process to final destination

c. For RDO Shipments with Misidentified (Mis-IDs) Item/Quantity/Documentation errors, submit a Supply Discrepancies Report (via PDREP) and return to DD via ATAC Contractor Return Process

Support is required for a base period expected to begin on or before 01 April 2023 and continuing for a period of one year along with an option to continue support through 18 September 2024. The total estimated amount for the requirement is inclusive of the option.

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)(1), “Only one responsible source and no other supplies or services will satisfy agency requirements”, as implemented by

FAR 6.302-1.

J&A# FY23-027

Source Selection Information – See FAR 2.101 and 3.104

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 necessary to provide the support to the NAVSUP Weapon Systems Support (WSS) Industrial Support Department (Code N9833).

The RDO efforts to be acquired were previous provided by government personnel, but due to a decrease in personnel and funding constraints, these services were subsequently performed by Contractor personnel under the TARP VI SeaPort-NxG Task Order (N0018919F3042), which was awarded to Leidos, Inc. on 28 August 2019 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 Cost Plus Fixed Fee and Firm Fixed Price CLINS to support NAVSUP WSS Technical Assistance for Repairable Processing (TARP). One of the main functions required under the SeaPort-NxG TARP VI task order is to provide TARP Field teams who work to improve repairables management and 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.

Under Option Period I (Period of Performance from 19 September 2020 through 18 September 2021) 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 start a TARP team responsible for handling various transportation and packaging functions and tasks to support Navy operations. As part of their continuing mission, Code N9833 required additional technical support and management assistance in order to reduce aged ATAC Work-in-Process (WIP) and Stock-In Transit (SIT) from an up-front and behind-the-scenes perspective in order to minimize the financial impact to the Supply System. However, for Option Period II (Period of Performance from 19 September 2021 through 18 September 2022), the customer could not accept the additional funding and added requirements and therefore, could not commit to the continued support required by the Industrial Support Department, as they needed the full ceiling limit to support their own requirements. Given these services could no longer be supported under the TARP VI order due to cost/ceiling limitations, a sole source contract (N0018922CZ013) was issued to Leidos, Inc. citing urgency (FAR 6.302-2).

As noted, Leidos, Inc. has supported this requirement in the past under the TARP VI task order and is currently supporting the effort under contract, N0018922CZ013. Leidos, Inc. is the only vendor capable of performing the requirement within the time, budgetary and personnel constraints currently affecting NAVSUP WSS. Were any other contractor to perform these services would require them to set up a team at all three locations whereas Leidos, Inc. already has a team in place at these locations as part of their performance under the TARP VI task order. This would cause not only an increase in program management and program support costs for the Government but also a duplication of effort that is not expected to be recovered through competition since Leidos, Inc. is currently performing other similar tasks related to materials management under the TARP VI task order. In addition, it’s expected it would take a new contractor several months to get their team(s) set up and to gain access to the various sites needed for performance, which would result in delays to performance of the effort. Any delays in getting a contract in place and performance started would result in additional backlog of material and increased Shipments in Transit (SIT). While Leidos, Inc. has been performing this effort, NAVSUP WSS Industrial Support Department has seen a decrease of over $100 million of material in SIT as a result of the RDO screening process. During the period between the end of performance under the TARP VI task order and the beginning of performance under contract N0018922CZ013, SIT creeped back up and caused additional delays in receiving material. RDOs make up 25% of aged SIT and 40% of SIT Write-offs (lost material). With