JA N3220519C3516P00017.pdf

J&A No. N103-19-C-3516-2

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), Service Support Program, N103/PM2.

2. Description of the Action Being Approved.

3. This modification seeks to extend the period of performance (PoP) on contract N32205-19- C-3516 on a sole-source basis for the time charter of the vessel, HOS RED ROCK, to the incumbent contractor Hornbeck Offshore Operators, LLC (HOS). This contract action extends HOS’s time charter for up to 45 days from 14 January to 27 February 2021 and will also include three 45-day option periods.

4. Description of the Supplies/Services.

Contract N32205-19-C-3516 provides for one U.S.-flagged or foreign-flagged (to be reflagged U.S.) vessel required to tow an acoustic array in support of U.S. Navy Operations. The vessel operates on missions worldwide subject to the needs of the U.S.

Navy Fleet.

The total estimated fixed value charter hire of this 45-day contract extension plus all three option periods, if exercised, per the IGE is $6,399,999.00. In preliminary discussions, the contractor indicated the vessel would be available for the extension. Discussions did not include pricing. Funding will be FY21 Navy working capital funds.

Estimated Dollar Value

EXTENSION DAYS

(Base + 3 Options)

DAILY RATE

(IGE)

EXTENSION

TOTAL VALUE

180 $35,555.55 $6,399,999.00

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

This justification is prepared under the provisions of 10 U.S.C. § 2304(c)(2), as implemented by FAR 6.302-2 Unusual and compelling urgency. Though FAR 6.302-1 only one responsible source, also applies, (b) it shall not be used when any of the other circumstances apply.

5. Rationale Justifying Use of Cited Statutory Authority.

The U.S. Navy has a critical need for worldwide surveillance operations. In response to the need, the Chief of Naval Operations designated Surveillance Towed Array Sensor System- Expeditionary (SURTASS-E) as a Rapid Prototype, Experimentation and Demonstration Project. As part of this effort, MSC chartered a platform to serve as a Vessel of Opportunity (VOO) to test, demonstrate, and evaluate the capability of the expeditionary equipment. HOS RED ROCK was the VOO competitively awarded a charter for this mission and the Navy deployed the prototype SURTASS-E system for evaluation.

U.S. Navy Fleet requirements have resulted in a continued need for the SURTASS-E platform and the vessel is still in use. There is no one else but HOS that can meet the Navy’s requirement at this time. Pursuing a full and open competitively awarded follow-on contract at this time would result in a gap in services due to the plan of action and milestones (POAM) to award a new five (base with four option years) contract. The 45-day extension ensures that there is a continuity of performance from 14 January 2021 until 27 February 2021. The three option periods are also necessary to ensure there is no break in service between the end of the current contract and the award of the new contract based on when we anticipate to award and the lead time needed for offerors to deliver their vessel after modifications have been done. The use of 10 U.S.C. § 2304(c)(2), as implemented by FAR 6.302-2, is necessary as a delay in implementing this modification to the period of performance would result in there not being a vessel available to the government and therefore serious mission failure.

For example, one contractor that responded to the request for proposals for the new award may require a ninety days modification period plus six days to transit. The award date for the new, competitive contract is expected to be 7 March 2021. The extension and option periods allow for continued service until the new award and while a contractor makes the required vessel modifications if the incumbent does not win. It is unfeasible for any other source to be able to ensure continued service except for HOS, the incumbent.

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

MSC made no additional efforts to solicit offers for the extension period covered by this J&A per 5.202(a)(2). No synopsis of this extension modification was published on beta.SAM.gov therefore no sources have expressed interest in competing for the 45-day extension as they were not informed. This requirement was not fully solidified until 14 December 2020 per email from Sara Landry, Program Manager, Special Mission Ships – PM2. The Government would be seriously injured if MSC complied with the required time periods.

Analysis entailed examining the responses to a market survey issued for this requirement’s first extension under Market Survey PM2CSM0001 issued on 10 April 2019. MSC had received two responses; Laborde Marine offered a vessel with a daily rate of $24,900; and Bordelon offered a vessel, but did not provide a charter hire rate. PM2 & PMS 485 Project Officers found neither offeror technically capable of completing the requirement by the required lay days.

Offers were already received 5 August 2020 for the new award. MSC began the process of a competitive procurement for a long-term charter in the spring of 2019 with a RFI posted May 2019 and had anticipated award timeline of January 2021. This competitive procurement had an anticipated award timeline to avoid an extension but was affected by delays in the procurement process due to issues relating to the COVID-19 pandemic and a pre-award protest.

7. Determination of Fair and Reasonable Cost.

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

8. Actions to Remove Barriers to Future Competition.

MSC is taking steps to award a competitively competed follow-on contract for the HOS RED ROCK and is currently in the discussion phase. The new contract is expected to be awarded 7 March 2021. While the exact timeline for the SURTASS-E’s current operational mission is unknown, it is not expected to last more than the requested extension. Furthermore, the requested PoP extension is under the FAR 6.302-2(d)(ii) one year limitation. Therefore, the requested PoP should not be a barrier to future competition in accordance with FAR 6.302- 2(d)(i).