JA_N4002726F0115_Redacted.pdf
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- Attached to
- SHIP REPAIR
- Solicitation number
- N40027-26-F-0115
About this file
This is a Justification and Approval (J&A) document for an exception to fair opportunity procedures in federal contracting.
The Department of the Navy's Southeast Regional Maintenance Center (SERMC) awarded a delivery order (N40027-26-F-0115, Contract N00024-24-D-4229) to BAE Systems, Inc. on April 10, 2026, on a sole-source basis to complete emergent repairs to USS IWO JIMA under SSP SERM-091-26. The vessel experienced unforeseen casualties while underway that required immediate, complex repairs within a constrained timeline to prevent delays to the ship's redeployment schedule. SERMC determined that BAE Systems was the only contractor capable of successfully executing the work given the complexity of the rigging operation and tight timeframe. The contracting officer invoked the urgency exception under FAR 16.505(b)(2)(i)(A), finding that providing fair opportunity to other eligible IDIQ Lot 1 contract holders and allowing mobilization time for alternate contractors would result in unacceptable delays. The contracting officer determined the price was fair and reasonable using an Independent Government Estimate, historical cost data, and negotiated rates from the competitively awarded base IDIQ contract. The document notes that the root cause of the emergency—unforeseen casualties during vessel operations—presents no specific barrier to remove for future acquisitions, and further analysis may determine preventive measures for similar incidents.
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J&A Number: N40027_26_002
4. Exception to the fair opportunity process and supporting rationale.
The authority which permits an exception to fair opportunity is FAR 16.505(b)(2)(i)(A) The agency's need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.
Based on the complexity it was determined that BAE Systems, Inc. was the only contractor capable of successfully executing the work during the extremely tight timeframe.
Therefore, the time required to provide fair opportunity to other eligible IDIQ Lot 1 contract holders, as well as the subsequent time for another contractor to plan, mobilize, and secure the necessary OEM did not support the successful completion of emergent repairs in have resulted in unacceptable delays, and therefore required that the work be awarded to BAE Systems, Inc.
5. Determination that the anticipated cost to the Government will be fair and reasonable.
The contracting officer determined that the price was fair and reasonable using the Independent Government Estimate and historical cost data. Additionally, the base IDIQ contract for the anticipated delivery order was competitively awarded with established ceiling labor rates and material/subcontractor burden rates. The Contracting Officer used those rates to negotiate a fair and reasonable price.
6. Other facts supporting the justification for the exception to the fair opportunity process.
Considering the complexity of the rigging operation and the short timeline for the start of the repair, any delay associated with providing fair opportunity for the USS IWO JIMA repair would have prevented the ship from redeploying as scheduled.
7. Actions, if any, the agency will take to remove or overcome any barriers that led to restricted consideration before any subsequent acquisition for supplies and services is made.
As the root cause for the exception to fair opportunity were unforeseen casualties while the vessel was underway, there is no specific barrier to remove. Analysis of the cause of the casualty may determine a course of action to prevent similar casualties from occurring in other ships, but it is premature to assume a class-wide issue exists.
File details come from the government source that posted it. Updated .