JA MOD ABS IDIQ W912BU17D0002 FINAL 3-11-2021(RH)_S (002).pdf

JUSTIFICATION REVIEW DOCUMENT

OTHER THAN FULL AND OPEN COMPETITION

PROJECT/EQUIPMENT: Inspection & Analysis Services of Vessels for ABS Classification CONTROL NO: NAP-21-0003

AUTHORITY: FAR 6.302-5, DFARS 206.302-5, Authorized or required by statute 10 U.S.C. 2304(c)(5)

AMOUNT: $1,000,000.00

PREPARED BY:

CONTRACT SPECIALIST

NAME: Maria M. Figueroa-Gomez

PHONE: 215-656-6912

DATE:

CONTRACTING OFFICER

NAME: Robert W. Hutcheon, Jr.

PHONE: 215-656-2291

DATE:

TECHNICAL

NAME: Timothy J. Keyser

PHONE: 215-656-6171

DATE:

REQUIREMENTS

NAME: Michelle Bertoline

PHONE: 215-656-6175

DATE:

SIGNATURES ARE REQUIRED BELOW:

I have reviewed this J&A and find the justification adequate to support other than full and open competition.

DISTRICT SMALL BUSINESS SPECIALIST

SIGNATURE:

NAME: Brooke Patterson

DATE:

PHONE: 267-858-0118

PROJECT MANAGER

SIGNATURE:

NAME: Michelle Bertoline

DATE:

PHONE: 215-656-6175

DISTRICT COUNSEL

SIGNATURE:

NAME: Scott C. Seufert

DATE:

PHONE: 410- 962-2526

BUSINESS OVERSIGHT BRANCH

SIGNATURE:

NAME: Samuel W. Brown

DATE:

PHONE: 215-656-6929

DISTRICT CONTRACTING CHIEF

SIGNATURE: NAME:

Esther Edinborough

DATE:

PHONE: 215-656-6764

SCO COUNSEL

SIGNATURE:

NAME: Tristan Brown

DATE:

PHONE: 202-761-8541

e5ctcmmf Sticky Note Change authority and amount. Memo paragraph 2 e5ctcmmf Sticky Note Changed Jason Moy for new DCC.

Control No: NAP-21-0003

Justification and Approval for Other Than Full and Open Competition

1. Contracting Activity: U.S. Army Corps of Engineers, Philadelphia District (USACE- NAP), Contract Division, 100 East Penn Square, Philadelphia, PA 19107.

2. Description of Action: The existing contract (W912BU17D0002) was awarded on a sole source basis and was supported by a Justification and Approval (J&A) Control Number 16-018 for Other than Full and Open Competition citing FAR 6.302-1, Only One Responsible Source approved by the Contracting Officer on 21 March 2016. Therefore, this request to increase the value of the sole source contract is considered a subsequent J&A and shall be approved at the cumulative noncompetitive value of the contract.

3. Description of Supplies/Services: This five (5) year Firm Fixed Price, Single Award Task Order Contract (SATOC), Indefinite Delivery, Indefinite Quantity (IDIQ) was awarded to the American Bureau of Shipping (ABS) on 30 September 2017. On 21 September 2018, an administrative modification corrected the usage of the verbiage “option and period year” with the appropriate terminology, “ordering period”.

Ordering period is synonymous with contract period of performance (POP), which began 1 October 2017 and ends 30 September 2022. We are seeking to increase the contract capacity by $1,000,000.00 resulting on an increase from $650,000 to $1,650,000.00.

Under the IDIQ contract, ABS will be asked to offer inspection and analysis services to verify that vessels are mechanically and structurally fit. These services may include the establishment and interpretation of requirements; inspection of vessels and vessel’s equipment; testing and examination; and the issuance of load line certificates, tonnage certificates, class certificates, and other documents as applicable. These services may also include the review and approval of plans required for class issuance, and Certificate of Inspection (COI) issuance. Only those services that are required to be performed or provided by ABS to maintain or place a vessel in class or services and supplies relating to classification that are only available from ABS may be ordered under this contract.

