JA PPG- ceiling increase REV 2 Redacted.doc

J&A N0. N102-D-19-7002-7 2021

JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION

Upon the basis of the following justification, I, as Competition Advocate, hereby approve the use of other than full and open competition for the proposed contractual action described below pursuant to the authority cited herein:

1. Contracting Activity:

Military Sealift Command (MSC) N10

2. Description of the Action Being Approved:

Modification to Contract N3220519D7002 to increase the maximum quantity of the 5-year ordering period.

3. Description of the Supplies/Services:

Contract N3220519D7002 FLEET-WIDE PAINT PROGRAM AND RELATED SUPPLIES/SERVICES, is in support of MSC’s Engineering Division (N7). Military Sealift Command (MSC) requires paint, coatings, solvents, preservation products, and engineering/technical services for the MSC Fleet Paint Program. The Government is Contracting not only for specific products and services, but also for the availability and delivery of these products and services on a worldwide basis within specific time constraints defined for each main port or geographic zone. An integral part of supplying products and services under this Contract is the engineering support the Contractor provides to ensure all ships and equipment are preserved and maintained properly. The Contractor provides products and services, on a worldwide basis, for MSC ships and any other Government owned or Government chartered ships designated by MSC. The contract was awarded on 14 June 2019 and in the third year of a five-year ordering period.

4. Statutory Authority Permitting Other than Full and Open Competition:

IAW 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1(b)(1)(ii), when there is a reasonable basis to conclude that the agency’s minimum needs can only satisfied by - For DoD, NASA, and the Coast Guard, unique supplies or services available from only one or a limited number of sources or from only one or a limited number of suppliers with unique capabilities.

5. Rationale Justifying Use of Cited Authority:

The contract includes FAR 52.216-2 ECONOMIC PRICE ADJUSTMENT--STANDARD SUPPLIES (JAN 1997) which allows for the adjustment of pricing of the product not to exceed 10% of the contract value. The price of commodities has increased and PPG Architectural Finishes, Inc’s. current contract can satisfy MSC’s minimum requirements without impact to supply or schedule. Reprocuring the services would cause a duplication in cost to the Government.

Increasing the ceiling by the value stated in paragraph 2 above vice soliciting for new products is in the best interest of the Government. This allows for the adjustment of prices based on the currency of the economy vice re-procurement costs. This economic price adjustment equals the maximum allowable per the FAR clause and is the second adjustment requested in the life of the contract. It is applicable to this Contractor and this contractor only.

The required paint, coatings, solvents, preservation products, and engineering/technical services meet OEM requirement. Currently, the required paint, coatings, solvents, preservation products, and engineering/technical services needed to maintain shipboard equipment are procured through individual delivery orders.

IAW NMCARS 5206.303-2a (iii) funding for Fiscal Year 21 (1 Oct 2020 - 30 Sep 21), Fiscal Year 22 (1 Oct 2022 - 30 Sep 22), and Fiscal Year 23 (1 Oct 2022 - 30 Sep 2023) and the appropriations will be O&MN funds issued through individual delivery orders.

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

No additional market research conducted because it is not practicable, for the reasons discussed in Paragraph 5 above, for any company other than PPG Architectural Finishes, INC to provide the required services.

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:

For the reasons set forth in Paragraph 5, MSC has no plans at this time to compete future contract increases, if required, for the types of services covered by this document. If another potential source emerges, MSC will assess whether competition for future requirements is feasible.