4. Authority Cited: FAR 6.302-5, Authorized or required by statute, 10 U.S.C. 2304 (c)(5)

5. Reason for Authority Cited: The authority cited is appropriate for this contract since ABS has a statutory and regulatory monopoly on classing vessels of the United States Government. In accordance with (IAW) statute 46 U.S.C. 3316 – Classification Societies, “(a) Each department, agency, and instrumentality of the United States Government shall recognize the American Bureau of Shipping as its agent in classifying vessels owned by the Government and in matters related to classification, as long as the Bureau is maintained as an organization having no capital stock and paying no dividends…” In addition, “the 2010 Coast Guard and Maritime Transportation Act amended 46 U.S.C. 3316(c). This statute requires that a Classification Society may not review, examine, survey, or certify the construction, repair, or alteration of a vessel in the United States unless it is approved by the Coast Guard.” (United States Coast Guard Port State Control Division (CG-CVC-2) Classification Society Approvals). “Any agreement between the Commandant and the recognized classification society authorizing the performance of delegated functions will be written and will require the classification society to comply with the provisions of Title 46 Code of Federal Regulations (CFR), Part 8” (United States Coast Guard Port State Flag State Control Division (CG-CVC-4) Alternate Compliance Program). Furthermore, “When a vessel is purchased or otherwise acquired, the District Commander shall determine the requirements for registering the vessel with the United States Coast Guard (USCG), the American Bureau of Shipping (ABS), and the United States Public Health Service (USPHS)” pursuant to USACE Engineer Regulations (ER) publication ER 1130-2-500 Partners and Support (Work Management Policy).

The services offered by ABS are required to ensure the safe operation of the USACE fleet and keep it in compliance with applicable ABS Rules, USCG standards, and relevant statutes and regulations.

This J&A is being resubmitted because the dollar value of the proposed contract action has increased beyond the authority of the previous approving official. New requirements consumed the capacity prior to contract expiration on 30 September 2022. Contract modification is the most cost effective and efficient contract approach since there is no scope change(s) that will affect established prices. Prices for this contract are current and were negotiated with the original contract and the initiation of a new IDC may cause the negotiated pricing to rise. Besides an increase in price, initiating a new acquisition will increase the coverage gap forcing contracting to issue individual actions until contract award. The contracting alternatives require a significant amount of time, and resources, unlike modifying the terms of the contract pursuant to FAR 43.

Historically, the Marine Design Center (MDC) has issued a very limited level of design package consisting of vessel overview drawings along with the solicitation package. In many solicitations, a design package was not provided, and the offerors relied solely on performance specifications with very limited definition.

This conceptual level of design was typically prepared by MDC or by an Architect-Engineer firm. Due to the limited level of detail, ABS submission and approval of the conceptual drawings was not pursued. Once the shipyard contract was awarded, the contractor would then perform a detailed level of design and submit the entire package through ABS for review. As a result, the ABS fees were included under the shipyard contract rather than the Government’s contract directly with ABS. Additionally, when the current IDC was awarded to ABS, the ordering capacity was based on an assumption that MDC would award an average of two task orders per year for design review and approval, with each task order estimated to cost between $50,000 to $75,000.

Within the past 3years, MDC has gained knowledge through the completion of various projects and communications with our industry counterparts and has determined that preparing a more thorough design package to be issued upfront with the specifications, results in more accurate bidding since a higher level of detail is provided. This level of design, referred to as a contract level design, is also submitted by MDC to ABS prior to issuing the solicitation to ensure that the drawings are suitable for a shipyard to use to prepare final fabrication details for vessel construction. Using this approach has required additional effort and cost from ABS to review the entire package. Given the current and future workload at MDC, we anticipate submitting three to four task orders to ABS for design review each year. Due to increased ABS review costs as well as further detail and submittals included in the design packages as described above, the average cost for a task order to review a complete design is around $125,000.

Additionally, since this IDC was placed on 30 September 2017, MDC has awarded a task order for ABS to support the review of the existing USACE Dredge Currituck. The task order included requirements for a condition survey, engineering assessment and review in an effort to bring the vessel up to the ABS Class standards. This required review of the complete vessel design as well as onsite inspections to ensure that the vessel condition was in accordance with ABS requirements or noted otherwise. This contract action was not initially known at the time of the award of the IDC back on 30 September 2017.

MDC has also awarded a task order to ABS to assist in coordination associated with maintaining the current ABS Load Line assignment for the USACE Dredge WHEELER. The objective of the Service Life Evaluation Plan (SLEP) effort with the American Bureau of Shipping (ABS) is to (1) provide a higher level of planning and partnership with ABS to prioritize and optimize the planned shipyard work, and (2) minimize schedule delays due to condition found unplanned work. In the SLEP task order, structural modeling, a condition survey, an equipment survey, and operational history are used to assess the condition of the dredge and provide guidance and recommendations for continued service life. This contract action also was not initially known at the time of the award of the IDC back on 30 September 2017.

Also, it is our expectation that with the onset of the U.S. Coast Guard Subchapter M Towing Vessel Inspection requirements, and the age of the USACE fleet, there will be more opportunities to utilize the capabilities of the ABS to assist with work and assessments for existing in-service vessels.

ABS also has been involved with the USACE Armor One Mat Sinking Unit Project. Following the completion of the contract, MDC expects to retain ABS under this IDC for follow-on safety, certification and class work.

In addition to the items noted above, MDC is currently working several smaller scale projects that will require ABS involvement. MDC is also in the process of developing a contract level design package for a crane barge for St. Paul District to be issued with a solicitation later this year.

The total value of all contract capacity to date that has been used for the above actions is approximately $525,000. Combining that with the projected value of remaining required FY21 design work, the total contract capacity of $650,000 will be reached prior to the end of FY21.

Below is the list of projects that require ABS services. MDC has reserve funds for possible modification(s) and last-minute requirement(s).

MDC Project No. Project Title Estimated Value of ABS T.O.

3218 MVP Excavator Barge $100,000.00

TBD

Olmsted Wicket Lifter - Dual Load

Chart $20,000.00

MVK Crane Barge 8101

Replacement $150,000.00 3330 MVP Deck Material Barges $30,000.00 3348 CENAB Reynolds Replacement $100,000.00

Floating Crane Brownlee

Replacement $100,000.00

CEMVM M/V Key Woods

Replacement $100,000.00 3308 SWT Towboat $75,000.00 3375 LRE Aquadigger Support $150,000.00 N/A Reserve $175,000.00

Total Projected Value $1,000,000.00

6. Efforts to Obtain Competition:

a. Notice of Intent to Sole Source: Not Applicable.

b. Effective competition: There is no competition anticipated for this procurement as demonstrated in paragraph “5” above- “Reason for Authority Cited,” due to the cited statutory and regulatory requirements to use ABS for classification and related services.

c. Subcontracting competition: To ensure ABS obtains subcontract as much competition as possible, contract incorporates by reference FAR clause 52.219-8 Utilization of Small Business Concerns (May 2004).

7. Actions to Increase Competition: Sole source dependency cannot be alleviated since ABS is the regulatory body mandated by U.S. Law for United States Government vessels. Competition is not available until the USCG approves and recognizes another classification society that provides the same services as

ABS.

8. Market Research: The appropriate market research was performed for this acquisition. Research showed that there are three (3) potential foreign contractors capable of performing the work but they are not permitted to work in the United States. These contractors are: Det Norseke Veritas Foundation of Norway, Lloyd’s Register Group of England, and Nippon Kaiji Kyokai of Japan. ABS is the only marine regulatory body that the US Coast Guard recognizes and the only one authorized to perform DOD regulatory work in the United States.

9. Interested Sources: To date, no other sources have expressed an interest in writing since the initial J&A. If interested sources respond to the modification J&A, it will be documented and reviewed by the contracting activity along with the technical team.

10. Other Facts: Besides what have been provided in paragraph five (5), there are no other issues with this acquisition.

Procurement History:

1- W912BU-14-D-0025

Date Signed: September 26,2014 POP: September 26, 2014 – September 25, 2019 Contract value: $650,000.00 Competitive status: Sole Source J&A: Control no. 14-21, signed April 7, 2014, $600,000.00 J&A Amendment 0001: Control no. 14-21, signed May 29, 2014, additional $50,000.00 Authority use: FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements, 10 U.S.C. 2304 (c)(1).

Reason for Authority: “It is requested that ABS be issued this IDIQ contract as the only responsible source since it is the only regulatory body in the United States that is authorized by law to provide classification services for Department of Defense vessels. Other classification societies exist worldwide, but are precluded from work on U.S. Government vessels.”

Note: W912BU-17-D-0002 replaced contract due to capacity. There is no documentation of the reason to pursue a new procurement instead of a modification to increase capacity.

11. Technical Certification

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name: Timothy J. Keyser Date: ________________

Title: Chief, Design Branch, Marine Design Center Signature: __________________________________

12. Requirements Certification

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name: Michelle Bertoline Date: ________________

Title: Program Manager, Marine Design Center Signature: ___________________________

13. Fair and Reasonable Price Determination

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. Provide the basis for this determination (e.g., describe techniques to be used to determine fair and reasonable price, such as cost analysis, price analysis, audit, should cost, independent Government estimate, etc.). As part of this basis, indicate whether certified cost or pricing data will be required or if one of the exceptions in FAR 15.403 will apply.

Name: Robert W. Hutcheon, Jr. Date: ________________

Title: Contracting Officer Signature: ______________________________

14. Contracting Officer Certification

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

Name: Robert W. Hutcheon, Jr. Date: ________________

Title: Chief, Civil Works Branch/Contracting Officer Signature: _____________________________

Approval Signature Block

Based on the foregoing justification, I hereby approve the procurement of for Inspection and Analysis Services of Vessels to meet ABS classification on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(5), subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Date: _________________ Signature: _____________________________

KIMBERLY A. MARSHALL

Alternate Advocate for Competition- Atlanta